Financing city services proposed sales tax increase - part 1 of 2

Part 1 of this article re-post deals with the proposed sales tax increase, part 2 deals with the comparative review of highest paid San Mateo county salaries.  

Figuring-out city tax and fee solutions.

Pacifica Tribune/Jane Northrop, 2/8/12. "Financing City Services Task Force ponders sunset clause for sales tax increase; reviews county salaries." "The Financing City Services Task Force didn't finalize anything during its meeting last Wednesday, but continued to chip away at the information available from city staff. The members discussed potentially setting an end date to the one-half-cent sales tax increase they recommended City Council approve, but the discussion did not end in a decision.

Meanwhile, the debate continued about whether or not it should be offered to the voters in June.
"I have big reservations about the sales tax in June," said Councilmember Mary Ann Nihart. "It is a Republican primary. We've started a good process. I don't want the police put in the same position the fire department was in -- an either/or position." Other task force members disagreed and said they wanted more time for the city to benefit from the extra revenue, especially with the state cutting back.

City staff provided the task force members with three potential scenarios that would all raise the revenue required to balance the budget. Task force members discussed them all, but did not lean one way or the other toward accepting any of them. A salary freeze and other employee compensation changes are included in each option and are valued at $3.7 million. "We are not contributing to COLA anymore," said director of administrative services Ann Ritzma. "That is a cut. If the cost of vision or health care goes up, that's out of pocket. We cap vacation accruals. They are also contributing to their pensions."

Option A would also eliminate Public Works supervisory positions and increase business license fees, the fireworks tax and implement a towing fee increase. It would apply the temporary occupancy tax (TOT) to vacation rentals, update building permit fees and assess a winterization inspection fee. It calls for the establishment of the one-half-cent sales tax on the June ballot. That option raises $1,338,572.

Option B calls for all the same fee increases that are in Option A, but with the outsourcing of the police department instead of the tax. That option raises $1,782,499.

Option C calls for all the fees in options A and B, but no police outsourcing and no tax, and adds reducing staff for swim team, eliminating funding for the Resource Center, the Visitors Center and Pacifica Community Television. Library hours will be reduced. Staff level will be reduced in the police department. Fees will be increased for swimming, swim team and teen program fees. That option raises $788,018.

Marty Anaya, executive director of Pacifica Community Television, faced with the possibility of losing city funding, asked the city manager to tell him how much revenue Pacifica receives from the cable company and to determine how much would be lost if subscribers are lost due to the cut.

Susan Vellone, representing the Chamber of Commerce, said the Chamber is engaged in a campaign to bring more visitors to Pacifica, which is expected to generate additional revenue. City Manager Steve Rhodes said sales tax is up in Pacifica, in part due to the new Fresh & Easy Neighborhood Market and Walgreens.

The economic development committee continues to meet to come up with ideas, but the next big revenue generator, the Beach Blvd. development, is not expected to be ready until 2016. Any development that could possibly be generated in the Quarry would not be done until 2018, task force member and economic development committee member Sue Vaterlaus said.

Task force members asked city staff to get as much information as possible about how much the county sheriff's office would cost long term to run police services for Pacifica. Representatives from the employee unions expressed their concerns. In the event the county sheriff's office takes over police services, other cities have written into their contracts a guarantee that all employees be hired into the new operation, said union representative Peter Finn. Police evidence technician Melissa Mondragon asked if the city intends to ask the sheriff to absorb all sworn and non-sworn personnel. "Three of our former dispatchers are currently unemployed. We don't want to take any more hits," she said. "We support the half-cent sales tax to protect all the valuable services," said Police Chief Jim Tasa. As the discussion ensued about using the extra sales tax revenue specifically to protect police services, Rhodes said that would change it to a measure requiring a two-thirds majority required to pass. "Also, the state may take something else away between now and then," he said. "There are lots of ways to achieve the goal of hiring everyone, but that will impact our price."

Financing City Services Taskforce Minutes, 2/1/12,  follow-up to the Financing city services Open House, 1/11/12.

Posted by Kathy Meeh