Faced with significant structural deficits, the City Council agreed to put an item on the November ballot for the voters to decide on the financial future of our community. Years of budget cuts and staff reductions haven’t brought the city a way to avoid a deepening financial crisis. Community meetings since 2018 and 2019 have outlined the looming problems that show that what reserves are currently available will be completing gone in year 2027/2028.
Without new found funds, the deficit grows to $3 million in 2025. If voters approve an increase in sales tax (shared by all shoppers in the city), will generate approximately $4.1 million annually. The current sales taxes paid when local purchases are made is 7.25%, increasing to 9.25% percent if voters okay the increase. The future financial fate of the city will be determined by voters, according to the research firm of FM3, hired to gauge the feelings of the voters. Many nearby cities have similar sales tax rates: Seal Beach, Westminster, Stanton, La Palma, and Garden Grove at 8.75%; Hawaiian Gardens, Cerritos, Lakewood, Signal Hill and Bellflower, 9.5%; and Long Beach at 10.25%.
