A modest investment

Healdsburg voters will be asked in the Nov. 6 election to increase the city’s sales tax a half percent “to stabilize city finances, offset declining revenues and the loss of redevelopment funds.” Measure V is unanimously supported by the current five city council members and has been endorsed by the Healdsburg Chamber of Commerce directors and the Healdsburg Unified School District trustees.
This sounds like a “slam dunk” except asking voters to increase taxes is never a sure thing. Nobody wants to pay more taxes without getting something out of it for themselves. We believe Measure V is not only beneficial to Healdsburg and its citizens, but is probably essential to preserving some basic municipal services.
When the City Council first discussed raising the sales tax this summer we were very skeptical and drafted a list of many questions and objections. After months of study, city financial reviews and talks with city staff and officials we believe the city has adequately performed the “due diligence” to support a “Yes” vote for Measure V.
We are sure that some local business owners may oppose yet another tax increase and some people on fixed or limited incomes may also oppose the increase. If Measure V was just a higher tax rate without a well-defined spending plan we would not vote for it either. But that is not the case this time. (We are opposed to similar tax increases elsewhere on the Nov. 6 ballot because they lack a defined benefit or economic development plan.)
In Healdsburg, the city council already has cut staff by 18 percent (14 full-time and 4 part-time positions.) Since 2008, the City has reduced payroll expenses by $2.3 million, including several negotiated concessions from its public workers unions. The state’s takeaway of millions of annual redevelopment funds has severely jeopardized several city projects. These include purchase of Foss Creek School, renovations for Memorial Bridge, redesign of the Healdsburg Avenue — Mill Street intersection and funds for tourism promotions and economic development programs.
The proposed sales tax (8.5 percent) would generate about $1 million a year and would be added to the general fund. The City Council has listed four priorities for these funds including public safety, street maintenance, economic development activities and general repairs and maintenance to city facilities. The tax increase would expire after 10 years, unless re-approved by the voters.
The best news about Healdsburg’s sales taxes is that over 70 percent of the total is generated by non-residents and visitors. The other good news is that the local sales tax revenues can’t be stolen by the cash-hungry state government.
Another key part of the Measure V “funding priorities plan” is there will be a public review of how the money is being spent with an annual citizen’s review and official audit.
Healdsburg’s municipal financial picture is not unique from all neighboring cities, school districts and county government. Ongoing impacts from the global recession have led to five years of reduced property, sales and bed tax revenues.  
All local governments — and not just Healdsburg — have been forced to address their unfunded pension expenses. Healdsburg’s response to this problem has been ahead of most other local governments. The Council has voted to lower retirement benefits for future employees and have won a series of “concessions” from current employee units.
The staff and elected officials of the City of Healdsburg have built an excellent track record of solid support for local businesses and economic development. In asking for voter support of Measure V, they are making a public pledge to protect basic municipal services. They are asking voters to make an investment in their community’s future.
Measure V is a modest, but wise investment deserving all citizens’ support.
— Rollie Atkinson