Advertisement

COMMUNITY COMMENTARY:

Share via

A recent Daily Pilot editorial (“Hiking hotel tax shouldn’t be 1st option,” July 20) advocated against the city of Costa Mesa raising taxes, and I could not agree more.

The idea to raise taxes came at the strong urging of Councilwoman Linda Dixon, and Councilwoman Katrina Foley said she would be “supportive of a specific tax” for a specific purpose as opposed to a general tax.

My thanks to Mayor Eric Bever and Councilwoman Wendy Leece for their opposition to more taxes. However, my reason for writing goes way beyond who voted for what. In Costa Mesa, we live within our means, but the economy is slowing down and we are dependent on sales tax and property tax revenue. We do not have an immediate revenue problem, but if there were concerns, cuts would have to be part of any solution.

Advertisement

We can always use more funds. Yet, Costa Mesa wants to attract businesses, not drive them away. Our Business License and Transient Occupancy (hotel) Tax is among the lowest in the county, which is something to be proud of. The easy answer is to just raise taxes for more funding. But as Bever pointed out, when large groups book hotel rooms by the hundreds, the lower transient-occupancy tax saves them money and is an incentive to do business here and spend money, which benefits residents and creates additional tax revenue.

I blame Republicans and Democrats for the economic slowdown. President Bush continues to borrow and spend more than Bill Clinton did. Gov. Schwarzenegger continues to borrow and spend more than Gray Davis, whom we recalled for his fiscal mismanagement. When politicians run out of money, they take local sales tax revenue and transportation funding. Then local, state and federal governments increase taxes to solve their fiscal mismanagement.

Cuts must take place at the federal and state level. If we raise taxes locally, we cover up the problems they caused and it becomes a vicious circle of borrow, spend and higher taxes that leads to socialism.

So why don’t they ever want to look at cuts or ways to reduce the size and scope of federal and state government so that we have more money locally? Because we have become too dependent on big government to meet our needs instead of focusing primarily on infrastructure and the public’s safety. We become enablers by voting for people who grow government. We are at fault if we allow locally elected representatives to do this.

Back in 2003, I wrote about a resolution the council passed in support of “a statewide ballot initiative to allow voters to decide whether local tax funds may be taken, shifted, diverted or otherwise used to fund state government operations and responsibilities.”

According to the staff report, every year for the past 12 the state has seized city property tax funds statewide, costing cities a total of more than $9.6 billion in lost revenue. Costa Mesa has lost more than $55 million over the last 10 years based on shifts, diversions and taking of revenues by the state. That $55 million could have funded the entire street maintenance program ($51 million), more than half of the citywide traffic improvements ($29 million), all of the city’s parkway and median improvements ($4 million), and all planned park improvements and community programs, including construction of a 50-meter pool, and lighted soccer and youth baseball fields ($4 million).

I am sure an updated version of this assessment could be done, and we would see that the state and the Feds have plenty of our money. In fact, we would see that the governor and some members of the legislature are again considering taking more of our funds. Now is the time to return to limited government and fiscal responsibility, not raid city funds and increase taxes. That responsibility rests with every voter.

So what are we to do? Let me answer that first by again showing what we should not be doing. As the Daily Pilot said, “hiking hotel tax shouldn’t be the first option.” Ed Fawcett, president of the Costa Mesa Chamber of Commerce, also spoke up in opposition to this. Any economist will tell you that the time to raise taxes is not during a recession.

So what does that leave us other than cuts? This is not going to be easy for a while, and some cuts may be necessary for us to live within our means and be accountable to the public. But the overlay zones and revitalizing the Westside are a major part of the solution to the long-term health of Costa Mesa. We currently have three good projects going forward, and considering the current housing market that is good.

When the housing market turns around, I believe you will see even more projects come forward. This will accomplish the removal of blighted properties and the reevaluated properties will show an increase in our property tax revenue. The people living there will bring an increase in discretionary income and an increase in sales tax revenue.

Ultimately, revitalization will bring a reduction in crime. Blighted properties attract graffiti and vandalism, and keep the overall desirability of the neighborhood low.

Another thing that can be done is to bring events to Costa Mesa. The Orange County Marathon has had its home in other county cities but some are not easy to work with. Planning Commissioner Jim Righeimer has been working to bring the marathon to Costa Mesa. Costa Mesa has a history of working well with the fair, the cattle drive, the Fish Fry, etc., and I think we would work cooperatively with the marathon. Our low TOT tax would be an incentive as well.

And one of the most important things to do is let our elected representatives in Sacramento know that we no longer will allow them to take our tax dollars and want them to make the cuts so that we don’t have to locally. It is my goal to continue the long-term vision of true improvement and truly make Costa Mesa the best of Southern California.


ALLAN MANSOOR is a Costa Mesa city councilman.

Advertisement