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The Taxman Cometh To La Habra?

Posted by: Jubal | 07/22/2008 4:06 PM

I spotted this article in the OC Register while doing the News Roundup:

The [La Habra] City Council voted unanimously tonight to put a ballot measure in front of voters that would increase sales tax in the city by a half-cent.

Several business owners and community activists, in the crowd of about 150, supported the four council members.

"Cities need to constantly improve themselves to be the kind of places where people want to live and work," said business owner Kent Roberts. "Improvements cost money. ... The half-cent sales tax will keep La Habra moving forward."

Jennifer Cervantes, assistant to the city manager, said one reason city officials back the tax is because it could help make up for an anticipated $5.5 million in lost revenue annually from a utility user's tax that expired in December and voters chose not to extend.

You can read the rest of the article here, and Steve Greenhut's observations here.

For the record, the four councilmembers voting last night to put it on the ballot were:

Rose Espinoza
Tom Beamish
Steve Simonian
James Gomez

Simonian and Gomez are up for re-election this year. The late Council Steve Anderson's seat is also on the ballot. If Simonian and Gomez try for an OC GOP endorsement for the re-election campaigns, I hope the party keeps this vote in mind.

Given that La Habra voters are probably concerned about their own pocketbooks, and since they already voted down the utility tax in the face of the usual apocalyptic warnings, I'm skeptical they'll want to hike their sales tax to make things easier to city government.

Has the La Habra city government  look at ways to cut back, re-prioritize and streamline? I'd be interested to know what percentage of the municipal city budget goes to salaries, benefits and pensions.

A few days ago, a councilman told me how their city staff recently came to them and asked for a rate hike. The councilman asked if they had looked at finding savings as an alternative to a rate hike.

Staff said they hadn't.

The councilman asked if they had investigated any alternatives to a rate hike.

No, the staff replied. They didn't look because they didn't think there were any alternatives.

Even worse, that explanation was good enough for the councilman's four colleagues, who voted to approve the hike (the councilman who related to account voted against it).

What the heck: the taxpayers can always fork over a little more.

Comments

Allen Wilson said:

Jubal: Thanks for sharing.

Since, four of the councilmembers voted to put this on the ballot, Does this mean they support a tax increase? What is the position of the other candidates running for La Habra City Council this November on the sales tax increase? I would be interested to hear the answers.

Good work, Jubal.

Highlander said:

The councilmembers up for re-election in 2008 are Espinoza (D) and Beamish (R). Anderson would have been up this year but he passed away, so there is a vacant seat. La Habra has no utility tax, no hotel tax, no Mello Roos, no local tax. Per capita taxes in La Habra are at $212 a year. By way of comparison, Laguna Beach collects $1,073, Newport Beach $903, Brea $466, Costa Mesa $464, Anaheim is $411, and on I could go. La Habra's $212 per person, per year is literally at the bottom of OC citites. La Habra has to pay for police, fire, streets, parks and all that like these other cities. Why can Anaheim get 67 million in hotel taxes, Huntington Beach collect 20 million in utility taxes, Westiminster gets their 5 million in utility taxes, and La Habra get nothing?

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