Desert Local News - Index

Desert Local News - Desert Local News 'weekly' on demand print March 6th edition - Index

2
city council watch
Desert Hot Springs City Manager Rick Daniels
Reader’s comments:
Karl Baker Jr.
It surprises me that the writer
of this story considers Mr. Daniels
comments to be “news”.
For over one year the dire
financial straits of DHS have
been a constant topic at City
Council meetings. One can recall
that less than a year ago
there was a major reduction in
force - the elimination of open
positions, and laying off a number
of employees - due to budget
constraints.
In fairness, the writer of the
article could have mentioned the
efforts that the Citizens finance
committee and myself are doing
to reduce expenses, the efforts
that council member Betts and
myself will be recommending
for the current budget process
and the general concern among
many citizens regarding efforts
to perhaps extend the existing
taxes, and/or finding new revenues
to accomplish the necessary
City services.
Yes, the alternative to NOT
doing all of these things COULD
be dissolution of the City. As I
see it we have two choices - pull
together and be united in finding
a solution to our financial situation
or run around like “chicken
little” screaming that the sky is
falling.
Belt-tightening
or good bye DHS
City Council watch
“The city will cease to exist,”
those were the words of Desert
Hot Springs City Manager Rick
Daniels as he addressed the need
for the city to control spending
and grow revenue.
The comments, offered as part
of his city manager report to the
city, warned the city’s finances
are “structurally out of balance”
and that a budget crisis looms if
the city council does not address
it at budget time. Without a fix,
without money, the city cannot
continue.
Expected sales taxes the city
receives on the sales of new
homes have slowed to nearly zero
with the downturn in the real estate
market. This could be worsening
as property taxes shrink
from reassessments, something
cities across the nation are now
facing.
Homeowners are asking new
Bill Effinger
Kudos to our city manager
for “telling it like it is.” That is
definitely news in this city. And I
applaud our city council for creating
a real finance committee with
qualified members to oversee and
recommend changes in budgetary
matters, which obviously is long
overdue. However, in my view
there is no way the city can save
its way out of the financial crisis
it now finds itself. To be sure,
cutting expenses where they can
be cut is a fiscally responsible
Guillermo Vigil
Now is the time to be more
friendly to new and existing
businesses.
I came to DHS about 8
months ago. I wanted to start a
county property appraisals to get
reduced property tax that reflect
the losses in value they have experienced.
That means less money
to the city. Exactly how much
is not known but obviously adds
to a dwindling revenue.
Anticipated new home sales
have not happened as planned.
Permit fees paid on those new
houses fund the city’s budget.
Declines in consumer spending
further reduce the city’s already
meager retail sales tax revenue.
But the biggest threat to funding
comes from the Special Property
Tax (police and fire) and the
Utility Tax (to pay off the bankruptcy)
that sunset (end) in 2009.
Next year is fast approaching
and without those vital funding
sources we’re all in big trouble
says Daniels.
“We’ve maybe a ten year window
of opportunity to bring in
retail revenue,” said Daniels of-
approach to help stop the bleeding.
The current discussions of
increasing property taxes and extending
the special taxes beyond
the sunset year of 2009 will send
the wrong message to current
residents and will further curtail
existing home sales by becoming
the highest taxed city in Coachella
Valley. Using borrowed RDA
funds for anything other than promoting
retail/commercial growth
for the city will merely prolong
the inevitable. The only answer is
to increase the inflow of revenue
business here. Talking to a lot
of small business owners, I hear
that it can take up to 5 months
to get the permit. That it is even
harder to get a business sign approved.
fering hope as a solution. Desert
Hot Springs has fallen behind
in attracting big box stores and
shopping centers that are magnet
attractions to wealthier cities of
the Coachella Valley and central
revenue streams.
Past City Councils have concentrated
on residential development
with revenue associated
with developer fees, sales tax
from new homes, and property
taxes. Daniels and others on the
City Council continually emphasize
the need for growing retail
revenues and are seeking creative
ways to arrive there.
With the end fast in sight for
special tax assessments, no retail
growth on the near horizon, and
the overall economy tanked in a
recession… belt-tightening for a
city already operating on a shoestring
creates challenges for Daniels
and our City Council.
through retail sales taxes by doing
everything possible to encourage
retail/commercial development.
Launching the planned street rebuilding
throughout the city will
be a good start, by proving to the
outside development community
that the city is serious about
cleaning up its image. Desert Hot
Springs must prove to the financial
community that it is worthy
of their investments or they will
not come here.
I cannot get a business off
the ground with a city that is trying
to sabotage me at every step
of the way. DHS needs to make
it easier and faster for a small
business to open.