Pass: 2757 / 70.78% Yes votes ...... 1138 / 29.22% No votes

See Also: Index of all Measures

Impartial Analysis from the City Attorney

The City Council of the City of Hercules has placed Measure O on the June 5, 2012 ballot to ask the voters to approve an ordinance that would enact a temporary four year increase in the transactions and use (sales) tax within the City. It adopted by voters, the temporary increase would generate additional local funding to stabilize the City's finances.

The tax would temporarily increase the current rate from 8.25% to 8.75%, a one-half of one percent (0.50%) increase. Measure O is legally required to terminate 4 years after collection begins, unless extended by the voters.

Because Measure O does not limit the use of tax revenue to a specific purpose, the proposed tax is a general tax, requiring a majority vote (approval by more than fifty percent (50%) of City voters voting in the election) for passage. Therefore, the City may use the funds for a variety of purposes, including but not limited to addressing the City's Fiscal Emergency; increasing police officer staffing, which is below Recommended Safety Levels; maintaining current levels of emergency services; providing additional funding for neighborhood police patrols, emergency response times, crime prevention and investigation resources; earthquake preparedness; after-school programs for children and teens; senior services; and parks.

Measure O is not a property tax on homeowners. Technically, the existing "sales tax" is a combination of "sales and use tax" and "transactions and use tax." Retailers collect the tax at the time of sale and remit the funds to the State Board of Equalization, which administers the tax.

The Measure includes fiscal accountability provisions, requiring the City's independent auditors to prepare annually a publicly available report on the collection, management and expenditure of revenue from the tax. Additionally, a Citizens' Oversight Committee would be established to provide independent oversight to ensure that tax revenues are spent by the City in a manner consistent with this measure.

A "Yes" vote is a vote to approve the enactment of the half-cent transaction and use tax for 4 years, which would increase the total sales tax rate from 8.25% to 8.75%, with annual audits and review by the Citizen's Oversight Committee. A "No" vote is a vote against the one-half of one percent (0.50%) tax increase. Measure O would be approved if it receives a simple majority of "Yes" votes.

DATED: March 7, 2012

J. Patrick Tang, City Attorney

City of Hercules

The above statement is an impartial analysis of Measure O. If you desire a copy of the of Measure, please call the City Clerk's office at (510) 799-8215 and a copy will be mailed at no cost to you.