Torrance launches citywide sales tax campaign ahead of June elections 

Torrance has officially launched a $420,000 public outreach campaign intended to educate voters the city’s proposed three-quarter cent sales tax increase, which will appear as a ballot measure during next year’s state primary election.

The city recently sent out mailers to residents to provide the details about the tax measure and asking them for feedback on it.

“We can balance the city’s budget with deeper cuts across the board,” the brochure read, “or we can take a more balanced approach by securing additionally locally controlled revenues along with more modest cuts.”

The current sales tax in Torrance sits at 9.50%. The new measure would bring that up to 10.25% — the cap legally allowed in the state.

Some residents have already expressed their opposition to the measure, comparing it to a sales tax measure that was nixed by 58% of voters in March 2020.

“Wages are stagnant, unemployment remains high, affordable housing is nonexistent, and cost of living has continued to go up,” Spencer Dela Cruz wrote to the City Council in July. “Do you really think it’s the right time to ask taxpayers to pay more?”

City officials have said that if the new tax measure were approved, the average Torrance resident would be charged an approximate $130 dollars per year, depending on lifestyle and spending habits.

The resounding question among Torrance residents, however, seems to be: How did the city end up here in the first place?

The city manager’s office reported in July that the city, throughout the course of the coronavirus pandemic, had lost $15 million in general fund revenue. And by the end of 2020, the city’s reserves had declined to $581,499.

That number, according to the Government Finance Officers Association, should sit at approximately $37.5 million to ensure the city can function properly and be prepared for any unforeseen expenses.

City officials managed to balance this fiscal year’s budget with a series of quick-fixes: $8 million in one-time revenue, $12 million in federal aid via the American Rescue Plan, refinancing existing debt, using reserves — and leaving approximately 200 city jobs vacant.

“It wasn’t just the pandemic that brought us here,” Director of Finance Sheila Poisson told the City Council in October.

In the five years leading up to the pandemic, city income grew at an average rate of 2.6% while its spending increased at an average rate of 3.8%.

Much of that has to do with state pension rates. Over the past few years, while he return on employer contributions to the California Public Employees Retirement System has gone down, the average rate of employer contributions has increased, Poisson said.

CalPERS determines employer contribution rates for all cities, including Torrance, in its portfolio.

Current Torrance projections, in which city expenses outweigh revenues, indicate the city will operate with a budget deficit for the next 10 years.

The proposed sales tax, if enacted, is estimated to bring in an additional $26.7 million in annual revenue. The city would divvy that up, spending:

• $18.5 million to better Torrance’s quality of life with beautification efforts, public safety, downtown revitalization, affordable housing and a response to homelessness.
• $6 million toward replenishing the city’s reserves to prepare for unforeseen expenses.
• $1.5 million to improve city building infrastructure and address Americans with Disabilities Act compliance.
• $750,000 for cybersecurity to strengthen the city’s digital infrastructure after last year’s cyber attack.

“We don’t take this measure lightly,” City Manager Aram Chaparyan said in July. “And, in fact, it’s a last resort.”

City staff have proposed cost-cutting budget reductions if the measure fails — potentially up to 5% across all departments.

The Torrance Police and Fire departments’ budgets make up 65% of general fund spending — meaning there would be no way for the city to avoid significant cuts to public safety services.

Police Chief Jeremiah Hart said budget cuts for his department — which would total around $8.5 million — would most likely be achieved through vacancies.

The decrease in staff, Hart said in October, will inevitably impact the department’s ability to provide critical public safety services. There would be reduced capacity to investigate property, economic and drug-related crimes, he said, as well as a general decrease in the city’s ability to hire and retain high-quality police officers.

But the budget cuts won’t just affect public safety. They’ll also impact the city’s ability to maintain beautification efforts, Torrance cultural and civic institutions, and community services.

Cutting those costs would save the city an estimated $13.9 million. But for residents, that could mean potential closures of public libraries, the Madrona Marsh Preserve, the Torrance Art Museum — and several other programs and parades.

Voters will weigh the measure during the June 7 election.