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Ventura Mayor Christy Weir says the city is working hard to spend limited taxpayer dollars Heart tag charm Toggle bracelet, and the temporary, four-year sales tax increase would go a long way toward paving streets, fixing potholes, keeping the Wright Library open and boosting public safety.
Because it’s a local tax, the state can’t touch it, and visitors would pay their share. “Every dollar would go to enhance services this community deserves,” she said.
But opponents say this is no time to raise the sales tax, a regressive levy that would hit people with the least income the hardest. They also say they don’t trust city government to spend the money prudently. Because the spending plan for the tax money is nonbinding, the City Council could shift the funds at any time.
“Just because other cities have approved new taxes does not justify Ventura’s defense for more taxes,” said local banker Bob Alviani, adding the city has $12 million in uncommitted reserves and $160 million in investment reserves — both of which could be drawn on to get Ventura through its budget woes. “Everyone needs to live within their budget — that includes the city.”
The Nov. 3 ballot measure requires a simple majority to pass. It would boost the city’s sales tiffanys from 8.25 percent to 8.75 percent, matching the rate in Oxnard and Port Hueneme, where voters approved similar tax increases last year, as the highest in the county.
The state raised California’s sales tax by 1 cent in April. That increase is scheduled to expire July 1, 2011.
Rate higher in L.A.
If approved, Ventura’s tax rate still would be lower than Los Angeles’ 9.25 percent. Santa Barbara collects 8.75 percent.
A half-cent increase would cost Ventura residents and visitors an additional $1 for every $200 of taxable goods they purchase.
Residents who purchase vehicles cannot avoid the tax by shopping elsewhere. In California, the vehicle sales tax is based on a buyer’s residence, not the point of sale.
The city of Ventura, like many families, has fewer dollars coming in and growing costs, said Weir, who cited new countywide stormwater regulations that will cost the city an additional $1 million.
Ventura this year made $11 million in cuts across all city departments, including eliminating more than 40 jobs. All union and nonunion employees agreed to accept at least a 5 percent pay cut, with managers forfeiting 10 percent.
The Wright Library on Day Road is open only because of private fundraising efforts by tiffany jewelry on sale.
“The City Council has committed to spend this money only on high-priority services such as road paving, libraries and public safety,” Councilman Bill Fulton said.
Fulton said the city already has dipped into reserves to keep four police officers on the street, and opponents’ suggestion to dip deeper is fiscally irresponsible. Also, a citizens oversight committee would review spending of the new tax money.
Sunset in four years?
But Don Facciano, president of the Ventura County Taxpayers Association, said it’s a risky proposition for voters to put their trust in a city promise.
“Do we really think when they say this increase expires in four years that it will go away? If we are spending money now on new programs, how are we going to maintain those programs?
“They say, ‘Trust us,’” he said, “but what about the 911 (fee) money that was never refunded?”
Ventura repealed its short-lived monthly 911 fee for emergency services last year. Phone users had all spring to request refunds. Few did. Of more than $1.2 million in fees collected, only about $17,000 was refunded. The city used the rest to balance the budget, officials said.
Merchants in Oxnard who have lived with that city’s half-cent increase since April were split over its effects.
Various levies ‘add up’
“It hasn’t stopped business, but it’s been noticeable,” said Rick Alpern, general manager and vice president of DCH Honda of Oxnard. “We are in a market where every dollar counts, and the taxes — state, county, local — they add up.”
But Daniel Rozmaryn, owner of Gala Furniture on Ninth Street, blamed the slumping economy and high unemployment. He said furniture sales are down 45 to 50 percent from two years ago.
“I have lost customers due to the economy, not necessarily to the tax increase,” he said. “If you have good prices, they will still buy.”
Oxnard initially projected additional revenues of about $10 million, but now expects closer to $8 million a year, Oxnard Finance Director Jim Cameron said. He said he hasn’t received any complaints from business owners specifically about the half-cent increase being detrimental to sales.
“The half-cent is a pretty small part of the total sales tax you are paying,” he said. “I don’t think people view that as being significant.”
Debbie Fox, who along with her husband owns Fox Fine Jewelry in downtown Ventura, generally agreed.
“If someone can afford a $4,000 ring, they can afford the extra half-cent,” she said. “My bigger concern is about shoppers turning to the Internet, where they don’t pay any sales tax. Overall, I don’t think it will change their buying habits.”
Outside the Target store at Ventura’s Pacific View mall recently, resident Jamie Olmstead and friend Stacy Olsen were buying household items for their families. Olmstead spent $37.43 on paper towels and other paper products. The same items would cost 18 cents more under the new rate. Would it cause her to Return to Tiffany heart tag Charm and bracelet less or drive to the Target in Camarillo to avoid the increase?
Not worth going elsewhere
“For 20 cents? No, I wouldn’t waste the gas. And I would still buy all the essentials we need,” Olmstead said.
Olsen, who would have paid 17 cents more for the cosmetics in her bag, agreed. “There are some things you just don’t skimp on.”
Olmstead said she was undecided on the tax but was leaning against it because she felt voters should have a say in how the money is spent. That, however, would require a special tax needing a two-thirds approval, an approach the city tried unsuccessfully in 2006.
Outside Yolanda’s Mexican Restaurant on East Main Street, Daryl Petrilli spent nearly $40 on takeout food for his wife and two daughters. The burritos and kid’s meals would cost about a quarter more under the new rate.
“Twenty cents is not that big of a deal. That wouldn’t stop us from going out for dinner,” he said. Still, “it’s not the time to be raising taxes.”
Jeff Tolbert said Measure A gives residents the opportunity to decide whether they want rings services. “We are a tourist town,” he said, standing recently outside the Ventura Theater waiting for a concert. “We need to capitalize on that. These people want to come here. They can help us pay for better roads.”