We hear frightening things about Government finances every day.  The situation in Seaside seems no different.  Even though the City claimed to have a balanced budget, it heavily and successfully promoted Measure R (a 1% increase in the sales tax) in spring of 2008, indicating services would be reduced if the measure were not passed.

The measure was passed, but services were reduced anyway.  Potholes are still unfixed, the fire and police departments have shrunk (even though Measure R proponents told us we needed MORE staffing, the City later commissioned a new study to justify reductions!) and City parks remain almost completely unimproved (vs pre-Measure R).  It turns out that while the analysts suggested this incremental tax would add approximately $3 million in annual revenues, it has added only about $1 million annually.

Even more frustrating, mathematically, this extra tax measure would have been unnecessary had it not been for the expensive “reorganization” of the City undertaken in (approximately) 2006.  Virtually every “client” of City Hall has noticed (and many have complained publicly) that the “reorganization” did nothing to improve customer service.

Does this increased taxation have other costs?

Vacancy rates on Broadway and in other commercial areas are sky-high.  Indeed, in the newest commercial complex (the City Center at Broadway and Freemont) the vacancy rate is about 50%!

With this kind of tax environment is it any wonder that businesses might prefer Monterey, Sand City or Marina where sales taxes are up to one full percent lower?  If it isn’t out of the way (and Monterey, Sand City and Marina are not), shoppers will generally flock to stores with the lowest total costs, taxes being one element.

What’s worse, the City has been implicated in massive government giveaway of multimillion dollar proportions.  For example, during initial review of the Seaside Highlands housing development during the late 1990s, the developer initially was expected to provide for various public amenities  such as a police substation and possibly a fire house when asked by planning commissioners.  In the end, the City only got a small office for police officers to do some paperwork during shifts.

Now the City must renew its effort to provide a police substation to provide adequate coverage for patrols in the Northern areas of the City.  While this is once again promised as part of a forthcoming development, it is critical we make it actual.  We need a Mayor and Council members who do not follow the poor examples provided in the past, but rather insist on the best deal for the City’s residents.

On another note, the City Council frequently doesn’t ask enough finance related questions of its staff.  See the video page for information on how a $5 million “City Checks” request went through without any call for explanation except from me.  So too with a $400,000 overrun on another City Checks request.

Proposed Solutions:

All Council members must be vigilant (especially about finances) every moment of their service to the City.

When elected, I will ask the toughest of questions and not allow public funds to be squandered.  Developers will need to pay their fair share of improvements and the business environment will be stimulated with an appropriate tax policy to the degree that the Council can determine taxation within the City.

With attractively planned businesses, higher occupancies and a commerce friendly sales tax rate that does not put us at a competitive disadvantage, it is entirely likely that the City will reap much greater revenues.  This would be the direct result of a future of increased retail sales within the City — sales that may now be occurring “next door.”

 

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