LOCAL ELECTIONS / BOND MEASURES : Voters Face Five Tax-Raising Propositions

Earlier this year, Los Angeles Police Chief Daryl F. Gates came to the City Council with what he considered urgent business: Thousands of 911 emergency calls went unanswered each week, the chief said, and the only solution was to purchase for $235 million a new state-of-the-art system.

Gates proposed taking the matter directly to voters with a bond measure.

“I’m hoping to get it on in November,” he said, “before they realize what’s happening.”

What’s happening is that bond measures like the one Gates proposed are making a comeback as a post-Proposition 13 approach to funding public improvements without raising taxes.

Originally banned under the historic Jarvis-Gann tax initiative, California voters reinstated general obligation bonds four years ago with passage of Proposition 46. Since then, measures have begun to pop up on local ballots throughout the state, and this November, Los Angeles voters will decide on no less than five such measures--two proposed by the city and three by the county.

Los Angeles city and county officials, whose financial woes began with Proposition 13 and have worsened with state and federal budget cuts, see bonds as something of a godsend.

Since passage of Proposition 46, city voters have approved five bond measures for a variety of projects that could add as much as $61.69 to the average tax bill. The two measures on the city ballot in November could bring that total to $96.84, but analysts say the real amount is unlikely to reach that figure.

Bonds make it possible to raise tax money beyond the 1% property tax limit set by Proposition 13. Approval of two-thirds of the voters is required, and there are strict limitations: bond money may be spent only on real property and borrowing may not be done to meet operating expenses.

With general-obligation bonds, governments can borrow money at lower-than-normal interest rates. Lenders are willing to accept lower interest payments because there is very little risk in their investment. Each issue finances a specific capital project and pay-back comes from a specific tax tacked onto every property owner’s bill.

In addition to the 911 measure, city voters on Nov. 6 will be asked to approve $100 million worth of bonds to pay for the preservation of affordable housing and homeless shelters.

Los Angeles County voters will be asked to raise their property taxes by approving an $817 million bond measure--the largest in the county’s history--to pay for park improvements.

County voters have approved one such measure in recent years--$96 million for jail construction--and officials are considering putting bond measures on the 1992 ballot to pay for replacing the aging hospital system and bring county buildings up to earthquake safety standards.

Its fate may be linked to two other measures on the ballot that would generate money for county coffers in something of the old-fashioned way: raising taxes. Proposition A would provide money for jails, Proposition C would fund transportation improvements. Each would boost the sales tax by a half-penny on the dollar.

With all these competing bids to squeeze money from the populace, some officials have begun wondering whether voters have reached the limit of their generosity.

“Enough is enough,” said City Councilman Nate Holden, who opposes one city bond measure. “I think it’s going to be very difficult for anything to pass this time.”

Councilman Zev Yaroslavsky, who as chairman of the Budget and Finance Committee is a proponent of the bonds, said: “The people are willing to vote for bond issues where they can see the connection between their tax bill and the benefit it’s going to create for them. But there’s not a bottomless pit to these things, and as the economy slows down the receptivity will wane.”

Richard B. Dixon, the county’s chief administrative officer, said he sees a “limit to how much we can take to the electorate at any one time.”

The county measures are opposed by Supervisor Pete Schabarum and the Howard Jarvis Taxpayers Assn.

“I think the real test of where the tax revolt is will come with this election,” said Joel Fox, president of the association.

The organization has taken no position on the city measures because it has not thoroughly reviewed them.

“There are literally hundreds of bond measures on the ballots and we can’t be everywhere and read all of them,” said Kris Vosburgh, executive director of the association. Vosburgh said nearly every every community in state has one or more bond measures on the November ballot.

Here are the bond and tax measures for the city and county of Los Angeles:

PROPOSITION A: COUNTY JAIL CONSTRUCTION

The measure would raise the sales tax by half a cent to seven cents on the dollar to finance jail construction and operations and relieve overcrowding.

County bureaucrats also view the measure as a device to free funds for strapped health and welfare programs.

The measure is the result of a successful lobbying effort in Sacramento by Los Angeles County officials to obtain a new revenue source for escalating jail costs. County officials won passage of legislation that allowed for a tax increase for jails only by a simple majority. Usually, approval by two-thirds of the voters is required for a tax increase.

The cost of housing prisoners has soared 458% from $76 million in 1980 to $348 million this year because of the dramatic increase in drug-related crime, said Sheriff Sherman Block.

Block, who is pushing Proposition A, estimates that it will cost $1 billion a year to operate the county jail system by 1995. The measure would raise $423 million a year and allow the county to move forward with an aggressive 20-year, $3.5-billion plan to build 12 new jails for an estimated 42,230 inmates.

PROPOSITION B: COUNTY PARKS

The largest bond measure in county history, it would boost property taxes to pay for an $816-million array of recreational and cultural facilities.

The projects include restoring trout habitats, refurbishing the Hollywood Bowl, building a mountain camp for troubled youths and upgrading beach and zoo facilities. The measure also provides for use of unemployed youth in tree planting and graffiti removal.

If approved, the owner of a home assessed at $250,000 would pay an additional $19.85 the first year. The amount would increase to a high of $46.13 in the fourth year before declining.

County parks director Rodney Cooper said the measure would ease the department’s budget woes by providing $200 million to refurbish deteriorating county parks and recreational facilities.

However, county administrative officer Dixon contends that the measure places an additional burden on the budget because it provides funds for park acquisition without providing money for maintenance and operations of parks.

PROPOSITION C: COUNTY TRANSIT PROJECTS

The measure would authorize a half-penny sales tax increase to fund transit projects and county officials do not agree about it.

The tax, pushed by Los Angeles Mayor Tom Bradley, would raise $400 million annually to build and operate rail systems, maintain bus service and make street improvements. The half-cent sales tax increase would be in addition to the $400 million in sales taxes already paid by county consumers under a half-cent levy for transit approved in 1980.

County Supervisor Ed Edelman, chairman of the county Transportation Commission and a usual Bradley ally, is taking no position of Proposition C because he believes it is more important for Proposition A to pass. He fears that too many tax measures on the ballot may lead to defeat of all.

The tax increase would make up for the cuts in federal transit funding that have occurred over the last 10 years, said Neil Peterson, executive director of the County Transportation Commission.

PROPOSITION J: 911 SYSTEM

The Los Angeles Police Department wants a new 911 and radio communication system that would cost $235 million. So far this year, the department said, more than 71,000 calls to 911 have gone unanswered and officials predict that the number will be well over 100,000 for 1990.

The measure has the unanimous backing of the City Council and the endorsement of Bradley. Little public opposition has emerged.

If approved, the measure will cost the owner of the average 1,500-square-foot home $26.25 a year for the next 20 years, according to city figures.

For their money, taxpayers will get two new 911 centers to replace the one now operating in a fourth-level sub-basement at City Hall East. Police officials argue that two centers are necessary because an earthquake or other natural disaster in a one-center system could knock out virtually all emergency communication.

The new centers would cost $105 million, leaving $130 million to replace and expand the police radio system.

PROPOSITION K: HOUSING PRESERVATION

Sponsored by City Councilwoman Gloria Molina, the measure would provide $85 million for low-interest secondary loans to nonprofit groups for buying and rehabilitating “at-risk” housing. Another $15 million would be set aside to buy and rehabilitate shelters for the homeless.

Housing units “at-risk” are structures that are either seismically unsafe or categorized as “slums,” according to a city report backing the measure. The rehabilitation program could preserve 2,500 to 5,200 units or more.

But this method of financing housing has never been used in the city of Los Angeles and questions remain about the legality of using general obligation bonds for loans and grants to private developers, according to Keith Comrie, the city administrative officer.

Questions also remain about the ability of nonprofit groups to use a large infusion of money. The measure is backed by top state Democrats and Republicans, anti-poverty advocates, real estate agents, Bradley and City Council. Councilman Holden, the lone opponent, says taxpayers have become “overly generous” in approving bond measures.

The cost to the average homeowner would be $7.75 a year for 20 years, according to the city administrative office.