ELECTION Taxing decisions to consider on the ballot By Clay McGlaughlin cmcglaughlin@times-standard @CMcGlaughlinTS on Twitter With Election Day on Tuesday, Humboldt County residents are once again being asked to open their wallets for the benefit of the community. Several measures on the ballot — Q, T, U and V — address financial shortfalls in specific cities as they struggle to make ends meet, and Measure Z seeks to raise additional funds for the county as a whole through a sales tax increase. Measure Z If approved by voters, Measure Z would raise sales tax in the county by 0.5 percent over the state’s base rate of 7.5 percent for five years starting April 1, 2015. The increase equates to half a cent per dollar spent, or 50 cents per $100. According to the county’s analysis of sales tax figures from the Board of Equalization, Measure Z is expected to generate about $6 million per year if it passes. With about 135,000 people in the county, that equates to around $44.44 per year per person, or $177.78 for a family of four — about $14.81 per month. The analysis of Measure Z on the sample ballot states that the funds would be used to “maintain/ improve essential services, such as 24-hour sheriff’s patrols; 9-1-1 emergency response; crime investigation/ prosecution; drug/illegal marijuana growhouse enforcement/prevention; services for abused children/ mentally ill; rural fire protection; road repairs; and other County services.” The measure also provides for a citizens’ advisory committee to be established to make recommendations to the board of supervisors on how to spend the funds, and the ballot indicates that “all funds are subject to annual, independent audits.” Measure Q In 2010, Eureka voters approved Measure O, which raised the sales tax in the city by 0.5 percent for five years. The city also has a 0.25 percent “retail transactions and use tax” that was approved in 2008 as Measure D, bringing its current total sales tax to 8.25 percent. Measure O is set to “sunset” (expire) next year, so voters are being asked to extend the current sales tax rate for another five years by approving Measure Q. If it passes, Measure Q would maintain the 8.25 percent rate through 2021. According to City Attorney Cyndy Day-Wilson, Measure O generated $4.1 million for the city’s general fund in the past fiscal year, and Measure Q would allow those funds to continue flowing. Day-Wilson said in her analysis on the ballot that the money is used to pay for “essential general city operations and services including police protection, fire suppression, emergency medical response, street maintenance, environmental programs, parks and recreation, and zoo operations.” (Sample ballot available at tinyurl/ m89jdc7. For a full discussion of the measure and a breakdown of how funds are being spent, visit tinyurl/nhzt3ze.) If both Measures Z and Q pass in November, Eureka’s sale tax rate would be 8.75 percent through at least 2020. In this case as well, a citizens’ oversight committee would be established “to conduct annual audits of all expenditures generated by the tax to ensure fiscal accountability and public participation.” Measure T In Blue Lake, rather than raising the sales tax, the city is proposing a 4 percent utility users tax for electricity and gas that would end in 2020. Pacific Gas and Electric customers whose incomes are low enough to qualify for the company’s CARE program would be exempted, as would public agencies and schools. The tax would be capped at $2,000 for each service user. The city expects Measure T to generate about $38,000 per year to help cover an annual shortfall of $57,000 between expenses and revenue if passed. Funds would go toward city services “including but not limited to adequate law enforcement, parks and recreation programs, maintenance of streets and public facilities, and other services provided by the City’s General Fund,” according to Blue Lake City Attorney Nancy Diamond. For more information in a question-and-answer format, visit tinyurl. com/kt4mwql. Measure U Rio Dell is proposing a 1 percent sales tax increase, which would expire in 2020. Measure U would bring the city’s rate to 8.5 percent by itself, and the rate would go up to 9 percent if Measure Z passes. City officials estimate that ongoing expenses are currently $100,000 higher than revenue, even after 30 percent cuts to city staff. Projections show that Measure U could bring in about $170,000 annually. Rio Dell City Manager Kyle Knopp said that if the measure passes, “the money stays 100 percent here in Rio Dell to fund services that residents rely on. It’s a temporary, 1 cent sales tax that expires in five years. … As a general tax it goes into the general fund, and over half of the general fund expenditures are related to the police department and public safety.” Knopp said that the city would focus on economic development over the next five years to avoid having to ask for an extension if the measure passes. “I think people ought to know that the city takes this very seriously … The city doesn’t have a spending problem, and we’re not spending huge amounts on retirement benefits,” he said. “This truly is a revenue issue, not an expenditure issue.” Measure V A 1 percent transactions and use tax increase is also on the ballot in Fortuna, which is projected to result in about $1.2 million per year for the city if passed. There is no expiration date in this case, though the Fortuna City Council would be empowered to end the tax at its discretion. Combined with a successful Measure Z, the city’s total sales tax rate would be 9 percent if Measure V passes. Officials state the increase is needed, citing a $469,000 deficit from fiscal year 2013-2014, and a projected deficit of $749,000 for 2014-2015 if services are continued at present levels. If the measure doesn’t pass, City Manager Regan Candelario said the city would attempt to reduce the deficit to $71,000 thorough “major cuts” of about $678,000. “This measure will provide a guaranteed source of local funding to provide services that the community has asked for and feels are important,” Candelario said. He directed those with more questions to visit the city’s website for a comprehensive discussion of the measure at tinyurl. com/n4bpt7n. According to the language on the ballot, Measure V is intended “to offset state budget cuts and restore stability to Fortuna’s city budget; maintain 9-1-1 emergency response services; restore cuts to police protection, gang/drug prevention, and road/sidewalk maintenance; support local businesses, the Fortuna Rodeo and AutoXpo; and maintain other essential general services.” An “independent community oversight committee” would be formed to review expenditures, consisting of five members appointed by the mayor and approved by the city council. “… The city’s independent auditors would annually prepare a separate accounting of the revenue received from the tax and the expenditures of revenue to be included the city’s audited financial statements,” according to ballot analysis by David Tranberg, Fortuna’s city attorney. Contact Clay McGlaughlin at 441-0516.
Posted on: Thu, 30 Oct 2014 12:15:17 +0000
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