LongBeachReport.com | LBReport.com | Mayor Foster Says City Mgm't Plans To Present "Revenue Raising Options" To Council on April 17 [One Week After Initial Council Elections]

(April 4, 2012) -- Mayor Bob Foster said at Tuesday night's (April 3) City Council meeting that city management plans to bring a report to the City Council on various "revenue raising options" on April 17...one week after initial City Council elections in districts 2, 4 and 8. [The races will be decided if a candidate receives 50%+1; if that doesn't happen, runoffs will be held in June.]

The unscheduled preview came when [in the context of an agenda item regarding potential pension savings and a possible ballot measure] Councilman Steve Neal expressed support for looking at LB's utility tax [which voters cut from 10% to 5% over five years via a petition-initiated Nov. 2000 ballot measure] to see "what type of dollars that would bring into the coffers of this City Council as well."

Mayor Foster replied, "And that report is already underway and will be back here I believe on the 17th [of April] if I'm not mistaken. This Council already directed the City Manager to come back with revenue generation ideas, and his staff I think are poised to do that on the 17th."

Later, in response to a question posed by Councilwoman Rae Gabelich, City Manager Pat West said, "These will be factual numbers regarding possible taxes or revenue that the city could look at."

The latest developments come less than a week after Mayor Foster appeared at a March 29 news conference at which City Auditor Laura Doud unveiled an audit that indicated City Hall had allowed $18 million in unpaid parking tickets to accumulate over the past three years, a development she blamed on outdated software. Near the start of his remarks, Mayor Foster called the audit findings an indication that "in the real world, there are consequences when you don't invest in our city." [The audit was separately discussed at the Council's April 3 meeting; LBReport.com coverage coming].

LBReport.com notes these related developments within the past four weeks in connection with possible City Hall "revenue raising options":

On March 6, 2012 [in an afternoon/non-prime-time scheduled Council session] city management presented what it called the City's "Fiscal Outlook for 2013 and Beyond." Financial Management Dir. John Gross told the Council that City Hall's current service levels aren't sustainable and cuts beyond those already made would be necessary for at least the next three years. (During its presentation, city management also provided a "multi-year police recruitment and academy plan" (touted prior to the meeting by Councilman Robert Garcia) that turned out to be three possible scenarios: shift the entire cost to other city departments; or shift half the cost to other departments and supplement with "one time" funds; or fund the academy class entirely with "new tax revenue" and possibly "one time funds.")

At the March 6 meeting, the Council voted 9-0 to ask the City Manager to return to the Council with various revenue raising options [now apparently scheduled to return on April 17]. Mayor Foster said at the time that he believes LB voters would be unlikely to approve a tax measure unless they believe City Hall has done all it can before seeking a tax increase.

On March 15, the Mayor told the monthly meeting of Councilman Gary DeLong's 3rd district neighborhood associations that City Hall would be focusing on maximizing revenue and would also examine in the coming months some of the functions that government performs that might be better performed by the private sector from which City Hall could get a revenue stream. Mayor Foster said he wasn't prepared at that point to advocate a tax increase but said he doesn't rule out advocating one in the future if he's confident the City has done everything possible to avoid it...and said doesn't feel the City is there...yet.

In Nov. 2008, LB voters declined to approve by the necessary vote margin a City Hall proposed property parcel tax for "infrastructure"; Mayor Foster had campaigned personally and helped raise a six figure sum in support of the measure (greatly outspending opponents)...but the measure received only 53% voter approval with 2/3 required for passage.

A November 2012 LB-proposed tax increase measure would coincide with the presidential election and a proposed statewide tax increase (sought by Governor Jerry Brown and Sacramento Democrats) that proponents say is necessary to avoid further cuts to schools.

A Council vote to put a measure on the November ballot would have to occur by August 10...and would be decided in part by the winners of elections in the 2nd, 4th and 8th districts (vote by mail ballots flying now with polling place day on April 10; runoffs will be held in June if no candidate receives over 50% of the vote).

Developing.

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