State Loan Proposed to Aid Imperial Beach

Reacting to Imperial Beach’s dire financial condition, state Sen. Wadie P. Deddeh (D-Bonita) said Thursday he will introduce legislation in January to provide Imperial Beach with an emergency state loan to help keep the city solvent.

Joining Deddeh in sponsoring the legislation will be Assemblywoman Sunny Mojonnier (R-Encinitas), who, along with Deddeh, represents Imperial Beach.

Mojonnier said the state Office of the Auditor General has launched an audit of Imperial Beach, the results of which are expected by the first of next year.

Also, the Urban Land Institute, a group concerned with land-use planning and urban design, is looking at conditions in the city and how it can attract more development. The group hopes to have recommendations in three to four weeks, according to Mojonnier, who said that shopping center magnate Ernest Hahn is involved in the effort.

Deddeh and Mojonnier made their comments during and after a press conference called to discuss a different subject, legislation they and Assemblywoman Lucy Killea (D-San Diego) will introduce to provide the five cities that border San Diego Bay with surplus funds from the San Diego Unified Port District.

Deddeh said he aims to “make sure Imperial Beach is protected and taken care of.”

What’s not clear is how much Imperial Beach will need to remain solvent. It could be $1 million or $2 million or more. Both Deddeh and Mojonnier said a firm figure will be available by the end of this year, both from the city and the auditor general’s office.

Deddeh said it is common for the state to provide cities with emergency loans and emphasized that Imperial Beach would be required to repay the loan with interest.

As urgency legislation, it would require a two-thirds vote in both the 40-member Senate and 80-member Assembly. “Our goal is to get the money as soon as possible,” Deddeh said. The legislation will be submitted Jan. 3, the first day of the Legislature’s new session.

“The auditor general is doing a complete audit on Imperial Beach,” Mojonnier said. She said the audit will attempt to analyze how the city became ensnarled in financial woes and find out how much it will take to bail out the oceanfront community.

Imperial Beach, which lacks a strong tax base, has had a history of financial turmoil. In the last few months, those troubles have peaked again with reports that the city needs about $500,000 to remain solvent.

City leaders hoped a way out would come from voter approval of Proposition B, a measure that would have raised $450,000 by adding a 5% tax on all monthly utility bills. Without the money, city officials warned, the city was in danger of going bankrupt in January.

But 80% of the voters rejected the proposition three days ago.