Thank you to Mayor Sue Kempf and Mayor Pro Tem Alex Rounaghi for not supporting the proposition to place a tax increase on the next ballot. Increasing the tax burden on our citizens to support the cost of city programs and services is short-sighted and will not solve our problems. Instead, we need sustainable, long-term solutions that address the underlying issues causing costs to exceed revenue, which is projected to gradually increase by 2-5% annually, as city staff shared in their presentation on the proposed tax increase. Relying on tax increases merely postpones the inevitable need for comprehensive fiscal management and innovative approaches to economic growth and efficiency.
The city has recently purchased several properties throughout Laguna Beach, which involve substantial additional costs beyond the initial purchase price. These ongoing costs significantly impact our city’s budget and resources. Rather than acquiring additional properties like Saint Catherine’s for expanded office space or assuming responsibility for Aliso Beach, we should explore opportunities to lease underutilized city-owned properties to generate revenues to alleviate the increased cost pressures that the new taxes seek to solve.
Given that the projected revenue shortfall is relatively modest at $1.7 million, leasing existing city properties could potentially generate a similar or even higher income without impacting current residents. This approach would also alleviate the need for additional staffing, equipment (like boats), and services associated with property acquisition and management. At the very least, I suggest exploring all options to maximize current assets to generate revenue first before looking to our taxpayers to support ongoing costs that will likely need expansion and have increased costs in the future as they go towards personnel costs.
Jim Kelly, Laguna Beach
I agree that the city should do a deep dive into operating efficiencies, and I am optimistic that the new City Manager Dave Kiff is well-equipped for that challenge.
But on the issue of the business license fee change that isn’t happening, the intent is not to increase taxes on residents, but rather the intent is to generate revenue from visitors that would help cover some of the costs the city incurs providing necessary services to those visitors. The costs that are not being covered by visitors are estimated to exceed $20 million per year. Since the visitors are not paying those costs, you are. Until this is corrected, a large chunk of what you are paying in taxes will continue to be diverted from providing services or facilities that would primarily benefit residents but is instead used to cover the added costs the city incurs that are made necessary by the need to provide public safety and other city services to the visitors.
What you see as a tax increase is actually a tax correction. Right now, you are paying taxes that should be paid by someone else. The wrong guy is paying the tax. And you are that wrong guy paying someone else’s taxes. The city should be generating enough revenue from the visitor to cover the added costs the visitors create for the city. That way, what you are paying in taxes could be used for services and facilities that are primarily for the benefit of the residents. I say it’s a little like paying for a Mercedes and getting a Toyota delivered.
Agree, thank you Mayor Kempf and Councilman Rounaghi for opposing that ballot initiative. Patron taxes on hotel guests, residents, restaurants and bars do not pay for day-trippers using city services; an added tax on Peter to pay for Paul. Instead adopt better solutions used in other cities (Malibu, Venice IT and Yosemite) or develop unique solutions for Laguna. https://lagunastreets.blogspot.com/2022/09/beach-fee-for-day-trippers.html
Glad I left last year- incompetent City government- let’s spent lots of $$$$ on a “STUDY.”
What will the city do- during the impending downturn?
Thank you JT for explaining, then re-explaining reality to Mr. Kelly in your comments.
Maybe via your redundancy (and many many others) he’ll get the message—-and stop shooting We, the People, the messengers?
He lost me for good when he alleged that our Marine Safety boat, the Wave Watch, was an unnecessary purchase.
This is an oblivious approach to safety: We need to give our Marine Safety staff, plus Fire and Police Departments, an approximation of state-of-the-art tools to do their jobs.
Critical reading is a necessary component of alleging a watchdog role, so perhaps Mr. Kelly scrolled past the recent column a few months ago?
The boat was part of State Parks inventory that was transferred, the remaining funds to outfit the boat to industry standards a donation.
I think these 2 men who donated also paid for our jet skis?
https://www.lagunabeachindy.com/lagunas-new-marine-safety-vessel-christened-in-newport-beach/
Once we acquired So Lag strands from the County, having a proper response infrastructure is a no-brainer.
And in case those reading this don’t know, personal injury attorneys can have at us if we provide sub-standard service: Service being a function of properly trained personal, adequate in numbers and equipment as ours are attempting to acquire.
Your MS Department, Mr. Kelly, is trying to do the best they can in very unique circumstances, under a gamut of shoreline conditions.
Our 7.5 miles of coastline is one of THE most challenging in the State.
These are some of the bravest MS personnel as you’ll find anywhere.
Isn’t the point of the local Laguna people demanding The City do something all about Central Planning? Except they’re stuck with the Democrat Central Planning that they voted for State-wide. Now they try to get control of their own issues and The Coastal Commision’s Central Planning blocks them. Can they get the backbone to over come this? Nope. But they’ll complain for years.
This morning when I read an interesting piece in the Orange Country Register, the University of California, Irvine released a study done on life in the OC.
Half of the county residents are seriously thinking of splitting.
Cash out, move and live forever on the profit in a sane-state.