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Contra Costa County, CA November 4, 2014 Election
Measure U
Transactions and Use Tax
City of Richmond

Majority Approval Required

Pass: 10699 / 55.20% Yes votes ...... 8683 / 44.80% No votes

See Also: Index of all Measures

Results as of Dec 28 11:39am, 100.0% of Precincts Reporting (53/53)
Information shown below: Fiscal Impact | Impartial Analysis | Arguments |

Shall the City of Richmond adopt a one-half cent transactions and use (sales) tax, to fund and maintain essential city services, such as public safety, public health and wellness programs, city youth programs and street paving?

Fiscal Impact from the City Finance Director:
The total sales tax rate in the City of Richmond is currently 9.00%, or 9.0 cents on every dollar. Of this amount, the City currently receives one and one-quarter percent (1.25%) or one and one quarter cents on every dollar. The total collected by the City consists of the standard City allocation of three-quarters of one percent (0.75%) and the extra half cent (0.50%) approved by the voters in 2004. If the sales tax increase is approved, the funds generated will be used to maintain and enhance essential city services, such as public safety, public health and wellness programs, city youth programs, and street paving.

If approved, the total sales tax rate would be 9.5% without a sunset clause. The current three-quarters of one percent (0.75%) sales tax rate generated $10,325,715 for the fiscal year July 1, 2012, to June 30, 2013. The extra half cent (0.50%) generated $6,978,167 for the fiscal year July 1, 2012, to June 30, 2013. Based on that amount, the proposed one-half percent (1/2%) increase in the local sales tax would generate $7,500,000 in fiscal year 2015-2016 to support all the essential City services as noted above. These are approximations of the amounts that can be expected annually based on past conditions. Actual sales tax collections vary from year to year depending upon economic conditions.

The breakdown of the current 9.00% total sales tax rate is as follows:

6.50% - State of California
0.25% - Contra Costa County
0.50% - Contra Costa County Transportation Authority
0.50% - San Francisco BART District
0.75% - City of Richmond
0.50% - City of Richmond - Measure Q
-----------
9.00% Total Current Sales Tax Rate

James Goins

Finance Director

City of Richmond

Impartial Analysis from City Attorney
California Election Code Section 9280 requires the City Attorney to prepare an analysis of any proposed City ballot measure, showing the effect of the measure on existing law and describing the operation of the measure.

Current Tax Allocation/Proposed Measure

Currently, the combined state, local and district sales tax rate in the City of Richmond ("City") is 9%. This tax rate includes the local sales tax of 0.50% that the City currently levies within its borders. The remainder of the current sales tax rate in the City consists of the combined state and local tax rate of 7.5%, along with taxes imposed by the Contra Costa Transportation Authority (0.50%), and BART (0.50%).

Measure U has been placed on the ballot by the City Council. Measure U would increase the sales tax by .5% effective April 1, 2015, resulting in a sales tax rate of 9.5% in the City. The revenues from this increased rate would only go to the City and not the State, County, Transportation Authority or BART.

General Revenue for All City Services

The revenue from this sales tax would be deposited in the City's general fund. It could be used for any legal municipal purpose, including public safety, public health and wellness programs, city youth programs, street paving, and any other City program and service.

Administration

The existing sales tax is levied on the sale or use of tangible personal property sold at retail, with some exceptions. Retailers collect the tax and forward it to the State Board of Equalization to allocate. The additional amount would be collected in the same way.

Effect of Measure U

Measure U would add an ordinance to the Richmond Municipal Code to impose the sales tax increase. A "Yes" vote is a vote to approve the additional half-cent sales tax. A "No" vote is a vote against the tax increase. If the Measure receives a majority of "Yes" votes, it will be approved.

Respectfully submitted,

Bruce Reed Goodmiller, City Attorney

THE ABOVE STATEMENT IS AN IMPARTIAL ANALYSIS OF MEASURE U. IF YOU DESIRE A COPY OF THE MEASURE, PLEASE CALL THE RICHMOND CITY CLERK'S OFFICE AT 510-620-6509 AND A COPY WILL BE MAILED AT NO COST TO YOU.

  About Measure U

Richmond Website
News and Analysis

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Arguments For Measure U Arguments Against Measure U
Due to the slower than expected economic recovery, Richmond's City Council was forced to make a $7,500,000 cut to the 2014 budget for fixing potholes, police, firefighters, libraries, and parks/recreation.

Bring back these basic vital services.

Vote Yes on Measure U, the 1/2% Sales Tax increase.

Like you, we don't like paying taxes.

But businesses, out of town shoppers, and rich people making luxury purchases pay the lion's share of the Sales Tax.

Average Richmond residents pay only a few more pennies a day, because the main expenses of living are exempt (rent, groceries, medicine, utilities, etc.)

Like you, we don't support taxes making government bigger.

But Measure U merely restores vital services cut from Richmond's 2014 Budget due to the slow recovery.

And the sad truth is that we don't really have a choice.

Richmond has cut administrators, shifted health and pension payments to employees, and cut the Council's budget.

Richmond (like many other Cities) has not only cut the fat, but cut the muscle.

Employees have voluntarily cut their pay and are "busting their butts" to continue to provide the same services with less employees.

You get what you pay for.

It's your choice: a few more pennies a day for the Sales Tax, or losing:

  • $3,750,000/ year for pothole repair

  • $2,250,000/year for police

  • $500,000/year for firefighters

  • $500,000/year for libraries

  • $500,000/year for parks/recreation

The City Council 2014 Budget plans to use Sales Tax money, if Measure U passes, to reverse these catastrophic budget cuts.

Our parents' generation didn't disrespect us by permitting decimated police and fire services, out of control potholes, and second rate library and parks/recreation programs.

Let's not be the generation that gave up on our kids...and ourselves.

Vote Yes on Measure U.

Jim Rogers, Councilmember, City of Richmond

Richmond Police Officers Association, Hector Esparza, President

Myrtle Braxton, President, Laurel Park Neighborhood Council

Richmond Firefighters Local 188, Mark Cisneros, Secretary-Treasurer

Linda Jackson-Whitmore, Chair, Santa Fe Business,Outreach Committee

Rebuttal to Arguments For
Lack of Oversight: Another reason to vote NO.

The Contra Costa Taxpayers Association recommends voters to oppose Measure U because the sales tax has no sunset clause, nor a citizen oversight committee.

70.5% of the city budget is salaries/benefits. What are you really paying for?

What is the city not telling you? It's appalling the city of Richmond levies a permanent hidden pension tax on your property of $140 per $100,000 assessed value. This $13 million annual pension tax goes for pensions, not roads.

The city's unfunded OPEB (Other Personnel Employee Benefits) liability is $76.1 million. The city pays $2.3 million per year for a pension obligation bond. What is the guarantee that this general fund tax increase will not be used to pay for spiraling pension, debt, and salary costs? Just say No!

The Fire Chief in 2012 made $249,504.46 per year total pay and benefits in Richmond. Do you make this amount?

In 2012, over 500 Richmond city employees made over $100,000 per year total pay and benefits.

High sales tax is a regressive tax. It hurts the middle class, fixed incomes, and the lower incomes! It will make goods and services priced higher in Richmond than cities with lower sales tax. In comparison, the city of Vacaville, CA has a 7.875% sales tax.

Lack of Oversight: Another reason to vote NO on Measure U.

Contra Costa Taxpayers Association, Alex Aliferis, Executive Director

Lack of Oversight: one reason to vote NO.

The sales tax measure will increase Richmond's existing sales tax from 9.0% to 9.5%. There is no sunset clause (tax expiration date) or citizen oversight committee. The city will reach its 1% sales tax cap with this measure. The city is allowed a 1% sales tax cap by state law.

The city of Richmond has a 15% average unemployment rate. It has flat revenue for the next few years. The city of Richmond, with almost 103,000 residents, has approximately 805 city employees. Concord, with 122,000 residents, has approximately 385 city employees. 70.5% of the city budget is salaries/benefits.

The city's unfunded OPEB (Other Personnel Employee Benefits) liability is $76.1 million. The city pays $2.3 million per year for a pension obligation bond. What is the guarantee that this tax will not be used to pay for spiraling pension, debt, and salary costs? General fund tax money can be used for anything. Is this a pension tax?

High sales tax is a regressive tax. It hurts the middle class, fixed incomes, and the lower incomes! It will make goods and services priced higher in Richmond than cities with lower sales tax. In comparison, the city of Vacaville, CA has a 7.875% sales tax.

The Contra Costa Taxpayers Association recommends voters to oppose Measure U because the sales tax has no sunset clause, nor a citizen oversight committee.

Lack of Oversight: one reason to vote NO on Measure U.

Contra Costa Taxpayers Association, Alex Aliferis, Executive Director

Rebuttal to Arguments Against
None of 100,000 Richmond residents filed ballot arguments against Measure U, the 1/2% Sales Tax to restore $7,500,000 budget cuts to vital services like pothole repair, police, firefighters, libraries, and parks/recreation.

However, the Contra Costa Taxpayers Association, primarily funded by rich out of town businesses, filed an opposition argument.

Thanks for proving our point: "businesses, out of town shoppers, and rich people

We wonder how this Association, mainly financed by big business, with a Board that apparently has no Richmond residents or employees, feels qualified to protect "the lower incomes" by telling us what to do.

Measure U supporters writing this rebuttal live in "lower incomes" neighborhoods and spend (and risk) their lives trying to keep those streets safe.

The Association says Richmond has too many employees. We respectfully inquire: which ones? Police? Street repair? Firefighters? Librarians? Youth recreation?

We agree with the Association that Richmond "has flat revenue for the next few years."

No rich uncle to restore cuts: only Measure U.

That's why the famously divided Richmond City Council unanimously put U on your Ballot.

So the Association's argument threw out enough red herrings to fill a Blackhawk sized swimming pool:

  • Richmond has more employees than Concord. But Richmond has services (like libraries and Port) that Concord doesn't.

Who do you trust?

Rich non-local businesses trying to (once again) extract money from Richmond- leaving little behind?

Or your Richmond neighbors, Richmond police, and Richmond firefighters?

Vote Yes on Measure U.

Jim Rogers, Councilmember, City of Richmond

Myrtle L. Braxton, President, Laurel Park Neighborhood Council


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Created: July 23, 2015 14:56 PDT
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