GARDEN GROVE : City May Hike Fees, Taxes, Cut Services

Faced with a $5.6-million budget deficit, the City Council tonight will consider approving a $47.2-million budget that calls for new hotel and street-lighting taxes and increases in business license fees.

The increases are designed to offset $3 million of the deficit.

The rest of the shortfall will be made up through a reduction in services, which could include the closure of City Hall every other Friday along with shorter operating hours.

This revised City Hall schedule could save more than $1 million.

Other savings would come by imposing a modified hiring freeze, but no layoffs are proposed.

City Manager George L. Tindall said the City Council has opted to strike a balance between raising new revenue and cutting services to solve the budget problems.

The problems are due to a drop in projected sales tax revenue of more than $1 million, a bad economy and new state mandates such as jail booking fees and air quality requirements, officials said.

“The council has agreed, in concept, to raise $3 million in revenues,” Tindall said.

“If they didn’t raise revenue, there would have to be severe cuts, which would have a profound effect on Garden Grove’s future because they would have to be so substantial.”

The hotel occupancy tax would increase from 8% to 10%.

Street lighting taxes would be raised about $2 each month per property owner.

The business license fee increase, the first since 1972, would go from a fee of $30 plus $10 per employee to a fee based on gross receipts.

The public hearing on the budget and proposed fee increases will take place at 7 p.m.

It will be held in the council chambers, 11300 Stanford Ave.