Position on Charges of neglect of our infrastructure

By John C. McTaggart

Nearly $1,000,000 a year is not neglect.

Rancho Palos Verdes had less than 2% of the property tax when the city incorporated. RPV had very little sales tax to offset the lack of property tax funds. Through our involvement with the California Contract Cities Association, we were able, by lobbying for legislation, to increase our share of the property tax to 6.4%. Over the course of the thirty-year history of the city, the state has taken tax funds from subventions and other sources and made it difficult to operate the city. The utility user's tax was helpful in building a reserve of nearly a year of general fund cash at the same time allowing the city to improve the roads. There was a time when the city had to lay off staff and reduce programs. We made the hard choices and learned from the experience. We have since required a reserve to be maintained to tide the city over in the short term of dips in revenues. This fiscal year we cut $1.1 million from the budget in preparation for the downturn.

Far from neglecting the infrastructure, the city has spent $8.4 million since 1996 on storm sewers alone. The California Joint Powers Insurance Authority returned $1.7 million to us on one project. The net expenditure of $6.7 averages around a million per year.

While at this point no one knows the cost to the city of all of the repairs that will be made, the number is large. In my position paper on the infrastructure, I mentioned this point and it can't be stressed enough. I for one will not allow anyone to be taxed out of their homes to pay for these needs. We must do it in a responsible, prudent, and cost-effective manner. In a few years, the new hotel at Long Point and the Trump golf course will begin to supply funding for our needs. A goal of the Incorporation of the city was to keep taxes low. We have been successful and I intend to keep it that way.