TORRANCE : City Looks at Ways to Bridge $5.3-Million Gap in Budget

The City Council has agreed to consider several measures, including layoffs as a last resort, to remedy a $5.3-million deficit in next year’s budget.

The measures, proposed by City Manager LeRoy J. Jackson, include a tax on each barrel of refined oil at Mobil Oil’s Torrance facility, a business license fee for single-family rentals and duplexes, and a user tax on satellite dishes.

The council directed Jackson to determine whether the measures would be sufficient to eliminate the deficit before he acts on a proposal to delete 18 vacant staff positions and fill 11 other vacancies by transferring employees. He had also proposed laying off six employees from the staff of 1,400.

Jackson said his staff would revise the 1994-95 budget within 45 days. The city anticipates spending about $102 million.

The council told Jackson to assume that the budget will include a pay raise of 3% for city workers, their first increase in two years.

Councilman Don Lee said he was concerned about giving a pay raise while layoffs were possible, but he said the raise might be necessary.

“I don’t want to be in a situation where I can’t retain and attract the kind of employees that I need to lead this organization,” Lee said.

Lee and Walker questioned whether imposing a $15 or $20 business license fee on single-family rental homes and duplexes might cost the city more in enforcement costs. The city already requires owners of rental property with three units or more to pay $15 per unit.

The council told Jackson to conduct more research on taxing satellite dishes. He had not determined what the levy might be.

The tax on production at the Mobil refinery could generate about $1 million annually, Jackson said.

“I think it’s an idea whose time has come,” said Councilwoman Maureen O’Donnell. She suggested a tax of $.045 per barrel, rather than the $.028 suggested by Jackson.

Mobil would oppose the tax.

“To help balance the city’s budget on the back of one company certainly sends, we believe, the wrong message to any company interested in coming to Torrance as well as to those who are already here,” company spokesman Barry Engelberg said in a statement Tuesday.