4,605 / 52.7% Yes votes ...... 4,132 / 47.3% No votes

See Also: Index of all Measures

The City first enacted the Transient Occupancy Tax on November 12, 1973. The full text of the ordinance governing the Transient Occupancy Tax is set forth in Chapter 3.34 of the Campbell Municipal Code. On June 6, 1995, the City increased the tax rate from eight percent (8%) to the current ten percent (10%). This tax is considered a general tax, which is deposited in the City's general fund, and may be used for any lawful purpose. Pursuant to California Proposition 218, which was passed by the voters of the State at the statewide election of November 5, 1996, any general tax that was increased by a city on or after January 1, 1995 must be submitted to the voters for approval in order for the City to continue to collect the tax after November 6, 1998. If the majority of voters voting on Measure U vote to approve the Measure, then the tax rate will remain at ten percent (10%). If less than a majority of the voters of voting on Measure U vote in favor of approving the existing tax rate, then the tax rate will revert to eight percent (8%).

According to the Finance Department of the City of Campbell, failure to adopt Measure U will result in a loss of revenue to the City of Campbell in excess of $200,000 per year.

The above statement is an impartial analysis of Measure U. If you desire a copy of the full text of Chapter 3.34 of the Campbell Municipal Code, please call the elections official's office at (408) 866-2117 and a copy will be mailed at no cost to you.

WILLIAM SELIGMANN
City Attorney

Vote YES on Measure U! This Measure is "NOT A NEW TAX". It will simply let the City of Campbell maintain "existing" revenues that are paid only by visitors to ourcommunity. Transient Occupancy Taxes are not paid by Campbell residents.

The Transient Occupancy Tax is a unique revenue source because it is paid by tourists and the traveling public on hotel/motel room rates for stays of thirty days or less. These visitors use our streets, enjoy our parks, and receive police and fire protection. Because a portion of the cost of City services is recovered from these visitors, Campbell residents pay lower taxes overall.

The Transient Occupancy Tax is an important revenue source to the City of Campbell, accounting for an estimated $1,000,000 in funding for General Fund programs and services for the 1998/99 Fiscal Year.

Your YES vote for Measure U will allow Campbell's Transient Occupancy Tax of 10% to remain competitive with other local cities. Without Measure U, the Transient Occupancy Tax rate will drop to 8%, and the City of Campbell will lose a minimum of $200,000 per year in General Fund revenue. As a result, many desired programs, services, and amenities paid for with General Fund revenue could be negatively impacted.

The City of Campbell has a long and proud tradition of fiscal accountability and financial prudence. We need to maintain existing sources of revenue in order to continue the same quality programs and services. We urge you to confirm your support by voting YES on Measure U

The undersigned authors of this primary argument in favor of ballot Measure U at the General Municipal election to be held November 3, 1998 hereby state that such argument is true and correct to the best of their knowledge and belief.

JEANETTE WATSON
Mayor

DANIEL E. FURTADO
Vice-Mayor

BARBARA D. CONANT
Councilmember

MATHEW DEAN
Councilmember

ROBERT S. DOUGHERTY
Councilmember

(No arguments against Measure U were submitted)