El Segundo History
Former Mayor Reflects on Past Challenges
Mayor Carl Jacobson provided leadership to resolve 1988 revenue crisis
El Segundo Herald
Excerpt from article on page 5, column 4 in the print edition
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). In contrast, the County receives 66 percent—the largest chunk of any city in California. “People pay a lot of property tax, but we [the City] don’t get it,” Jacobson said.
El Segundo Herald newspaper web site:
http://www.heraldpublications.com/herald/el-segundo-herald
October 28, 2010 El Segundo Herald newspaper:
http://www.heraldpublications.com/herald/sites/default/files/publications/elsegundo/Herald_102810/index.html
View or download the October 28, 2010 edition of the El Segundo Herald newspaper (7.68 MB PDF file):
http://www.heraldpublications.com/herald/sites/default/files/publications/elsegundo/Herald_102810/eMagFiles/source/Herald%2010.28.10.pdf
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