Does the Wet Suit You

Charge It

The holiday season is always a good time for turkeys, stuffing and gravy. Not the kind on the holiday table—the kind in city budgets. Just like Laguna’s school district, the City of Laguna Beach is a very rich enterprise. That is, rich in a trust fund check cashing, direct deposit, sort of way. The folks in charge aren’t growing the enterprise, they’re just taxing the run up in value of the inheritable assets.

Those who think Prop 13 stifles municipal income growth better not pay attention to the following metrics. During the 20-year period from 1999 until today, annual city spending increased from $34 million to $110 million. That’s over three times as much spending. During the same period, inflation went up just 56 percent. City spending went up four times faster than the rate of inflation, in a village where the population went down.

Full-time city salaries, not counting benefit costs like retirement, went from $11.5 million to $32.5 million. The number of employees increased from 218 to 287. That’s 69 employees more, up by a third, in a village where the population went down. The local water district reduced its employees by two, 5 percent less.

Property taxes in Laguna Beach went from just under $8 million to almost $44.5 million during the same period. Most of these taxes are on our residential properties. That is a 425 percent increase during a period when inflation went up just under 60 percent. Don’t anybody bring up Prop 13 as hampering municipal income growth, ever again. If folks had passed a law limiting property tax increases to the rate of inflation, instead of Prop 13, the increase in the city’s income and related spending would be over three times less.

Laguna’s city government currently costs around $4,400 per resident. One of the most expensive in the state. The City Council often acts like it has more money than brains. They don’t have to worry about making the enterprise succeed, just how to squander the money that keeps sloshing in. Million-dollar snow cone art sculptures for the Village Exit being the latest squabble over proliferate spending amongst the feuding heirs.

Laguna Beach doesn’t have a municipal budget income problem. It has a spending problem. It’s a city with frequent Oprah Show-style “extra money” giveaways and that can’t say no to any panhandling school district with a silver cup and a good story. Next time we vote for a council seat, ask if the candidate can add and subtract.

J.J. Gasparotti moved to Laguna Beach with his family when he was 11 years old. He has loved it ever since.