Pacifica Chamber Takes a Position on Measure V, the Utility Users Tax

In a letter addressed to Pacifica Chamber of Commerce members, Jim Wagner with the Pacifica Government Affairs Committee outlines the Chamber's position on the proposed telecommunications Utility User's Tax (Measure V), a ballot measure that Pacifica residents will vote on in November to update and expand a utility tax that could potentially raise $1.075 million to support City services, according to a flier sent out to residents.

"The Board of Directors voted unanimously to not support this tax measure," said Wagner.

Here's a copy of the letter explaining why:

August 26, 2013

Dear Valued Chamber Member,

After much research and discussion, the Pacifica Chamber of Commerce Board of Directors has taken a position not to support the proposed telecommunications Utility User’s Tax (Measure V). 

We believe City Council initiated the tax proposal with good intentions and there is no argument that the City needs revenue, but the rush to put this measure on the ballot, as well as the lack of community awareness, involvement and discussion, has resulted in a poorly constructed measure not having “buy in” from the community. The Chamber of Commerce was not informed of this effort until very late in the process, not allowing the business community to participate in the process either. So far, the City has spent close to $55,000 in its attempt to promote this tax, including consultants’ fees, a limited poll, and a voter flier mailed out. 

The flier mailed out states that this tax will raise $1.075 million; however, when the supporting analysis was requested, the City stated that no documentation exists to validate this number. The flier is also misleading to voters by calling this measure “an expansion and update” and states it would not increase the tax rate. Currently, residents and businesses pay a 6.5% utility tax to the City via their Pacific Gas and Electric bills. By expanding this tax to telephones and telecommunications, the total tax dollars charged to users is expected to increase by approximately 60%. 

While businesses have a $500 tax cap, residents do not. A typical family of 4 could anticipate paying hundreds of dollars more per year for this tax. 

If passed, the term of this tax would be 8 years before it would come up for vote again. As learned by many voters a number of years back with the $75 per household fire assessment, funds are not always used for what voters are promised. At that time, the fire assessment was promoted by telling the public it would save three positions within Fire Department. Once passed, two of the three Fire Department personnel were eliminated, and now we do not even have our own Fire Department. 

In spite of the fact that the tax is supposed to support certain City services, the funds would be deposited directly into the City’s General Fund; once in the General Fund, the funds are commingled and there is no specific designation over where those specific funds are spent. It has been stated that the measure would include mandatory fiscal audits; however, this requirement is simply normal on-going procedure for our General Fund. Since there is no specific designation over where the specific funds are spent, an audit is not applicable to monitoring this tax. Finally, although it has been stated that the measure would include “independent citizens’ oversight,” again, there is no specific designation over where specific funds are spent and this group would have no authority. 

Your Chamber Board once again encourages you to study this issue and make an educated and careful determination about this new tax proposal, Measure V. Please send your comments to info@pacificachamber.com.

Sincerely,
Jim Wagner, Chair
Government Affairs Committee

Read how your neighbors plan to vote on Measure V in November by clicking here for the article "How Will You Vote on the Utility Tax in November?"

Pacifica Patch in the coming week will post Measure V ballot arguments for and against the proposed Utility User Tax that were submitted to the Pacifica City Clerk last week. Stayed tuned.