COSTA MESA : City Reluctantly Backs County Recovery Plan
Saying it sees no other option, the City Council has reluctantly given its support to the latest bankruptcy recovery plan put forth by Orange County.
“I am most unhappy about this settlement, but I suppose it is the best one we are going to get,” said Councilwoman Mary Hornbuckle.
The council voted unanimously Monday to endorse the plan, which primarily relies on diverting transit tax revenue to solve the crisis, if a provision is added that would block the county from having the power to use sales tax or property tax revenue to pay its debts.
Costa Mesa had opposed earlier recovery plans--based on taking cities’ sales and property taxes--saying that it would have put an unfair burden on cities such as Costa Mesa and Anaheim, which have large sales tax revenue.
The plan also calls for the diversion of gasoline tax funding and establishment of a committee to oversee the recovery effort.
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