Huntington Beach has applied to annex Sunset Beach under the “Island Annexation” rules, which provides that a community which is less than 150 acres in land size can be annexed without a vote of the residents if there are no new taxes assessed. However, California State law, under Proposition 218, requires approval by the registered voters in a community before any new taxes can be imposed.
Last Monday, as the Sunset Beach Community Association Board of Directors was signing a Memorandum of Understanding with the city of Huntington Beach, a letter was being sent to the Association board members from the City Attorney’s Office declaring that the city would now be assessing the Utility Users Tax and other specific taxes that previously were identified in the city’s Annexation Report, as not to be collected.
The letter dated Nov. 9, sent to the Huntington Beach City Council members and administrative staff, was not sent to the Community Association members until Nov. 13, at 1:15 p.m.. Although the council members had been in contact with the Community Association leadership, the letter’s contents were not discussed before.
Since a year ago last July, The Huntington Beach City Council members held numerous meetings with Sunset Beach residents and Community Association leadership and repeatedly stated that the annexation did not require Sunset Beach voter approval, because they would not be assessing any new taxes on Sunset Beach residents as part of the annexation.
Representatives of the Orange County Local Area Formation Commission also told Sunset Beach residents they were not going to have a vote unless they would be taxed by Huntington Beach. If taxed, the law required that they be given a vote, to approve the annexation. Now the LAFCO representatives seem to be shying away from their previous position, saying a vote is still not required.
In a recent article published in the Orange County Register on Nov. 16, Councilman Keith Bohr was quoted as saying, “The city was misinformed about imposing the tax when annexation was initially being considered.”
“ I think we were all very much in good faith when we started pursuing the annexation process,” he said. “We thought the law was you couldn’t collect the UUT and that there was no switch and bait on purpose … but as it played out, here we are.”
Jennifer McGrath, the city attorney said, “The city was threatened with litigation from both sides—those in Sunset Beach opposing the tax and those in Huntington Beach who contend it’s unfair to keep Sunset Beach residents exempt from the tax. We are simply expanding our borders,” she said. “We’re not imposing any new taxes.”
The Citizen’s Association of Sunset Beach was formed last July by residents of Sunset Beach who feared the Community Association would not vigorously represent their interests.
Board members of the Sunset Beach Community Association had been meeting with Huntington Beach City Council members privately to discuss annexation, although the SBCA had already established a steering committee on future governance, which was pursuing an investigation to determine the feasibility of incorporation. The SBCA was officially on record as opposed to annexation.
The Citizen’s Association of Sunset Beach membership is currently raising money to fund a lawsuit that they intend to file if the LAFCO does not condition the annexation of Sunset Beach on voter approval first. The LAFCO is scheduled to meet and approve the annexation application by Huntington Beach on Monday, Dec. 8.
Jack Markovitz is president of the Citizen’s Association of Sunset Beach
