Dear Editor, Another tax! You’ve got to be kidding! Well, it
seems our fair city is facing a crisis of sorts
– too much outflow and not enough inflow and the question is how
do we solve the problem?
Dear Editor,
Another tax! You’ve got to be kidding! Well, it seems our fair city is facing a crisis of sorts – too much outflow and not enough inflow and the question is how do we solve the problem?
Mayor Kennedy has initiated a series of Community Conversations so that the people of Morgan Hill can give their ideas on how we can stem the leakage and shore up our reserves. I’m hopeful that he and other members of the City Council will truly listen to new ideas and come up with a solution that is best for our city.
Assuming for the moment that we can’t bridge the current $1.5M budget shortfall by many more budget cuts (especially when the deficit is projected to get bigger), the question then becomes how do we raise city income? Much of the shortfall is due to the higher than anticipated expenditures to operate and maintain the Community & Cultural Center, Playhouse and Aquatics Center and this shortfall will only get worse.
Whether or not you agree with all these building programs is beside the point. They are built, they are being built and they will be built. The Indoor Recreational Center is under construction and plans are being formulated for a new Outdoor Recreation Center.
Thus, in a few years, our city will have a Community & Cultural Center, Playhouse, Aquatics Center, Indoor Recreation Center and an Outdoor Recreation Center (plus a new Library).
These are all wonderful additions to the quality of life in Morgan Hill and, in fact, were advocated by groups of citizens in various meetings, surveys, etc. Let us remember that these facilities add to the desirability of our city and increase our property values.
The question is, how will we pay for the ongoing operation and maintenance of all these facilities?
One way is to continue raising rental fees, daily/yearly pass fees and food & drink charges. Unfortunately, the higher you raise fees the fewer people can afford to come and you end up with an elitist group of middle/upper income folks who are the main users of these facilities.
Is that fair? Without a yearly pass, how often can a mother afford to take two kids to the Aquatics Center for a day of summer swimming at a cost of $35 or so (remember – no outside food or drinks allowed). Surely, there must be other ways to fund O&M (operation and maintenance) costs and have reasonable (or even reduced) user fees from current levels.
With respect to a sales tax increase, there is a danger that there are currently too many other sales tax increase proposals floating around Santa Clara County and the VTA.
What’s the chance of all these sales tax increase proposals passing the scrutiny of the voters? In addition, although no tax is fair to everyone a sales tax is most burdensome on lower income groups. Higher income families can more easily afford sales tax increases but for lower income groups it represents a larger portion of their total wages.
A parcel tax is fairer in that it doesn’t directly affect renters or lower income groups; only property owners would be affected (and, I would hope, ALL property owners – including commercial and industrial property).
When a property is sold the owner receives a large profit, due in no small measure, to its location in the desirable community of Morgan Hill. It seems only right that a property owner help support the very community facilities that helped increase the value of the property in the first place.
Revenue could also be raised by special “Assessment Districts” (i.e., lighting districts or fire protection districts). Again, these are probably less burdensome on lower income groups. Other income groups in our community could more easily afford them.
In summary, if we do impose some kind of tax upon ourselves then at least some portion of it should be specifically designated for the ongoing Operation & Maintenance of the Community and Recreational facilities and not simply dumped into the General Fund.
We would need to pass such a tax by a two-third majority in order to ensure a steady source of funds and lower user costs for our residents. It would also allow the General Fund to be used for other purposes (police, fire, roads, etc.).
I urge everyone to attend at least one of the Community Conversation meetings and share your comments and ideas. There is strength in numbers and the more people participate, the better will be the final result.
Let our community come together to solve this problem and make Morgan Hill an even more desirable place in which to live, work and play. What’s your idea? Now is the time for your voice to be heard.
Robert Benich, Vice Chair Planning Commission
