LA WATCHDOG – The City’s budget shortfalls worsened in June as voters rejected two tax increases. This was further compounded when the Los Angeles City Employment Retirement System lowered its investment return assumption and the City Council voted to place a measure on the November ballot to increase the charter mandated funding for the Department of Recreation and Parks.
The June primary ballot included a measure to increase the transient occupancy tax from 14% to 16% that would have provided the City with an additional $45 million. But 53% of the voters nixed this increase, much to the surprise of City Hall.
Last week, the Bureau of Street Lighting announced that 80% of voting property owners rejected a proposed $80 million increase in the Street Lighting Assessment. This raises the question of how the City will fund the repair and replacement of 60,000 streetlights, including solar powered street lights. The City is once again considering dumping this $200 million project on the Department of Water and Power and its Ratepayers…