Laguna Beach : Changes in Sewer Tax Tentatively Approved

A proposal to change the way the city collects its sewer taxes--which could lead to increases for some apartment and condominium owners--has been tentatively approved by the City Council.

A final vote is scheduled for a special meeting Tuesday, when the council begins budget deliberations. If approved next week, the changes will go into effect in late June.

The ordinance would permit Laguna Beach to tax condominium units at the $162-a-year flat rate it charges single-family homes. Under the current system, all condominiums are charged at the city’s commercial rate of 90 cents per 100 cubic feet of water used.

The ordinance originally called for the city to tax apartment buildings at the single-family rate for five units and 75% of that rate for the rest. But the council returned that portion of the proposal for reworking. Apartment buildings currently are taxed entirely at the commercial rate.

Laguna Beach currently collects about $1.7 million a year in sewer taxes, said Dick Reese, city finance director. At current rates, the proposed changes could add $82,000 a year to city coffers. While condominium owners could face tax increases of up to 80%, he said, some apartment owners could pay as much as three times what they do now.

Next month, the city council will consider increases in the actual tax rates, Reese said. Although no firm figure has been established, the increase could be around 8% overall, he said.