With redevelopment gone and the ransoms paid, with the slow recovery and depressed housing prices, more cities are finding themselves seeking new revenues as they consider fiscal emergencies.
Duarte is hoping to plug a hole left by redevelopment by asking its residents to pony-up more of their money. Years ago, the city loaned its redevelopment agency nearly $10 million. That loan, according to the state, is not eligible to be repaid. That loss of loan debt service will cost the city approximately $1 million annually.
The proposed .25 or .50 percent increase to the city’s local sales tax could mean an extra $1.9 million per year. Even before the sales tax goes before voters, the city may be forced to declare an emergency.
From the Los Angeles Times:
Citing the loss of redevelopment as a crippling blow to the city’s finances, officials in Duarte will consider declaring a fiscal emergency to allow the council to place a sales tax increase before voters.
The proposed tax increase, which would be placed on the ballot during the Nov. 6 statewide election, could range from 0.25% to 0.5%, raising a projected $953,319 to $1.9 million in extra revenue annually.
The move came after neighboring El Monte place a tax on sugared drinks on the November ballot to stave off its financial woes.
Read the full article here.