The Soft Launch of a Resident Tax Hike

The Truth Behind the “Financial Emergency”
Coutesy of The Weiss Report

City Manager Dave Kiff’s recent column, “2026: A Big Year Begins,” appeared in Stu News and Friday’s Laguna Beach Independent. Readers should view this column as a “soft launch” of significant policy shifts coming to Laguna Beach.

The column is also a strategic communication piece designed to frame the narrative before the formal legislative process begins. The City Council is the legislative body responsible for making policy decisions. Why then isn’t the Mayor the one speaking to the public about new taxes and major issues for voters?

There is a reason for the City Manager to lead the charge instead of our elected officials:
· Pre-emptive Framing: Mr. Kiff is framing the tax not as “more spending”—which it is—but as a necessity to prevent the decay of “must-have” services like fire protection and fuel modification.

· Agenda Setting: The primary intent here is agenda-setting. By bundling a sales tax increase with popular or “emergency” needs—such as wildfire safety, seismic upgrades for fire stations, and “home rule”—the City Manager is attempting to create a “package deal” that is difficult for the public to oppose.

· Political Shielding. It’s An Election Year: By taking the lead on the proposal, the City Manager provides a layer of political cover for the City Council, especially those running for re-election. If the public reacts poorly, “city staff” takes the heat. If the proposal is well received, the Council can simply “respond to staff recommendations.”

Crossing the Financial Rubicon: At the recent City Council Strategic Planning meeting, we discovered that the city’s expenses have exceeded revenues for the last two years. The city is in financial hot water and claims it needs more revenue.

This is happening despite General Fund revenues climbing from $61.7 million in 2015-16 to $95.6 million in 2025-26. That represents a 55% increase in revenue over the last ten years, and yet we are still running deficits.

Why can’t the city live within its means? Why has city staff size increased by 35% over the last decade, (a major cause of increased spending) even though the population of Laguna has declined?

City Managers execute policies established by the elected officials of the City Council and runs the day-to-day operations of the city; City Managers do not initiate or sell policy ideas to the public. If you get the chance, please read Mr. Kiff’s column and feel free to email him as he invites.

Or, better yet, email the city council with your reaction to this tax proposal at: citycouncil@lagunabeachcity.net

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