A 10.25% Sales Tax for El Cerrito? Voters Will Decide

The big issue on the November ballot for El Cerrito voters is whether to raise the city's sales tax to 10.25 percent.

The City Council agreed unanimously July 19 to put the half-cent boost before voters, warning that the city otherwise would face cuts in the police force and city services. The extra tax, listed as Measure R on the ballot, would end after seven years.

Five cities in California, all in Los Angeles County, have a sales tax above 10 percent, three with 10.25 percent and two with 10.75 percent. (See attached chart.) The sales tax in all other cities in the state is below 10 percent.

But several jurisdictions are considering boosts, said Michael Coleman, fiscal policy advisor for the California League of Cities. He said it's too early to know how many may have sales tax increases on the November ballot or how many others may propose to rise above 10 percent.

"If this measure doesn't pass, we'll have to be laying off staff, starting with the police department," El Cerrito Mayor Janet Abelson told the city's Environmental Quality Committee on Aug. 10.

A dire budget assessment mailed to residents in the summer issue of the city's "News and Views" newsletter said failure of the measure to pass would also result in elimination of the fire prevention officer, reduced maintenance of parks and street medians, and closure of the swim center for five weeks in winter. Other cuts would result in reduced hours at the senior center, furlough days for non-sworn city employees and elimination of the city's Fourth of July celebration, the city mailing said.

Some councilmembers also said that if the city doesn't adopt the tax and retain the increased revenues for itself, the levy could be imposed by the county, which would take much of the increased revenue away from the city.

Two opinion polls of city residents found between 66 and 68 percent public support for the tax boost, city staff reported to the council.

The city's Chamber of Commerce backs the increase, while the city's Financial Advisory Board refrained from taking a position. In unanimous action, the financial board urged that the tax, if imposed, should be only five years and that, if the measure fails, the city should consider pay and benefit reductions as soon as possible, in addition to other cuts being considered.

The president of the Chamber of Commerce, John Stashik, said he heard no objections from chamber members to the measure. "According to the city, the tax will not adversely affect local businesses. People don't drive to Vacaville, for example, to save a little sales tax."

The ballot argument in support of the measure reflected the pro-tax reasons endorsed by the council and city staff. "It's a choice between maintaining the City that is a great place to live, or letting the community decay under pressure from the State's fiscal crisis," the pro-R statement says. It was signed by Abelson, Stashik, representatives of the police and firefighter unions, and Ronald Egherman, chair of the city's Environmental Quality Committee.

The anti-R ballot statement says city spending on employees has risen dramatically in recent years, with a substantial increase in the number of city workers and high levels of compensation. "Our City Council must reform city government and cut costs wherever possible, while ensuring the highest level of city services during this economic downturn," the no-on-R argument says. It's signed by former Mayor Kenneth Berndt and four others whose affiliations are not listed.

El Cerrito's current sales tax is 9.75 percent, tied with all cities in Alameda County and ranking at the top in Contra Costa County along with Pinole and Richmond. The tax is 9.25 percent in other cities in Contra Costa.

The only other November ballot issue that's strictly for El Cerrito is the election for two open council seats, but since only two candidates filed -- incumbent Mayor Janet Abelson and newcomer Rebecca Benassini -- the race is unlikely to generate strong interest, barring any strong write-in campaign.

El Cerrito voters, along with other cities served by the West Contra Costa Unified School District, will also vote for school board members and a parcel tax for the schools.

Patch plans future coverage of these ballot issues as well.

Measure R-related documents attached to this article include:

• City Attorney's Impartial Analysis
• Council resolution placing the measure on the ballot
• Ballot argument for the measure
• Ballot argument against the measure
  
• City staff report to the City Council