City of Modesto General Sales Tax Increase, Measure G (November 2015)

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Measure info Amount: 0.5% Expires: 8 Years Purpose: General

A general sales tax measure was on the ballot for Modesto voters in Stanislaus County, California, on November 3, 2015. It was defeated.

If approved, this measure would have authorized the city to increase Modesto's sales tax rate by half of one percent for eight years. The tax would have been a general sales tax, which means that revenue from it could have been used for any governmental purpose. The measure's language approved by the city council for the ballot asked voters if they wanted to authorize the sales tax increase in order to fund the "Safer Neighborhoods Initiative," which would have focused on police and fire safety services. The tax revenue, however, would have gone into the city's general fund and could have legally been used for any purpose. City officials estimated that the tax increase would have brought in about $14 million per year in additional revenue.

If approved, this measure would have increased the total sales tax rate in Modesto from 7.625 percent to 8.125 percent. These rates included the state-mandated sales tax of 7.5 percent and a Stanislaus County library sales tax of 0.125 percent.

A general sales tax in California requires only a simple majority vote for approval. If the city had chosen a special tax, earmarked specifically for the "Safer Neighborhoods Initiative," it would have required a two-thirds (66.67%) vote for approval.

Election results

Modesto, Measure G
Result		Votes	Percentage
d No		13,078	55.94%
Yes		10,302	44.06%

Election results from Stanislaus County Elections Department

Text of measure

Ballot question

The following question appeared on the ballot:

“

To implement the Safer Neighborhoods Initiative by restoring police patrols, crime prevention, gang suppression and youth development efforts; removing tagging; reducing nuisance properties; strengthening fire/emergency services; increasing neighborhood collaboration; and to maintain other general city services, shall the City of Modesto enact a ½ percent general sales tax that cannot be taken by the State, expires in 8 years, and requires audits, citizen oversight board reports, and all funds be spent in Modesto?

”

Impartial analysis

The following impartial analysis of Measure F was prepared by the office of the Modesto city attorney:

“	The City Council of the City of Modesto has placed the SaferNeighborhoods Initiative/Measure G on the ballot to ask the City's voters to approve a temporary one-half of one percent (0.50%) local transactions and use tax. The tax would, for example, add a half-cent to the price of an item purchased for $1; it would add 50¢ to the price of an item purchased for $100. According to a report on Measure G prepared by City staff, the tax would provide approximately $14 million annually for the City's general fund, increasing the City's ability to restore general city services that have been cut since the economic recession began in 2008, including implementing the Safer Neighborhoods Initiative by funding: police and fire services, crime prevention, gang suppression, youth development efforts, removing tagging, reducing nuisance properties, and increasing neighborhood collaboration. Measure G would not limit the use of the tax revenue. Measure G is a "general tax," not a "special tax." As such, the City may use funds from the tax for any legitimate governmental purpose. The tax would continue until the earlier of: (i) March 31, 2024; (ii) actual annual general fund revenues reach 2006-2007 levels of $120,369,703.00, (adjusted for inflation, excluding tax proceeds under the Measure, and excluding any irregular one-time revenues from State or Federal grants or programs); (iii) it is repealed by a majority vote of the voters of the City; or (iv) it is repealed by a majority vote of the City Council. Measure G requires an annual independent audit. Measure G requires that City Council appoint a Citizen Oversight Board to review revenues and expenditures from the tax, review annual audits, and make an annual report to the City Council regarding the tax. Technically, "sales tax" is a combination of "sales and use tax" and "transactions and use tax." With some exceptions, both are levied on the sale or use of tangible personal property sold at retail. Retailers collect the tax at the time of sale and remit the funds to the State Board of Equalization, which administers the tax. The statewide sales tax rate is 7.5%, only a small portion of which is distributed to counties and cities. Voters in Stanislaus County have approved an additional 0.125% tax, bringing the current sales tax rate in Modesto to 7.625%. If Measure G is approved, Modesto's sales taxrate would increase to 8.125%. A "Yes" vote is a vote to approve a one-half of one percent sales tax in Modesto. A "No" vote is a vote against the tax. Measure G will pass if it receives a simple majority of "Yes" votes.	”
—Adam U. Lindren, Modesto city attorney

Support

Supporters

The following five members of the city council voted in favor of the sales tax measure:

• Mayor Garrad Marsh
• John Gunderson (District 1)
• Tony Madrigal (District 2)
• Jenny Kenoyer (District 5)
• Dave Cogdill (District 6)

The following individuals signed the official argument in favor of Measure G:

• Marvin V. Jacobo, neighborhood advocate
• Jenny Kenoyer, city council member
• Nicholas S. Bavaro, former chair of the Stanislaus Central Republican Committee
• Doug Highiet, neighborhood advocate and business owner

Arguments in favor

Supporters of the tax argued that the additional revenue was necessary to keep the city's safety services up to par. They pointed to the city police department, which had seen a 20 percent decrease in police officers between 2008 and 2015, according to city officials.

Mayor Garrad Marsh, who ran for re-election on November 3, 2015, said, “I am strongly in favor in favor [sic] of G. Given that you have a city of Modesto that has fewer cops per capita than most cities of 125,000 people or more. Our cops handle more felony crime per officer. Even though we don’t have more crime than, say a Stockton, we have so few officers that we have a higher call rate per officer.”

Modesto Police Chief Galen Carroll said, “If Measure G passes, it would allow the PD to fully engage in community policing. Adding patrol officers will reduce call times and allow more time for problem solving rather than reactive policing.”

Official argument

The following official argument was submitted in favor of Measure G:

“	There are many needs in any community, but Number One is keeping neighborhoods safe. Economic development, jobs, and quality of life suffer without safe neighborhoods. Modesto is a city of great neighbors. Passage of Measure G supports efforts to continue building strong neighborhoods and watch groups. Modesto was hit hard by the economic recession, and continues to struggle to recover. With passage of Measure G, Modesto will be able to restore public safety while preparing for our economy to grow. For the average citizen this measure will cost about four dollars a month. That will provide 80 more cops and enhances fire safety. It will give the people of Modesto a greater quality of life and stronger safer neighborhoods. This will enhance gang suppression and prevention, improve traffic safety, and bring expanded patrols at parks, rivers, and creeks. We will expand our neighborhood code enforcement, and prosecute drug and nuisance housing issues. Modesto put its fiscal house in order. The budget is balanced, retiree health liability reduced by over 70% and headed towards zero, most employees now pay all their share of pension, and new employees have a reduced pension impact plus an older retirement age. Without a revenue source, Modesto’s 10-year budget forecast shows no room to add police or fire services. Your City Council has passed a resolution on how added revenues will be spent: the Safer Neighborhoods Initiative. 90% is for public safety! And the Council’s strategic plan places great safe neighborhoods as a core value. There will be a citizen’s oversight committee to audit and report how Measure G revenues are budgeted and spent. G is GREAT for Modesto. G is GREAT for our neighborhoods. G is GREAT for you. Vote YES on Measure G.	”
—Marvin V. Jacobo, Jenny Kenoyer, Nicholas S. Bavaro and Doug Highiet

Opposition

Opponents

Council Member Dave Lopez (District 3) and Council Member Bill Zoslocki (District 4) voted against putting this sales tax before voters. Dave Wright, a candidate for the city council in the election on November 3, 2015, also opposed Measure G.

The following individuals signed the official argument in opposition to Measure G:

• Joan A. Rutschow, retired teacher
• Tim Fisher, former Modesto city council member
• Dave Thomas, president of the Stanislaus Taxpayers Association
• Theodore F. Mills, concerned citizen
• Janice E. Keating, former Modesto city council member

Arguments against

When they voted against putting Measure G on the ballot, Council Members Lopez and Zozlocki said they supported a special sales tax—with revenue legally restricted to police, fire and other safety services—rather than the general sales tax approved by the other five members of the council. Wright argued that the city needed more revenue because of its increased pension costs. Wright criticized the city for not being open about the source of its financial problems. Wright said, “I have not heard one council person talk about the true reason for the need – rising pension costs."

Official argument

The following official argument was submitted in opposition to Measure G:

“	Whether you believe we need new taxes to pay for more police or you are against new taxes entirely, we hope you will join us and vote no on Measure G. City Hall tries to convince you that new taxes will be spent to make you safer. Actually, there are no guarantees in Measure G that new taxes will be spent on public safety, like more police officers. Please read the whole tax proposal in this pamphlet. You will see that City Hall can spend the new taxes on virtually anything. In the fine print, City Hall admits that “Measure G would not limit the use of the tax revenue.” As a “general tax” and not a “special tax”, the “City may use funds from the tax for any . . . purpose.” Voters cannot bind City Hall to any specific use of Measure G new taxes. The only way voters can guarantee that new taxes would be spent on making us safer is if the City Council had proposed a special tax. Special taxes legally can be limited to specific purposes like more police officers. Instead, City Hall chose a general tax that can be spent on any government purpose City Hall wants, including exploding retirement pension costs for city employees that retire at ages 50 and 55. Pension costs alone are projected to triple from $7.33 million last year to over $21 million in 2020 without hiring one single new police officer! According to Modesto’s own financial report, pension accounts are underfunded by $209,650,130 (2014 CAFR, page 67). Until City Hall gets current spending under control, all we can do is vote no to send them a clear message. Instead, let’s work together on how we can make our neighborhoods safer without bankrupting us. Vote NO on this blank check.	”
—Joan A. Rutschow, Tim Fisher, Dave Thomas, Theodore F. Mills and Janice E. Keating

Editorials

• The Modesto Bee endorsed a "no" vote on Measure G, saying the city needed a revenue source that the whole city could support.

Background

Voters narrowly rejected a 1 percent sales tax measure, Measure X, in November 2013.

In January 2015, city officials reported that the city's required pension payments to CalPERS had increased, amounting to an additional $44 million over the following 8 years.

Path to the ballot

On June 23, 2015, the city council voted 5-2 to put this sales tax before voters at the election in November 2015. The city council needed approval from five of its seven members to approve the measure. One less vote in favor would have defeated the proposal. Dave Cogdill was the swing vote, according to the Modesto Bee.

Lawsuit

In early August 2015, the Stanislaus Taxpayers Association sued Modesto over the ballot question and impartial analysis of Measure G. The group argued that the wording did not emphasize enough that the tax was a general sales tax and did not contain any requirement that the revenue from Measure G be used for the Safer Neighborhoods Initiative or police protection of any kind. The association argued that the language used was misleading and could make voters believe that tax revenue would be earmarked specifically for police protection services. Stanislaus Superior Court Judge Timothy W. Salter ruled on August 21, 2015, that altering the ballot language would significantly impede the county's administration of the election and that the plaintiffs failed to show clear proof that the ballot language was false or misleading.

Related measures

d City of Modesto Sales Tax, Measure X (November 2013)
a Stanislaus County Sales Tax for Libraries, Measure T (June 2012)

Recent news

The link below is to the most recent stories in a Google news search for the terms Modesto Sales Tax Increase Measure G. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.

City of Modesto General Sales Tax Increase, Measure G (November 2015) - Google News

See also

• Sales tax in California
• Local sales tax on the ballot
• City tax on the ballot
• Stanislaus County, California ballot measures
• November 3, 2015 ballot measures in California

External links

Suggest a link

• Stanislaus County Elections Office website