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Laguna Beach outlines $2 million-plus shortfall; staff floats 2% hotel-tax and 1% local sales-tax options
Summary
City Manager Dave Kiff and staff told residents the general fund faces roughly a $2 million shortfall and presented two voter-approved options — a 2% transient-occupancy tax increase (estimated ~$3 million annually) and a 1-point local sales tax (estimated ~$7.8 million) — while also proposing $4 million in operational reductions.
City Manager Dave Kiff said the City of Laguna Beach expects roughly $98 million in general-fund expenditures against about $96 million in general-fund revenues, creating a structural gap the city must close.
Rob Kurinke, a city staff member leading the revenue discussion, described two voter-approval options the council could place on the ballot: a transient-occupancy tax (hotel tax) increase and a locally controlled sales tax increase. "A 2% increase to the TOT would be anticipated to generate about…
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