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HomeMy WebLinkAboutMINUTES - 11241992 - H.10 H. 10 THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Order on November 24, 1992 by the following vote: AYES: Supervisors Powers, Schroder, Torlakson and McPeak NOES: None ABSENT: Supervisor Fanden ABSTAIN: None SUBJECT: Proposal of Local 1 to impose a utility users tax. Henry L. Clarke, Local 1, County Employees Association, advised that the Association' s Board of Directors voted to direct him to request to the Board of Supervisors to exercise its power to raise funds for public services, through the imposition of a utility tax in the unincorporated areas. He then discussed possible consequences of such a tax, including possible incorporation of large industries into city limits,. Mr. Clarke suggested that the recent election returns on Measure B (approximately 650 of the vote) demonstrates clearly that a great majority of the people of this County want to help provide County services and are willing to pay taxes for them. Mr. Clarke further suggested that in coming years the State will be taking more and more property taxes and funds away from the County and more and more will be forcing Counties to take action in order to raise funds, and that the utility tax is one last measure available to the Board of Supervisors. He suggested that the Board might even consider putting a four-year moratorium on the tax as was put on the proposed Measure B. Mr. Clarke suggested that if the Board were not prepared to deal with this proposal today, that it set up a citizens committee in the unincorporated area in order to get a report back to this Board no later than March or April of 1993 as to its impact on low income people in the areas as well as other facets of the tax that the Board may wish staff, as well as the committee, to review. Jim Hicks, representing AFSCME, Local 2700, advised that AFSCME also supports the utility tax. As Chairman of the Labor Coalition, he announced that the Coalition had also presented this matter to the County for a county-wide utility tax to no avail, and it was just recently changed to what Local 1 is requesting. Dorothy Sakazaki, 737 Central Avenue, Martinez, representing the Mt. View Sanitary District, opposed the proposed tax because of the effect on the low income people in the unincorporated area. Rick Aubry, 2500 Bosser, representing the Contractors Alliance, and Chair of the Safety Net Coalition, advised that he favored the tax because of the results of Measure B where 65 per cent of the voters indicated that people are willing to pay an increase in taxes. Mr. Aubry commented that a utility tax is not a good tax, but rather is a regressive and unfair tax, and that nobody is arguing that one point, but it is the only thing available to the Board. He urged that some sort of committee be put together to look at these matters and to come back with a report on how to do this. He urged that the Council of Chairs be charged with forming such a committee to make recommendations to the Board. The Chair noted that Charles Lino, 951 Lemon Street, Martinez, had left a card noting that he is against imposing a utility tax. Ray Ulmer, 1357 Peach Street, Martinez, stated that he could see where more funds are needed to serve under-privileged people; however, he felt this would be a very regressive tax and would impact many people who can not afford it. He felt that even though the Board has the power to impose this tax, it should be left up to the people to decide if they want a utility tax. John Wolfe, representing the Contra Costa Taxpayers Association, observed that individuals cannot deduct any excise taxes on their personal income tax, that property taxes are one of the few taxes that are still allowed as a deduction. He commented that the perception of utility user tax is unfair and unpopular and regressive. He suggested that if the Board finds it necessary to raise more taxes, those that are targeted to specific purposes such as fire and police protection are the ones that should be looked at. He suggested that those are the type of taxes that received more than 50 per cent of the vote. He urged the Board to consider other options and consider the utility tax as a last resort. Keith Howard, representing Shell Oil Company, asked for opportunity for public input before imposing any utility tax. He suggested that from a conceptual point of view, one of the problems with the public entities and their lack of financing is the whole downturn of the economy and the fact that the private sector is not pumping the revenues into the public sector that they have in the past. He suggested that from a conceptual point of view the private sector is in as much trouble as the public sector and coming up with new ways to tax the private sector is not necessarily the answer and can be counter productive. The Board members discussed the proposal at length. IT IS BY THE BOARD ORDERED that the matter is REFERRED to the Finance Committee to develop the definition of a process, and the definition of community groups that would meet and discuss the information, including reviewing any proposed cuts in general funds for services in unincorporated areas as a result of resident agreeing upon increased taxes for themselves. The Chair proposed a task force be convened by the Contra Costa Council and the Central Labor Council. It was determined that each Supervisor would identify a leader from each of the unincor- porated areas in their Districts to be a part of the task force. 1 hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors.on the date shown. ATTESTED: ,he- -�.� '..SLS /9 PHIL BATCHELOR,Clerk of the Board of Supervisors and County Administrator By -- - r. t .Deputy cc: County Administrator County Counsel