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Glendale faces mass layoffs

Projected $15.4M budget gap means more than 200 municipal jobs might be cut.

May 01, 2012|By Brittany Levine, brittany.levine@latimes.com
(Page 2 of 2)

In March, city officials warned the loss of redevelopment funding in February due to a state mandate could prompt roughly 30 layoffs in the Community Development Department, which includes code enforcement officials and city planners.

The city could also increase fees or create new ones to boost revenues. Any move on taxes would need to be approved by voters.

Many of the suggested taxes, such as a business license tax and a transient parking tax, are already in play in neighboring cities, such as Pasadena and Burbank.

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A business license tax could include a flat fee plus a per-employee charge. In Burbank the flat fee is $87; in Pasadena, the fee ranges from $145.86 to $388.95. The per-employee charge is $5.20 to $10.60 in Burbank, and $29.17 to $58.35 in Pasadena.

If similar fees were put in place for Glendale's 8,000 businesses and 80,000 employees, they could generate up to $4 million for the General Fund, according to a city report.

A transient parking tax could be added to fees at parking garages to generate up to $1.6 million annually. Burbank and Los Angeles have imposed a 12% and 10% tax, respectively.

Glendale already assesses a 10% hotel bed tax — or transient occupancy tax — that reaps $3 million each year.

A 1% bump could generate an additional $300,000, according to the city.

In order to generate another $3.9 million, officials are also considering increasing a tax imposed on all users of electricity, gas, water, telephone and cable services by up to 1%. The tax currently ranges from 6.5% to 7% depending on the use.

All the tax increases would require a simple majority voter approval, and the earliest they could be place on the ballot would be for the next municipal election in April 2013.

The next budget study session is scheduled for May 14 in City Council chambers.

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