by Michael D. Robbins
Director, Public Safety Project, PublicSafetyProject.org

March 14, 2014

The Measure A tax hikes will appear on the ballot for the April 8, 2014 El Segundo General Municipal Election.

Measure A creates four new taxes on residents, nearly doubles five existing business taxes, and creates a new parking tax. Measure A will cost residents and businesses an estimated $6.6 million each year in the first three years. However, all residents will pay the business tax increases that are passed on to them as customers in addition to the four new taxes imposed on residents.

The Measure Tax hikes are permanent. There is no sunset clause (expiration date). It has become clear that most or all of the Measure A tax hikes will go to pay for excessive and unsustainable past and future City employee pay raises and benefits and pension increases – especially for the firefighter and police unions and their managers. Measure A is not intended to help the City engage in responsible spending during a temporary economic downturn. Recessions are temporary, but apparently, wildly excessive and unsustainable City employee union and manager pay raises are permanent.

Measure A was put on the ballot by a vote of the El Segundo City Council. Council Members Suzanne Fuentes and Carl Jacobson requested a sunset clause so the taxes would expire after a few years and the Council would have to come back to the voters for further tax hikes, but they were denied that request by Mayor Bill Fisher and his Council majority including David Atkinson and Marie Fellhauer.

Here are the official Argument Against Measure A and Rebuttal to Argument in Favor of Measure A that appeared in the Sample Ballot and Voter Information Pamphlet mailed out by the El Segundo City Clerk’s office.

(Click HERE to download the Sample Ballot and Voter Information Pamphlet for the April 8, 2014 City of El Segundo General Municipal Election.)

Argument Against Measure A

Vote “NO” on Measure A, the Destructive Tax Measure with Bad Timing.

Measure A creates a NEW 2.5% Utility Users Tax (UUT) on RESIDENTS and nearly doubles the BUSINESS UUT to 5.5% (4.5% for “communications”).

The UUT covers resident and business electricity, water, gas, and “communication services” – voice, data, audio, or any other information or signals, using any technology including landline, eDSL, cable, wireless, broadband, VoIP, and Internet (ESMC 3-7-1).

The utility taxes will AUTOMATICALLY INCREASE as rates increase.

And there is NO SUNSET CLAUSE!

All the taxes were bundled together as a single measure, DENYING US A CHOICE to approve or disapprove specific taxes.

Measure A will cost residents and businesses an estimated $6.6 million each year in the first three years. However, ALL RESIDENTS WILL PAY THE BUSINESS TAX INCREASES that are passed on to them as customers.

There is NO GUARANTEE any new tax money will go to infrastructure!

Even if some of the new taxes are used for infrastructure, where will the rest be spent – on even HIGHER SALARIES, BENEFITS, AND PENSIONS?

There is NOTHING in Measure A to control discretionary spending.

Bad Timing!

Measure A’s timing greatly WEAKENS the council’s bargaining position when it negotiates new long-term union contracts later this year. And we are being asked to raise our own taxes BEFORE we can see if any cost savings result from those negotiations!

Can we really afford greater taxes?

ALL TAXES COMBINED are MUCH TOO HIGH – especially in California!

Residents already voted down residential trash fees and business tax increases that were excessive. Measure A will cost residents and businesses MUCH MORE than what we already rejected.

Now is NOT THE TIME to chase more businesses and jobs out of El Segundo.

VOTE “NO” on Measure A!

Visit NoOnTaxHike.com regularly for more information.

Mike Robbins, Former Council Member
Jane Waag Friedkin, Former Council Member
Richard J. Switz, Former Council Member
Marc Rener, 19-Year Homeowner
Mike Van Biezen, 25-Year Resident

Rebuttal to Argument in Favor of Measure A

“NO” ON A!

Last year City Council raised Chevron’s taxes by more than $8.5 MILLION average per year for 15 years.

They can save millions per year in firefighter and police “Special Compensation” for things that are job requirements or unrelated to the job.

Firefighter and police total compensation has been about $150,000 to more than $330,000 per individual per year.

The City Council can come back in November AFTER IT NEGOTIATES NEW LONG-TERM UNION CONTRACTS and makes them public.

EMPTY THREATS

There’s NO ADVANTAGE contracting with Los Angeles County for services. It would reduce services – NOT compensation.

90% of voters REJECTED Measure P to contract with Los Angeles County for fire services.

We can do a REFERENDUM AGAINST an ordinance to outsource services.

PENSIONS

The City Council INCREASED PENSION COSTS through excessive raises and “Special Compensation”. Firefighter and police pensions are up to 90% of their single highest year salary!

One city employee was given a 23% raise and got paid nearly $600,000 total in his last year! (See PublicSafetyProject.org.)

PARTNERSHIP?

The Chamber of Commerce DID NOT ALLOW its general membership to vote before taking a position on Measure A!

The City Council ignored concerned residents’ repeated warnings about unsustainable compensation and pensions.

NON-BINDING RESOLUTION

The City Attorney said the resolution on how to spend the money IS NOT BINDING, and only language in the ballot measure can be binding. City Council chose the NONBINDING route!

CUSTOMERS PAY BUSINESS TAXES

Residents pay business taxes that are passed on to them.

“NO” ON A!

Mike Robbins, Former Council Member
Jane Waag Friedkin, Former Council Member
Richard J. Switz, Former Council Member
Marc Rener, 19-Year Homeowner
Mike Van Biezen, 25-Year Resident