Revenue Drop From Prop. 218 Studied
A City Council study session Tuesday will focus on ways to make up the money that will be lost next fiscal year because of Proposition 218.
The measure, passed by state voters in November, limits how cities may levy fees and assessments. City Manager Daniel E. Keen has told the council that the measure seriously affects La Palma and will result in a $600,000 shortfall in the fiscal year that starts July 1.
Mayor Kenneth Blake said the study session will enable the council to give guidance to Keen and the city staff on what cuts can be made.
“The staff will soon be working on that new budget, and we’ve got to give them direction,” Blake said. “I’m not so worried about the next fiscal year because we have a reserve we can use, but I’m worried about the long-range situation.”
Blake said no new taxes may be submitted to the voters until 1998 because there are no elections scheduled this year. He said the city does not want to pay for a special election. “I’m discouraged,” Blake said. “Our city was running financially soundly and then along comes this.”
The study session, open to the public, will be at 5:30 p.m., followed by the regular council session at 7:30 p.m. Both will be in council chambers, 7822 Walker St.
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