Tax Would Last For 10 Years
The Culver City Democratic Club hosted a discussion on Measure Y, the proposed half cent sales tax increase for Culver City which will appear on the ballot in November’s general election.
Mayor Andy Weissman and Councilwoman Meghan Sahli-Wells appeared to argue in favor of the tax increase while Former Culver City Planning Commissioner Marcus Tiggs argued the tax failed to solve the financial crisis the city faces.
Weissman told the crowd that after years of dipping into the reserves by $3 million each year, the city now faced a “structural deficit” of $8 million due to the termination of redevelopment agency the governor wiped out earlier this year.
“Revenues are down, expenses are up,” commented Weissman, and the “level of services we offer are in jeopardy.”
He stressed the city had reduced the workforce by 18% and noted that the Governor’s recently announced pension reforms were only a few years behind the actions Culver City had already taken.
Sahli-Wells defended the use of reserves stating “reserves are made for recessions,” and pointed out that at the present rate we would exhaust the reserves “in a couple of years.”
Tiggs stressed that while he is not opposed in general to taxes he felt that all Measure Y would do is “buy us time.”
“We need a comprehensive plan. The voters just approved measure X in April which raised the Transient Occupancy Tax (otherwise known as the “bed tax”). We increased in from 12% to 14%. We could have asked for the maximum of 15%. In 2004 we defeated measure U which would have cut the Utility User Tax and the city would have lost nine million dollars.”
Tiggs also pointed out that the city’s budget had risen from $56 million to $82 million per year since 2004. “I find it hard to believe we can’t find another 1 or 2% in cuts at city hall.”
Tiggs went on to suggest that further reductions were possible along with other tax options such as a tax on items with high sugar content or prepared foods. He pointed out that the City of El Monte has the “sugary tax” on the November ballot and the city expects t raise up award of $7 million if it passes.
Culver City School Board Vice President Kathy Paspalis voiced support for the tax on sugar items referencing the problems that schools face with childhood obesity.
Local business owner and Culver City Chamber of Commerce Board member Earl Trusty voiced strenuous opposition to the tax hike commenting that “In an economy where people are trying to analyze weather or not to buy a cup of coffee you want to raise taxes. I know how people scrutinize. Will they buy something from Best Buy in Culver City or will the go to Best Buy in Los Angeles where the tax is lower.”
While the Chamber of Commerce endorsed the tax hike, Trusty, one of the few retail businesses on the board, indicated he was one of many board members who voted supporting the tax hike.
Anticipating the loss of the redevelopment agency, Weismann told the crowd that City Manager John Nachbar had left positions unfilled so agency staff members could be moved into those jobs. It was pointed out that most of the staff members moved are high-earners and they kept their same salaries even though the pay rate for their new positions was substantially lower.
Sahli-Wells pointed out the city was trying to do the humane thing and added, “It costs money to hire people and it costs money to fire people.”
The amount of money potentially raised is also in question. Automobile sales which make up a substantial portion of the sales tax revenue will largely be unaffected. Only Culver City residents will pay the increase. Buyers who live in Los Angeles or neighboring communities and purchase a vehicle in Culver City will not be subject to the tax.
Everyone agreed the tax hike was not a panacea and that more was required. Sahli-Wells implied that the city would have liked a larger hike but settled on the half-cent as it was easier to pass. Tiggs warned that if the tax-hike passes and it doesn’t work the city will be hard pressed to go back to the voters for more. “We need to establish some serious benchmarks for reductions.”
If passed the tax will last for 10 years.
In another action the club passed a resolution backing a Federal ban on the sale of assault weapons similar to the current California ban.
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