Possible sales tax on agenda

Would fund water projects, fire services

On Wednesday, the Mendocino County Board of Supervisors is scheduled to discuss in more detail a potential sales tax measure to fund water projects and fire services.

Despite the hesitancy expressed by two supervisors last month, the board ultimately voted unanimously to have staff “begin drafting a sales tax ordinance regarding allocations for fire and water, and return to the full board on June 8, 2022.”

“I think when we come back we need to have a plan that’s very specific and explains to the public exactly what we’re trying to do with the water portion of this, and the fire portion,” said 3rd District Supervisor John Haschak Haschak. “Because without real specifics, they’re going to vote it down.”

The staff report prepared for the agenda item notes that:

• If the board chooses to put a proposed tax to the voters, it will need to decide what the rate of the tax will be. Later this year, the tax imposed by Measure B will be reduced from one-half cent (0.5%), to one-eighth cent (0.125%), meaning that a new tax of three-eighths of a cent (0.375%) would present as no change to the consumer. The Board, however, can choose to propose

• The board will need to determine whether it wants to formally commit to keep the use of funds limited to a specific purpose or allow for general governmental purposes. A general tax only needs approval by a majority of the voters while a special tax needs approval by 2⁄3. At the prior meeting, the board seemed to want a special tax, but staff would like to confirm that direction.

• If the board chooses to enact a special tax, it will need to decide how that purpose is defined. Please note that this language will limit the use of the funds for the life of the ordinance and may not be changed without additional voter approval. As such, it is generally advised that the limitations be specific enough to capture the intended use but not so specific as to dedicate funds

• The board will also need to decide whether and how tax revenues will be split between purposes. Indeed, after review of the May 17, 2022, board meeting, counsel is unclear as to whether the board intends to propose two separate taxes for fire and water, or a single tax that can be used for both. Key issues include: whether the board wants one or two tax ordinances and ballot measures; if the board chooses a single tax measure, whether and how to split the funds between fire and water; whether to include limits on expenditures or allocation to particular agencies and/or regions. Counsel generally advises against this approach because of the possibility of increased administrative costs and unintended consequences. • Counsel would also like direction on any additional requirements or restrictions that the Board would like to incorporate into the ordinance. In particular, it is clear that the board is interested in some sort of mechanism to ensure that funds are used in a manner that fairly addresses the needs of the entire county rather than letting all revenues go to a few, limited geographical areas. Discussions have included the possibility of an equal distribution between fire districts or minimum expenditures of water funds in certain supervisorial districts. There are a number of options as to how an ordinance might choose to include protections for equitable distribution of funds while minimizing the potential for unforeseen consequences as laws and circumstances change. The board’s choice of such mechanism will need to weigh the risks of strong restrictions against the political and structural benefits they include. Examples include: the creation of a citizens oversight body to review expenditures and opine as to the

The meeting is scheduled to begin at 9 a.m. June 8 in the board’s chambers at 501 Low Gap Road for anyone who wished to attend in person, and “virtual attendance will be available via Zoom. Meetings are live streamed and available for viewing online on the Mendocino