Measure C

Pismo again to vote on sales tax raise

The city stands to get $1.1 million annually for infrastructure updates if the half-cent sales tax passes

By Dawn White

When Pismo Beach voters head to the polls next month, they’ll again be asked to decide whether the city should raise its sales tax by a half cent to 7.75 percent.

Income from Measure C would generate $1.1 million annually for the city, which could be used to finance infrastructure improvements such as sidewalks, streets, storm drains, stairs and underground utilities, according to city staff reports. The city has not indicated what specific projects the money would go toward.

Residents narrowly defeated a sales-tax measure in November 2006, when the neighboring cities of Grover Beach, Arroyo Grande and San Luis Obispo passed similar tax increases.

Supporters of Measure C say it comes at a crucial time, because property tax revenues are expected to drop, hurting the city budget.

“We’re going to take a significant cut in our budget in capital improvements,” Councilman Ted Ehring said. “We need to increase our revenue.”

About 70 percent of the revenue would come from visitors; the city depends heavily on tourism. Most funding for the city comes from hotel and sales taxes, according to staff reports.

“The visitors come here and use our streets, sidewalks and trash cans,” Ehring said. “One of the ways they can help keep the community nice is to help pay into it.”

Residents will be able to track how the city spends the new revenue when a report is sent with their water bills twice a year, Mayor Pro Tem Shelly Higginbotham said.

“We’ll be able to show them where their money is going,” she said.

However, residents who oppose the tax say they want a citizen oversight committee and to know exactly how the money would be spent before a measure is passed.

“The city has never told us precisely what they’re going to use this money for,” said Joe Crescione, former mayor.

Crescione said he’d support an increase if the money was used to settle the city’s dispute with Lucia Mar Unified School District.

The school district says it’s owed millions of dollars in property tax revenue from a pact made 20 years ago.

Ehring did not support the tax increase in 2006 but said he does now because he’s seen it work out in neighboring cities.

“I didn’t support it last time because I thought it’d give our merchants a better chance at the market share against stores like Wal-Mart and such,” he said. “But I talked to (local merchants), and they told me it didn’t have much to do with it.”

The increased sales tax would add about a nickel to every $10 spent.

The measure includes a sunset clause, which means that it expires in 6.5 years. Voters can then decide whether to continue with the higher tax rate.

“It’s one of the highlights of the measure,” Higginbotham said. “It can be re-evaluated again then.”

To pass, 50 percent plus one vote is needed. If voters do approve the measure, the city would begin collecting the tax in about six months.