Half-cent sales tax going off books

The sun will set on a temporary half-cent sales tax Wednesday.

Having met the twin goals of helping the city fund its share of the costs to restore infrastructure destroyed or damaged in the Bluebird Canyon landslide and to bank the remainder for a Disaster Relief Fund, the tax will be rescinded.

The tax will be stricken from the books 2 ½ years ahead of the term limit.

“Everybody was pleased,” said Mayor Kelly Boyd, who announced the tax sunset at the June 16 council meeting.

Anything that helps the business community is welcomed, particularly in the current economic climate, Boyd said.

Laguna voters approved the tax by a 55.7% to 44.3% majority in December 2005.

The voters put their trust in the council, which had no legal obligation to use the money for Bluebird or to rescind the tax before the six-year shelf life ended, as promised.

The city’s share of the costs depends on the federal audit of expenditures made to repair the ravages of the Bluebird Canyon landslide on June 1, 2005.

City officials do not know to the last million what the federal auditor will disallow, but they think they have it covered.

City Manager Ken Frank said the audit is completed but is being reviewed by the state Office of Emergency Services and the Federal Emergency Management Agency, the two agencies that will pick up the majority of the tab.

The review was expected to take six weeks, according to information given to Recovery Coordinator Bob Burnham about two weeks ago.

“We don’t expect any huge surprises,” Frank said.

“He [the auditor] is going to recommend some things will be disallowed, but we kind of have figured it all into the budget.”