Kate Shurson wrote in her Aug. 14 letter that she didn’t like the 12-year sunset clause in Pismo’s half-cent sales tax. She did not give any factual reason for opposing it, however, just unfounded fear.
Having a 12-year sunset clause provides the city a steady long-term flow of revenue, which gives Pismo Beach greater leverage and better interest rates (saving thousands of dollars) when it is forced to borrow money or float a bond for expensive capital improvements.
Lenders don’t like to weigh short-term income in any equation. A 12-year stream says “stability,” and is good for the city. The benefits of giving this totally painless tax a 12-year run far outweigh the fears of misuse.
It was misleading of her to claim “some cities have been accused of spending sales tax revenues inappropriately,” since we’re not talking about “some cities.” Pismo Beach has done, and no doubt will continue to do, what it promised when this tax was instituted. This tax and superior management have made Pismo Beach one of the six most fiscally sound cities in the state, according to state budget officials.
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