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City Mgm't Memo Offers Council These Reasons To Renege On Their June 2016 Promised Sales Tax Reduction/Phase Out, Enable March 2020 Ballot Measure To Perpetuate "Measure A" Sales Tax In Perpetuity


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(June 25, 2019, 12:30 p.m.) -- City management has agendized an item for the July 2 Council agenda citing reasons it says justify conducting a special citywide March 2020 election on a ballot measure to let City Hall continue to impose the June 2016 "temporary" Measure A General Fund ("blank check") sales tax increase basically indefinitely.

To view city management's agendizing memo in full click here.

On July 2, the Council will hear management's presentation and vote on whether to direct the City Attorney to prepare materials for subsequent Council approval that would place what amounts to a "Measure A forever tax" on a March 2020 ballot.

As presented to LB voters in June 2016 by Mayor Garcia and the entire City Council, Measure A explicitly stated that its 1% tax increase would drop to 0.5% by 2023 end entirely in 2027. The now-proposed March 2020 ballot measure would renege on those terms, authorizing City Hall to continue to impose the Measure A sales tax increase without reduction basically as long as it wishes.

LB voters approved Measure A after a six figure campaign funded using sums solicited by a political committee run by Mayor Garcia. In June 2018, Garcia renamed the committee to solicit sums and run a campaign to enact the City Hall-sought Measure M utility revenue transfer/rate increase backfill. He then renamed the committee to run a campaign for four Charter Amendments, including Measure BBB that has now allowed Council incumbents Andrews and Austin to seek third terms without previous write-in requirements.

Putting a "Measure A forever tax" on the March 2020 ballot would coincide with Council elections in Council districts 2 (Pearce), 4 (Supernaw), 6 (Andrews) and 8 (Austin.)

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Among management's offered justifications for continuing Measure A indefinitely is the emerging Community Hospital transaction. In March 2019, the Council approved in principle negotiating a deal (not yet finalized) that will commit LB taxpayers to spend $25 million over 15 years. LB taxpayers would pay half the cost of seismic improvements to enable a privately owned LLC to run for its profit a smaller version of Community Hospital on city-owned land. City management's memo acknowledges that this sum is "currently unfunded" (meaning the City has no currently identified way to pay for it without either using Measure A funds or reducing taxpayer services.)

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Some portions of management's memo are arguably more tendentious than informational:

  • Management's memo says that under Measure A, the City has added "41 new public safety positions" and "preserved" 108 public safety positions that would have been lost without it, and notes that the Council has restored Paramedic Rescue 12 (NLB), Engine 8 (Belmont Shore) and restored Police Academy operations. However as LBREPORT.com has previously reported, despite Measure A the Council has restored only 22 citywide deployable officers out of 208 erased, leaving LB taxpayers without 186 officers (including LBPD's former field anti-gang unit) that LB taxpayers had before Measure A. Management's memo says that extending Measure A will let the City "maintain" LB's current police level. Also unrestored despite Measure A: Fire Engine 17 at Station 17 (adjacent to the newly renamed Capt. David Rosa Regional Fire Training Center) and Engine 101 at Fire Station 1 (to address downtown high risk risks.)

  • Management's memo includes a chart labeled "Sales Tax Rates of Other California Cities" but it lists only cities with sales tax rates of 10% or higher (LB's is 10.25%) while omitting a larger number of cities with lower rates (including many in neighboring OC with rates in the 7% or 8% range.)

  • Management's memo doesn't mention some Mayor/Council approved actions that have arguably put LB taxpayers in a difficult fiscal position. Those actions include purchasing NLB property for a year round homeless shelter with no identified sources to fund its operation, staffing, management and maintenance when it's built.

  • Although the memo cites Measure A's infrastructure and public safety funding, its roughly $60 million annual revenue infusion has also effectively freed up other General Fund sums that city management can use to help provide pay raises to city employee unions.

  • Management cites among Measure A's accomplishments "102 lane miles of arterial streets renovated using the 'complete streets approach,' which includes road resurfacing and adding bike lanes." But "complete streets" and "road diets" have begat pushback for various reasons along the Broadway Corridor, at the Alamitos Bay Marina, along the some eastern portion of Ocean Blvd., on Bellflower Blvd. near CSULB and in southern Los Altos and on Studebaker Rd. between Wardlow Rd. and Spring St.

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If the Council unanimously declares a "fiscal emergency" (if/when it actually puts the measure on the ballot in a subsequent Council meeting), it would allow the "Measure A tax forever" measure to appear on a March 2020 citywide ballot. (Without the declaration of a "fiscal emergency," it could only appear on the November 2020 ballot.)

As a General Fund ("blank check") measure, a "Measure A forever tax" could be enacted with a 50%+1 vote margin.

In a parallel developing story, LBREPORT.com reported (first again) some person(s) have filed paperwork creating a "Lift Up Long Beach Families -- Rex Richardson Ballot Measure Committee" that has scheduled a downtown fundraiser this initial supporters. Based on Councilman Richardson's record, and the group's initially identified supporters, speculation is that such a measure may focus on homeless related/affordable (below market/subsidized) housing. LBREPORT.com coverage here.

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