Author Archives: Mike

Community Values Good Neighbor Company – Letter to the El Segundo Herald by Edie Rice

Posted on January 12, 2012 by Mike

Community Values Good Neighbor Company

As a 16 year resident of El Segundo, I can tell you that one of the nicest things about living here what is the sense of community and connection here. Local residents devote enormous amounts of time to preserve our cherished quality of life. Local businesses provide financial and other resources to support our children, schools and non-profit groups. The Chevron refinery is at the top of the list of good neighbor companies that can always be counted on to step up when the need arises and is a major benefactor for many of the groups and events that make this a great place to live. Those needs have been significant, including the recently donated beachfront for a lifeguard station and the Fourth of July fireworks, which Chevron underwrote. They have supported school bond issues in addition to being the city’s largest payer of all taxes.

Nothing I’ve heard so far convinces me that quadrupling Chevron’s taxes overnight is in our best interest, … Continue reading →

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Collaboration and Careful Consideration – Letter to the El Segundo Herald by former mayors

Posted on January 12, 2012 by Mike

Collaboration and Careful Consideration

As former mayors, we have all experienced firsthand the need to make tough decisions necessary to safeguard the well being of the city and its people. While circumstances differed during each of our tenures, there was consistently a collaborative effort of the Council and community to develop fair, reasonable means of meeting our town’s needs.

The process surrounding the acreage tax increase contradicts the successful tradition of discussing fiscal needs with stakeholders, diffusing potential conflicts and crafting effective solutions the community can support. The introduction of this item lacked transparency, and it’s unclear whether all council members were even aware that City staff was working on the issue. Uses of the revenues were not clearly defined. Proceeds of the tax will go into the general fund with no restrictions on how they will be spent and no accountability to taxpayers.

Finally, the entire process to rush this tax to the ballot will take less than one month, not nearly enough time to get this right. … Continue reading →

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Table Tax Increase Proposal – Letter to the El Segundo Herald by Bill Watkins

Posted on January 12, 2012 by Mike

Table Tax Increase Proposal

As a 40-year resident of El Segundo I’m baffled and somewhat distressed by the City Council’s attempt to increase taxes on Chevron by over $10 million annually. It’s unclear that this action is necessary and even less clear what the money would be used for.

Despite the City’ Manager’s statements that the funds would go for infrastructure and capital projects, it’s possible they could go to the general fund.

Further, if infrastructure is the issue, the customary route would be through bonds, not a tax increase. In my opinion, having been deeply engaged in the passage of three school bond measures and serving at one time on one of the bond citizen’s financial oversight committees, this approach would have made much more sense.

Chevron not only supported those bonds, the company is the largest payer of school bond taxes. It’s entirely likely they would have been open to a discussion about how they could support the City’s current infrastructure needs.

By choosing instead to promote a tax increase that singles out Chevron alone among all the City’s taxpayers, the Council is likely to irreparably damage its relationship with one if its strongest supporters; erode goodwill among the business community and voters alike; and face a costly, resounding defeat at the polls in April. … Continue reading →

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More Time Needed to Deliberate Tax – Letter to the El Segundo Herald by Marsha Hansen

Posted on January 12, 2012 by Mike

More Time Needed to Deliberate Tax

The greater El Segundo community is proud of the collaborative relationship between City government and the private sector. This partnership has served our community well, especially during challenging economic times.

We were surprised and disappointed when we learned, with only a few days’ notice, of the Council’s intention to propose a significant tax increase targeted at a single segment of the business community without having first sought input from the Chamber of Commerce and others. This is a sharp departure from the transparent, collegial process that has always served the people of El Segundo for years.

A matter as important as the single largest tax increase in the City’s history deserves thoughtful deliberation, with sufficient time invested not only in research and analysis, but in meaningful discussion with the community. The scant 18 business days from the time this proposal was first aired in public until the deadline to decide whether or not to place the tax increase before voters falls short of the time necessary to exercise responsible diligence. … Continue reading →

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Questioning Rush to Tax Chevron – Letter to the El Segundo Herald by Linda Briese Johnson

Posted on January 12, 2012 by Mike

Questioning Rush to Tax Chevron

As I was preparing to enjoy a long holiday weekend, I was very surprised that the City Council decided to rush through a tax increase for one local business. With lightning speed, a majority of the Council decided to investigate a ballot proposal to increase taxes on Chevron by tenfold. Council members contend that Chevron doesn’t pay as much as refineries in other cities. This increase is based on a representation by the City Manager that is still unclear to me and I question the data that was presented.

The City of El Segundo has historically engaged in a constructive dialogue between business and residents. Why is this tax and ballot measure different? What’s the rush and why is the City singling out just one business?

What’s next for citizens and other business in El Segundo during this recession—pay for trash removal, sewer fees and sales taxes increases? … Continue reading →

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Special Contract – Payment in Lieu of Taxes Agreement Between El Segundo and Chevron

Posted on January 9, 2012 by Mike

PAYMENT IN LIEU OF TAXES (“PILOT”) AGREEMENT
BETWEEN
THE CITY OF EL SEGUNDO AND
CHEVRON CORPORATION

    This AGREEMENT is entered into this ____ day of January, 2012, by and between the CITY OF EL SEGUNDO, a municipal corporation and general law city (“CITY”) and the Chevron Corporation, a California corporation (“CHEVRON”).

1. RECITALS. The Parties enter into this Agreement with reference to the following facts and objectives:

A. The CITY’s general fund expenditures exceeded the CITY’s incoming general fund revenues by approximately $6.9 million in fiscal year 2008/2009. The CITY’s fiscal condition has been negatively impacted by the unprecedented challenges in the worldwide and national financial markets and the chronic economic recession in the national, state, regional and local economies.

B. The on-going economic recession has significantly decreased the CITY’s revenue sources and negatively impacted expenses requiring the CITY to institute various austerity measures including expenditure curtailments for equipment and capital projects and deferred maintenance of CITY infrastructure.

C. The CITY’s general fund expenditures were projected to exceed the CITY’s incoming general fund revenues by approximately $10.4 million for fiscal year 2009/2010 requiring that the CITY utilize various one-time monies to balance its budget for fiscal year 2011/2012 and beyond.

D. The CITY general fund expenditures were projected to exceed the CITY’s incoming general fund revenues by approximately $ 9.2 million for fiscal year 2010/2011 causing the City to continue to implement cost savings measures. .

E. The CITY has decreased its unreserved/undesignated General Fund balance by 25% and has decreased its Equipment Replacement Fund balance by 10% since fiscal year 2008/2009.

F. The region, state, and nation are undergoing one of the worst economic downturns in the history of our Nation and financial forecasts are that it may worse, or at best, take several more years before the economy begins to strengthen.

G. The negative impacts of the current economic downturn are expect to take several more years before the economy begins to strengthen enough for local government agencies to see any significant restoration of revenues.

H. The California Constitution prohibits the CITY from enacting new taxes without voter approval which prevents the CITY from generating new revenues to offset

-1-

losses.

I. CITY’s city manager is recommending that CITY’s City Council consider placing a ballot measure on the April 2012 election that would increase the amount of taxes paid by oil production companies including, without limitation, CHEVRON to CITY (“TAX”). If approved, the TAX would generate an anticipated $_____ in revenue for the CITY. Such revenue would help replenish the CITY’s capital improvement project (“CIP”) budget to help ensure the CITY’s infrastructure does not fall into disrepair. … Continue reading →

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