In its first meeting since the onset of the pandemic, the city council of Los Alamitos met by phone and agreed to move forward with a plan to hire a research firm to poll residents about what at some point is expected to be a sales tax offering by the city.
City manager Chet Simmons told the council that staff was recommending the approval of a contract worth $25,500 for research firm FM3 to survey Los Alamitos city taxpayers.
Simmons said the company proposes to use various survey methods to determine how residents might feel about adding an additional one-half cent to a planned one-cent sales tax ballot issue.
The financially strapped city is facing future budget shortfalls. They have repeatedly made it known the city will face dire consequences if voters do not approve additional sales tax revenues.
Following a series of community meetings in late 2019, the city met with residents in a variety of settings to explain why the city was in such dire financial straits and, in doing so, gave residents a number of options to consider.
Of those options, residents seemed most positive on increasing local sales taxes, given the city already lags behind many comparable California communities.
Earlier surveys performed before the pandemic by FM3 indicated that city voters were open to approving a one cent sales tax to support the city.
The city began to take seriously the possibility of adding the additional half-cent after learning the state only allows two (2) percent taxing authority for local authorities, and that a state agency had already grabbed a half-cent of that authority.
Council members had concerns about moving forward given pandemic concerns, yet concluded the good of the city was too important to leave any stone unturned.
“If it were my money, I wouldn’t spend it,” said Mayor Richard D. Murphy, rather “I would trust the people.”
Citing the city’s precarious financial footing, however, Murphy said it was justified. “Given the importance of the sales tax, I think it’s worth it,” he said.
Council member Tonya Doby also questioned the timing of the survey, saying residents may be preoccupied with other concerns in the “time of a national crisis.”
Simmons said while any information gathered would be measured “through that (pandemic) prism,” adding that city staff has been in discussion with the research firm over the past month developing language that would mitigate the effect of the pandemic on any survey.
He said survey questions will be framed in such a way to get respondents in the correct state of mind for the sales tax question, he said, in spite of the pandemic.
In addition, he said the firm will also use text messaging to connect with a younger demographic.
Council member Dean Grose asked Simmons for a report on the total amount spent thus far on the “fiscal sustainability” project, including what has been paid to financial consultant David Cain
At the end of the discussion, the Council voted 5-0 to approve the motion to authorize the research.
The Council also approved an agreement to hire Craig Koehler as Interim Finance Director. According to city attorney Michael Daudt, Koehler will be paid $140,000 per year and will receive city benefits such as retirement, holidays and approved expenses.
The city also named Simmons as city treasurer, approving a resolution which allows only four city officials, including the city manager, city treasurer. finance director and city clerk the authority “to order the deposit or withdrawal of monies in the Local Agency Investment Fund,” and they may execute and deliver any and all documents necessary or advisable” to facilitate city transactions.
Eric Hendrickson, the city’s former finance director, resigned earlier this year accepting a new position elsewhere.
The council also affirmed Simmons declaration of a “local emergency” in the city, paving the way for a variety of reimbursements from state and federal authorities.