Measure “E” was placed on the March 5, 2019, Special Municipal Election ballot by a unanimous vote of the entire City Council. If adopted, this measure will permanently enact a 0.75% City-specific Transaction and Use Tax (commonly referred to as a “sales tax”) by adding Chapter 3.52 to the City’s municipal code.
This 0.75% “sales tax” would be imposed upon all retailers’ gross receipts from the retail sale of all tangible personal property sold within the City, and would include an excise tax upon on the storage, use or other consumption in the City of tangible personal property purchased from any retailer for storage, use or other consumption within the City of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made
In 2018 the City Council established an Ad Hoc Citizens Advisory Committee to analyze methods for the City to address its financial deficits shown in a five-year forecast. The Committee concluded the City’s financial circumstance is dire and the City must obtain significant additional revenue to avoid severe depletion of the City’s level of essential services provided for the benefit of its residents.
In response to the Committee’s conclusions, on September 25, 2018, the City Council approved Resolution No. CC 2018-43 declaring a fiscal emergency pursuant to Article XIIIC Section 2(b) of the California Constitution. This fiscal emergency is the result of expenditures exceeding revenues in the current fiscal year and projected to continue into the future if significant changes are not made to operations.
If approved by the voters, this “sales tax” is predicted by City staff to generate estimated tax revenue of $5 million on an annualized basis to be spent for unrestricted general revenue purposes, such as maintaining city services, fixing streets, storm water projects, technology upgrades, providing recreations and park programs and public safety services, and protecting the City’s financial solvency. If approved by the voters, the City would begin to collect revenue from this “sales tax” by October 2019, which would add approximately $3.5 million in revenue for FY 2019-20.
Your “Yes” vote means you approve of the enactment of this “sales tax.” Your “No” vote means you disapprove of the enactment of this “sales tax” at this time. This measure would take effect only if a majority of those voting on Measure “E” cast a “Yes” vote at the March 5, 2019 Special Municipal Election.
