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Why Repeal the 6% Utility Tax in Seaside -- Vote for Measure E on Nov. 4, 2008

Local Taxpayers Group Goes on The Offensive

1. Passed by the Seaside City Council in 1983, the 6% utility tax has arguably never been voter-approved. In 2002, Measure S to repeal half the tax failed with 47.7 percent of the vote. Measure T to keep the utility tax also failed with 56.7 percent, requiring a super-majority vote.

2. According to former Mayor Lance McClair, (1982-1994), the utility tax was supposed to be a “temporary tax.” It was never meant to be permanent.

3. Local voters have already indicated their opposition to taxes on ever-rising utilities. In November 2004, Seaside city voters opposed a special statewide utility tax by a 57 to 41 margin.

4. Most California cities do not have taxes on utility users. Only 147 cities have utility taxes, 31 percent of all California cities.

5. Vital services will NOT be cut. They are constitutionally protected as the first priority of city government. California State Constitution (article 13, section 35) states that if a municipality has to make budget cuts, the last place must be public health and safety (meaning firemen and policemen). Approximately 65% of the Seaside budget is used for public health and safety (2007-2008 general fund budget).

6. Seaside just passed Measure R (sales tax increase) which will bring in an additional estimated revenue stream of $3 to $6 annually. (The Seaside city accountant, Rick Pati, estimated $6 million; another city official said $3 million). Taxpayers will save $2.6 million a year if the Seaside utility tax is repealed.

7. According to a number of experts, the authority to tax utilities was never granted to local authorities by the state of California. However, others experts argue that a court decision is required before the matter can be settled.

8. City salaries are out of control. In 2006, 16 public employees received compensation over $100,000. In 2007, this number had increased dramatically to 39. Generally, public servants were always paid salaries that matched the average pay of taxpayers in the community. Further, after 30 years most city employees can retire with 90 percent of their top pay for life with inflation adjustments. This retirement program is undefined, meaning that the retirement money comes out of the general funds. In most California cities, public servants can retire at age 55.

9. The city is in the process of hiring 30 more full-time and part-time employees, including 12 more firefighters. But fire and police protection in most of the Fort Ord section of Seaside is paid by the federal government.

"Politicians like to threaten to cut services people care most about so they can distract attention away from the pork, waste and sweetheart deals that they dish out to their special interest friends.” -- Carla Howell, president, Center for Small Government

"Does government waste cause high taxes? Or do high taxes cause government waste?"
-- Michael Cloud, author

* Rick Pati, the Seaside City Accountant, told the vice chair of the Seaside Taxpayers Association that Measure R would bring in an estimated $6 million annually. However, the Monterey Herald reported that figure is just $3 million.

Other Supporters:

Libertarian Party of Monterey County, P.O. Box 22231, Carmel, CA 93922, Mark Dierolf County Chair, www.Freedom1776.com

Last Updated: Aug 26, 08

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