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HomeMy WebLinkAboutCorrespondence - Item #18 Ibarra, Evelyn From:Tim Johnson <tjohnson@jlkrllp.com> Sent:Tuesday, June 18, 2024 1:14 PM To:Vazquez, Benjamin; Phan, Thai; Amezcua, Valerie; Penaloza, David; Bacerra, Phil; Hernandez, Johnathan; Lopez, Jessie Cc:eComment; Carvalho, Sonia R. Subject:Agenda Item #18: Litter Abatement Tax Attention: This email originated from outside of City of Santa Ana. Use caution when opening attachments or links. Mayor & Council (cc City A?y Carvalho)…I see that there will be further discussion regarding a poten?al cigare?e li?er abatement tax. I want to express my concern that we need to have some preliminary informa?on on this item before we direct staff to propose a tax. It is my understanding that an ordinance like this would not be available to generate general fund tax revenue but instead would be in the same realm as a city fee that would need to be offset the city’s cost of services associated with such cigare?e li?er abatement. I think we can all agree that seeing any type of trash on our city streets is unacceptable that includes cigare?e li?er whether it be used bu?s or package trash. I believe that any fees generated from this program would only be able to offset the city’s cost of picking up such cigare?e related trash. For example, a por?on of street sweeping…likely a very small por?on of street sweeping is for picking up cigare?e bu?s and related trash. Essen?ally, I think before we get have our city staff spend valuable internal ?me to come up with the documents associated with such proposal, we need to understand what is possible first and a minimum of how it would work and also a big picture reality of how the economics would work. Effec?vely, before staff spends a bunch of ?me proposing something, you and our community needs to know what the big picture economic impact may be on this type of item. Is it worth then for staff to then come up with the necessary documents to propose such tax- but only a?er we know the broad strokes of how such a plan may work within the constraints that exist. I commend the council for thinking crea?vely on genera?ng revenue, but we also need to make sure that it will create the right kind of “net impact” to our city’s budget. Tim Johnson , CPA Partner (949) 860-9892 ( tjohnson@jlkrllp.com 2601 Main Street, Suite 580, Irvine, CA 92614 See our latest business news and insights by clicking here This message (including any attachments) contains confidential information intended for a specific individual and purpose, and is protected by law. If you are not the intended recipient, you should delete this message. Any disclosure, copying, or distribution of this message, or the taking of any action based on it, is strictly prohibited. JLK Rosenberger is a California Limited Liability Partnership and a member firm of PKF International Limited, a family of legally independent member firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member or correspondent firm or firms. 1