Early ideas to boost F.V. revenue: more parking meters, higher hotel taxes

Adding more parking meters and increasing hotel taxes were among revenue-boosting ideas the Fountain Valley City Council discussed Tuesday.

No decisions were made at the council’s study session with city staff, but “one of the things we are trying to do … is to evaluate everything,” said David Cain, Fountain Valley’s director of finance. “We need to look at and identify additional ways to bring in revenue.”

The city is contending with general expenditures such as replacing two 50-year-old storm pumps. While the Public Works Department is looking at a contingency plan, Cain proposed that refinancing bonds issued in 2003 could provide a way to pay for the pumps.

Cain estimated that refinancing the bonds would create $1.7 million in savings over 11 years. By restructuring the terms of the bonds by extending their maturity, the city could save $5.8 million, according to Cain.

“The plan to refinance existing bonds is a slam dunk,” Councilman John Collins said.

“The question is, should we extend the terms or not?” said Mayor Pro Tem Cheryl Brothers. “We need to know what that would look like.”

As part of revenue enhancement, the city could add parking meters in certain areas. Specifically, the council discussed establishing meters in Mile Square Regional Park.

But Brothers was not sold on the idea.

“How would we handle parking meters and how would our public respond to that?” she said. “We’ve had parking meters before and they are not there anymore, so that says something about how the public views parking meters.”

The council also discussed a possible increase in the transient occupancy tax, which is levied on guests in hotels and other lodging for fewer than 30 days. In 2014, Fountain Valley residents rejected a proposed increase in the 9% tax.

The conversation about revenue sources will continue, officials said.