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Mailbag: Mismanagement is behind Costa Mesa’s interest in seeking tax increases

People wait in line to vote at the Norma Hertzog Community Center in Costa Mesa on  Nov. 8, 2022.
Costa Mesa is mulling ballot measures that would increase hotel taxes and business license fees during next year’s election. Veteran politician John Moorlach shares his views on how such a prospect came about.
(File Photo)

Years of fiscal mismanagement are coming home to roost for the city of Costa Mesa. Most of its city councilmembers want to put not one, but two, tax increase measures before residents on the 2026 ballot (“Costa Mesa will explore ballot measures that would increase hotel tax, business license fees,” Dec. 3). Finding innocuous increases seems like an obvious first step for certain non-COLA fees and taxes.

But why not fix the reason for the need for more revenue sources?

Previous councils overpromised employee benefits and underpaid on the resulting liabilities. For every $5 the city spends, $1 goes to California Public Employees Retirement System (CalPERS). These payments should be higher, as Costa Mesa has the lowest funding ratio — 61.29% — in Orange County.

When comparing Costa Mesa’s annual comprehensive financial report (ACFR) with those of the other 33 cities in Orange County, it comes in 33rd place. Costa Mesans have the city of Santa Ana to thank for the “City of the Arts” no longer being in last place.

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Costa Mesa’s ACFR for the fiscal year ended June 30, 2024, shows it has an unrestricted net deficit of $169,224,238. With a population of 109,423, each resident theoretically owes $1,546. Santa Ana has a $1,764 negative per capita. The city of Orange is in 32nd place, with a negative per capita of $1,400, and its city council placed an unsuccessful sales tax increase on the November 2024 ballot.

Costa Mesa’s elected leaders were warned nearly nine years ago, at a time when the city ranked much higher, by then Daily Pilot columnist Barbara Venezia: “[Moorlach is] referring to . . . a newly approved contract that decreases the amount city employees pay toward their pensions from 17.04% to 12% by year three. The proposed contract is expected to cost taxpayers $5.65 million more over the life of the agreement than the previous one.”

With a Finance and Pension Advisory Committee that has been practically impotent over these last several years by not insisting the city make higher payments to CalPERS, Costa Mesa residents can expect more tax increase proposals in the years to come.

John Moorlach
Costa Mesa

(Moorlach is a former state senator and O.C. supervisor.)

NMUSD trustees should model professionalism

As a longtime volunteer and supporter of the Newport Mesa Unified School District (NMUSD), it pains me to say that I am losing confidence, not in our teachers or staff who remain exemplary, but in the conduct displayed by three members of our Board of Trustees.

NMUSD Trustees Ashley Anderson, Leah Ersoylu, and Michelle Murphy continue a months-long pattern of unprofessionalism and incivility, from insulting colleagues, to showing up late and worse.

In June, Anderson basically accused fellow trustees of exercising racial bias when they voted in favor of renewing an OCDA gang prevention program at elementary schools in her Trustee Area 7. At a board meeting in September, she questioned the motives of a new trustee in a shocking display of incivility.

Then, in October, Anderson, along with Ersoylu and Murphy, refused to join the board meeting, hiding until after a scheduled agenda item — added at my request, in accordance with NMUSD Board Policy 9322 — which criticized Anderson’s behavior at the prior meetings.

The three board members took their seats on the dais after that item had concluded, at a point when the meeting was nearly over. They apparently cared more about their stunt than being present to listen to staff updates on academic success and student leaders’ pleas for improved lunch choices.

At the November meeting, Anderson and Murphy arrived late and missed the 4 p.m. roll call, while Ersoylu and Murphy missed the 6 p.m. roll call, with no explanation.

While Trustees Carol Crane, Andrea McElroy, Lisa Pearson and Krista Weigand consistently model professionalism and courtesy, the ongoing disruptive behavior of the other three now reflects poorly on the entire NMUSD board and district leadership. The absence of clear consequences risks normalizing this conduct and undermines public trust.

If meaningful action is not taken, the public will know that professionalism and civility are not priorities of this board or of our district leadership. It’s time for professionalism and basic decency to be restored.

Ruth Sanchez Kobayashi
Newport Beach

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