Diamond Bar to Receive Tax Revenue

Gov. George Deukmejian has signed a bill giving Diamond Bar $1.2 million in property tax revenue, more than doubling the young city’s reserve fund.

The legislation, signed by the governor Friday, exempts Diamond Bar from a technicality in state law that had prevented the city from collecting property taxes this year. The bill makes Diamond Bar eligible for the money immediately, although city officials said there may be some bureaucratic delays before the check arrives.

The bill was proposed by former Assemblyman Frank Hill (R-Whittier), who was sworn in April 16 as state senator after winning a special election. The bill passed by unanimous votes in both houses of the Legislature.

City Manager Robert Van Nort said the money will go into the city’s reserve fund. It is not needed to balance the city’s budget, which has a $750,000 surplus.

The governor’s approval of Hill’s bill solves a problem that grew out of the timing of Diamond Bar’s incorporation in April, 1989. Without the exemption, Diamond Bar could not get property tax revenue until the 1990-91 fiscal year, which begins July 1. The city would have had to incorporate by January, 1989, to receive the money during the current fiscal year.

Before asking Hill to sponsor legislation, city officials asked Los Angeles County officials, including Supervisor Pete Schabarum, to turn over this year’s tax revenue, to no avail. After their attempts failed, some City Council members considered suing the county, but turned to Hill for help.

Supporters said it was unfair to expect Diamond Bar to provide city services for 13 months without receiving property tax money to offset expenditures. County officials objected, noting that Diamond Bar has other sources of revenue and arguing that losing $1.2 million would hurt the county.

Even without the tax infusion, Diamond Bar was planning to hire an assistant city manager next month, in addition to beefing up traffic patrols and starting narcotics enforcement programs, Van Nort said.