CLEARLAKE, Calif. – The city of Clearlake will pursue a specific tax in the November election for use in citywide clean up and improvement.
The transaction and use tax, proposed at a half-cent, is estimated to generate $760,000 annually.
The Clearlake City Council has been hammering out details in its continued effort to pass a sales tax measure, introducing and conducting a first reading of an ordinance July 10 in order to set in motion the current proposal.
Past proposals have included road improvements and as much as a 1-percent tax.
Discussion since the narrow defeat of the previous measure in November 2013 have led to the omission of road improvements, inclusion of a sunset clause and a drop in the proposal amount to a half-cent.
Additionally, the new proposal requires the formation of an oversight committee for annual review of expenditures as well as the inclusion of language that would allow the council to reduce the tax to a quarter-cent after five years, if feasible.
The council had considered presenting the measure as a general tax when it looked at the possibility of a June ballot.
However, it was learned that a general tax must be presented on a ballot that includes election of council members. The June ballot did not include a municipal election, but the November ballot will.
Still, as a result of further discussion and consideration of public input, the council decided to seek a specific tax at the May 22 regular meeting.
Additionally, two members of the council, Joyce Overton and Jeri Spittler, had said they would not support a general tax.
Discussion of a general tax led to recommendation of forming a “task force” team in order to reconcile revenues being used by the police department, as the city's current Measure P requires 63 percent of the general fund be allocated directly to the department.
The term “task force” had led to debate in definition by way of its association with police services.
While the requirement for direct allocation to the police department has been eliminated with the proposal of a specific tax, the team concept remains; however, it is now identified as the Problem Oriented Solving Team (POST) in the new initiative. POST is to address code enforcement, animal control and crime reduction.
The proposed expenditure plan anticipates $760,000 in tax generated from a successful measure based on actual and projected sales tax projections. The expenditure plan is to be prepared annually using such projections and addressing needs.
City Manager Joan Phillipe said in the first several years, costs in some areas may be higher than in future years as equipment, contracts, achievements and targets are realized. The city would anticipate revenues about six months after implementation.
The expenditure plan for the POST in 2015-16 allocates anticipated revenues as follows: team personnel, $240,000; animal control, $142,000; training, $15,000; materials/supplies/vehicle(s), $60,000; contract services (towing), $40,000; abatement, $100,000; and contingency for cost allocation and other potential costs (i.e., legal expenses, noticing, community clean up day), $163,000.
Phillipe said the allocation for abatement would act as “seed money.” Abatement expenses would be placed on the property tax rolls, she said, and ultimately returned to the city.
A 10-year sunset clause has been added to the new proposal, meaning the tax will expire unless there is a determination that it is still needed. A measure must be placed before the voters for approval to extend it.
Phillipe said the addition of the sunset clause was a direct result of public input.
Additionally, the new proposal requires review in five years to determine if the tax can be lowered based on needs.
The Board of Equalization is to collect the funds generated by the tax in behalf of the city. Funds are to be placed in an established fund account and are not to be commingled with the general fund or any other fund account maintained by the city. Phillipe said the amount will fluctuate based on the economy.
Although Vice Mayor Gina Fortino Dickson brought up the option of a general tax, she later apologized recognizing the council's May 22 decision to seek a specific tax.
“I'm not feeling particularly confident that we could pass a special tax,” she said prior to hearing public comment, which included the input of only one person supporting a general tax.
Overton's initial comments opposed any measure at all. “I'm going to be honest. I don't think any tax is going to pass,” she said. “I'm done. The community is done. I don't think we should move forward with this at all.”
Councilman Joey Luiz disagreed with Overton's initial assessment and said the majority of the people have supported the initiative in the past.
“We've got issues,” he said. “We need the revenues and we need to find a way to get it in.”
Overton pointed out low voter turnout, which she said was not an accurate representation of the public's desire, a sentiment with which community member Bruno Sabatier agreed. Sabatier said he didn't think any tax would pass at this time.
Chuck Leonard, a former councilman, said he opposed a general tax and past efforts to pass it as such failed on every occasion.
“The people don't trust (a general tax),” he said. “I won't support it if it goes into the general fund but I hope nobody gives up on trying to improve the city.”
Russell Perdock also voiced support for continuing efforts. “Please pass this. Give us another chance. We will work and get it passed,” he said.
Council members and members of the public noted the importance of public education in getting the measure passed.
Businessman Dave Hughes said he once ran for a supervisorial position. “Every precinct I walked, I won,” he said. “In Lake County, knocking on doors is the answer.”
Marie Weathers, who identified herself a member of the senior community, said seniors are ready to pay the tax.
She said talking to people about the tax is essential and that she personally registered 75 people to vote in her assistance to pass the previous measure.
“My friends want (the city) cleaned up. You need to talk to people,” she said. “Yes, we want the tax and we want it to be the special tax not the general.”
Mayor Denise Loustalot agreed. “We need to clean our city up,” she said. “Somebody mentioned development. Nobody is going to want to develop here until we clean it up.”
Overton said she could support another initiative if there were increased participation from the council and the public to educate the voters about the proposal.
Overton's vote of support was necessary as the action required a four-fifths majority for the initiative to proceed and Spittler was absent from the July 10 meeting.
A second reading authorizing placement on the ballot is to be held during the July 24 regular meeting of the council.
That action also will authorize the city attorney to prepare the analysis of the measure and set forth its parameters.
City Clerk Melissa Swanson said $15,000 is budgeted for the November consolidated election, including costs associated with council seats and the ballot measure.
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