Council to Consider Response to Prop. 218
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City leaders today will consider cutting Irvine’s budget for fiscal 1997-98 to anticipate the loss of millions of dollars in property tax assessments as a result of Proposition 218.
Irvine relies on special assessment districts to pay for street lighting as well as landscaping of parks and public properties. Proposition 218 limits cities’ means of raising revenue for those purposes. The law, approved by voters statewide in November, takes effect July 1.
The city now spends about $6 million a year, or about half of its operating budget, to provide those services. The rest comes from property taxes.
This spring, a ballot measure will be mailed to homeowners asking them whether they want to continue to pay the city about $42 a year in assessment fees or shift the burden entirely to the city.
If they choose the latter, the city would be faced with a shortfall, said Allison Hart, assistant city manager, and would have to reduce the level of services, cut spending, or both.
She said city staff will ask the council at its 4:30 p.m. meeting today to designate budget areas to be cut.
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