League of Women Voters of California Education Fund
	Contra Costa County, CA June 8, 2010 Election
	Measure G Special Tax for Police Protection Services Kensington Police Protection and Community Services District Special Tax - 2/3 Approval Required Pass: 1478 / 68.58% Yes votes ...... 677 / 31.42% No votes See Also: Index of all Measures

Arguments For Measure G

Arguments Against Measure G

A supplemental police tax has been part of the Kensington fiscal package since the early 1980s. At that time it was recognized that Prop 13 limits threatened the ability of Kensington to maintain an independent police department with around-the-clock police coverage. Sixteen years ago Kensington residents voted to set the Kensington supplemental police tax at $300 per household per year or $680 thousand for Kensington as a whole. However, inflation has eroded the purchasing power of that income so that over $1 million is now the equivalent of the original $680 thousand supplement. This shortfall, combined with flat property tax revenues, has given rise to a projected budget deficit of $364 thousand in fiscal 2010. To fund current deficits, the District is now using up previously-generated reserves. We cannot do so forever. Long term budgets are notoriously difficult to predict. Therefore, the measure has a provision that if the fiscal picture is better than anticipated, the supplemental tax of "up to" $200 per household (as adjusted by inflation) in any given year may be less than the full amount. Before putting this measure on the ballot, the District Board studied other deficit-bridging options including the outsourcing of the police function. An independent consultant determined that the cost of outsourcing was close to, and in some cases higher than, retaining our own locally-controlled Kensington Police Department. Absent an increase in the supplement, the only option that bridges the deficit would be to shrink the police department and eliminate patrol shifts. There are no easy answers. Most unincorporated communities in the Bay Area rely on distant and expensive County Sheriff departments to provide law enforcement protection. Let's continue to support our locally-controlled Kensington Police Department. Please vote for this supplemental measure. Thank you. Rebuttal to Arguments For The proponents of this measure left out some important facts. 1. The proposed tax has no sunset date and will increase by CPI annually. 2. The KPPCSD property tax base increased 300% in the last 16 years from $396,000 to $1.275 million and will grow as many pre-Proposition 13 assessed properties are sold and home values rise. More property taxes have been collected than spent annually, resulting in a reserve fund of $2 million, sufficient to cover a full year of operating costs for the Police Department. 3. KPPCSD has not run a deficit in any year according to the annual Independent Auditor's Report. 4. The District made no cuts in the 2010 budget. However the most critical requirement for maintaining an independent police department is exercising cost controls and spending within given resources. 5. Kensington police officers' total compensation package is 18% more than similar departments. The benefit rich compensation package cannot be sustained in this small community. Examples of some costly and unsustainable expenditures include: a. Lifetime health insurance for retirees at 100% District cost of $114,000; b. Base salary increases of 28% over the past 5 years increasing the cost by $201,000; c. District paying $83,900 for the 9% Employee Share (as well as the 29% Employer share) of CalPERS pension. 6. The District voted against consolidation with the Fire District, which would have provided additional tax revenues to support all public safety services in Kensington without new taxes. Arguments In Favor Submitted By Chuck Toombs, President and Director, Kensington Police Protection and Community Services District Bruce V. Morrow, President, Kensington Community Council Bill Wright, Board Director, Kensington Police Protection and Community Services District Ray Barraza Former Chair, Kensington Municipal Advisory Council Gretchen Gillfillan, Past Vice President and Secretary, Kensington Hilltop School PTA

Vote NO on this tax measure that will raise the total tax assessment for police services up to $500 this year, increasing by CPI annually in perpetuity. Voters, there is an alternative to the supplemental $200 tax assessment. A tax increase of this magnitude would not be needed if the Kensington Police Protection Community Services District (KPPCSD) and the Kensington Fire District (KFD) would merge into one district and combine their currently collected tax revenues of $5.1 million into one budget. Instead of a tax increase now, it can be determined over time if additional tax dollars are required to support the current level of services. Collectively Kensington Taxpayer's paid taxes in the amount of $ 5.1 million for police, park and fire and emergency services in 2009. The total combined operating costs of the districts were $ 4.6 million and the two districts had reserves totaling $ 6.9 million. A portion of the reserves are set aside for future expenses. What this means is that half a million dollars ($500,000) in taxes collected annually and a portion of the reserve funds are available to support both the fire and police services without asking tax payers to write larger checks from their personal bank accounts. The voters of Kensington have been generous over the years and will vote for taxes when they are truly needed. During the economic downturn, we must demand even more efficiency and accountability in the use of limited tax dollars by our elected District officers. The two District Boards need to work together to resolve funding issues before asking tax payers for more funds. Rebuttal to Arguments Against The argument against Measure G ignores two crucial facts. First, the Fire District cannot legally transfer any of its tax revenues or reserves to the Police District. Fire District funds must be expended for fire services, or returned to taxpayers through reduced future assessments. Second, combining the two districts is a lengthy, complicated legal process. The Districts have different capital requirements and operational structures that would require thorough analysis and community input to determine the economic and functional viability of consolidation. At present expenditure levels, the Police District could deplete its accumulated reserves before the process could be completed, with no guarantee that consolidation would be feasible. Moreover, there is no assurance that a single combined district would receive as large an allocation from the County of general property taxes as the two, separate districts now receive. A combined district could have less total revenue than the two existing districts, a result that would compound the problem. We have a funding crisis in the Police District because of 16 years without an increase in the amount of parcel tax revenue coming into the District, while the District's expenses have increased in line with inflation. To preserve the high level of service in our community, we need to increase our assessment. The return to us as Kensington property owners will be many times over in preservation of property values, and the outstanding quality of life we enjoy in this unique community Arguments Against Submitted By Gail Feldman, Former Director, Kensington Police Protection and Community Services District Henry Schiff, Kensington Homeowner Celia Concus, Kensington Homeowner Kevin Blattel, Director, Kensington Property Owners Association Kristine Hafner, Kensington Homeowner

Full Text of Measure G

AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE KENSINGTON POLICE PROTECTION AND COMMUNITY SERVICES DISTRICT ENACTING A SUPPLEMENTAL SPECIAL TAX FOR POLICE PROTECTION WHEREAS, this Board of Directors (the "Board") is the governing Board of the Kensington Police Protection and Community Services District (the "District"); and WHEREAS, the Board has the authority to levy a special tax; and WHEREAS, in 1994, the voters of the District previously approved a special tax (the "Existing Special Tax") in the amount of $300 per year for single family residential parcels, with amounts for properties in other use categories indentified in the ordinance, to provide a source of funding for police protection services; and WHEREAS, in 1994, the Existing Special Tax did not contain a CPI adjustment and has remained fixed at $300 per year for single family residential parcels, with amounts for properties in other use categories indentified in the ordinance, for fifteen years; and WHEREAS, the Board believes that a supplemental special tax is required to provide a stable, financial foundation for operations and capital equipment acquisition for police protection; and WHEREAS, the supplemental special tax shall be designated as the "Supplemental Police Tax" (the "Supplemental Special Tax"); and WHEREAS, the Board deems it necessary and essential to submit the question of the Supplemental Special Tax to qualified voters within the District at a special election to be to be held on June 8, 2010 and consolidated with the Direct Primary Election scheduled on that date; and WHEREAS, pursuant to Government Code Section 50077, the Board has heretofore held a public hearing on the question of the Supplemental Special Tax following notice of such public hearing; and WHEREAS, pursuant to Government Code Sections 50075 et seq and California Constitution Articles XIIIA and XIIIC, the Board may impose the Supplemental Special Tax upon adoption and approval of the Ordinance by the Board and a two-thirds vote of the electorate of the District voting in the election; and WHEREAS, pursuant to the authority of California Government Code Section 53970, et. seq., the District is authorized to levy special taxes by ordinance for the provision of police protection services as described in such ordinance. NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE KENSINGTON POLICE PROTECTION AND COMMUNITY SERVICES DISTRICT, DOES HEREBY ORDAIN AS FOLLOWS: Section 1. Election. A special election has been called and shall be held in the District on the 8th day of June, 2010, for the purpose of submitting to the voters of the District the question of the Supplemental Special Tax to be levied by the District in the amounts and for the purposes hereinafter set forth. Such special election shall be consolidated with the Direct Primary Election scheduled on June 8, 2010. Section 2. Annual Tax. Commencing with the Fiscal Year 2010-2011, an annual Supplemental Special Tax to raise revenue to support police protection services by the Kensington Police Department within the Kensington Police Protection and Community Services District is hereby imposed upon property within the District. Section 3. Purpose. The purpose of this Supplemental Special Tax is to raise revenue only for the purposes of obtaining, providing, operating, maintaining and expanding police protection service, facilities and equipment, for paying the salaries and benefits to police personnel, and for such other necessary police protection services expenses of the District as such services shall be made available throughout the entire District. The proceeds from the Supplemental Special Tax shall be used only for the purposes identified in this Section. Section 4. Special Account. Upon the effective date of this Supplemental Special Tax, the District's General Manager is hereby directed to create a separate account into which all revenue raised by the Supplemental Special Tax shall be placed. The District's General Manager shall file a report with the Board of Directors no later than June 30 of each year, commencing June 30, 2011, and at least once a year thereafter which shall contain both of the following: (i) the amount of funds collected and expended under this Ordinance; and (ii) the status of any project required or authorized to be funded to carry out the purposes set forth in this Ordinance. Section 5. Amount of Tax. For the initial Fiscal Year, July 1, 2010 through June 30, 2011 (the "Base Year"), the Supplemental Special Tax shall be levied upon property in the following amounts, herein called the "Base Year Amount": Class of Improvement or Use Base Year Amount Single Family Residential $200.00 per parcel Multiple Unit Residential 300.00 per parcel Commercial and Institutional 300.00 per parcel Miscellaneous Improved Property 200.00 per parcel Unimproved Property 60.00 per parcel Class of Improvement or Use will be determined annually based on data from the Contra Costa County Assessor. For the Fiscal Year July 1, 2011 through June 30, 2012, the maximum annual amount of the Supplemental Special Tax for each category of property shall be determined by multiplying the Base Year Amount by an inflation factor in an amount not to exceed the increase in the Consumer Price Index as published by the U.S. Department of Labor for the April to April San Francisco-Oakland-San Jose area (the "Consumer Price Index"). In each succeeding year, the maximum amount of the Supplemental Special Tax for each category of property shall be determined by multiplying the preceding fiscal year's maximum special tax by an inflation factor in an amount not to exceed the increase in the Consumer Price Index. Should the Consumer Price Index be negative in any Fiscal Year, the Supplemental Special Tax for each category of property shall remain the same as in the previous Fiscal Year and shall not decrease. The Board shall establish the amount of the Supplemental Special Tax annually by Resolution each fiscal year in amounts not to exceed the maximum amounts specified herein. In no case shall the amount of the Supplemental Special Tax to be levied in any fiscal year exceed the maximum amount authorized herein without an approval of the voters. The Supplemental Special Tax shall be levied in perpetuity, or as long as funds are required for the purposes specified in Section 3 hereof. This Supplemental Special Tax shall be in addition to the Existing Special Tax of $300.00 per single family residential parcel annually, with amounts for properties in other use categories indentified in Ordinance No. 97-01 which had no CPI escalation factor. Section 6. Exemptions. The Supplemental Special Tax shall not be imposed upon a federal or state governmental agency, any local public agency, or any parcel of property which is exempt from ad valorem taxes under any other applicable law. Section 7. Method of Collection. The District hereby directs the Tax Collector of the County of Contra Costa to collect the Supplemental Special Tax authorized herein for the initial Fiscal Year 2010-2011 and for subsequent fiscal years, on the same tax roll at the same time and in the same manner, and subject to the same penalties as the property taxes fixed and collected by the County of Contra Costa (the "County") on behalf of the District. The County may deduct its reasonable costs incurred for such services before remittal to the District. The Supplemental Special Tax, together with all penalties and interest thereon, shall constitute a lien upon each parcel of property upon which it is levied until it has been paid, and said Supplemental Special Tax, together with all penalties and interest thereon, shall, until paid, constitute a personal obligation to the District by the person(s) who own the parcel of property on the date said Supplemental Special Tax is due. Section 8. Unexpended Revenue. Any surplus monies raised by the District from the Supplemental Special Tax may in the discretion of the Board be (i) used in the succeeding year for the purposes stated in this Ordinance; or (ii) used for lowering the succeeding year's levy of the Supplemental Special Tax by the amount of the surplus or a portion thereof. In no event shall such surplus monies be used by the District for any purposes other than those specified in Section 3 hereof. Section 9. Effective Date. The special election to approve the Supplemental Special Tax shall take place on June 8, 2010. The Supplemental Special Tax shall become effective upon passage of this Ordinance by the Board and a two-thirds (2/3) vote of the electorate of the District voting in the election as certified by this Board and the Secretary of the Board. Section 10. Severability. If any section, subsection, subdivision, paragraph, sentence, clause of phrase in this Ordinance, or any part thereof, is held invalid or unconstitutional, such decision shall not affect the validity of the remaining sections or portions of this chapter or part thereof. The Board hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance irrespective of the fact that any one or more sections, subdivisions, paragraphs, sentences, clauses or phrases may be declared invalid or unconstitutional. PASSED AND ADOPTED at the adjourned meeting of the Board of Directors of the Kensington Police Protection and Community Services District held this 11th day of March, 2010 by the following vote: AYES: 4 NOES: 1 ABSENT: 0 ABSTAIN: 0 Chuck Toombs, President Board of Directors Kensington Police Protection and Community Services District ATTEST: Stephanie Fries, District Secretary