BUENA PARK : Hotel Tax Increase to Be Considered
The City Council tonight will consider whether to increase the transient occupancy tax and make reductions in personnel, community event funding and other programs to ease a $2-million budget deficit this fiscal year.
The council will review a proposal to increase the city’s transient occupancy tax from 10% to 12%, which would generate $460,000 in new revenue, City Manager Kevin O’Rourke said.
While the city faces the $2-million deficit, it is projecting an additional shortfall of $1 million to $2 million for the 1993-94 fiscal year.
O’Rourke said the transient occupancy tax, levied on on hotel and motel guests, hasn’t been raised since October, 1989, when it went from 8% to 10%. The council plans a public hearing July 6 on the tax increase.
Also to help offset the deficit, the council tonight will consider adopting a host of reductions to save about $468,000, O’Rourke said.
Among the proposals are the elimination of 11 positions, including four apprentice firefighters, an advanced planner and a senior custodian; elimination of funding for the Mayor’s Prayer Breakfast; reorganizing the Finance Department and elimination of the employee development program.
The meeting begins at 5 p.m. in the council chambers, 6650 Beach Blvd.
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