In the coming months, La Mirada will consider alternate means of bringing in revenue, including a possible sales tax raise, after the state shut down local redevelopment agencies across California. Because of the closures, the La Mirada City Council declared a fiscal emergency on Feb. 14, with the estimated loss said to be at $25 million.
“[The La Mirada City Council] decided to declare a fiscal emergency to focus the community’s attention on this problem and give it greater flexibility in dealing with and scheduling possible ballot measure votes in the future,” said La Mirada city manager Thomas Robinson on Feb. 28. “They have not at this time made a decision to go forward with holding a ballot measure but they’ve taken some steps in that direction at this point.”
Previous cuts included employment
The city had already taken measures to cut costs before the state government shut down redevelopment agencies, which work to improve city infrastructure, across California at the beginning of the year.
Roughly 28 percent of the city’s full-time positions were cut with a similar reduced number made to part-time positions, many of which were previously given to people tied to Biola, according to Robinson. Despite that, Robinson and city mayor Steve Jones both said they believed a sales tax increase would not greatly affect Biola students or the school’s operations.
“On February first, the La Mirada Redevelopment Agency, which had been in business for more than 30 years making a variety of improvements in our community, went out of business,” Robinson said. “The total economic loss to the city is, at this point, I believe to be in the vicinity of $25 million.”
Residents favored sales tax in poll
A survey taken last fall indicated more than half of the 500 residents polled were favorable toward a possible tax increase, according to Jones, who graduated from Biola in 1970 with a degree in history.
“The results were favorable for a half percent sales tax increase in the November election,” Jones said. “That was the most favorable time and the most favorable tax. The other possibility was a utility users tax.”
David Peters, Biola professor of political science, said he was not happy that the redevelopment agency had been shut down. Peters, a former mayor of La Mirada, said that in past years the agency helped renovate various parts of the city that were falling into disrepair.
With the agency disbanded and a pressing need for infrastructure repairs that would cost upwards of $70 million, the community will need to decide whether it wishes to have a supplemental sales tax which would generate revenue needed to maintain the current quality of services, Robinson said.
Benefits of increased sales tax
A slight raise in sales tax would increase the revenue to between $12 million and $15 million a year. It is normally between $8 million to $10 million, according to Robinson.
“This would be money that would come to us directly,” Jones said. “We would have control over it, and so we would have much more efficient use of it for our local needs.”
Although it cannot be designated for anything, the city-controlled funds will likely go toward maintaining public safety and roads, as well as making infrastructure repairs. They also cannot be taken by another agency, like the state, Jones said.
A task force comprising a variety of different La Mirada residents was assembled earlier this week and will begin evaluating the situation the city faces. Robinson estimated the task force will make a recommendation to the council in June.
“I do think there’s going to be state measures on the ballot for a tax increase, and I do think we’ve got a good reputation with our citizens of being responsible with the money,” Jones said. “We’re optimistic that they’ll look favorable as we do decide to go with this, that they’ll have a feeling of confidence that we’ll make good use of the money.”
