Measure A to end 3 years early

City officials pushed back the date to retire the Measure A sales tax increase, but it will still end three years before the approved sunset.

The City Council voted 4-1 to terminate the half-cent sales tax June 30, as recommended by the city staff and the Measure A Oversight Committee.

The original recommendation was to terminate the tax March 31, but that was before the city learned that the results of the audit of the roughly $34 million in federal and state funding would be available by January.

“Our committee recommends that the council terminate the sales tax at the earliest opportunity once the preliminary results of the Inspector General’s audit are known … and the city can be reasonably confident that there will be no further liability,” committee member Linda Brown said.

Laguna voters approved the tax increase with the understanding that the revenue would be used to offset the city’s share of the cost to restore the area of Bluebird Canyon devastated by a landslide and to establish a disaster fund for future emergencies.

“By March 31 of the coming year, the two goals of Measure A will have been accomplished,” Brown said.

“The landslide repair costs will have been paid and the disaster fund — estimated to be equal to approximately 11% of the general fund — will have been banked, satisfying the original resolution’s goal of 10%.”

However, with the audit underway, City Manager Ken Frank recommended waiting to rescind the tax until after the audit findings are evaluated. June 30 would be the most likely sunset, which must be coordinated with a fiscal quarter.

”I support Ken’s recommendations — I think they are prudent,” said newly seated Councilwoman Verna Rollinger.

However she expressed concern that the council be apprised of reallocations. Frank assured her that council approval was mandatory.

Mayor Pro Tem Elizabeth Pearson voted against the delay.

“I gave up my future political career to support this tax and I would like to see it terminated as soon as possible,” Pearson said.

Orange County Republican political support does not favor increasing taxes, even temporary taxes.

Pearson also said that local artists have been hurt by the tax increase, as have businesses, which would support the earlier termination.

The committee recommended that Community Recovery Coordinator Bob Burnham be retained to write a report on what the city learned from the Bluebird landslide that might help respond to the next disaster.

“Our city has been extremely fortunate to have all but roughly $2 million of the total repair expense [assuming a favorable audit], paid for by Federal Emergency Management Agency and the Governor’s Office of Emergency Management,” Brown said. “This good fortune can be directly attributed to Ken Frank and Bob Burnham. They have done a tremendous job under enormous, unrelenting pressure.

“We thank you both as well as the staff that has supported your efforts during these past three years.”

Councilwoman Toni Iseman said Burnham burned the midnight oil working for the city.

“Every time I came to City Hall at night, the lights were on and Bob was there,” Iseman said. “But I also think this is the time to say thank you to Elizabeth. She gave people the confidence that the community would care for them.”

Pearson was the mayor when the Bluebird slide occurred, and she was devoted in her effort to get federal aid for the city — successfully reaching out to California Sen. Dianne Feinstein — and private aid for the families displaced by the slide.

“Our committee would also like to thank the voters for agreeing to tax themselves to help the city,” Brown said. “It is our hope that by honoring the expectations of voters they will have the confidence to step up again in the future should the need arise. “

Brown cautioned against trying to fix blame if the audit does not approve of the federal- and state-approved funding.

Measure A was approved by the voters in a special election held in December 2005 and took effect in July 2006. An oversight committee was appointed and included former Mayor Neil Fitzpatrick, former Director of Public Works Terry Brandt, former Design Review Board member Greg Vail, Ed Shaw, Ed Peterson, Frank Ricchiazzi and Brown.

BY THE NUMBERS

$37,115,000

Bluebird Canyon landslide costs

$33,906,000

Costs paid by Federal Emergency Management Agency

$3,209,000

Estimated costs not paid by FEMA

$7,267,000

Revenue from Measure A

$5,319,000

Measure A estimated balance as of March 31

$47,000,000

2008-09 General Fund expenses

11%

Balance as percent of General Fund

BARBARA DIAMOND can be reached at (949) 494-4321 or coastlinepilot@latimes.com.