 "Photo:")
To combat the estimated budget deficit of $427,000 for the current year, the Cotati City Council has proposed a half-cent sales tax, according to Chief Administrative Officer Jone Hayes. Dianne Thompson, city manager, said an increase in the city’s sales tax is a necessary step for Cotati.
“The state is able to take money from the cities like someone accessing your bank account without permission,” said Thompson. “The sale tax increase would protect that money from state raids and can only be used by the city of Cotati.”
If approved, the sales tax could potentially bring in $600,000 of annual revenue with current sales. If sales pick up in Cotati, that revenue can increase significantly, said Hayes.
The city has reported a $200,000 decrease in sales tax revenue as well as a $130,000 loss in property tax as a result of a state “take back” of funds. A “take back” simply means that the state can pull money away from a city based on the taxes it is collecting.
“I don’t think a half-cent increase is that much,” said junior Chelsea Lisec. “There are a lot worse things that could be done. The half-cent amount is reasonable, especially since it is only five years.”
Junior David Albert felt differently.
“Half a cent on every dollar isn’t so bad, though I do wish people would stop increasing sales tax,” said Albert. “I understand that they need money, but the whole point of having it as a percentage of what you spend is so that it doesn’t have to be increased periodically.”
The tax increase would cost consumers 50 cents for every $100 spent. The current tax rate of nine percent is divided between state, county and city. 73 percent of the sale tax goes to the state, while Sonoma County gets 19 percent and Cotati collects eight percent. That translates to just 0.75 percent sale tax for Cotati, which would be increased to 1.25 percent if the sale tax measure were passed.
On April 13, 2010 Cotati residents will have an opportunity to pass the sales tax ballot measure in a special election. The city estimates the election will cost $20,000.
The tax, if approved, would be in effect for five years before coming back to a ballot to determine whether it should continue.
On the city’s web site the City Manager wrote a message updating the budget crisis. The message included a request that voters approve the tax measure, that the city council argues will protect police services, prevent cuts to street repair and park maintenance, and restore recreational programs as well as other city services.
“Overall staffing levels have been reduced by 33 percent with the elimination or freezing of four police officers, a dispatcher, a maintenance worker, recreation staff, clerical staff and other positions,” the message stated.
The council has also discussed contracting out police services to either Petaluma, Rohnert Park or Sonoma county, but Thompson said in an e-mail message “Based on the initial proposal we received for complete police services (including patrol and dispatch) it is not clear if this would achieve cost savings”.
Police services make up the majority of the city’s budget, Thompson said. A presentation slide from a Jan. 13 city council meeting backs this up with a graph indicating police services account for 65 percent of the budget for the fiscal year 2009 and 2010.
A concern that Mayor Coleman brought up with regard to police services is the activity of Sonoma State students. The mayor expressed that students can either help Cotati by shopping at local businesses or can hurt the city. Coleman noted, “Whenever a student is arrested the city is charged $250 for the officer to make the arrest”. Exactly how much of a problem this is was unclear.
Be the first to comment on this article!