Cities Still Unsure How They’ll Implement Prop. 218

Proposition 218, a statewide ballot measure restricting the ability of local governments to raise taxes, requires cities to place a variety of property assessments before voters within the next eight months.

But city officials from Orange County and across the state who met in Sacramento this week say they have yet to begin planning for the balloting because of uncertainty over what assessments are covered by the proposition.

Proposition 218, approved overwhelmingly by voters this month, requires government agencies to win voter approval for some types of utility taxes, hotel taxes and property tax assessments, which pay for such services as landscaping, lighting and street maintenance.

The measure, written by the Howard Jarvis Taxpayers Assn., also requires all new property assessments and taxes to be placed before voters.

Officials at the Capitol meeting concluded that municipalities will probably need new state legislation or a court interpretation before implementing the measure.

“It remains very vague as to how to respond to some of the provisions,” said Debbie Thornton, spokeswoman for the League of California Cities, which sponsored the meeting. “It is not clear how particular city assessment districts or taxes are affected.”

City officials said they fear that if voters fail to approve existing levies, municipalities would be forced to find other funds in their tight budgets to pay for critical public services. Loss of tax revenue would almost surely force budget cuts, they said. More than half of Orange County cities said they could be affected by the measure.

Until the legal issues are sorted out, most cities are holding off on any action.

Chris Vosburgh, executive director of the Jarvis group, insisted that the measure’s provisions are clear, and that cities should have little trouble implementing them.

He said the July 1997 deadline for cities to bring property tax assessments into compliance gives ample time for balloting: “It gives them time to take these assessments to the voters and square everything away before tax bills are sent out in the fall. The voters have spoken on this.”

Proposition 218 gives local governments until November 1998 to bring several types of general taxes before voters.