SAN CLEMENTE : Council to Resume Talk of New Fees

The City Council on Wednesday will once again take up the issue of potential new taxes and fees to help offset an estimated $6.35-million shortfall in the coming fiscal year.

City officials will ask the council to start preliminary work to establish a utility fee for storm drains and street sweeping and to form a street maintenance assessment district.

In a report to the council, City Engineer William Cameron said “time is of the essence” if the city wishes to create the fee and assessment district by July 1.

The city staff has requested that three private firms submit proposals for establishing the assessment district and the storm-drain, street-sweeping utility fee and for administering the existing Lighting and Landscape District. The firms would recommend different fees and assessments based upon land-use and property sizes.

Although specific costs are not yet known, city officials estimate that it could cost up to $75,000 to create the utility fee and assessment district.

Residents could pay three new local taxes and fees, costing $12 to $17 a month total, as the City Council searches for ways to avert the potentially massive shortfall.

Last month a council majority voted to consider the utility fee to raise about $970,000 annually and the street maintenance assessment district to meet about $1.4 million in yearly needs.

As a last resort, the council said it would also be willing to consider a utility tax to compensate for a potential loss of about $1.5 million in property tax revenue to the state.

All three options could be approved by a vote of the council.

Last year, the city cut about $2.4 million--about 12% of its $20-million annual general fund budget--and eliminated 25 positions, about 8% of the total city work force.

Although a council majority recently voted to disband the Police Department and contract for law enforcement services with the Sheriff’s Department, the action will only help offset the projected shortfall by about $2 million, officials said.