September 10, 2008

Committee for Measure O launched

One quarter cent sales tax increase if passed in November

By Jeanne C. Carbone
Editor

A plan to aid Campbell’s budget deficit was addressed at the Mea-sure O kick-off held at Hobee’s in the Pruneyard on Aug. 27.

Interested city officials and residents attended the Measure O kick-off held on Aug. 27. Photo by Jeanne C. Carbone

“We have made a projection of a $2 million deficit [in fiscal year 2009],” said Councilman and Measure O Chair Dan Furtado. “If Measure O was passed, we would close our structural deficit. If it doesn’t pass, we’d have to make more cuts.”

Campbell has already made $4 million in cuts and adjustments over the past five years. The city reduced police overtime, training and froze 18 permanent positions and additional temporary positions. They eliminated the annual sidewalk maintenance program, funding for Sunday library hours, youth and drug violence prevention, community emergency preparedness, parole and probation services as well as the replacement of five vehicles.
“We’ve cut 10.75 positions already,” said Campbell Police Department Capt. Greg Finch who is also on the Measure O Committee. “If this doesn’t pass, there will be more service cuts.”

The city has managed to balance the budget for the past two years without the use of reserves and the budget cuts already made. That has changed due to the rising costs of city services expecting to be greater than the existing revenue. Also cited are the weak economy, close to a $1 million increase in the cost of contracted fire services, increases in health care and other staffing costs, higher energy prices and other inflationary increases.

The State also has taken $13 million of money over the past 15 years; $1.3 million was lost to the State this year. And with the State facing a $15-17 million dollar deficit, there may be further reductions at the city level.

Councilmember Dan Furtado and Al Louder are the chair and co-chair respectively for the Committee for Campbell/Yes on Measure O. Photo by Jeanne C. Carbone

The city projects a $2 million deficit beginning in the 2009 fiscal year. At the present time the city receives only one cent of the current 8 ¼ cents of sales tax. An additional ¼ cent of each taxable dollar would be received if Measure O was passed. An example is a $50 dress would cost an extra 13 cents with the additional tax proposed. Basic food items and medicine are exempt from this tax.

City Manager Daniel Rich reports that the city’s recent community outreach effort provided information that the #1 priority was maintaining current levels of public safety. Increasing neighborhood crime prevention and repairing and maintaining city streets ranked second and third as the people’s top concerns. As a result of this information, the City Council unanimously voted to introduce an ordinance putting Measure O before the voters in the November general election ballot.

“We asked the community for input on the best way to raise revenue,” said Measure O Committee Co-Chair Al Louder. “The good thing about a sales tax increase is that the city keeps all the money to use for services for Campbell residents. The State can’t touch it.”

For more information or to become involved in the Committee for Campbell/Yes on Measure O, visit www.committeeforcampbell.com.