The City of Clearlake has decided to continue in its pursuit of a 1/2-cent sales tax for road maintenance. This time the ballot will be placed before the voters as a general transaction and use tax rather than a special tax.
The initiative was originally presented to the voters during the June 2006 Primary Election. As a special tax, passage had required a two-thirds majority vote by the electorate voting on the measure, which was narrowly missed. This time, passage of Measure Z will require a majority vote by the electorate.
Passage of a general transaction and use tax will allocate the revenues generated from the 1/2-cent sales tax directly to the General Fund for the city to appropriate at its discretion. A special tax, however, would have limited revenue spending to road maintenance only.
The possibility of the money collected through a general tax being used on expenditures other than road maintenance had generated some concern among members of the council as well as the public. City Administrator Kathy Kivley explained to the council during its Thursday, Aug. 10 meeting, that if the general tax is passed the city would have the ability to take out a bond on the projected revenues of the tax, which is being proposed for a period of 20-years. Using revenue figures from the city”s existing 1/2-cent sales tax for police services, this transaction and use tax is estimated to produce approximately $800,000 annually.
Calculated at a 20-year period, a $16 million bond for road maintenance could be secured, which would lock the city into its commitment with debt service obligations that will be required by the bond. This approach would ensure that the money collected from the tax is used as intended despite any changes in council representation that may occur over the next 20 years.
Another measure to be taken to ensure proper appropriation of the revenues should the tax initiative pass is the formation of an oversight committee. The oversight committee will be charged with safeguarding the will of the public to ensure that the money is spent in the manner intended by the voters.
Arguments for and against Measure Z are due by 5 p.m. Wednesday, Aug. 23 to the office of the Clearlake City Clerk, 14050 Olympic Drive in Clearlake. Only one argument for and against Measure Z will be distributed with sample ballots. Authors of the selected arguments may prepare and submit rebuttals no later than 5 p.m. Wednesday, Aug. 30. Please call the city clerk”s office, 994-8201, ext. 150, prior to the deadline for filing arguments.
Passage of the 1/2-cent sales tax would increase the local sales tax from 7.75 percent to 8.25 percent.
Contact Denise Rockenstein at drockenstein@clearlakeobserver.com.
