Tag Archives: local government

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

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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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Proposed Tax Increase On Chevron – Letter to the El Segundo Herald by Ron Murray

Posted on January 5, 2012 by Mike

The proposed tax increase is flawed. The tax proposed is on land ownership, not on the business. The County taxes property— land and improvements of which El Segundo receives a “slice”. Taxes should be uniform and consistent; so the tax should be applied to all unimproved land in the city—parking lots, unimproved commercial zoned property, empty storage lots, etc., not just on Chevron.

Most business in El Segundo pay a business tax based on commercial building footage plus number of employees/contractors. This formula is good as it is tied to services provided by the city to the business. … Continue reading →

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Good Neighbors – Letter to the El Segundo Herald by Chris Powell

Posted on January 5, 2012 by Mike

Many who work closely with the City on fiscal issues were surprised when a proposed tax increase on Chevron showed up on the Council’s agenda with no warning. … Continue reading →

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