ARGUMENT IN FAVOR OF REPEAL OF UTILITY USER TAX
MEASURE "H"

Dear Taxpayer,

On May 13, 1986 only one Hermosa Beach councilmember had the wisdom to vote to maintain the "sunset" clause of the UUT. Etta Simpson understood even then what history has since proven: Governments do whatever it takes to perpetuate the flow of taxpayer dollars even at the expense of good fiscal judgement and truthfulness owed the very public they tax and serve.

When this repeal was last before you in November 1999 the proponent noted a $1,000,000 general fund surplus. In their ballot rebuttal the council wrote: "the city has no budget surplus!" After the election the city reluctantly acknowledged the surplus. The $1,000,000 had been transferred to the next year's budget. Each proceeding year newly generated surpluses emerged, $1,500,000 and $2,400,000 respectively.

Since the 1999 election the city:

INCREASED Police and Fire budgets 23%, from $7,900,000 to $9,700,000, even though our public safety force and population numbers remained essentially unchanged except for increased beach and plaza tourism.

INCREASED general fund spending 31%, from $12,500,000 to $16,400,000.

INCREASED bank account balances 46%, from $14,600,000 to $21,300,000. Although total city funds are estimated to reach $51,500,000 this fiscal year, the credit goes not to good money management but rather to increased tax revenues and investment interest.

REFUSED as promised, to consider lowering the UUT even though it represents only 2.8% of our total funds.

THREATENED again to take away residential street repair programs from the already funded $9,000,000 Capital Improvement projects.

THREATENED again to cut city staff and safety personnel without considering other prudent budget proposals as outlined and ignored in 1999.

CONTRACTED $1,076,000 in street cleaning and maintenance programs with nearly half of the expense designated to servicing 3% of our city, the downtown/plaza.

Please vote YES to REPEAL the UUT.

Katharine B. Bergstrom 
Former Hermosa Beach Appointed Chair L.A. County Tax Appeals Board

Shirley Cassell
 Co-Chair Committee to Repeal the UUT

Etta Simpson
Former Mayor & Councilmember, City of Hermosa Beach

Home Page             Back