Politics & Government

City Floats Idea to Extend Measure E

Would you support an extension of the half-cent, five-year sales tax increase?

The City Council started initial talks Tuesday night on whether or not to extend Measure E — the half-cent sales tax measure approved by voters in in 2010 — which in 2011 raked in $2.4 million for Rohnert Park.

Passed with 55 percent of the vote, Measure E is slated to end in October 2015, but City Manager Gabe Gonzalez says the council should start now looking at whether or not to ask residents to extend the sales tax — set at 9.5 percent here.

Last year, according to city documents, the sales tax brought in $2.4 million and made up more than 28 percent of the city's sales tax revenue.

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"We've been struggling with our revenues," Gonzalez said. "As we look at doing our (budget) projections, we need to bring this issue to the forefront. In three and a half years it's going to sunset."

"I think it's important to realize that is a source of revenue, at least $2.5 million on an annual basis. Unless the city generates new revenue equal to $2.5 ... we're still a long ways from financial recovery," he added. "And so I felt it was prudent at a policy level to have a discussion about Measure E ... on a longterm basis."

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Gonzalez said budget projections today show that even with monies coming in, the budget — at least preliminarily — will fall between $4 and $4.5 million short in 2015. Today the budget deficit is $300,000.

But the City Council was wary about a tax extension. While some said it's important to start talking now about if the city needs to extend Measure E, others said it's too early. Voters here will have to contend with tax measures in November, and the city may see some economic recovery before then.

The governor is going to come to us with a tax increase, Belforte said. Friedman's and Center Target are opening in Petaluma. There's also a schools tax increase ().

"We really need to know where are we going to be in terms of outside impacts and what's giong to happen, so we can have an earnest discussion on Measure E," she said. "There's some choppy waters ahead. I dont' know how much money comes from Petaluma for Home Depot or Target but we should really embrace ourselves for an impact."

Belforte said the city should focus on economic development — increasing city revenue by bringing in new businesses instead of raising taxes.

"We need to develop a strong economic development plan with some teeth in it," she said. 

She said ther's lots of opportunities right now, referring in part to the vacant State Farm property, the Green Music Center and new housing planned.

Callinan agreed. He said Measure E has been a savior for Rohnert Park, but there's uncertainty ahead.

"Measure E was a big thing for Rohnert Park when we took it on," said Councilman Joe Callinan. "It's a little daunting now to say do we want to continue Measure E ... so much of this rides on the economy though."

Do I want to look at an extension now? Let's wait and see what happens with the economy. There's a lot coming in to town, he said.

Callinan echoed Belforte about new growth here.

"We have the Green Music Center that's opening, we have a casino that's coming to town and we have specific plans," Callinan added. "But we've got a long ways to go."

However, Councilman Amy Ahanotu said the city needs to start conversations about Measure E now.

"I don't know if anyone heard what the city manager said, there is $45 million dollars that we need as a city budget, and currently we're at $20-something million," Ahanotu said. "The question is where is that money giong to come from. Even if the economy rebounds ... we have to realize that."

"When we talk about Measure E, I don't think we should wait," he added. "We should start seriously looking at it now."

Ahanotu said it's important to look early at what's going to be impacted when $2.4 million is stripped from the city's buget.

Since the passage of Measure E, City Hall was re-opened on Fridays, the city hired a code complinace officer, Spreckels Performing Arts Center remains open, parks services and maintenance is up, the city's doing more street and pothole repair, more graffitit abatement, police response times remain the same, fire stations haven't had to close and there's more recreation activities offered.

But losing Measure, which sunsets in October 2015, coult paint an entirely different picture.

Service levels could be impacted in the Department of Public Works, for example. The Department of Public Safety and the Rohnert Park Animal Shelter could be forced to eliminate programs, as well as parks and the city's economic development program, Gonzalez said.

Today, when infrastructure improvement needs, vehicle replacements, retiree medical and accrued leaves for city employees are added in, the total structural deficit sits at $24.4 million. Right now, there's little or no money to fund these expenditures.

So, in quick order, the city's moving forward with an aggressive economic development plan, developing a longterm financial recovery plan and weighing an extension Measure E.

"We need to continue conversation about Measure E, and maybe next year, start talking about an extension," Gonzalez said.

Editor's note: Here's the original ballot language from Measure E: To preserve the safety and character of Rohnert Park, and maintain and protect general City services, including essential services such as neighborhood police patrols; fire protection; 9-1-1 emergency response; gang and sex offender enforcement; disaster preparedness; street paving and pothole repair; park maintenance; and other essential services shall the City of Rohnert Park enact a one-half cent transaction (sales) and use tax for five years, subject to annual audits and public review, with no money for Sacramento?


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