Measure T:don’t reward poor performance
The opinion of Marvin Jones
A year ago, Hollister residents voted down a 1 percent increase
in the sales tax, an increase from 7.25 percent to 8.25
percent.
Measure T:don’t reward poor performance
The opinion of Marvin Jones
A year ago, Hollister residents voted down a 1 percent increase in the sales tax, an increase from 7.25 percent to 8.25 percent.
Several months ago, the Hollister City Council declared a financial emergency. This declaration was necessary in order to request an immediate election to increase the sales tax in the city from 7.25 percent to 8.25 percent. The rationale was city services are being negatively impacted because expenses exceed income. The police and fire departments are staffed at levels below levels recommended by police and fire department associations and need to be improved.
There are several features that are disturbing about this sales-tax increase proposal.
First, Hollister has been operating in a deficit mode for seven years. The monetary reserve has decreased from over $14 million to about $2.4 million at the end of the current fiscal year. Seven years of bad management does not constitute an emergency. Second, this election might cost less if it waited until February to piggyback on the statewide primary election, an election that includes several statewide initiatives. Could it be a higher voter turnout would be expected in February? That might reduce the chance of passage so the city schedules a more expensive stand-alone election. Third, the police department is understaffed. A recent graduate from the police academy has been hired. This reduces the number of vacancies already in the budget to four. How will an increase in taxes change this condition?
Fourth, the fire department is understaffed. The ladder truck does not have a crew about one-third of the time. When I was a member of the Center Square, Penn., volunteer fire department, we had such a ladder truck. It was useful when there was a fire in a multi-story structure. Its utility in a residential fire was marginal. An increase in the sales tax will not change this condition.
Finally, the tax revenue will go into the general fund and an “oversight committee” will track its expenditure. Oversight committees are for specific projects with defined objectives not general fund expenditures. That is the responsibility of the City Council. An oversight committee is a feel-good” decoration with absolutely no utility and amounts to a smokescreen for the city council.
City council members have received suggestions for improving operations. City Manager Clint Quilter noted the bimonthly billing for sewer and water is in the process of being changed to monthly. This will reduce the bimonthly shock of the water and sewer rate increases being implemented.
The animal control function for Hollister and the county have been consolidated resulting in improved efficiency and lower costs.
San Juan, Hollister, and San Benito County are attempting to have a single contract for trash pickup. This should provide some economy for all three entities. Hollister could realize considerable cost savings by using the private sector for such operations as the water and/or wastewater systems or by consolidating additional city departments with the county. The city police and county sheriff’s departments come to mind.
These and other suggestions for consolidating services and reducing costs did not receive serious consideration. The rationale was the city council would not be able to exert the same degree of control over the activity even if there were substantial cost savings.
By the way, a 1 percent increase in sales tax would result in an immediate increase in the price of gasoline by 3 cents a gallon. That would further reduce the incentive to shop locally versus traveling to Gilroy. An unintended consequence of a sales tax increase could be lower local sales and a reduction in sales tax revenue. Hollister should be innovative. Lower the sales tax rate to 6.9 percent and let the entire world know Hollister wants your business.
Other government entities, including cities, have actually realized increased income with lower taxes and fees. Local businesses were observed to expand both employment and sales resulting in increased tax revenue that more than offset the effect of a lower tax rate.
In summary, Hollister City Council has abdicated its responsibility for so long that it has become normal operation. There is no reason to expect a tax increase will improve our government. It will only reward poor performance.
Vote NO on Measure T.
Marvin L. Jones is a resident of Hollister and active in local political affairs.
