Well, what’s new, but more tax proposals on the horizon? We’ll just talk locally for now. One week recently, I sat through a City Council meeting in order to state the League’s position on the proposed 9-1-1 tax, and the next week, I was stating the League’s position on the use of public monies (through many new and innovative taxing schemes) for financing the construction of a new downtown arena. One week the City doesn’t have enough money to pay for the new 9-1-1 communications center’s annual operations ($13 million) and the next week we want to spend taxpayer’s money to build a $300-700 million arena.

The 9-1-1 tax (billed as a “cost-recovery fee”) would “restore public safety reductions” and “incorporate General Fund augmentations” for services like parks, libraries, and 27 grant positions. Therefore, if this tax is imposed, monies now spent on 9-1-1 services could be, and would be, diverted to other activities. Well, what did the League do? We ran ads in the three newspapers, “Inside Arden,” “Inside East Sacramento,” and “Inside the City” stating our position that the proposed “fee” is really a TAX and ought to be “put” before the voters for approval.

Now, for the arena. The “Pet” proposed location is west of 7th Street, between J and L Streets. Well, the demolition of the perfectly sound existing buildings and the relocation of businesses may cost as much as $300 million, alone. Get this, as part of the demolition they have to remove 2000 parking spaces—that later have to be reconstructed—I guess. When you add the construction of a new arena to that, with cost overruns, you could easily get the bill up to $1 billion! Listen to some of these new taxing proposals to fund the arena (instead of asking the Maloof’s to pay for it): raise the transient occupancy tax from 12% to 13 or 14% (SF’s rate), impose a rental-car fee, impose a special tax for “City-core” businesses that would benefit from the proximity of the arena, etc. Additionally, the city could sell their 170 acres (185 acres minus15 acres already committed) in North Natomas at about $500,000/ac and still only have $85 million to spend on a new arena. Whose idea is this???

May I take a moment to ask League members to “keep an eye out” for upcoming agenda items for the County and Cities within the County that pertain to taxes and that the League may want to follow up on. We could also use some help covering the council and board meetings countywide. As you know, attending these meetings can be very time consuming. With about eight jurisdictions, we’ll be busier and busier as the financial pressure of the State budget situation “trickles down” to the local level. When you come across an agenda item of interest, especially in other than Sacramento City or County, please call the League office at 921-5991, and let us know.

Yours for a Better Tomorrow,

Ken Payne

President