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Mayor Carl Jacobson provided leadership to resolve 1988 revenue crisis

Former Mayors Reflect on Past Challenges

October 28, 2010

By Brian Simon

Mayor Carl Jacobson (1988-1996):

Though he is now back on the Council and dealing with the City’s current financial crisis, Jacobson also had a major budget dilemma to contend with when he became Mayor in 1988. Two-thirds of the City’s revenue base had previously come from use taxes collected from Chevron’s sale of fuel oil to Edison. But when the Public Utilities Commission ordered Edison to switch to the cleaner-burning natural gas, all that revenue went bye-bye.

To address the issue, Jacobson and the Council revamped the business license and utility user tax structure to provide replacement revenue streams. The tax increases were phased in over time. “It was an absolute necessity and done during a decent economy that was nothing like the condition we are in right now,” said Jacobson, who added that the Council even lowered the business license tax by the end of his tenure.

Jacobson also successfully lobbied to increase the City’s share of local property taxes from five percent to seven (since lowered by the State to 6.25). … Continue reading

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