La Palma Ca Taxes

Arguing that the community's quality of life is at stake, the City Council tentatively approved a plan this week to institute a 5% utility tax. The tax would cost the average household about $6.85 monthly and generate an estimated $800,000 annually to maintain current services and boost the city's dwindling reserve fund, officials said. It would take effect Jan. 1, 1994, and would apply to electricity, gas, telephone and cable television.

A former city councilman is hoping that the nation's upbeat economy could lead to a temporary tax break for residents. But the La Palma City Council isn't so sure. City residents have been paying a 5% tax on electricity, gas, cable television and water use since the tax was passed in 1993, when the city was suffering a recession. Now, partly because of a growing population base and the rosy economy, that tax is responsible for 15% of the city's general fund.

Homeowners will pay 2.61% less next fiscal year for city landscaping and lighting, while commercial property owners will see a 1.61% decrease. Public Works Director Ismile Noorbaksh told the City Council that prudent budgeting enabled the city's Landscaping and Lighting District No. 2 to cut assessments for next year. The special district covers the entire city. It is a taxing mechanism allowed by state law to pay for public landscaping and lighting costs.

A City Council study session Tuesday will focus on ways to make up the money that will be lost next fiscal year because of Proposition 218. The measure, passed by state voters in November, limits how cities may levy fees and assessments. City Manager Daniel E. Keen has told the council that the measure seriously affects La Palma and will result in a $600,000 shortfall in the fiscal year that starts July 1.

The City Council will hold a special meeting today to consider approving a tax on utilities that would be triggered only if city finances continue deteriorating. The city does not yet have a need for the tax, City Manager Pamela Gibson said. But the opportunity exists now to adopt such a tax because the courts last year invalidated a 1986 state ballot measure that required two-thirds voter approval for nearly all new taxes. The council now can adopt a utility tax without a vote, Gibson said.

A City Council study session Tuesday will focus on ways to make up the money that will be lost next fiscal year because of Proposition 218. The measure, passed by state voters in November, limits how cities may levy fees and assessments. City Manager Daniel E. Keen has told the council that the measure seriously affects La Palma and will result in a $600,000 shortfall in the fiscal year that starts July 1.

Many costs, including gasoline prices, may be going up, but residents will have at least one tax decrease this year. The citywide tax for landscaping and lighting will be almost 9% lower for homeowners and 5% lower for businesses. City Councilman Wally Linn said the decrease is something to cheer about. "When we have a chance to recognize a tax decrease, we should do it," he said. "Homeowners are going to save about $7 per parcel in our city, and that's good news."

A utility user tax enacted three years ago now is "a critical element of [La Palma's] general fund revenue" and accounts for 17% of annual income, City Manager Daniel E. Keen told the City Council this week. Keen said the 5% tax on utilities has enabled the city to keep police and other city services at their current levels. During a public hearing Tuesday night, Keen said that reducing the utility tax even 1% would undermine the city's fiscal position.

From outside appearances, this bedroom community would seem to be blessed. Its 16,000 residents have the fourth-highest per capita income among Orange County cities. Property taxes are below the county average. And nowhere within the 1 3/4 square miles that are La Palma does it take the Police Department more than five minutes to dispatch an officer. But beneath this attractive veneer is a municipality in big trouble.

A reluctant City Council has begun to consider enacting a local utility tax in an effort to protect the municipal budget from state funding cuts like those imposed by the Legislature last summer. The council began discussing the tax during a special meeting this week and agreed to continue the debate during its regular session Tuesday. City Manager Pamela Gibson has recommended that the City Council consider enacting a tax on utilities such as electric, telephone and cable television service.

A utility user tax enacted three years ago now is "a critical element of [La Palma's] general fund revenue" and accounts for 17% of annual income, City Manager Daniel E. Keen told the City Council this week. Keen said the 5% tax on utilities has enabled the city to keep police and other city services at their current levels. During a public hearing Tuesday night, Keen said that reducing the utility tax even 1% would undermine the city's fiscal position.

Many costs, including gasoline prices, may be going up, but residents will have at least one tax decrease this year. The citywide tax for landscaping and lighting will be almost 9% lower for homeowners and 5% lower for businesses. City Councilman Wally Linn said the decrease is something to cheer about. "When we have a chance to recognize a tax decrease, we should do it," he said. "Homeowners are going to save about $7 per parcel in our city, and that's good news."

Homeowners will pay 2.61% less next fiscal year for city landscaping and lighting, while commercial property owners will see a 1.61% decrease. Public Works Director Ismile Noorbaksh told the City Council that prudent budgeting enabled the city's Landscaping and Lighting District No. 2 to cut assessments for next year. The special district covers the entire city. It is a taxing mechanism allowed by state law to pay for public landscaping and lighting costs.

Despite an aggressive anti-tax campaign by a local cable company, the La Palma City Council has voted 5-0 to impose a 5% utility tax. City officials estimate the new fees, which apply to electricity, gas, telephones and cable television, will cost the average household an extra $6.85 a month. They will start Jan. 1. Council members said they reluctantly passed the new tax, but argued that it is necessary.

Arguing that the community's quality of life is at stake, the City Council tentatively approved a plan this week to institute a 5% utility tax. The tax would cost the average household about $6.85 monthly and generate an estimated $800,000 annually to maintain current services and boost the city's dwindling reserve fund, officials said. It would take effect Jan. 1, 1994, and would apply to electricity, gas, telephone and cable television.

A reluctant City Council has begun to consider enacting a local utility tax in an effort to protect the municipal budget from state funding cuts like those imposed by the Legislature last summer. The council began discussing the tax during a special meeting this week and agreed to continue the debate during its regular session Tuesday. City Manager Pamela Gibson has recommended that the City Council consider enacting a tax on utilities such as electric, telephone and cable television service.

Despite an aggressive anti-tax campaign by a local cable company, the La Palma City Council has voted 5-0 to impose a 5% utility tax. City officials estimate the new fees, which apply to electricity, gas, telephones and cable television, will cost the average household an extra $6.85 a month. They will start Jan. 1. Council members said they reluctantly passed the new tax, but argued that it is necessary.

Voters in this small bedroom community could face a difficult choice Nov. 7: approve higher taxes or feel cuts in such basic community services as police protection and recreation programs. Ballot Measure Q, a 4% tax on utilities, would raise revenue for the city's general fund, the Police and Recreation departments, and other city departments.

The City Council will hold a special meeting today to consider approving a tax on utilities that would be triggered only if city finances continue deteriorating. The city does not yet have a need for the tax, City Manager Pamela Gibson said. But the opportunity exists now to adopt such a tax because the courts last year invalidated a 1986 state ballot measure that required two-thirds voter approval for nearly all new taxes. The council now can adopt a utility tax without a vote, Gibson said.

From outside appearances, this bedroom community would seem to be blessed. Its 16,000 residents have the fourth-highest per capita income among Orange County cities. Property taxes are below the county average. And nowhere within the 1 3/4 square miles that are La Palma does it take the Police Department more than five minutes to dispatch an officer. But beneath this attractive veneer is a municipality in big trouble.