The city of Long Beach plans to dip into its emergency reserves to balance its books this year as lagging tax revenue and rising expenses worsen its financial position ahead of the budget’s close on Sept. 30.
The city says it will pull $27 million from a total of four reserve accounts, exhausting its operating reserves and taking out $16.5 million from its $50.1 million emergency reserve — money set aside specifically for natural disasters and unforeseen crises.
The city last tapped that reserve during fiscal years 2020 and 2021, as officials awaited COVID-19 federal relief money while stay-at-home orders shuttered businesses and forced the city into furloughs…