Funding Benicia is possible without rate hikes
Last week the City Council implied that Benicia is struggling financially, and that raising water and sewer rates and permit fees are necessary if we want to balance the budget without having to cut essential services.
Facing financial duress, it is understandable why the City Council might feel that have no other option but to raise taxes, rates, fees – which they have – and even cut services in the near future. But they do have options—and several of them.
Here are some modest ideas to help Benicia balance its budget without raising new taxes and fees:
* Encourage an entrepreneurial culture at City Hall; whereby, employees are inspired to identify where money can be saved by measuring productivity and eliminating waste and inefficiencies, if any exists.
* Authorize the city staff to seek out more public and private investment to assist in funding the current and anticipated infrastructure needs, such as water, roads and broadband among others, across town.
* Attract and recruit more businesses that produce retail sales taxes to First Street, the various shopping centers and the Industrial Park.
* Review land-use policies to ensure Benicia is maximizing property and sales taxes per acre.
* The sale of assets – vacant land parcels, if any, and some buildings – could generate considerable cash on the open market and help Benicia cope with its pending budget crisis.
* Refinance outstanding notes and bonds to reduce payments.
*Audit all supplier contracts and re-negotiate best value agreements where uncompetitive pricing is found and the contracts have auto-renew clauses.
* Institutionalize buy-local strategies to keep more money circulating in town.
If we want Benicia to prosper, we should consider change now, while there’s still time, to prevent ourselves from being in financial trouble down the road. We don’t have to hit rock bottom before waking up and trying to turn it around.
I urge the Benicia City Council to challenge the status quo and recognize that raising taxes, utility rates and permit fees just doesn’t cover the long-term costs associated with city-wide upkeep and maintenance, not to mention capital improvements and new projects.
The above list is hardly complete, but I hope it helps.
Lionel Largaespada,
Benicia
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What is your opinion on the cannabusiness issue? This is the most obvious thing on the radar right now and going forward but there is no mention of it in your submission. Cannabusiness fees and taxes will swell the GF. The voters have spoken on Prop. 64 in Benicia. An unofficial poll that could be skewed indicated even greater support for cannabis in Benicia. Nobody presently on council wanted to continue the prohibition of cannabusiness, BIP has laid out the welcome mat for cannabusinesses and they are eager to join our business community This is a really big deal for our town, but you do not say a word about it.
Stan the city has no financial info as yet. No estimate. You are very premature without facts. Now you tell me how much revenue is at stake. Pure facts on how much revenue each store could bring in by retail sales. Do you know any of that. This issue for the city may not be resolved until deep into 2018. Stan, follow the issue with facts. Not a dream. Facts are important not a dream. At present all you have is a dream. When that dream is backed up by facts your dream may come true. But at present it is only a dream.
Here are some facts.
Vallejo currently has 10 retail dispensaries.
In 2015,/2016 , over a 10 month period, sales tax revenues were 116K per month. Today, that figure has grown to 187K per month.
Benicia staff is recommending 2 dispensaries.
Benician’s shop out of town. The revenue is measurable
Vallejo has many car dealers, we have none. So buy Beniica gas.
Our Measure C sales tax increase, generates 1.2 million quarterly..
Come to our EDB meetings, & meet your economic development team.
Lionel is on our team…
Thanks for your input.
D. Cullen, EDB member
I know those figures Dennis. Now tell us how much tax revenue cannabis will generate for Benicia. I also believe that tax figure is without the additional 10%. So if I use your figures we will generate sales tax on the 1% $240,000/480,000 and another $240,000/480,000 on the measure C 1% that is 480,000/960,000. All of First Street with both taxes generate about $420,000. So you are saying the potential sales tax is greater than all of first Street The total taxable sales on First Street is about 21 million. So if we add in the 10% in 2019 that would be an addition 2.4 mil for a total of about 3.4 million. or more. Using Vallejo tax numbers per store. Rough estimates. If those figures are true it would be a windfall for Benicia. But as we all know the estimates on revenue and output have not been very accurate. I do not know how much tax could be generated from the Industrial Park. If the pro cannabis folks are selling only revenue they win big. My comments have always been that retail sales will pass 4/1. The big issue is where are the spaces to put these two stores. How many square feet are needed. Also if the city adopts stricter laws on feet from schools to say 900/1000 feet and parks which have no restrictions to say 500/600 feet. You now have a location problem. Financial part has always been a big sell but is it practical and will the council/mayor keep restrictions as they are. There will be a big push by parents, school etc for stronger restrictions just like alcohol use to be. If it is financial only the city wins big for a few years. In about 4 to 6 years that gain will be eaten up by CalPers at about $800,000 a year. So as you see cannabis tax dollars do cover that and hopefully the balance goes to balance the budget. The budget at present is about 4 mil short every year. This is not the total answer. We shall see. I do believe the retail sales tax of 12% to generate over 3 million could be very aggressive. Maybe not. Mr. Cullen what are your numbers. Thank you.
I can see that I opened a can of worms. That’s ok 👌
Let’s cut to the chase; you recognize the problems, please suggest some solutions. I am an out of the box thinker.
Also, I like to establish credibility, background, experience, & studies. I am asked these questions a lot..
How about you?😎
No can of worms Dennis. I am a critical thinker. I am open for discussion. One and maybe the only topic of the pro cannabis folks is tax revenue., I assume you reviewed my comment. I was hoping you had some ideas.
Yes, we have had discussions at our meetings. Should be on our next agenda. Please drop by to discuss for public comment
When on the agenda I will stop by. Thanks for the invite.
Next EDB meeting Sept. 27 Wed. @ city hall conference room this will be an agenda item, now is the time to voice up😎
I will
I have not seen any EDB agenda discussion on cannabusiness in Benicia. Has the Board ever discussed it officially? What is your opinion re: BIPA welcoming cannabusiness and storefronts on First Street and Southampton?
I believe the bipa prefers non retail due to the truck & rail car traffic. It is approved for lab testing & wholesale manufacturing etc. Perhaps we can utilize the Seeno property for a better mix use 😎
Lionel was a big supporter of Valero bomb train plan and, like Hoot Owl, lost on that too. He is clearly a prohibitionist on the wrong side of history, like Hoot Owl and Lowry. If he is going to run next election, he cannot win being a prohibitionist.
Stan and BHS68, whomever you are,
I, myself, am not a prohibitionist.
If we can get past the character assisination and misrepresentation of the above letter, I’m glad to meet with you both over coffee or lunch.
Your neighbor,
Lionel
I’m having coffee now, at Cafe Forum. I don’t want to deny the greater Benicia community an opportunity to hear your views on cannabusiness by having a private meeting with you. There is nothing misrepresented in my comments. It is just a fact of your submission. You have previously spoke of a “renaissance” at BIP, BIPA has rolled out the welcome mat for cannabusiness and you have not said a word about it yet publicly.
My views are unambiguous. We should allow any and all forms of cannabusiness in BIP, specifically targeting concentrate processors. I do not want “weed” to be a consumer offering in our town. There is plenty of it not far from here. I support cannabis storefronts in prime retail areas, specifically First Street and Southampton. This state will see a huge spike in tourism solely because of adult-use cannabis and Benicia should be ready to give them what they want as well as provide safe access for patients and recreants alike that live here, or live somewhere else but would rather shop in Benicia. The only problems I see from this policy are in traffic, parking, and people crowding the sidewalks as they line up at restaurants, not to mention spending generously at other business establishments. My future Benicia resembles Fourth Street in Berkeley.
What is your opinion of the recent Town Hall poll? According to a prominent citizen that participated, the poll could be manipulated to skew results, and as such should not be considered by policy makers. You read that, didn’t you? The poll offers two different conclusions from online results to staff report on it. In either case, cannabis popularity in Benicia is strong, as reflected in the Prop. 64 vote. The Benicia youth voice on cannabis has been heard. Did you read BHS senior Andrew Kelly’s piece here?
We have unregulated sales and sales tax leakage to an unknown degree. Cannabis consumers are the fastest growing segment of all states where it is legal. I do not support cannabis consumption by youth as it may affect brain development. I am all for responsible consumption of cannabis by adults and don’t care what they do in the privacy of their homes.
Glad to hear you are not a prohibitionist. How would you vote on the above issues were you on council now?
Stan stop with all the glamour and lack of facts. Huge spike in tourism. Well now tell us how much. Tell us how much revenue per store the city can expect. Just where are we going to put those stores. Are there vacancy’s to accommodate those stores. What size do they need to be. Square footage in sales. You have offered nothing but your personal glamour and no facts. Get with program and offer the facts. You have none. All talk and no facts. That citizen has clarified his statement. He was contacted and told about multiple postings. Not allowed. Get your facts correct.
I agree with Lionel 100%. We cannot tax our way out of this financial hole. We have to grow economically. Council and staff have to find savings. Their “no cuts” philosophy does not work. Every department needs to be reviewed for non-essential cuts and efficiency. We need to upgrade and encourage growth in the industrial park. Lionel has good ideas and they should be considered.
I agree with Stan. What is Lionel’s position on cannabis sales in our town? We cannot simply cut our way to prosperity. The industrial park wants the business, did you read the memo, Lionel? Clearly behind the curve on cannabis popularity sweeping the nation, and VERY popular in Benicia. Maybe Lionel wants to just leave it underground, unregulated or taxed, and blow off the sales tax leakage to Vallejo and elsewhere. I won’t be voting for you, again, Lionel. Your support for bomb trains was wrong, the council unanimously disapproved it, and the voters will not forget should you seek office again. Where is Strawbridge on this issue? What is her plan for economic vitality?
Great comment Matter. They will be understand what he is saying. It takes people like you that understand the issues. The residents are starting to get also.
Seems like a combination of all the above could be discussed, but the endless rambling diatribe of “The Owl” is really getting tiresome.
I have been correct on all issues. JB just do not read me.
By the way JB give us your name. I do, as does Lionel. Now it is your turn. Call me a name now own up to it. You comment and hide behind JB. That is a sign of a coward..
Lets see, BHS68 and Matter are taken… I think I’ll just stick with my initials. If you read my post, I didn’t call you a name, but I did criticize your banter. If I was a coward, I wouldn’t have pointed out your antagonistic remarks. Felt like you needed a dose of your own medicine. It’s clear to me you only know “your facts”, and damn anyone who has a different opinion. I have never seen you have a civil tone with anyone who might have an idea that does not resemble yours. And by the way, I frequently skip over your posts. Probably should have this time. Most of the time these threads flow much more coherently when I skip over “The Owl”
You are wrong.,
I don’t think someone’s opinion of you can be considered “wrong”. Typically, when someone says “you’re a rude person”, replying with “wrong” just proves their point
Just who is Carl N? I know who I am. Yes I am direct in your face. But I do get answers and do not like people not telling the truth. It now appears you are the one that is rude MJr. no name. None of you have courage to say your full name. I think you all are a bunch of cowards. What are you afraid of. Hiding behind not complete names is very immature and also rude. Which you are for sure. Come clean and you may have credibility until then you are just another no name without credibility.
Carl is my name. Carl Neusch. That’s not really courageous though. I don’t really know who you are anyway, so I don’t think knowing my name means anything at all. Also, I said didn’t say anything about you, and you immediately attacked me. All I said was that someone was entitled to their opinion, and you suddenly got all offended. I’m not sure what your problem is.
Most everyone just ignores Livesay these days. You see what happens when you engage him?
Just surprising. Not what is expect in Benicia
I do see what happens. I am proven right.
Thanks for giving me your name. You stepped up, Thank you. Carl read your first comment again; you said the following, When some one says “you’re a rude person”, when replying with “wrong” just proves their point. Carl I have no problem. Just read your first comment again. You implied I was rude. Yes you did say something about me.
I’m saying that your response appears rude, which it does. It’s not normally what someone says to such a thing, it’s unusually standoff-ish, at least I feel it would be if one were to respond in person like that. All I was trying to say was that more kindness might make others not view you poorly, and you came back at me very strongly.
Yes I did. So a few folks that comment on the Benicia Herald on-line view me poorly. Ask City staff and the over 50 that commented on Benicia Happenings. I think you will find out I am not viewed as you say. It is the mayor.
The mayor says your a good guy? LOL
Never said the mayor said I was a good guy. By the way she did send me an e-mail admitting she was wrong on the time limit. I was correct. No the mayor does not think I am a good guy. But I do keep her on her toes Mission accomplished.