SEAL BEACH : City Urged to Boost Sales Tax Revenue

The Seal Beach Business Advisory Committee, minutes before becoming defunct, warned officials this week that unless the city forms a strategic plan to increase sales tax revenue, residents could face higher municipal taxes.

The warning came despite the committee’s findings that the business community opposes a onetime $50 fee to finance an economic development study. Business owners were surveyed earlier this year to determine whether they would support the fee. Of 754 surveyed, only 203--or 27%--responded, with 145 voting no, 52 voting yes and 6 giving other responses.

Generating greater sales tax revenues will not disturb residents, “but failure to do so will cause economic hardships to our community,” said committee chairman Bruce C. Walter. He said the committee, created more than a year ago to determine whether businesses would support a marketing study, was perplexed at the survey response.

With disproportionately low sales tax coming in, “revenues to support basic city services must come from other tax sources,” Walter said. He added that to cover the cost of services, the city would probably have to increase municipal taxes, such as utility taxes.

According to the city’s revised budget, sales tax revenues are projected to total $1.27 million in the fiscal year ending June 30. This amounts to about 12% of the city’s income, whereas other California cities reap at least 29% of their revenue from sales tax, City Manager Jerry L. Bankston said.

Business owners said they agree that there needs to be an increase in sales tax revenues, but they said another survey on how to achieve this is not the answer.

“Let’s put the $50 (proposed fee) to good use, not give it to someone to tell us what to do,” said Jeffrey A. Williamson, president of the Seal Beach Business Assn. He said at least two other studies have been done to determine ways in which Seal Beach can increase business revenues.

Bankston said the city has already begun discussions on how to attract more business to the area, although the funds are not available to make the improvements. Suggestions include benches and improved lighting along the Main Street shopping strip, and signs along Pacific Coast Highway directing motorists to the city’s shopping areas.