Hermosa Beach business tax increase measure postponed

(Modified from the original posting on my campaign website, www.Stammreich4Senate.org )

Hermosa Beach is one of the cities that sit in the heart of the South Bay, and I remember many a Saturday afternoon at the boardwalk trying to keep up with the volleyball studs that ruled the section of beach just north of the pier.

As many of you read, last Tuesday evening’s City Council meeting agenda was highlighted by an attempt by Hermosa Beach City Council member (and city business-killer) Michael Keegan to raise the business license fees within the city he resides in order to be more comparable with the city he does business in, namely Manhattan Beach. Keegan, like many misguided far-left liberals, still hold on to the notion that raising taxes during a recession actually increases revenues, despite what the State of California is beginning to learn about the ineffective April tax hikes this year.

Of course, the lobbying tactic for convincing three of the remaining four city council members to place this tax measure on the November ballot was the same as many of us saw earlier this year by Los Angeles City Council members when most of them voted to put Measure B, the boondoggle solar panel measure placed on the March 2009 ballot. Many city council members, including our own Los Angeles member Janice Hahn, stated that they were “undecided” on the measure themselves and were simply letting voters decide. With all of the misleading commercials by both the IBEW and Mayor Villaraigosa, it took a committed drive by the bi-partisan "No on Measure B" group to narrowly defeat it by a single percentage point!

Tuesday night, a coalition of South Bay conservatives descended on the Hermosa Beach City Council to bring forth what placing a tax measure on the November 2009 ballot to raise the business license fees by as much as 800% would do to businesses both in Hermosa Beach and throughout the South Bay. The process in Hermosa Beach required 4 of 5 members’ approval to place it on the ballot. Keegan was in full support; Mayor Kit Bobko, a solid defender of his constituents' tax dollars, was already openly opposed.

And so it began.

Speakers against the measure included myself, residents & business owners, including the Hermosa Beach Chamber of Commerce Executive Director Carla Merriman, who specifically pointed out that the finance committee that was forwarding the proposed tax measure to the city council had not only failed to contact business representatives for their input, the members of this committee had actually refused requests by both the Chamber and other local business owners to participate in the discussion. After this stunning revelation and a few others, Council member Peter Tucker and Mayor Pro Tem Michael DiVirgilio realized that the proper discussions with all of the appropriate stakeholders had not been properly conducted, and voiced their opposition to a November tax measure without that discussion being held. A supplemental motion was made and unanimously approved to hold that discussion after the November 2009 election.

This delay should have been seen as a blessing to Council Member Keegan, who is up for re-election this November. Keeping a controversial measure that could be used to rally conservative voters similar to May 19th would have helped Keegan by keeping the voter base somewhat moderate to liberal. However, not leaving well enough alone, most of the city council gallery was shocked when Keegan exclaimed that "I'm working for the residents, not for the businesses. That's right, I work for the residents. I get elected by them, and that's who I represent here."

Expectations are that Keegan will be reminded of these comments throughout his re-election campaign when he solicits contributions and window-space from local businesses, as well as has to explain to residents who do not like to drive out of town to go shopping why their purchases cost more.

Putting questionable ballot measures in front of voters & letting them decide is like putting questionable food in front of a guest & letting them decide whether to eat it. Who is responsible for ensuring the health of the food? Who's responsible for ensuring the food is not rancid, tainted or in another way hazardous to eat? A professional and responsible chef always knows what they are serving to guests, and stands behind everything they prepare and serve.

State legislators and City Council members throughout California and the South Bay, respectively, must be held to this same standard. It is up to us as voters and friends of voters in cities like Hermosa Beach to ensure that they are.