A majority of Hollister voters would support a sales tax
increase if it were on the ballot for the November election,
according to the results of a survey commissioned by the City
Council.
Hollister – A majority of Hollister voters would support a sales tax increase if it were on the ballot for the November election, according to the results of a survey commissioned by the City Council.
The survey, conducted last month by California firm Fairbank, Maslin, Maullin & Associates, Inc., found that 55 percent of voters in Hollister would likely approve a one cent increase to the city’s 7.25 percent sales tax, with 42 percent saying that they wouldn’t. The survey results have an error margin of plus or minus 4.9 percent.
“It’s certainly a winnable measure at this point,” Sueanne Mcneil Biotti, who works for Fairbank, Maslin, Maullin & Associates, told council members during their meeting Monday.
Desperate to find a way fill the city’s ongoing $3 million budget deficit and avoid cuts to city services, the City Council commissioned the survey in January. The tax increase scenario used in the survey was a one cent general sales tax increase, which would go into the city’s general fund.
If on the ballot for the November 7 election, the proposed tax increase would need just a simple majority of more than 50 percent of votes to pass, rather than two-thirds approval that would be required for a tax increase that would be dedicated to a specific city service, according to Mcneil Biotti.
Suffering under a sewer moratorium – that prohibits new construction requiring sewer hook-ups – imposed by the state in 2002 after 15 million gallons of treated sewage spilled into the San Benito River, Hollister’s economic development has been brought to a near standstill. Also, each year the city spends $3 million more than it brings in – a built-in deficit that, if left unchecked, will drain Hollister’s $7 million general fund reserve within a couple of years.
While City Manager Clint Quilter says the city will have a new sewage treatment plant by late 2007 – thus lifting the moratorium – and city officials are working on a strategy to market Hollister to businesses seeking new locations, there are few short-term options, aside from a tax increase, to boost the city’s bottom line and stave off cuts to city services, he has said.
Though the need for revenue is great, some on the council were skeptical, when they commissioned the $26,500 survey, that voters would look favorably on an increase, saying that Hollister residents probably wouldn’t vote to tax themselves more. The results, however, showed otherwise.
Based on the findings, Quilter said that he thought the city should move forward with putting a sales tax increase on the ballot.
“The recommendation from staff is that we peruse this,” he said.
Councilman Brad Pike said that, if the survey results were valid, he would support moving forward with a tax increase initiative.
Hollister resident Marvin Jones was the sole community member at the sparsely-attended meeting who voiced dissent about a possible tax increase, accusing the council of over-spending and saying that Hollister can only become financially secure by attracting businesses into the city, rather than taxing residents.
“It’s been said that California doesn’t have a budget problem, but a spending problem. I believe the same is true with this city council,” he said. “Don’t raise taxes. Make a more business friendly environment.”
In addition to testing the water for a possible tax increase, the survey – which was based on the responses of 400 registered voters – gauged residents’ feelings about the city’s direction, leadership and needs.
When asked if Hollister was moving in the right direction, 61 percent said that the city was on the “wrong track”.
Mcneil Biotti said that is a reflection of a general feeling throughout the state and more a criticism of Sacramento than Hollister.
“We have seen that throughout the state,” she said. “People feel that Sacramento is taking a lot of local money. They feel that cities are being robbed.”
While a majority thinks Hollister is moving in the wrong direction, 96 percent said that Hollister was a good place to live; nearly 80 percent said that they were satisfied with the city government; and 58 percent said that they were satisfied with how city officials were managing the budget.
Luke Roney covers local government and the environment for the Free Lance. Reach him at 831-637-5566 ext. 335 or at [email protected]
