BELLFLOWER COUNCIL DECLARES EMERGENCY, ASKS VOTERS TO INCREASE UTILITY TAX
By Herald American
Declaring a fiscal emergency, the Bellflower City Council has voted 5-0 to place a five-year, 2-percent utility tax increase on the Nov. 2 ballot. If approved by voters, the 2-percent hike would bring an additional $1.6 million a year for the five years, allow the city to balance the 2010-11 budget and give the city cash flow for operating expenses, city Finance Director Tae Rhee said.
A $1.4 million deficit is projected for the 2010-11 fiscal year, he added.
Low income senior citizens would be exempt from the tax hike.
The current Bellflower utility tax on electricity, natural gas and communications is 5 percent.
City Attorney Joe Pannone said because the increased taxes would be used for general operations, the question needs a simple majority to be approved, It would need a two-thirds majority if the tax hike was for a specific activity, he said.
City Clerk Debra Bauchop said the fiscal emergency declaration was needed to allow council to schedule the vote for November instead of waiting for the regular city election in March 2011.
The special election will cost about $89,000, she said in a report to the City Council.
“Our revenue has declined rapidly and substantially,” said Rhee, noting that the poor economy has resulted in less sales tax revenue for the city. That drop is about $2.3 million since 2006.
This year’s general fund budget has expected revenues of $23.2 million, about $3.6 million less than 2007-08, Rhee said.
Other area cities have the same problem and have balanced budgets by using their reserve funds. But while Downey retains a $35 million balance, Paramount a $9.7 million balance and Norwalk a $7.3 million, Bellflower’s reserves are estimated at just $1.1 million as opposed to $10 million in 2006.
That’s not enough to pay the bills, Rhee said.
He noted that the city has made substantial cuts in employment. Of the city’s 99 full-time job slots, 13 are vacant and frozen, while the remaining 86 are taking a 10 percent cent cut in pay via furloughs. Of the 150 part-time employees, 80 have been laid off.
Without added funds the city will have to cut recreation and after-school programs serving some 1,500 teenagers, and further reduce sheriff’s patrol services from the Lakewood Sheriff’s Station.
