Yes on Measure U for Petaluma
The City of Petaluma’s budget has been hurting since the last time the economy tanked a decade ago. City leaders back then nearly spent the entire reserve fund just to keep the lights on. They made tough choices to cut staff and made other belt tightening measures.
In 2014, foreseeing future shortfalls without additional revenue, the city attempted to pass a one-cent sales tax increase. But the measure failed with just 43% support.
Since then, the city’s structural deficit has only become more apparent. Increasing pension costs threaten to swamp the city’s budget, rising by $800,000 every year for the next decade despite steps the city has taken to reduce pension costs by $1 million annually. And these estimates don’t factor in an underperforming pension fund due to the economic slump, which could increase the city’s share of the pension burden.
Petaluma’s revenue from sales and hotel tax is down this year because of the COVID-19 outbreak and could continue to lag in a prolonged pandemic-induced shutdown.
The bottom line is, if Petaluma doesn’t pass a revenue measure, officials warn that the city will be forced to make drastic cuts to service. It’s this choice that voters must consider when deciding on Measure U, a one-cent sales tax increase on the November ballot.
While it is a difficult financial time for many who have been hard hit by the pandenic-induced recession, we hope that voters take the long view and provide the city the revenue it needs to keep services functioning at current levels.
As a general tax, which can be used for any priority, Measure U only needs a simple majority to pass. City officials have wisely signaled they intend to use the revenue to fix the streets, which are in the worst condition in the Bay Area. That distinction used to belong to Larkspur until they passed a tax measure and fixed their streets.
Beyond streets, the city has plenty of other spending priorities, including boosting Petaluma’s public safety departments. The Petaluma Police Department is still down a dozen positions cut during the last recession.
Maintaining fire department equipment and emergency response times were the two highest priorities of a recent poll, and wildfires are certainly top of mind for voters. With new revenue, the city can attract top firefighters, replace equipment and repair aging facilities.
A majority of Sonoma County cities already have local sales tax add-ons. Petaluma, Windsor and Cloverdale have the lowest sales tax rates in the county at 8.25%. Measure U would align Petaluma’s sales tax rate with other local cities.
The last time Petaluma tried to pass a sales tax measure in 2014, the city council was divided on the issue and the measure failed. This time around, all seven council members are on board.
Measure U does have opponents. A coalition of Sonoma County business, labor and agricultural interests are opposing all taxes on the ballot without considering their merits. The Sonoma County Taxpayers’ Association’s main objection is that Measure U does not have a sunset date so if passed, it would never come up for renewal.
Without question, this is a difficult time to ask voters to open their pocketbooks. But there is never a good time to increase taxes. The pandemic will eventually fade and the economy will return to normal, but without new revenue, the city will still be in dire financial straights.
Petaluma leaders have been good stewards of taxpayer money. With the estimated $13.5 million annually that the sales tax measure is expected to generate, the city could make a dent in a massive street repair backlog, shore up public safety departments and stave off service cuts.
The Argus-Courier recommends voting yes on Measure U.
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