Fountain Valley council proposes oversight committee to help implement 1% sales tax increase

Now that voters in Fountain Valley have chosen to increase the sales tax by 1%, city leaders weighed in Tuesday on what a new committee designed to oversee the increase should look like.

Creation of an oversight committee follows the passage in November of Measure HH, which raises the sales tax rate in the city to 9% for the next 20 years as it aims to help the local government out of its $1.7 million, and growing, deficit.

“One thing we want to remember is it’s a living and breathing document,” said Finance Director David Cain, referring to the draft proposal. “The plan is a snapshot in time…. We will update the plan on an ongoing basis.”

Cain said public service and community programs, which were on the cutting board before the Nov. 8 election, will continue to be offered and maintained to existing standards. A working cash reserve will also be established to help the city pay its annual contribution to employee benefits.

Cain reminded the council and community members that the city will still need to jump on other economic opportunities, since Measure HH is not the definitive solution.

Here is how Cain outlined the structure and duties of the committee:

•It will consist of five active members: a senior resident, a business resident, someone who voted for Measure HH, another who voted against the measure, and an at-large member. An alternate will also be chosen.

Members will serve two- and four-year terms, staggered until June 2038, so that the panel would never have all new members but would retain some people with experience. Candidates will be selected by council members based on interviews and given several orientations.

•Oversight committee members will review the city’s audited annual financial report, evaluate mid-year reports of general fund revenues and expenditures, analyze the proposed annual general fund operating budget before City Council adoption and assess whether the city is upholding its pledge to spend responsibly.

•At the end of each year, committee members will draft a report summarizing the city’s yearly Measure HH expenditures and present it during a public meeting to the council. Council members will also meet throughout the year with committee members to hear updates.

“The reason we looked at four years is the amount of learning and understanding of the information,” Cain said.

Councilwoman Cheryl Brothers, however, voiced concern that a four-year term is too much of a commitment and suggested three years would be better.

An updated oversight committee proposal incorporating suggestions will be presented to the City Council at a future meeting.