Report to Mayor and City Council
Monday, August 07, 2017
Discussion
SUBJECT:
Title
AMENDED STAFF REPORT: CONSIDER ADOPTING RESOLUTION NO. 17-111 REAFFIRMING RESOLUTION NO. 17-079 AND DECLARING A FISCAL EMERGENCY, RESOLUTION NO. 17-112 CALLING FOR A SPECIAL ELECTION, RESOLUTION NO. 17-113 REQUESTING THE LOS ANGELES COUNTY BOARD OF SUPERVISORS TO RENDER SPECIFIED SERVICES TO THE CITY RELATING TO THE CONDUCT OF THE SPECIAL ELECTION, RESOLUTION 17-114 SETTING PRIORITIES FOR WRITTEN ARGUMENTS AND REQUESTING IMPARTIAL ANALYSIS, AND RESOLUTION NO. 17-115 AUTHORIZING REBUTTALS, REGARDING A BALLOT MEASURE TO ESTABLISH A BUSINESS LICENSE TAX ON PERSONS ENGAGED IN THE BUSINESS OF OPERATING ANY FACILITY WHERE PETROLEUM OR PETROLEUM PRODUCTS ARE BLENDED, MIXED, OR REFINED AND/OR ANY FACILITY THAT STORES PETROLEUM PRODUCTS.
Body
I. SUMMARY
During the last decade, the City has faced budget challenges resulting from the impacts of the Great Recession, dissolution of redevelopment agencies, and costs increasing at a faster rate than revenues. Carson's assessed property values have not increased at the same rate as those of neighboring cities, resulting in slower property tax revenue growth. The former Carson Redevelopment Agency generated $30 million annually that is no longer available for capital improvement projects. As a result, the City has adopted deficit budgets for 8 of the last 11 years. The current structural deficit is estimated to be approximately $8 million per year.
As a no- and low-property tax city allocated a relatively small portion of the 1% property tax permitted by Prop. 13 and having one of the lowest, if not the lowest, utility user tax rate in the region, Carson will continue to face budget challenges unless new revenues are identified. The City has sought to reduce the structural deficit by reducing services and such temporary measures as an employee hiring freeze. Since the Great Recession, City full-time staff has been reduced by 102 positi...
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