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By Tina Fisher Cunningham
The Forde Files No 77 

city voters size up 1/2-cent sales tax hike

The Forde Files No 77

 

August 16, 2014

In asking the Tehachapi City Council to approve the placement of a half-cent sales tax increase on the November ballot, City Manager Greg Garrett said the municipality is not desperate for the money and it's a good time to plan ahead.

"We're lean and mean and at some point we need to build capital," Garrett told the Council on Aug. 4, 2014 at the Wells Education Center board room. The members voted 5-0 to place a measure on the November 4, 2014 ballot that would increase city sales tax from 7.5 percent to 8 percent.

Referring to residents as shareholders, Garrett said he has done his best to run the city like a private business and has produced a balanced budget.

"So many cities are bankrupt," he said. "That's not what we're talking about. I want to go from good to great."


The extra half-cent revenue, according to the measure the Council approved, would "create a dedicated local funding stream for road maintenance projects, beautification projects, recreation enhancements, senior services and more..."

The city has been struggling with the elimination of Redevelopment (RDA) funds, which is a sore subject at City Hall. Council members and staff don't hesitate to call the state of California robbers and worse.

"The state jerked it out from under us two years ago," Garrett said. "They took $1.5 million annually from our budget."

Revenue from the additional half cent will` be spent the way Tehachapi wants to use it, Garrett said.


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"This is local money, collected and spent here," he said. "The long arm of the state cannot get their hands on this money."

By trimming down, the city has weathered the recession as well as loss of RDA funds.

"We have a smaller staff than we had five-and-a-half years ago," he said.

If residents want their city to stay the same, he said, that's OK. But if the city invests a little more – 50 cents on each taxable $100 spent –, it will mean $1.3 million in additional revenue, he said.

Assistant City Manager Chris Kirk said the half-cent tax is a long-term strategy that more than doubles funding for roads and re-investment in critical infrastructure. The tax also would make it easier to come up with matching funds for grants.


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"It's about asking our shareholders to re-invest in our business so we can improve our product: Quality of life," Kirk said.

"We are trying to solve a problem that is broken at the state level," City Engineer Jay Schlosser said. "We can feel how we want to about that, but it doesn't make our roads any better."

The additional revenue will go into the general fund. A significant portion will be spent on roads. The city has a long-term plan for maintenance.

The city aggressively pursues grants and will continue to do so, Schlosser said, but the city does not decide what the grants can be spent on. The federal and state grants are designated for "whatever is in vogue – air quality, bike paths," he said.


"We do not have the flexibility to take bike path money and spend it on roads."

The measure would expire in 10 years. An independent auditor would audit the books every year. Garrett said city staff is ready to answer questions from residents about the tax revenue and how it will be spent.

"Pick up the phone and ask me or any of the staff. We will be happy to sit down with you," he said.

Councilman and former mayor Ed Grimes, a Tehachapi resident for 65 years, praised the city administration for its vision. What it comes down to, he said, is "Do we want to grow or do we want to die?"

Eight public speakers commented on the proposal. Two had questions about the disposition of funds and one was in opposition. The others expressed support.

"I support this," public speaker Socorro Schmidt said. "I like a town that takes care of itself. I like a town that washes its face in the morning and combs its hair."

Downtown store owner Craig Britten opposed the tax.

"Don't give people another reason to go off the mountain to buy," Britten said.

One speaker asked if the tax is a response to the delay in construction of the Walmart, which will deliver significant sales tax revenue when it finally is built. Garrett's response indicated the tax measure would ensure an uninterrupted funding source that would prevent infrastructure deterioration.

Ida Perkins, president of the Tehachapi Chamber of Commerce, told Forde Files the chamber board of directors has not yet met to discuss its position.

Retailers in the city, according to a rough sampling by Forde Files, predict the tax increase will not affect sales except perhaps on big ticket items.

"I don't see it stopping any kind of business," the manager of a chain store said.

"I don't think anybody's going to notice," Colleen Kohnen, owner with her husband Thomas of Kohnen's Country Bakery, said. "When people are hungry, they're hungry. I totally support and trust the city will use the money wisely."

One owner of a downtown shop said she was opposed to the tax increase at first, thinking it was "scary and going to run off customers." But then, she said,

"I understood self-funding instead of waiting for the state of California. It made sense to me because I never want this to be a ghost town. It would be horrifying. I don't think customers are going to mind."

Other store owners – some of whom live outside the city and therefore cannot vote on the measure -- were conflicted about the issue or expressed opposition to all tax increases on general principles.

While the 40,000 residents of the Greater Tehachapi area shop in the city, only registered voters residing in the city will be able to vote on the measure. According to the Kern County Registrar of Voters, the city of Tehachapi has 3,963 registered voters. By law, the city of Tehachapi cannot promote or campaign for the measure.

 
 

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