Campaigns gear up for Lodi sales tax measure

Last month the Lodi City Council approved placing a measure for a half-cent sales tax increase on the November ballot.

City leaders say the tax is needed to maintain services in the face of rising pension costs that are outpacing new revenue.

The proposed measure would increase Lodi’s sales tax rate from 7.75 cents per dollar to 8.25 cents per dollar. Without the tax increase, expenditures will begin to exceed revenues by fiscal year 2019-20 and by fiscal year 2023-24 the city could be facing a $6 million deficit, City Manager Steve Schwabauer recently said. It’s projected that the measure would generate an extra $5.4 million for the city annually and without that extra revenue the city would eventually be forced to significantly reduce services or go bankrupt.

With the election just over two months away, groups supporting and opposing the measure are ramping up their campaign efforts.

Lodi real estate agent Michael Carouba, who also serves on the Parks and Recreation Commission, and others have decided to head up the campaign in support of the measure.

“The best alternative now for Lodi to maintain the level of services we used to have and want and the quality of life we’d like to see maintained is best served by all of us chipping in and paying a little bit more in sales taxes every year,” Carouba said.

Taxpayer advocate Alex Aliferis and Lodi attorney Greg Goehring have decided to head up the campaign opposing the tax measure.

“The reason why we’re paying higher taxes in California these days is because of the spiraling pension crisis,” Aliferis said.

Carouba believes the city has done all that could be done to help its current financial situation, leaving the tax measure as the best alternative moving forward.

During his four years as a parks and recreation commissioner, Carouba said he has seen the amount of fulltime staff in the parks and rec department drastically reduced due to financial constraints. It’s the same in other city departments, Carouba said.

“I think we’ve done all that we can, and I think with parks and rec we’re operating on the barest of margins,” Carouba said. “The only thing that’s going to help us now is to give the people what they want and what we all should expect to have which is an additional income stream, and that’s what this measure will do.”

Aliferis argues the city is misleading citizens by telling them the tax money will go for services when he believes the funds will go towards pension costs. Even if the measure passes, Aliferis believes another tax increase will be pushed in the coming years when there is another economic downturn.

“Whatever bills the city has to pay they are going to have to get paid, and our pension obligation is just one of them,” Carouba said. “But it’s an ever-increasing one for sure. I think we all understand that there is a cost to run the city. We all wish it maybe were less in certain places, but the city will pay its bills.”

Aliferis disputes that there are no other options for cutting costs.

“The status quo wants to maintain the things the way they are,” Aliferis said. “They don’t want to talk about why there are over 240 employees in the City of Lodi making over $100,000 in a city of less than 55,000 people. Why are these employees making over $100,000 a year?

“Then on top of that they’ll retire at age 55. They’ll work out another contract, and they’ll still get their pension. The city is going to go broke, and then they’re forcing the majority of people that are making less than $30,000 to 40,000 a year to pay more and more when average citizen wages have stagnated for the last 18 years.”

Aliferis doesn’t feel the measure is a fair deal for citizens.

“Any tax measure that goes on the ballot that lets people vote is obviously fair,” Carouba said. “We’re going to have to decide together as a community to approve this, and I think we will. So yes, I think it’s fair.”

Carouba said the campaign to support Measure L is in the early stages, and compared to two years ago, more individuals and business owners seem to understand that the measure is the best option for Lodi at this time. However, almost all of them are reluctant because no one likes voluntarily raising their taxes, he said.

The campaign in support of Measure L will be a citywide grass roots effort with volunteers walking districts and talking to their neighbors, Carouba said. In addition to canvassing neighborhoods, measure supporters plan to send out promotional materials such a flyers and make phone calls to citizens seeking their support.

“To reach out to every voter in a city like Lodi, that takes quite an effort,” he said.

Carouba encourages everyone to get engaged and come to their own conclusion about the tax measure.

“This is money is going to stay local,” he said. “It’s not going to go to the county. It’s not going to go to the state or the federal government. It’s going to stay right here in Lodi to spend, and I think that’s going to be really appreciated once the measure is passed,” Carouba said.

Aliferis said he and Goehring plan to provide Lodi citizens with the facts, share information about the salaries of city employees and keep them filled in on what’s going on with the pension crisis. He said he and Goehring will keep hammering away at the message.