DEAR BENICIA RESIDENTS:
As your elected city leaders we are grateful and humbled to serve as your mayor and City Council. Each of us strives to do what we can to preserve those characteristics that make Benicia such a wonderful place to live. While we may not always agree on certain policies or decisions, we are united in our resolve to work toward maintaining, and where possible enhancing, our quality of life. To that end, we have unanimously voted to support and place on the ballot, for your consideration, a measure to raise Benicia’s sales tax by 1 percent. This initiative is called Measure C — City of Benicia Quality of Life Measure.
Measure C is a 1-cent-on-the-dollar tax on purchases sold and/or consumed in Benicia. Presently the sales tax rate in Benicia is 7.625 percent. Of that amount, 6.5 percent goes to the state of California, 1 percent is returned to Benicia and .125 supports libraries in Solano County.
We are immensely proud of our community for having endured the challenges and sacrifices of the Great Recession. Despite record economic hardship, Benicians have worked together to preserve our small-town charm and quality of life. We recognize and honor this community achievement, but we must also recognize that as a city we exit the Great Recession far different than when we entered.
As you may be aware, local government is funded primarily through property tax, utility user tax and sales tax. Moving forward, the growth of these revenue streams will rise at a much slower rate than in previous years. Additionally, Benicia is a built-out community. No longer can we rely on new housing or commercial development to support existing services. In fact, over the last four years only 10 new construction permits were issued for residential homes; none was issued for industrial or commercial construction.
To make matters even more challenging, we must also contend with fewer dollars from the state of California to maintain our roads. Benicia has 94 miles of roads, but we only receive approximately $500,000 a year from state gas tax money to invest in repair and maintenance. Our Public Works Department has estimated that Benicia needs to invest $1.3 million on an annual basis just to prevent further deterioration.
The result of this new economic landscape and insufficient state funding has caused great strain on our municipal budget. Since 2008 the Council and city staff have worked to address these challenges and, as best as possible, insulate the community from service cuts. Accordingly, the city has worked to reduce our expenditures. Over the last six years the city has implemented employee salary and benefit concessions, with employees agreeing to a 10-percent reduction in compensation, including contributing considerably more toward health care and retirement costs. The city has reduced its full-time workforce by 12 percent through employee layoffs and freezing positions. Over the last four years these efforts have decreased employee-related expenditures by approximately $11.2 million.
Additionally, the city has worked to maximize the revenue potential of city real estate, increasing lease income, since 2010, by 275 percent, which generates over $65,000 per month.
Notwithstanding these efforts, further action is needed to insure we maintain a balanced budget, a fact that was quantified and illustrated in our 10-year financial forecast presented to the Council this past May. In spite of our expenditure reduction efforts, our financial forecast projects a year-over-year decline in our General Fund, ultimately leading to a budget deficit.
Therefore, as a community we are presented with a choice of either further reducing expenditures, which means reducing the level and amount of city services enjoyed by the community, or seeking new revenue that is locally generated and locally controlled, and that cannot be taken by the state. Faced with this choice, our preference is to take action that will help maintain Benicia’s financial viability as a full-service city and protect our small-town quality of life — and that choice is Measure C.
If Measure C is approved by voters, it will go into effect on April 1, 2015. It is anticipated to generate approximately $3.7 million annually. This new revenue would be a part of the solution to sustain services the city provides the community. These funds would be used to support existing city services as well as address many of our infrastructure needs. In fact, over the next two years the city plans to invest $4 million in road and sidewalk projects, replacement of new playground equipment at Community Park, improvements to the deck and restrooms at the James Lemos Swim Center and new fire equipment to combat grass fires. Furthermore, to promote transparency and provide assurance to our citizens, Measure C requires a citizen oversight committee charged with informing the community about the expenditures from Measure C.
We hope that this letter jointly authored by the entire City Council conveys to you the context and importance behind the decision to place Measure C on the ballot. On Nov. 4, please join us in voting YES on Measure C.
Mayor Elizabeth Patterson, Vice Mayor Tom Campbell, Alan Schwartzman, Mark Hughes and Christina Strawbridge are Benicia’s City Council.
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Do not be wreckless with your vote or your money……….money brought in by a yes vote on C is not assurance that it will make your community look like frosting on the cake. Remember the survey sent out within the last five years that asked what & how we would like to spend our money? Gleefully we all thought as we filled.out the survey, well, now we will see our wishes met……. nope ! Fool me once. Oh, & those dumb looking bike racks on east 5th st.near L, why?? Was that on our wish list?
If Measure C is approved by voters… It is anticipated to generate approximately $3.7 million annually.
That would mean the city has $370,000,000 a year in taxable sales each year?
Call me skeptical on that one.
Would not the sales tax also apply to real estate transaction?
Good question. It appears that they are exempt:
http://www.boe.ca.gov/pdf/pub61.pdf
I will vote no on C. Wasteful expenditures are too frequent. Too often decisions are made that drive businesses away.
We have million dollar bus stops, despite the above mentioned survey of years past where Benicians stated that the Benicia Breeze was the least valued service. What did we do? Aggregate with bankrupt Vallejo to create SolTrans. Now we are considering letting SolTrans take property by imminent domain to create a transit hub. The Mayor and Council are not listening. I say kill SolTrans.
We have a million dollar renovation of the Commandant’s mansion that sat idle for a couple of years after the renovation and is now being rented below market value.
We spent over a million dollars on a community center, renovating a former school instead of eliminating decades old trailers that are serving as classrooms at Benicia Unified..
$13 million for solar arrays and another $13 million in interest payments. Payments that would need voter approval if bonds had been selected as the financing vehicle instead of the certificates of participation.
Recall Councilman Mike I’s article in the Benicia Herald of a few years ago where he relayed that state officials told him that Benicia officials wanted the Arsenal to be placed under an immediate and serious environmental clean up? Could that have something to do with the lack of commercial and industrial building permit applications?
We do not have a revenue problem. We have a spending problem and raising the tax rate will only raise the spending. As noted by other commenters, we have wasted tons of money on projects that make no sense and we still have salaries of city employees that are (in some cases) two to three times what others are making in the same positions in other cities many times our size. What that amounts to is a ton of overpaid bureaucracy!
Our business environment and zoning rules are toxic to new businesses coming to town. You want more tax revenue? Make it easier for people to start a business here. Currently they are facing one road block after another.
I am voting a big fat NO on measure C and I encourage all Benicians to not be fooled into a false sense of some fairy tale forecast of a better Benicia tomorrow if you pass the bill today.
Bravo !! Well said ! Thank you for your common sense reply. Please vote no on measure C. For a better tomorrow.
We do not have a revenue problem. We have a spending problem and raising the tax rate will only raise the spending.
JLB’s observation is spot on.
I have yet to see a proposed solution, from existing political leadership, which did not result in a desire or expressed need for more tax dollars.
Dennis that sounds good and in many cases I would support that statement. But not in Benicia. I have not seen one comment that in moving forward they want to eliminate. Looking backwards does not solve problems moving forward. You know that I am not in most cases in favor of increased taxes for revenue purposes to satify an agenda driven idealogy issue. This is not that way. Te residents of this city are very proud of this city and its independent approach in most cases. i do admit there have been some issues along the way that were not good. Not the time to try and fix what has been done. We must move forward. it is the voters choice on Measure C. I do support measdure C.
They say that past performance is the best predictor of future performance. Given that, I don’t have a lot of hope in our city officials making smart decisions on how they spend our tax dollars. Case in point, what do you suppose is the percentage of the budget that is consumed by salaries?
JLB measure C did pass. The combined salary/benefits are 69% of budget. Salary is about 45%. I will check my figures for accuracy.
I am for Measure C and will vote yes. But at the same time I do believe our City Council should take a look at their own compensation. Mainly their benefits. Opting out of city provided healthcare gives the Mayor $622.00 per month. Plus other vision, dental etc benefits. The council must stop this waste of city money. You ask us to vote in favor of Measure C now it is your turn to eleminate healthcare and other benefits for yourself. I believe a small increase in salary of $100,00 a month would also be OK. Lets hope this passes but at the same time do your duty AS elected financially responsible officials and stop taking these benefits. That is a very fair reqyuest. request. If you do not want to do that tell the voters why. Council member Strawbridge does not take a salary or any benefits. Now thats leadership. Now is the time to show your leadership skill one and all. Lets see who steps up and presents this issue to the council. Also be mindful of who would appose it. That could tell you a lot about who you elected.
I say show me your hand then I will vote in your favor. So far you are wearing rose colored glasses if you think greed and rampant irrational spending is not the sign of the times. Are you willing to compromise with the communities money? Bargaining with the question you propose for our city govt. Is penny wise and pound foolish ! ! Measure C ………..we have been down that measure before.
Jackie I do know what I am talking about when it comes to the city budget. I hope you remember my comments on employee benefits. That all did take place. Employee healthcare and retirement contributions were a major issue. Fixed with still some more minor issues to be looked at. I also talked about what was coming down the road on the City side of CalPers. Guess what it did happen. City hit with a big increase that should have been happening all along. That was a CalPers issue and not a city issue except they were the ones that did eventually have to pay. I warned the folks about that. I also have talked about the increase in property taxes that would be coming down the road. Not at a fast pace. I have also talked about grants. Not good in many cases because they come with strings attached. Think about the Train Depot at the end of first street. You want to do something commercial with that building or any other building that has stringsd attached?? Well you had better be prepared to pay back millions in grant money. You will not go for that. I have brought up many budget issues in the past and will continue to do so. But do not under any circumstance think that I do not understand the city budget. I saw the 10 year plan coming well before it was presented to the city. I also saw the down side to the solar project and guess what I was right. No $80,000 to $100,000 extra money. We all must remember the city is run in many ways much different than a private sector business. Funds just cannot be moved around like in the private sector. Laws prevent that at the city level. Take a look at what has happened in the last seven years and you will start to see what happened and how it developed. Believe me it was not the present four council members. Just start to think who you elected two times and then add in the CSC and you start to get a clear picture. That is not going to happen as we move forward. The present four council members are not going to be sucked in any more. Not that type of group. We have an outstanding City Manager who has lead this city out of a desparate financil situation. I do hope all of you remember the mayor said the budget was balance with a 1.2 mil fix. Guess what I knew that was wrong and that is about the time Brad came on board. Guess what it took two years of budget cuts to just break even. This city manager has done an outstanding job. Go ahead and vote against measure C. I would fully understand yours and others government spending habits are a big issue. You do not have that in this city under this City Manager with the backing of the four council members. Sound one sided? Well it is. The big problem is not the spending habits of this city. it was the direction they were being pulled in. Just take a moment and see who is for MCE. You will see some of the past problems. Same folks are for MCE and just may prevail. Then I would stand up be with all of you on this measure and hold the city councils feet to the fire. Keep A Close eye on some of the issues and who is in favor of them. It gives you a very clear picture. Now is not the time to vote NO on measure C. Your choice not mine.
Former Treasurer Langston and I both held the view that the practice of cash-in-lieu was comparable to a gift of public funds. I applaud Strawbridge for believing in public service rather than another public serving. I haven’t talked with anyone yet in my frequent tours of First Street that endorses this practice, nor has there been a counterpoint offered here.
Sources tell me there are 3 elected officials and a couple dozen staff hitting the cash-in-lieu lotto.
Strawbridge can make political hay of her example by authoring a non-binding resolution that would “encourage” city employees making more than $(x), elected officials, and commission members (?) to forego the cash-in-lieu benefit.
It’s ironic that our Community Action Council and other non-profits have to be helped out by our good neighbor because of the GF draw from the lotto.
While I understand the arguements made above, I need more justification from our city leaders regarding spending restraint. There are two sides of a ledger page regarding budgets … I see the arguements concerning revenues but what about spending?
Throughout the year I see the city council spending money on energy studies, risky green enterprises, utopian planning. Is this all necessary? Could we not find $3.7 million in savings with current revenues? Property taxes are going up. The recent school bond measure costs the property owners in this city plenty. Now we are to support a sales tax increase?
I’m sorry, but the city will have to prove to the voters that they have tightened the spending hairs before you ask us to pay more. I am yet to be convinced.
We must remember that if we are getting 5 mil and have gotten close to 6 mil in the past when we only get 1% of presernt sales tax ‘ 3.7 mil is very realistic. Just try Valero, and Industrial Park for starters. The City will get an addIitional 3.7 mil with 100% increasa of 1% ro 2%.. Remember the city gets ALL of the 1% increase.
Measure C wins big time.
The sheeple will always be dooped!
We will keep an eye on the city council. With this influx of revenues results in more loose spending …. There will be heck to pay.
I am yet to be convinced the city has done everything to hold down spending. If all our elected officials have to do is cry poverty and raise taxes to cover frivolous spending, then we will be broke in no time.
The tax payers are not a bottomless pit. I hope this new levy on the citizens is well spent. Trust but verify. If I see anymore solar panel boondoggles or million dollar bus stops …….
Well have you seen the end of year flurry of work being done around town? Looks to me like a bunch of year end spending to support the funding and budgets of the next year. Heaven forbid we actually have money left over at the end of the year!
Seen this game too many times ….
JLB that is grant money. I do believe I have talked about that before.. If you are referring to 2nd street.
Matter guess what I do agree with you. I have also said that . There is a starting two year plan. laid out. As the council makeup changes and it will that is when we the residents will have to take a very close look at how the money is being spent. One to watch out for is bike paths.