What’s up with proposed sales tax? It’s quite a story

By now most of you have probably heard something about the plan by three Supervisors, Ted Willims, Maureen Mulheren, and Gleen McGourty to place a sales tax measure on the November ballot. The stated purpose of their proposed sales tax is to provide funding for local fire departments and a resurrected county water agency.

There is absolutely no question that local fire departments, especially in the area of providing life-saving ambulance services, must receive additional funding, as it is a past, present and ongoing top priority. No argument there.

I’m going to attempt to explain the dilemma that’s arisen through several memorandums and a couple of letters addressing the proposed sales tax.

Also, as I’ve informed you previously, I’ve been serving on a steering committee that’s been dealing with the re-establishment of a county water agency, but I do not support funding an agency that has no defined organizational structure and purpose. It is currently an unfinished work-in-progress. Here’s the story. Recently, Linda Bailey, a long-time supporter of countywide Friends of the Library organizations, wrote the following letter outlining her thoughts on the proposed fire department-water agency sales tax.

“The BOS is threatening to poison the well for permanently increasing the sales tax support of our libraries. This next Tuesday they will again be discussing what sales tax ordinance they would put on the November ballot. What is the story here?

“For many months a group of library supporters have been working on a proposal for a permanent sales tax that would fund the operations and building maintenance for the County Free Libraries. They are now circulating a petition to put it on the ballot in the November election; they need 6,000 signatures of registered voters by the end of this month. A major selling point has been that even though the sales tax support for the library would increase by 1/8 cent, the total sales tax would actually decrease because Measure B sales tax would decrease by 3/8 cent.

“Apparently some Supes looked at that 3/8 cent and said “Well, why don’t we grab that opportunity to get $7 million a year?” and put it on the May 17 agenda as “a possible sales tax ordinance.” Despite the innocuous wording, it seems that there was advance notice to some residents of finer detail; all public comments were supportive of water or volunteer firemen. The BOS directed the staff to draw up a plan to divvy up the money between Fire and Water. (Sounds like a reprise of the Auditor/Treasurer merger rushed/ no plan to take advantage of an “opportunity”?) Adoption of the ordinance requires a 2/3 vote so they went for two items of popular interest.

“There is no debate that the volunteer fire departments need help, but, if Supervisor Ted Williams wants tourists to contribute to services they use, surely the $600,000 Williams, McGourty and Mulheren gave to Visit Mendocino could have been used to pay down some of what the County owes the fire departments. Or the $400,000 they spent on remodeling their chambers. Community members throughout the county could band together and put an initiative on the ballot for ¼ cent sales tax dedicated to volunteer fire districts. It would only need 50 percent+1 to pass.

“But, Water? Potter Valley/ Eel River Diversion came up a lot. This is not a new problem; it has been many years in the making. The Mendocino County Water Conservation Flood Control

Russian River Improvement District (popularly known as Russian River Flood Control) holds and administers Mendocino County’s water right to Coyote Dam waters. For at least the first 30 years after the dam was completed it GAVE AWAY that water to anyone who wanted to pump it. Their rationale was that the property owners paid for the bond so they should get to use it for free. Sonoma County Water Agency charged their users; look at the different results.

“Perhaps it’s time the property owners within the Improvement District put up some more money for their benefit. The Improvement District has the power; for example, it could levy a parcel tax. It has the water right to protect. The County has been putting money into the Joint Powers Agreement. Why should county shoppers subsidize the wine industry? The County has no water right to protect. Could this be a gift of public money?

“How does all this impact our libraries? Petition signature gatherers are encountering push-back, as in “I’m saving my vote for Potter Valley.” As Dan Gjerde and John Haschak noted, a County measure has little chance of passage because the voters have little confidence in the competence of the BOS. They remember cannabis, Measure B, the Auditor/Treasurer merger fiasco, etc. Furthermore, as Gjerde astutely commented, if confronted by two sales tax measures the reaction of many voters is to vote No on both.

“At the moment, Williams, Mulheren, and McGourty are poised to approve putting this sales tax on the November ballot. I suspect they will like any “plan” the staff brings forward.

“What a mean-spirited proposal. Raise your voices! Thank Haschak and Gjerde for their support of the libraries. Demand no County-sponsored ordinance on the November ballot.

“If they persist, I, for one, would support a recall. County residents love their libraries. The BOS? Not so much.”

On June 3, the Citizen’s Committee for the Library Initiative 2022, sent this letter to the Board of Supervisors:

“It has come to our attention that the Mendocino County Board of Supervisors is considering proposing a sales tax that would compete with the Citizens for the Library Initiative 2022. We would like to remind the Board of Supervisors that the Citizens for the Library Initiative is the direct result of their approval in 2019.

“We have been working on the campaign to Renew Measure A since January 2022. Essentially, doing the work, as volunteer citizens, to fund the public libraries. Since then, in our appeal to the public to gain the required signatures necessary to put the measure on the November ballot, we have stated that taxes will not increase, because 3/8 of a cent sales tax from Measure B will sunset at the same time.

“We request that the Mendocino County Board of Supervisors not put forth a “competing sales tax” at this time. A little history just to remind the newer members of the Board that Mendocino County public libraries receive zero funding from the General Fund. When funding from the property tax that supports the public libraries declined in 2008, the Board of Supervisors, who also serve as the Mendocino County Library Board, responded by drastically reducing library services in all branch libraries.

“In 2011, 75 percent of voters in Mendocino County passed Measure A, a 1/8 of one cent sales tax, which currently generates more than half of all library funding. Measure A was passed for 16 years and will sunset five years from now in 2027.

“In 2019 the Library Advisory

Board developed the Mendocino County Library Strategic Plan. The first of its three goals is ‘Develop a capital improvement fund dedicated to long term improvement of all the library facilities in Mendocino County.’ The Mendocino County Board of Supervisors unanimously approved the plan.

“Again, let me remind you, the Citizens’ Committee for the Library Initiative is the direct result of the Supervisors’ approval. The purposes of the measure for the November 2022 ballot are:

“1. To impose a permanent one-quarter cent (0.25 percent) sales tax for the purpose of maintaining and improving library services in Mendocino County; and

“2. To create a special fund for these tax proceeds to be used exclusively for maintaining and improving library serves. At least forty percent (40 percent) are reserved for capital improvement such as building improvements (e.g. roof repairs).

“As exemplified by the over 4,200 citizens who have already signed the petition, Mendocino voters want their libraries funded.

“It is important to the credibility of both the Mendocino County Board of Supervisors and the Citizen’s Committee for the Library Initiative that a “competing sales tax” not be on the November ballot.”

Next on June 5, Supe Dan Gjerde sent this memo to his colleagues. Keep in mind, that Supe John Haschak, like Gjerde opposes the fire-water agency sales tax.

“At our meetings on May 17 and on June 8, with just weeks remaining to finalize any ballot measures to be included in the November 2022 election in Mendocino County, the full Board of Supervisors has recently embarked on a public discussion of new ideas for voter-approved sales taxes. The discussions were initiated at the full board level after staff learned three supervisors were contemplating ways to spend money if voters were to approve new sales taxes. During the May 17 meeting, Supervisor Haschak and I expressed concerns with the idea of the Board adding new sales tax measures onto the November ballot. Among our reasons: supporters of our County libraries, who understand they are acting with support from County Supervisors, were already placing a separate sales tax through the initiative process onto the same ballot. (For more on this, please refer to the June 3 memo sent by the Citizen’s Committee for the Library Initiative.)

“Since the May 17 meeting, I have not seen any evidence that it would be wise for the Board to move ahead and place a competing sales tax on the same ballot. In fact, my research shows it would be a grave mistake. Please consider:

“1. It is too late. Board members have not consulted with essential stakeholders, and now there is not enough time to back-track with these key stakeholders to reach consensus on the amount of a sales tax and the distribution of sales tax proceeds. Here is one example: my recent conversations with city council members in the Cities of Fort Bragg and Willits revealed that none of these ten elected representatives had been included in sales tax discussions, even though roughly one-third of county-wide sales taxes are collected within those two cities. A successful ballot measure would include key stakeholders such as these from the beginning of any discussions.

“2. It is the wrong moment. Consumers are experiencing the highest inflation they have seen in four decades, and their economic future is uncertain. The nation’s federal reserve banking system has pledged to raise interest rates and tighten

money supply to the point that it brings inflation under control. But we will simply need to wait and see if the Fed will succeed at slowing inflation without causing a recession. Meanwhile, the public is understandably anxious. This is not a time to place multiple taxes on an election ballot.

“It is the wrong pathway to the ballot. A tax should not be casually placed onto a ballot by three or more supervisors if the intent is to optimize the likelihood of voter approval. Supporters of our County libraries are taking the best pathway to the ballot. They are going to the ballot with demonstrated support from the public. They have written a citizen’s ballot measure, and local voters are signing petitions to place the measure on the ballot. In doing so they have explained the purpose and value of the tax to a sizeable share of the local electorate, likely assuring the measure will win voter approval in the election.

“It is going to hurt the causes the taxes are intended to help. A countywide water sales tax, for example, is going to bring intense scrutiny to the intended beneficiaries of the water tax. Voters throughout Mendocino County will question why they are being asked to pay a water tax, when the agricultural interests served by the Potter Valley Irrigation District pay virtually nothing for their irrigation water. For starters: The typical residents of the Cities of Ukiah, Fort Bragg and Willits pay between $270 and $321 for every $1 paid by agricultural interests served by the Potter Valley Irrigation District for the same amount of water. (See details below.) Voters will rightfully question why Potter Valley’s agricultural interests, and others, are failing to step up and pay to resolve their own water rights, when they have significant untapped capacity to help themselves.

“It is going to divide our communities. To be clear, the Board of Supervisors politically and financially supports the efforts by the Potter Valley Irrigation District, the Inland Water and Power Commission and others who are attempting to retain reasonable water diversion rights from the Eel River to Potter Valley and Lake Mendocino. But support has its limits. Ultimately, the debate over a flawed and unwelcome water tax will trigger devastating political division within Mendocino County, while setting back the very cause the water tax was intended to help.

“In conclusion, I hope the full board will see the wisdom of taking the time to work with stakeholders throughout Mendocino County when discussing ideas for a future sales tax, for a ballot sometime after November 2022. Engaging with residents in every corner of the County will result in a sound proposal, and the option for community members to directly place the matter onto the ballot. Not only will this inclusive process ensure the best proposal is placed onto a ballot, but the citizen-to-citizen engagement inherent in the petition process will also ensure the highest likelihood of success in a future election.

“$21.50 — Potter Valley Irrigation District — A Potter Valley Irrigation District customer pays $21.50 for each one- acre feet of water. (PVIRD website)

“$6,599 — Ukiah — A typical Ukiah residential customer would pay $6,599 in today’s dollars for one-acre feet of water. (¾” water meter monthly fee of $45.66 + $14.88 for 400 cubic feet of water purchased per month, taking nine years and one month to consume one-acre feet of water.) That’s a customer price 307 times higher than the customer price at Potter Valley Irrigation District. (PVIRD & Ukiah websites)

“$5,800 — Fort Bragg — A typical Fort Bragg residential customer would pay $5,800 in today’s dollars for one-acre feet of water. (¾” water meter monthly fee of $38.61 + $14.6 for 400 cubic feet of water purchased per month, taking nine years and one month to consume one-acre feet of water.) That’s a customer price 270 times higher than the customer price at Potter Valley Irrigation District. (Fort Bragg & PVIRD websites)

“$6,894 — Willits — A typical Willits customer would pay $6,894 in today’s dollars for one-acre feet of water. (¾” water meter monthly fee of $38.13 + $25.12 for 400 cubic feet of water purchased per month, taking nine years and one month to consume oneacre feet of water.) That’s a customer price 321 times higher than the customer price at Potter Valley Irrigation District. (Willits & PVIRD websites).”

Then on June 7, I sent the following memo to the Board of Supervisors:

“From: Jim Shields, Member, Mendocino County Water Agency Steering Committee

“To: Mendocino County Board of Supervisors

“RE: Discussion of sales taxes for November 2022 and future elections and

“Agenda Item 4D of the June 8, 2022 Board of Supervisors Meeting

“I fully concur with the recent letter by Linda Bailey, the June 3, 2022 memorandum sent by the Citizens for the Library Initiative 2022, and with the June 5, 2022 memorandum sent by 4th District Supervisor Dan Gjerde regarding the disposition of Agenda Item 4D of the June 8, 2022 Board of Supervisors Meeting.

“Specifically, I want to briefly address the issue of the proposed sales tax as a funding mechanism for the as yet-tobe determined final action of re-establishing the Mendocino County Water Agency as a stand-alone agency.

“Unless and until a final decision is made regarding refining the mission, goals, objectives, staffing, and jurisdiction of the Water Agency, it is premature to be taking any action concerning agency funding. To do so, literally equates to positioning the cart before the horse.

“In fact, based on my three decades of experience as a local government, public water utility official, most county residents are not even aware of the existence of a Water Agency.

“Succinctly stated, the proposed sales tax measure is both premature and bereft of any broadbased public support at this time.”

What do you think? Quite a story, isn’t it?