No on Proposition N, the Real Property Transfer Tax

By Carl B. Hilliard

The answer to a temporary shortfall is not to adopt a permanent new tax but to reduce costs.

· Our reserves are 20% of budget and presently over $3 million. We have positive fund balance; positive asset to liability ratios, and general fund expenditures as a percentage of general fund balance are significantly above the levels recommended by Moody's on Municipals. · Our sales/TOT tax revenues are increasing and near pre-911 levels. · The imposition of a property transfer tax will result in a loss of approximately $150,000 in documentary tax revenue (money that would still be collected and retained by the County).

Proposition 1A is overwhelmingly supported and will surely pass. This proposition protects local funding and prohibits the State from reducing local government property tax proceeds. It also requires local sales tax revenues to remain with local governments. And, it requires the State to fund mandates or suspend their operation.

The answer is not new taxes but fiscal responsibility. We must learn to live within our budget. Call me at (858) 509-2938 or e-mail me at chilliard@sbcglobal.net if you have other ideas.