Why would people who ordinarily oppose taxes support a temporary sales tax increase in Lompoc?
The Lompoc City Council met last week, and one of the topics was the state of the current budget. City staff was seeking guidance on how to increase revenue for the next two-year budget cycle. Staff painted a bleak picture of what a $3.7 million cut would look like in the next budget.
To put it bluntly, all that would be left is the skeletal remains of a city that once boasted that it was a “full service” operation.
The staff cure was to place a temporary sales tax initiative on the ballot and let voters decide what to do. Unlike fees charged for services, it is the electorate and not the council that decides whether raising taxes is a good idea.
During a recent budget workshop, Councilmember Jim Mosby provided some very misleading information to explain his opposition to a temporary sales tax increase. First, he said it would cost $250,000 to place the measure on the ballot. The cannabis tax measure only cost $20,000 in the last countywide election.
To place this type of initiative on a special election ballot, the council would have to declare a fiscal emergency 103 days prior to an election. This would require a 5-0 vote by the council.
Recently, the city manager replied to the special election question this way: “Waiting for the regular November 2020 election would require the same timing of the 103 days, but it would cost closer to the usual $20,000, give or take. The $150,000 for a special election would be from the reserves, but if we waited [until] November 2020, without doing large cuts, we would be dipping into the reserves to the tune of at least $2 million plus,” he said. “So, in my humble opinion, spending $150,000 now, with the hope of a successful outcome, would save the city’s general fund reserves a couple of million dollars.”
Secondly, Mosby said that he opposed this idea because it would cost the average family a $500 a year increase in taxes. As is his usual style, he exaggerated the cost. The staff report states, “With the median household income from the U.S. Census Bureau at $49,074, the annual cost per average household would be $123 or $10.22 per month (.34/per day).”
In order to have a $500 dollar sales tax increase, a family would have to spend $50,000 on things other than housing, food, and medical care. I don’t know many families that have that much disposable income or the time to spend it within the city limits.
Most people spend more than 34 cents on coffee and soda every day, so what’s the problem? Besides, this is a sliding scale tax, meaning that you are only taxed on what you spend.
For someone who tries to project the image of a budget whiz, you would think that Mosby would have a better grasp of the facts when he speaks during public meetings and to his constituents on the street.
Folks who might oppose this tax proposal may be simply too engrossed in a comforting cloud of smoke to realize how the loss of services will impact their lives. Someday they will need the help of a police officer or firefighter who may be late to arrive because of staffing cuts.
Getting all five council members to declare a fiscal emergency was going to be tough. Three have already made some strong statements in opposing any tax increase, and their egos may not allow them to consider any other position on the matter, despite overwhelming evidence of an impending budget disaster.
True to form, the three, acting like dictators, refused to allow citizens to vote on the matter.
One thing is certain, without an increase in revenue, this city is doomed to deep service cuts in the upcoming budget and even more in the years to come.
I think I’ll go buy an industrial sized fire extinguisher, fortify my house, and obtain a defibrillator and a large, well-stocked first aid kit if the council majority doesn’t realize the seriousness of this matter.
Ron Fink writes his opinions from Lompoc. Send comments through the editor at clanham@newtimesslo.com.
This article appears in Mar 28 – Apr 4, 2019.