Mark R. Madler
The City Council will conduct a public hearing later this month on
whether to increase the transient parking tax as a means of raising
revenue.
While city staff had suggested that the added $230,000 a year from
the tax could be used for more police officers, a majority of the
council would like to have some flexibility with those funds.
"Until we see the final budget figures, we shouldn't decide what
we'll use it for," Councilman Dave Golonski said.
The council voted 4 to 1 April 25 to approve the public hearing
for May 24 at the City Council meeting at City Hall, 275 E. Olive
Ave. Councilwoman Stacey Murphy voted against the hearing.
Assistant City Manager Mike Flad predicted that an increase in the
tax will not be an easy decision for the council to make. Council
members have already made it clear they will scrutinize every fee
increase proposed by city staff, he said.
"They want to be cautious before increasing a fee," Flad said. "I
expect there will be a lot of debate and discussion."
Although the tax is not specific to a geographical area, most of
the revenue is generated by short-term and valet parking services at
and near the Bob Hope Airport. But the tax is levied at pay-parking
spaces all over the city.
"It typically hits people who are not city residents," Flad said.
The council last raised the transient parking fee in June, from
10% to 11%.
The proposed increase to 12% would reach the limit approved by
voters in a ballot measure from April 2003.
The transient parking tax brings in about $1.8 million a year to
city coffers. As with last year, the increase has been floated as a
way to address budget constraints.
"It's a good source of revenue to fill the budget gap," Golonski
said. "It can keep us from making cuts or even restore services we've
had to cut over the years."
The current economic climate is not the right time to increase the
tax, Murphy said. She did not want to bring more money into the city
at the expense of small-business owners, she said.
"When we raise it, that affects not only the airport but the
smaller lots in the city," Murphy said.
If approved, the increase would go into effect July 1.
