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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. |
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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 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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44-510
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. |
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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 |
44-511
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. |
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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 |
44-512
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. |
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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 |
44-513