City of La Habra Heights ballot "Measure LHH-G".

By George L. Edwards

On March 3rd 2009, you will have an opportunity to elect three new council members. In addition, you will also be able to vote on Measure LHH-G (Gann Override Limit), giving the City permission to spend excess tax revenues rather than controlling spending, reducing the tax burden or waiting for it via a tax refund!

On March 3rd 2009, you will have an opportunity to elect three new council members. In addition, you will also be able to vote on Measure LHH-G (Gann Override Limit), giving the City permission to spend excess tax revenues rather than controlling spending, reducing the tax burden or waiting for it via a tax refund!

In the past, the City Council has always argued that if the voters do not approve the Gann Limit override then essential fire services would be cut. This is a very a disingenuous approach since it affects all City spending funded by property tax, road tax, and the special fire tax. It is in no way limited to the City's ability to provide fire services. It would be a policy decision by the elected City Council that would chose to hold back essential fire services versus reducing government overhead. The 2005 argument for the Gann Override Limit successfully held the communities fire and rescue services hostage in a hopes of scaring the community into voting for the over taxation...was that fair?

Knowing the truth regarding the proposed voter approved amendment, we went ahead and consulted a certified public accountant specializing in municipal finances. The goal was to try to make sense of "Measure G" (the City's desire to continue to overtax residents). Providing accurate and truthful information to the voting public has always been our chief concern. Below, please find a true and impartial analysis of the purposed measure. On March 3rd, 2009 I would urge you to vote yes on Measure LHH-G and allow 3 new council members to ensure that road tax revenue truly goes into road maintenance. Funding to reopen 2 fire stations and staff at least 2 of the 5 fire engines, could be realized if 100 percent of the special fire tax went into fire protection. Currently it does not! -George Edwards

MEASURE LHH-G ANALYSIS

Shall an Ordinance be adopted to renew the City's authority to spend existing revenues from the special fire tax approved by two-thirds of the City's voters in 1997 to provide essential fire and life-safety services by renewing the voter-approved amendment to the City's appropriations limits? YES NO

BOTTOM LINE: The City's spending limit is "above" its proceeds of taxes "subject to the limit" by $808,368. If the proposed measure failed, the City would technically be "exceeding its Gann Spending Limit by $133,730. This means that the City would have to either (a) decrease General Fund spending by $133,730 or (b) decrease tax revenues by $133,730.

This measure to "renew the appropriations limit" may be directly related to the special fire tax, however, if this measure fails, THERE IS NOTHING FORCING THE CITY TO "STOP COLLECTING" THE SPECIAL TAX. The Gann Spending Limit is computed "for ALL taxes" collected in the General Fund, not just the special fire tax.

Note that the City already is getting increased adjustment of $137,069 to its Spending Limit in 08/09, however, this is just to keep up with the inflationary and population impacts to the General Fund budget.

The City of La Habra Heights is expected to collect $942,098 in special fire tax revenue and to expend $1,147,526 in the special fire services Fund 08, a shortfall of $205,428. However, the additional fee-based revenues (non-tax) collected in the special fire tax Fund 08 is estimated at $168,982 in 08/09, making up most of the shortfall.

There is certain budget/accounting detail I can not see from the Adopted Budget document, however, I trust the analysis provides the information to support the conclusion on the "potential fiscal impact from opposing this measure".

Specifically, the voter-approved measure is specific to "renew the...appropriations limit", which would NOT eliminate the special fire tax receipted in Fund 08 of City budget. What is really at stake is about $133,730 in tax revenue; however, the $133,730 "excess" applies to ALL General Fund taxes "AND" the Special Fire Tax.

I do not see where we can separate the Gann Spending Limit "excess" of $133,730 between the General Fund 01 tax revenue and Special Tax Fund 08 tax revenue.