SAN CLEMENTE : Officials to Study Levying Utility Tax

Faced with dwindling funds and aging infrastructure in the city, San Clemente officials will consider instituting a utility tax to raise money over the next 10 years when they meet for a workshop Monday.

The city needs about $2 million to cover its workers’ compensation, general liability and general reserve funds, said City Manager Michael W. Parness. He said the 1991-92 budget lists $900,000 just for the general reserve fund--about $1 million short of what is needed.

In addition, more than $4 million is needed for repairs to street and drainage systems, which are on the verge of collapse and have been deferred for other projects, he said.

“We’re not only (depleting) our general reserve fund, we are basically setting ourselves up for a big fall,” Parness said. In the event of a major failure in the drainage system, the city would be “severely limited in our ability to respond,” he said.

Parness would not specify numbers, but said the tax rate would be higher if the City Council wanted to raise money for both the reserve fund deficit and the aging infrastructure.

Other revenue-generating methods to be discussed on Monday include voluntary donations from citizens, general obligation bonds and assessment districts, Parness said.

The meeting begins at 6:30 p.m. in the City Council chambers.