QVOTER INFORMATION PAMPHLET

MEASURES, ANALYSES AND ARGUMENTS

(whichever is applicable to your ballot)

Arguments in support of, or in opposition to, the proposed laws are the opinions of the authors.

Shall the City of Santa Cruz adopt an ordinance amending Section 3.28.030 of the Municipal Code by imposing a special one percent (1%) transient occupancy tax and

dedicating the revenues from that special tax to the Santa Cruz County Conference and Visitors Council?

Conference and Visitors Council shall make all of its books, records, and accounts which in any manner relate to the expenditure of Conference and Visitors Promotion Fund moneys available to the City’s Finance Director for examination or audit upon reasonable notice.  In addition, the City shall require annual reports from the Santa Cruz County Conference and Visitors Council designed to demonstrate the achievement of goals relative to the promotion of tourism in the City and County.  The City’s obligation to annually contract with the Santa Cruz County Conference and Visitors Council shall be contingent upon that agency’s satisfactory performance, which shall be demonstrated by annual financial audits and periodic, independent assessments of the Santa Cruz County Conference and Visitors Council’s performance in achieving approved goals and objectives. Such independent assessments shall be conducted at least every three years, shall be paid for by the Santa Cruz County Conference and Visitors Council, and shall be conducted by qualified professionals approved by the City.  Said obligation shall additionally be contingent upon compliance with all applicable laws pertaining to the operation and governance of non-profit corporations.

Section 2.  This ordinance shall be considered as adopted upon the date that the vote is declared by the City Council, and shall go into effect 10 days after that date.

 

 

 

FULL TEXT OF BALLOT MEASURE Q

AN ORDINANCE OF THE CITY OF SANTA CRUZ

AMENDING SECTION 3.28.030 OF THE SANTA CRUZ

MUNICIPAL CODE PERTAINING TO THE
CITY OF SANTA CRUZ
TRANSIENT OCCUPANCY TAX

BE IT ORDAINED By The City Of Santa Cruz As Follows:

Section 1.  Section 3.28.030 of the Santa Cruz Municipal Code is hereby amended to read as follows:

Section 3.28.030               Tax Imposed.

(a)     For the privilege of occupancy in any hotel, each transient is subject to and shall pay a general tax in an amount of ten percent of the rent charged by the operator.  The tax constitutes a debt owed by the transient to the City, which is extinguished only by payment by the operator to the City.  The transient shall pay the tax to the operator of the hotel at the time the rent is paid.  If the rent is paid in installments, a proportionate share of the tax shall be paid with each installment.  The unpaid tax shall be due upon the transient’s ceasing to occupy space in the hotel.  If for any reason the tax is not paid to the operator of the hotel, the Director of Finance may require that such tax shall be paid directly to the Director of Finance.  The general tax revenues shall be placed in the City’s general fund

(b)     For the privilege of occupancy in any hotel, each transient is subject to and shall pay a special tax of one percent of the rent charged by the operator on the same terms and conditions set forth in subsection (a).  The special tax revenues shall be placed in a segregated “Conference and Visitors Promotion Fund” account.

(c)     All tax revenue deposited in the Conference and Visitors Promotion Fund shall be used exclusively for the promotion of tourism in the County of Santa Cruz and for no other purpose.  In order to achieve this objective, the City shall annually contract with the Santa Cruz County Conference and Visitors Council, a non-profit corporation doing business in the City and County of Santa Cruz established for the purpose of promoting tourism within the City and County.  The City shall require the Santa Cruz County Conference and Visitors Council to submit an annual accounting for the use of funds provided pursuant to this section.  The annual accounting, at a minimum, shall set forth with particularity and in accordance with generally accepted accounting principles the amount and nature of all expenditures made with Conference and Visitor Promotion Fund moneys.  The Santa Cruz County

 

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VOTER INFORMATION PAMPHLET

MEASURES, ANALYSES AND ARGUMENTS

(whichever is applicable to your ballot)

Arguments in support of, or in opposition to, the proposed laws are the opinions of the authors.

IMPARTIAL ANALYSIS BY CITY ATTORNEY

MEASURE Q

This ballot measure, if adopted by City voters, would amend the Santa Cruz Municipal Code by raising the transient occupancy tax rate from the current rate of 10 percent to 11 percent.  The transient occupancy tax is a tax paid by hotel and motel guests who spend fewer than 30 consecutive days in a hotel or motel in the City.  The tax is on the room rent paid.  For example, a hotel guest currently pays $10.00 tax per night on a $100.00 hotel room.  If the ballot measure is adopted, the hotel guest would pay $11.00 tax per night on a $100.00 hotel room.  The ballot measure would require the City to dedicate the tax revenue received by the City as a result of the tax rate increase to a special segregated “Conference and Visitors Promotion Fund” account.  All tax revenue deposited in the Conference and Visitors Promotion Fund account would be used exclusively for the promotion of tourism in the County of Santa Cruz.  In addition, the ballot measure would require the City to annually contract with the Santa Cruz County Conference and Visitors Council and the money deposited in the Conference and Visitors Promotion Fund would be disbursed periodically to the Santa Cruz County Conference and Visitors Council for its use in promoting tourism within the City and County.  The ballot measure would also require the Santa Cruz County Conference and Visitors Council, as a condition to receiving this funding from the City, to submit an annual accounting demonstrating that the funds provided by the City have been used for their intended purpose.   Currently 100% of transient occupancy tax revenues, computed at the rate of 10 percent, are dedicated to the City’s General Fund and General Capital Improvement Fund.  Because the proposed transient occupancy tax rate increase would be imposed for a specific purpose, the ballot measure proposes a special tax as defined by Article XIIIC of the California Constitution.  Accordingly, for the ballot measure to be adopted, it must receive a two-thirds “yes” vote. 

s/ John G. Barisone, City Attorney

 FISCAL IMPACT STATEMENT BY FINANCE DIRECTOR

MEASURE Q

The transient occupancy tax is paid by hotel and motel guests staying fewer than 30 consecutive days in the City.  This ballot measure would increase the tax rate by 1% for a total new tax rate of 11%.  The amount generated by the transient occupancy tax in the City varies from year to year depending upon the number of visitors and room rates.   For the current fiscal year, FY 2002/2003, the current 10% tax rate is expected to generate $3.3 million dollars from total hotel and motel room rents of $33 million.  Therefore, an additional 1% tax rate would generate an additional $330,000.  Further, this ballot measure would designate the additional 1% tax receipts be earmarked for tourism promotion and deposited in a “Conference and Visitors Promotion Fund”.  The proceeds from the additional 1% tax rate would be dedicated to the Santa Cruz County Conference and Visitors Council who would promote tourism pursuant to an annual contract with the City of Santa Cruz.

The City of Santa Cruz currently funds a portion of the Santa Cruz County Conference and Visitors Council annual budget pursuant to an annual contract for tourism promotion.  Funding for this purpose comes from the City’s General Fund.  The amount budgeted for the Santa Cruz County Conference and Visitors Council for the current fiscal year, FY 2002/2003, is $396,688. 

If Measure Q passes the $396,688 currently budgeted for the Santa Cruz County Conference and Visitors Council would then be available annually from that point forward for other community priorities.

s/ David P. Culver

Finance Director

 

 

 

 

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VOTER INFORMATION PAMPHLET

MEASURES, ANALYSES AND ARGUMENTS

(whichever is applicable to your ballot)

Arguments in support of, or in opposition to, the proposed laws are the opinions of the authors.

ARGUMENT IN FAVOR OF MEASURE Q

Measure Q requires tourists to pay for the services they receive while visiting our community and ensures that your tax dollars are not used to fund the Santa Cruz County Conference and Visitors Council.

Over the next ten years, Measure Q will make over $4 million available for vital city services while creating accountability and safeguards on how your tax dollars are spent.

Specifically Measure Q will:

·    Help with the city’s budget crisis.  Measure Q will make available over $400,000 every year, now spent on tourism promotion, for vital city services such as senior care, fire department paramedic response or reducing drug use and loitering on our downtown streets.  And, additional money will also be generated for local programs through sales taxes paid by tourists.

·    Create accountability. Measure Q ensures accountability and safeguards on how tax money will be spent. Measure Q requires an independent audit, conducted annually, to ensure that tax dollars are used as specified in the measure.

·    Be paid for by tourists.  Measure Q requires hotel and motel guests to pay an additional 1% on their room rates.  City of Santa Cruz residents living in their homes will not have their taxes affected in any way by this measure.

·    Protect local jobs.  Santa Cruz County is feeling the effects of California’s slumping economy.  Measure Q will help put people back to work and protect existing jobs.

On November 5th, please join labor unions, local businesses, senior citizens, working families, elected officials, moderates and progressives in supporting Measure Q.  It will free up money for essential city services every year while creating responsibility and accountability on how tax dollars are spent.

s/ Rowland Rebele, Director, Homeless Services Center

s/ Leonard O’Neill, Executive Director Hotel/Restaurant Workers Union – Local 483

s/ Leslie Sunell, President, Santa Cruz Area Chamber of Commerce

s/ Karen Darling, President, Santa Cruz County Lodging Association

s/ Fred Keeley, Assemblymember

 

 

 

REBUTTAL TO ARGUMENT IN FAVOR OF MEASURE Q

The Hospitality Alliance states that Measure Q “requires tourists to pay for the services they receive,” and will “ensure that your tax dollars are not used” to fund the Convention and Visitors Council (CVC).  On the contrary, all of the “tax dollars” raised by Measure Q will fund the CVC now and in the future.

An average of 15,000 tourists a day (year round) generates the need for a lot of City services.  These include emergency services – police, fire/paramedic, lifeguards – as well as routine: cleaning and maintenance of streets, sidewalks, beaches, bathrooms, parks, and other public areas.  Additionally there is parking, traffic control, beach shuttle buses, and so forth. These services, available to visitors, who don’t pay property taxes, cost city taxpayers millions of dollars a year.  If Measure Q does generate additional tourism, then a substantial portion of the money it raises should have been dedicated to the City to help pay these extra costs.  Not one cent will go to the City. 

The Alliance implies that the City is in some way obligated to give the CVC $400,000 every year from our General Fund.  That is not the case.  The City is not obligated to give the CVC any money.  The cities of Watsonville, Scotts Valley, and Capitola, which the CVC also serves, have been giving the CVC only token contributions. 

This tax greatly benefits businesses that serve tourists. They should promote their business with their own money, not with public funds.  PLEASE VOTE NO ON MEASURE Q.

s/ Gordon Pusser, Committee Opposed to Measure Q

 

 

 

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VOTER INFORMATION PAMPHLET

MEASURES, ANALYSES AND ARGUMENTS

(whichever is applicable to your ballot)

Arguments in support of, or in opposition to, the proposed laws are the opinions of the authors.

ARGUMENT AGAINST MEASURE Q

Measure Q imposes a new 1% Transient Occupancy Tax which will be collected by the City and turned over to one private countywide organization – the Convention and Visitors Council (CVC) – that will spend all of these public tax funds each year on salaries, advertising, and promotion of private business.

This diversion of public funds to enrich private Tourist oriented businesses sets a frightening precedent:

·    City tax dollars will be spent throughout the entire county.

·    Only this one organization – the CVC – will get any of these funds.

·    No matter how much this bonanza could be in future years, it would all go to the CVC.

·    It sets up one organization as more worthy than others.

Measure Q is unfair to the dozens of private non-profits the City partially funds and their thousands of volunteers and supporters. Why don’t they also deserve a special law funding them? These agencies help Seniors, the disabled, children, women in peril, the blind, stroke victims, to cite just a few. Why should a Council promoting tourism be put ahead of them?

The truth is no group should have its funding locked in by its own special law. Future City Councils, as stewards of public funds should be responsive to future citizens and their needs. A Council should not be bound by a CVC “sweetheart deal” from years in the past. We don’t know what the future holds.

Measure Q might have been more palatable if some of its fatal flaws had been addressed, but they weren’t. In its present form it is totally unacceptable. Santa Cruz voters have apparently never before passed a special General Fund tax to be given to a special group in perpetuity. They should not do this now. VOTE NO ON MEASURE Q.

s/ Gordon Pusser, Committee Opposed to Measure Q

 

 

REBUTTAL TO ARGUMENT AGAINST MEASURE Q

The community leaders that we trust are supporting Measure Q.

The opponent of Measure Q is wrong.

·    By law, these funds will be independently audited every year to ensure that they are used as specified in the measure.

·    Over the next ten years, Measure Q will make over $4 million available for vital city services like improving fire department paramedic response or reducing drug use and loitering on our downtown streets.  The city also has the ability to use this money for other worthy non-profits, including those who provide senior care and affordable housing.

·    Based on current funding, passing measure Q will actually reduce the city’s funding of the Santa Cruz County Conference and Visitors Council by over twenty percent – requiring neighboring communities to pay their fair share.

On November 5th, we hope you’ll join with thousands of other Santa Cruz residents and us in supporting Measure Q.

s/ Larry Pearson, Owner, Pacific Cookie Company

s/ George Ow, Jr.

s/ Emily Reilly, Vice-Mayor

s/ Ann Morhauser, Owner/Artist, Annieglass

s/ Michael J. Paul, President & CEO, Goodwill Industries

 

 

 

 

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