HUNTINGTON BEACH is going to face rough financial tides (Vans photo).

By Jim Tortolano/Orange County Tribune

The City of Huntington Beach, famous for its surf culture and dazzling sea coast, can expect to face some rough weather financially into the next decade.

That’s the evaluation of the consulting firm Urban Futures, which told the city council on Tuesday night that Surf City will likely be running deficits until the fiscal year 2033.

Jim Morris of UFI briefed the council on the challenges facing the community. “You’re not alone in this,” he said. “Many cities are facing a similar situation.”

Rising pension obligations, the pressure of inflation and property tax revenue that is “less aggressive” than in past years have all contributed to annual deficits that will peak at $12 million in fiscal year 2029, gradually narrowing until the city is back in the black four years later.

Some possible strategies to reduce the red ink include pre-paying pension obligations in hopes that the state pension fund will perform better in the near future and thereby reduce the amount to be paid then, as well as cutting expenses and attracting sources of new revenue.

“We’re an old city,” said Councilman Casey McKeon. “Every city council that came before us has made decisions to led us to this point.” He added, “We’ve kicked the can down the road.”

He noted that the present council has been criticized for allegedly not paying attention to “nuts and bolts” of city operation, but “we do. We do every day.”

The next meeting of the council is scheduled for Feb. 18.