Voice of the People: Numbers Never Lie (Almost)

Sales tax is not the predominate source of revenue for the City of Grand Terrace. In fact, according to the Five-Year Budget Stabilization Plan, property taxes make up more than 41% of the projected 2013-2014 revenue stream. While the Chamber of Commerce does an admirable job of identifying the visible enterprises throughout the City, an undercurrent of invisible businesses have emerged from the ashes of the economic depression and the phoenix of the Internet – Home-Based Operations. Recently I probed local real estate resources. Better than 50% of the agents and brokers within a 30-mile radius operate by cell phones, maintaining little contact with a conventional office environment. If they find their way back to base, it is usually during the evening quiet, seeking the company of a combination copy/fax/printer machine. And so it goes with what has been estimated in excess of 350 Home Based Operations located within just 3-1/2 square miles. The trend is so prevelant that the Barton Road Specific Plan could be re-assessed with Home Based Operations in mind to accommodate combination facilities. Property taxes are the biggest single source of revenue that funds City staffing, consultants, police, parks, etc. Putting a building on a property multiplies exponentially valuation property taxes depend on. Where the payroll and pension monster takes, property tax increment gives. According to the Mid-Year Budget Review, most of the 6/30/14 projected actual revenues of $4,694,545.00 are realized by property taxes paid to San Bernardino County and distilled to the City of Grand Terrace, (including Redevelopment Property Tax Trust Fund dollars). On March 11, 2014 the four remaining City Council members voted to maintain a “Reserve for Future Budget Stabilization” in the amount of $1,033,770 including “lifestyle enhancements” like City Council Chamber Upgrades and Web Streaming of City Council Meetings. Missing from the equation was any semblance of funding or a plan for future development of Mixed-Use properties in the southwest corner of the city. Remember that the next time they try to shove a Tax down your throats to fix a more than $500,000 projected annual budget shortfall!