■ Measure to appear on Nov. 4 ballot could raise as much as $3.7 million
Benicia City Council on Monday unanimously authorized the two steps that will let local voters decide Nov. 4 whether to raise their sales tax by a penny on the dollar.
Benicia’s sales tax is one of the lowest in Solano County and lower than most places in Contra Costa County as well. Should voters pass the measure, it would rise April 1, 2015, from the current 7.675 percent to 8.675 percent.
The measure would raise as much as $3.7 million to help underwrite Benicia’s many services, from public safety to road repair to youth programs, city staff has said.
A recent survey of 400 residents chosen at random indicated that 65 percent of Benicia’s residents would prefer the tax increase rather than a cut in city services. The survey has less than a 5 percent margin of error.
The measure needs to pass by a simple majority — 50 percent plus one more vote.
The Council voted Monday in favor of a resolution that will send notice to the Solano County Registrar of Voters that the city’s portion of the Nov. 4 election will be expanded to include the sales tax measure.
Voters also will select two members of the Council that day. The terms of both Mark Hughes and Alan Schwartman end this year, and both have indicated they will seek re-election.
In addition, voters will decide whether the city treasurer’s position should be appointed after 2016, when the term of the current treasurer, Kenneth Paulk, ends.
Expanding the ballot will cost the city $321.57 for each candidate statement. Poll hours Nov. 4 will be from 7 a.m. to 8 p.m., though many voters in the past have chosen to send in their ballots by mail.
Also Monday, the Council adopted on second vote an ordinance that amends the city’s code to show that the sales tax increase would be a locally dedicated tax measure and that the question on the ballot had Council approval. In addition, it authorized a subcommittee to write the ballot measure argument on behalf of the Council.
That vote also was unanimous.
By a third unanimous vote, the Council appointed Mayor Elizabeth Patterson and Schwartman as its subcommittee to write the favorable argument.
City Manager Brad Kilger has been advocating for the increase, reminding the Council in written and oral reports that Benicia, like many other cities, experienced budgetary challenges because of the recession.
As he and other employees sought to put the city on a fiscally sustainable path, their efforts have been interrupted frequently by unexpected developments that have cropped up during the past several years. These included surprise drops in utility user taxes and property taxes.
Among this year’s surprises has been the severity of the statewide drought and the need to earmark an unbudgeted $900,000 for water purchases after California officials announced that State Water Project contractors would get little to no water despite having paid for their shares in advance.
Benicia normally expects the State Water Project to provide 85 percent of the water used by city residents and commercial interests.
In past efforts to keep its budgets balanced, Benicia has asked employees to take a 10-percent equivalent cut to compensation, frozen positions and reduced the full-time work force by 12 percent to reduce staff expenditures by about $11.2 million.
Many necessary projects and expenditures have been delayed, too.
In the meantime, the city increased park fees. It also expanded its lease income by 275 percent. That has increased the city’s income by $65,000 a month.
But Benicia has more than $100 million in unfunded capital projects, including $50 million for streets and transportation, $20 million in storm drain improvements and more than $30 million in parks and buildings, including those at Benicia Public Library and the James Lemos Aquatic Center.
The city’s property tax base gradually is returning to normal, although 20 percent of that income is at risk because of outstanding appeals of tax assessments.
And while the Benicia Industrial Park has more tenants than in its recent past, its sales tax revenue remains stagnant.
If these matters are not addressed, Kilger has reminded the Council, the city could face about $1.5 million in annual operating losses throughout the next decade.
Kilger also has said the penny increase in sales tax isn’t the only solution the city needs to adopt to strengthen its financial position. A top-to-bottom analysis of the city’s organization and operating efficiency has been undertaken as well, he said.
Those topics will be considered at a future meeting.
Danny DeMars says
Fine by me. I don’t shop in Benicia.