FOREfront--Working for the People of Roseville

Volume 3, Issue 4 & Issue 5   July--September 2000

ECONOMIST SUPPORTS UTILITY USER’S TAX APPEAL  *

 

I AM AN ECONOMIST WHO HAS BEEN DOING FORECASTING OF ECONOMIC VARIABLES FOR THE LAST 7 YEARS AND I SUPPORT THE REPEAL OF THE UTILITY USER’S TAX (MEASURE S).

 

I HAVE INFORMATION AND AN UNDERSTANDING OF THE ROSEVILLE ECONOMY AND I AM OUTRAGED AT THE NONSENSE THE CITY HAS BEEN USING FOR THIE ARGUMENT AGAINST THE UTILITY USER’S TAX (MEASURE S).

 

ROSEVILLE IS A VERY RICH AND PROSPEROUS CITY AND THE CITY COUNCIL’S CRIES OF POVERTY AND CUTS OF PROGRAMS ARE RIDICULOUS.  THE FACTS BELOW ARE ABOUT ROSEVILLE FROM 1990 TO 1999:

 

·        POPULATION GREW 66.1%

·        HOUSING UNITS INCREASED 74.8%

·        LABOR FORCE ROSE 31.0%

·        EMPLOYMENT GREW 32.0%

·        TAXABLE SALES INCREASED 124.6%

 

THE CENTER FOR CONTINUING STUDY OF THE CALIFORNIA ECONOMY, W WELL-KNOWN CONSULTING FIRM THAT FOCUSES ON THE CALIFORNIA ECONOMY, RECENTLY RELEASED A REPORT.  THEIR POINTS ABOUT PLACER COUNTY INCLUDE:

 

·        TOTAL TAXABLE SALES ARE FORECASTED TO GROW 67.1% FROM 1990 TO 2010.

·        PERSONAL INCOME IS FORECASTED TO INCREASE 65.2% FROM 1990 TO 2010.

·        PER CAPITA INCOME IS FORECASTED TO GROW 67.9% FROM 1990 TO 2010.

·        RETAIL TAXABLE SALES GREW 66.4% FROM 1990 TO 2010 AND ARE FORECASED TO INCREASE 82.6% FROM 1999 TO 2010.

 

THE EXCEPTIONAL GROWTH IN PLACER COUNTY IS DIRECTLY RELATED TO THE FAST PACE GROWTH IN ROSEVILLE.  CLEARLY, THE CRIES OF POVERTY FROM THE CITY COUNCIL ARE UNFOUNDED.

 

IF THE CITY WAS WILLING TO SHOW LINE ITEM ESTIMATES OF THEIR BUDGET, WE WOULD GET A CLEAR OPPORTUNITY TO HELP THEM CUT THE FAT FROM THEIR BUDGET.  INSTEAD THEY TARGET PROGRAMS THAT MAY ONLY HAVE SMALL DOLLARS TO CUT.

 

*  Letter from Economist Catherine M. Sullivan of Roseville, submitted to the news media, is printed with her permission.

 

 

“ Politicians have never seen a tax they did not like.”  Anonymous

 

 

POLICE, FIRE AND OTHER SERVICES BECOME CITY’S SCAPE GOAT

 

The city is congratulated on its well rehearsed and well orchestrated CON job of cuts in police, fire and other services provided for by the General Fund.  The August 30th meeting was unnecessary.  However, the council’s sole purpose was to sway public opinion against Measure “S,” to repeal the Utility User’s Tax, and to favor the city’s charter amendment to continue the Utility User’s Tax via Measure “Q.”

 

The meeting focused ONLY on two events:  Cuts in the present budget, FY 2000-2001, and cuts in a non-existent FY 2001-2002 budget.  What was wrong with what they did?  They assumed all the income would be spent in both budgets, took $7 million that the Utility User’s Tax would provide and presto, both budgets were short.  That only confused, agitated and frightened people needlessly that police, fire and other services would be cut.  They hyped the meeting to make it seem like the world of Roseville was coming to an end.  NOT TRUE!  To staff’s credit, they pointed out that basic, essential services would remain intact.

 

Why was it wrong to hold the meeting?  The city staff, advisors to the city council, are well aware of the true financial condition of the city and should have advised against the meeting.  The following facts point out much of what the staff knows and should have told the council:

 

THE TREND FOR INCOME IS GOING UP FASTER THAN EXPENSES:

·        FY 1997-1998 actual income surplus was $6.1 million.  UTT--$5.88 million.

·        FY 1998-1999 surplus was $8.7 million.  UTT--$6.27 million.

·        FY 1999-2000 surplus projected to be $10 million.  UTT--$7.0 million.

·        FY 2000-2001(this year) surplus should be $15 million.  UTT--$7.5 million.

·        FY 2001-2002(next year) surplus should be $20 million.  UTT--$8.0 million.

 

TRANSFERS AND INTERFUND LOANS OUT OF THE GENERAL FUND:

·        FY 1997-1998 $2.9 million to building funds.

·        FY 1998-1999 $6 million to Civic Center; $.6 million to Maidu Indian Center.

·        FY 1999-2000 $6 million to city-wide park fund; $1.5 million to Redevelopment Agency; $1 million to Civic Center Fund.

 

INTERFUND LOANS OBLIGATED TO THE GENERAL FUND:  $16,239,055.

 

CITY DEBT IN PUBLIC FACILITIES CERTIFICATES OF PARTICIPATION (COPs): $21,200,000.  NOTE:  COPs are like bonds, but can be issued without a vote of the taxpayer.

 

BIG GENERAL FUND OUTLAY FOR TOP AND MIDDLE MANAGEMENT PAY RAISES OF UP TO 45%.

 

Is it obvious whey the city wants you to pay the Utility User’s Tax?  They don’t want you to know the mess they are creating by transferring money out of the general fund while ignoring the large debt.  They are looking for a way out and are afraid to ask you to support a general tax.  They are back dooring the taxpayer through the utility tax and in-lieu franchise fee by using police, fire and other services as scape goats.

 

The city council needs to face up to the problems they are creating.

 

IN-LIEU FRANCHISE FEE COURT CASE

 

The Howard Jarvis Taxpayers Association’s yearlong court battle to cause the city to stop collecting the fee is now in the Sacramento Court of Appeals.  Roseville has appealed the Placer County Superior Court’s final ruling in the case.  That ruling is that the city stop collecting the 4% In-Lieu Franchise Fee charged on your water, sewer and trash bills as of July 1, 2000, since the fee exceeds the cost of providing those services under Proposition 218.

 

Roseville collects the fee while litigating the court’s ruling.  The city collects about $100,000 a month and by paying out about $15,000 per month to outside attorneys to argue the case, the city nets about $85,000.  In the long run, it may cost the city more than they collect.  If the Court of Appeals upholds the Superior Court’s ruling that the 4% charged is illegal, then the city probably would have to pay back the amount collected from July 1, 2000, be out about $100,000 paid to their attorneys and to pay the Jarvis Group’s attorney costs.

 

By their own hooks, the city does not need the money for essential services.  Is the city being a pound wise and penny foolish?

 

WATER METER INSTALLATION PROGRAM

 

KEY DATES:

    November (4th Tuesday), the Roseville Public Utilities Commission will prepare their recommendations to the city council.  Attend and give your input.  Also, watch for announcements of public hearings and attend those.

 

   January the council will formally approve a program.

 

   March 2001.  Monthly payments are likely to begin.

 

KEY ISSUES:

 

    When:  Installation will likely be by RCONA (Roseville Coalition of Neighborhood Association) geographical areas over the next ten years.

 

    Cost:  One of two options appear likely.  One option calls for customers without meters to pay full cost over ten-years via a $7.20 monthly charge.  A $716 lump-sum payment is optional.  About half of Roseville residents (homes built prior to 1992) will be affected.

              Option two is a cost sharing plan.  Those customers with meters already installed (homes built after 1992) would pay $1.04 monthly for ten years. Business customers would also pay this monthly amount based on a ¾ “ meter, with charges up to $79.94 for a 10” meter.  Homes built between 1988-92 (have partial installation) would pay $2.17 monthly.  Homes built before 1988 would be charged $4.42.

 

KEY THOUGHTS:  How will this affect your budget with the other fees and taxes you pay if you are on a fixed income or a pay check away from paying the rent, the mortgage or going into bankruptcy?

 

“Just when you get to where you can make ends meet, someone moves the ends.”  Author Unknown.

 

ATTACK ON YOUR WALLET

Hold onto your wallet—taxes, fees and phone rates may come your way.

·        Placer Legacy ¼% Sales Tax increase proposal

·        Mosquito Abatement District Tax

·        Roseville Utility User’s Tax

·        Roseville 4% In-Lieu Franchise Fee

·        Proposition 39 school bond vote change

·        Roseville Telephone rate increase

Placer Legacy is a program to acquire open lands in Placer County.  The county says it des not have money for the program, but touts an $8.5 million surplus this year.  The program is a noble effort, but the tax money would be placed in the county’s general fund and could be used for any purpose.  Another tax with no justification. . .

Mosquito abatement will add $12.54 a year to your property tax.  It is worthwhile.

Roseville Utility User’s Tax costs you about $125 to $150 a year if you have a typical 3 bedroom single home.  The city does not need the money.  It had a $6.1 million dollar surplus in FT 1997-98 and $8.7 million surplus in FY 1997-98.  We estimate FY 1999-00 will have a $10 million surplus.  This current FY 2000-01 we estimate a $15 million surplus because of increases in property taxes and sales taxes due to the Galleria, the huge increase in housing and many new large commercial and retail establishments.  The surplus probably will be higher.

In-Lieu Franchise fee is about $50 a year.  It is on your electric, water, sewer and trash bills.

Proposition 39 would allow school bonds to pass with a 55% vote rather than the present 2/3 vote.  Proposition supporters do not mention doing away with the 2/3 vote, the safeguard against bloated or unjustified bond measures.

Roseville Telephone rates could go up 38.1%.  Pacific Bell gives RTC $11.5 million to provide toll-free service to Sacramento County.  RTC has asked the California Public Utility Commission to allow RTC to charge its customers to cover the cost if PAC Bell does not pay for the service.

 

FORE SCHOLARSHIP PROGRAM

FORE was formed to provide education on issues of public welfare and related areas which will benefit the public.  It has been FORE’s experience that people educated in political science or governmental studies have a better grasp of how government works and the role of the public in government than the average citizen  Because of that experience, FORE seeks to assist students pursing a degree in political science or governmental studies through  scholarship program.

FORE offers two $200 a year scholarships to students from Roseville who qualify.  Information may be obtained from local high school scholarship offices, the internet at www.friendsofroseville.org or by writing to FORE, 305 Hemphill Way, Roseville, CA  95678.

 

RAILROAD NOISE AND POLLUTION—GOOD NEWS

Governor Gray Davis signed Senate Bill 1491 introduced by Senator Tim Leslie.  Roseville has agreed to be a test city under SB 1491 for the automated train horn located at railroad crossings.  The automated horn system will reduce noise at the Yosemite and Tahoe Streets crossings.  We look forward to the installation of these new horns.

While there continues to be a need for additional improvements, the City and UP have been negotiating changes in yard procedures that will partially address residents’ concerns about noise and pollution.  Included among the changes are:  elimination of whistle blowing at two of the private crossings in the yard; installation of signal lights and gates at Pitt Road; eliminating nonessential use of train horns; operational changes at the locomotive repair shop to reduce diesel emissions; and, a railroad contact number for residents with on-going issues.

A special thanks to Judith Donato and Frank Weinstein for their thorough research, perseverance against all odds, and attendance at many meetings with the City, Union Pacific, State and Federal officials to make life better for Roseville residents.  If you have suggestions, they welcome your call at 783-3570.

FORE still is looking for ways to convince the State and local communities on the merits of high peed rail.  All major highways, e.g. I-80, 99 and I-5 are bumper to bumper for many hours.

 

DRIVE-BY MAIL BOXES

Mr. Paul Leahy, Roseville’s Postmaster, has convinced the owners of the property, at which the Sierra Gardens Bulk Mail Center is located to change a parking lot lane to one-way traffic.  That will allow regular mail boxes to be placed so that drivers can access them from the driver’s side.  As soon as the traffic pattern is changed, the boxes will be installed on a concrete slab.

The location for drive-by mail boxes on Grant Street, adjacent to the Vernon Street Post Office, is being considered as part of the Vernon Street redevelopment project.  The Postal Service is currently looking for a site in Granite Bay for a new Post Office.  This site will replace the existing cover crowded Granite Bay Post Office.  That would give people in East Roseville a more convenient post office.  FORE is pleased to have worked with the post office and Roseville these past two years on a very important public service project.

 

HUMONGOUS CITY STAFF PAY RAISES

How big was your pay raise this year, even if you got one?  Maybe you should be working for Roseville in the middle or top management position.  All those positions got hefty raises.  How would you like to get the $37,209 increase the Director of Housing and Redevelopment or any of the other raises that ranged from $14,548 to $36,729?  Some raises are greater than what many people earn in a year.

The city’s rational for the unprecended raises was that the city needs to stay competitive to retain or attract qualified personnel.  The city expects a number of managers to retire shortly and says they want to be competitive in the job market.

If that is the case, the city can offer competitive salaries upon hiring a new person.  There is a pay range for each position and the city has been known to hire above the entry level.  Also retirement pay is based on the highest pay received.  Are the humongous pay raises another form of the “Golden Parachute” or “Golden Handshake.”

Those large pay raises don’t make sense in light of the city’s cry of poverty and the need for the Utility User’s Tax to supplement the general fund.  Most of the pay raises will come out of the general fund where the council has “shadow wrestled” with bogus cuts in the budget.

A question.  How do rank and file city employees, who have gotten minimal raises, feel about the large raises which in some cases exceed their yearly salary?

Copyright 2000 FORE, Roseville, CA

WORKING FOR THE PEOPLE OF ROSEVILLE

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