League of Women Voters of California Education Fund
	Los Angeles County, CA November 8, 2011 Election
	Measure SouthPasadena-UT Utility User's Tax Extension and Reduction City of South Pasadena Ordinance - Majority Approval Required Pass: 2,463 / 53.93% Yes votes ...... 2,104 / 46.07% No votes See Also: Index of all Measures

Arguments For Measure SouthPasadena-UT

Arguments Against Measure SouthPasadena-UT

SOUTH PASADENA IS SECURING ITS FUTURE --and its continued independence and self-reliance. Despite (I) mushrooming federal and state budget deficits and increasing financial pressures on municipalities and (II) a continued decline in sales ta x revenues accompanied by a leveling out in property tax revenues, the voter-approved 8% utility tax has allowed our city to: Preserve citywide three-minute police, firefighter, and paramedic emergency response times. Sustain an exceptional public library/senior citizen center and make much-needed improvements and access enhancements. Complete street and sidewalk improvements aggregating more than $700,000 per year (honoring a nonbinding 2007 community vote that 65% of the 3% utility tax increase be expended on infrastructure). South Pasadena is also securing its future by: Addressing critical deferred maintenance issues in city-owned reservoirs and water and sewer systems -- and repaying CRA borrowing from its Water Fund. Engaging a respected local developer to revive the downtown revitalization project. And, South Pasadena is se curing its future by long-range financial planning and budgeting made in the context of a lengthy and painful economic downturn. Teaming with its citizens' Finance Committee a nd responding to a recent community-wide survey, city leadership has placed Measure UT on the ballot to: Provide city residents with relief in the form of a ½% reduction ($225,000/year) in the existing utility tax rate and continued exemption for low income residents. Save costs of multiple elections by consolidating two utility taxes into one and by extending the election cycle. Assure the city continuation of a consistent locally generated revenue stream (now almost $4 million annually, representing nearly 17% of our General Fund budget) to preserve the quality of life we all enjoy. Join us on November 8 in voting YES on Measure UT -- TO SECURE SOUTH PASADENA'S FUTURE. TED R. SHAW Past Mayor CARRIE ADRIAN Chair, Finance Committee KIM HUGHES Chair, Natural Resources and Environmental Commission and Member, Water Council ROBERT WEAVER Past President, SPUSD Board of Education JEFFREY BURKE Board Member, South Pasadena Chamber of Commerce Rebuttal to Arguments For Proponents of the UUT desire the City to remain independent and self-reliant with your money. Private sector citizens are suffering from continuing economic decline now and in the short-term future, is the same true of public sector employees? Do you have an employer paid defined benefit retirement and health benefit plan? Probably not. Supporters of the utility tax point to a survey which apparently concluded citizen support increasing the tax for an unknown amount to support unknown costs for ten years. Do citizens realize that survey results often depend on how the questions are written? Many citizens agree deferred maintenance requires repair. Should we also continue a tax to fund public retirement and benefits substantially in excess of the private sector? Public safety costs and benefits will continue to increase. The State mandated rate of return on retirement investments is not adjusted yearly and lags current rates of return, requiring increasing future City contributions. Would citizens substitute the current public safety services if comparable services could be obtained at substantially reduced costs? The 2007 agreement to spend 65% of the 3% increased utility tax for infrastructure tax is NON-BINDING. There can be no guarantee that events in ten years will allow ANY infrastructure spending from the utility tax. Council has the legal authority NOT TO SPEND any utility tax on infrastructure. If voters want tax relief, VOTE NO for a MINIMUM tax saving of $3.8 MILLION A YEAR, not the $225,000 proposed rate reduction. ROBERT O. COOK Past President, South Pasadena Taxpayers Assn. ANDREW E. KRINOCK C.P.A., Inactive MICHAEL B. MONTGOMERY Former Mayor JOHN R. SILVERTHORN Businessman DAVID L. MARGRAVE Commissioner/Businessman

The ballot measure for the 7.5 percent Utility Tax should be defeated for the following reasons: The ten year period enables future Council members access to revenue that could delay decisions to reduce expenditures for the City, including pension and benefit costs which are substantially in excess of similar costs in the private sector. The ten year period also restricts voters to cast a timely vote on the necessity of the tax. The original intent of the ta x was primarily to fund deferred infrastructure costs due to years of neglect, primarily to fund the freeway fight and other priorities. Committee members previously suggested that all taxes be used for infrastructure repairs. This suggestion was rejected due to a requirement for a two-thirds vote, considered unlikely to pass. Voters are likely to approve a specific designated tax for three years than an unspecified tax for ten years. Originally utilities were used as the basis of the tax because such costs were relatively predictable. Utility costs are no longer predictable as evidenced by increasing costs, primarily water and electric and other utilities. Utility costs will continue to rise, it is impossible to predict costs over a ten year period. Any tax should be predictable. The tax increases on utilities over a ten year period is not predictable, allowing windfall revenue for future Councils. By law, the Council cannot guarantee the amount used for infrastructure repair. WE HAVE A SPENDING PROBLEM, NOT A TAX PROBLEM. Future Councils should focus on REDUCING EXPENDITURES to bring PENSIONS AND BENEFITS in line with the private sector. The private sector is growing INCREASINGLY ALARMED paying for runaway public sector costs. ROBERT O. COOK Former President, South Pasadena Taxpayers Assn. ANDREW E. KRINOCK C.P.A., (Inactive) JOHN SILVERTHORN Businessman MICHAEL B. MONTGOMERY Former Mayor DAVID L. MARGRAVE Commissioner Rebuttal to Arguments Against SOUTH PASA DENA IS SECURING ITS FUTURE -- by asking voters to confirm views expressed in recent community surveys that they support a (I) single consolidated utility tax, (II) lower overall tax rate, and (III) ten-year tax extension. SOUTH PASADENA IS ALSO SECURING ITS FUTURE -- as it has done for more than two decades. When other cities agreed to unsustainable levels of retirement benefits, we held the line against public union demands. Now, neighboring communities like San Marino are saddled with unaffordable benefit structures 50% greater than our own. AND , SOUTH PASADENA IS SECURING ITS FUTURE -- with state leadership attempting to balance California's budget on backs of cash-strapped municipalities, we have created a locally generated revenue source which is 100% beyond the reach of Sacramento politicians. SOUTH PASADENA IS SECURING ITS FUTURE by facing the facts: Public safety 3-minute response times can only be guaranteed by retaining locally controlled departments (while representing more than 50% of our general fund budget, police and fire compensation is approximately 15% below the average of a dozen neighboring cities). Public safety re presents more than 50% of the general fund budget, and current service levels are unsustainable without utility tax revenues. With the utility tax, infrastructure expenditures have increased more than 400% in the past three years. Voters concerned about City Council spending should elect candidates who are t rustworthy. Give them the resources to do t he publ ic's business -- and hold them accountable if they prove unworthy at biennial council elections. On November 8, vo te YES on Measure UT-- to secure SOUTH PASADENA'S FUTURE. TED R. SHAW Past Mayor CARRIE ADRIAN Chair, Finance Committee ROBERT WEAVER Past President, SPUSD Board of Education JEFFREY BURKE Board Member, South Pasadena Chamber of Commerce KIM HUGHES Chair, Natural Resources and Environmental Commission Water Council