Decision 2024

After declaring fiscal emergency, Benicia has 3 measures aimed at increasing revenue

David Paul Morris/Bloomberg via Getty Images Homes in front of a wind farm in Benicia on Tuesday, June 14, 2022.

The city of Benicia has three measures on the November ballot aimed at generating funds for infrastructure -- Measures F, G and H.

Last year, the city of Benicia declared a fiscal emergency due to a multimillion-dollar structural deficit. That move was strategic, in that it opened the door for ballot measures aimed at increasing tax revenue.

The three measures do just that, two of which work in concert to increase coffers.

Measure F, dubbed the "Save our Streets" measure, would add a half-cent sales tax to retail sales, or one-half of a cent per dollar, according to the city attorney's analysis.

Voters in Benicia already raised its sales tax in March to 9.125 % of the purchase price of an item.

Funds from any revenue increase generated by this special tax -- estimated to be $4 million annually -- would be earmarked for repairing, maintaining and improving Benicia's roads, streets, potholes, sidewalks and storm drains, according to the city attorney.

The Yes on Measure F argument sent to voters says that Benicia has a "significant" road repair backlog of over $60 million.

The money would not go into the general fund. If a majority of Benicia voters approve the measure, a citizens advisory oversight committee would be assembled to carry out annual audits.

Proponents of the new tax note that it is a "citizens-driven" initiative put forth after gathering 2,000 signatures to get it on the ballot.

Opponents of the measure call it "fatally and legally flawed," according to the Vote No on Measure F information sent to voters.

First and foremost, opponents such as Michael Nolan, president of the Solano County Taxpayers Association, and Benicia residents Christopher Shenfield and Devin Versace point out that sales taxes were already raised this year. They also question the legality of the measure's language.

"Measure F is legally flawed because it is written in the language of an Advisory Measure only," reads the opposition. "Ordinances (and statutes) may only be proposed and enacted with simple declarative language."

Finally, those against the measure question the actual power any citizen oversight of the tax would actually wield.
A second measure on the ballot is the Charter City law, or Measure G, which is tangentially connected to the third measure on the ballot, Measure H. It asks voters to adopt the City of Benicia Charter, which would give the city authority granted to other charter cities under the state Constitution, according to the city attorney.

Currently Benicia operates as a general law city, which means it is governed by state law. Charter cities are permitted to operate under their own laws covering "municipal affairs."

At issue is the city's ability to levy a real property transfer tax, something only afforded to charter cities. Real estate transfer taxes are a one-time fee imposed by state or local governments on the transfer of property ownership.

If the measure to become a charter city is passed, the city could then enact Measure H, the Real Property Transfer Tax Ordinance, which would fund city services.

Opponents of the switch from a general law to charter city warn voters not to be "fooled," according to the argument against it sent to voters.

"Benicia already has a transfer tax," reads the argument against Measure G sent to voters. "It's 55 cents per $1,000 value."

They are referring to a Solano County tax known as the documentary transfer tax, a tax permitted in general law cities which is split with the county and collected when a property is sold.

They say the new law would increase this "transfer tax" by 727%. They also say that the measure won't stop there and will "give City Hall the GREEN LIGHT" to increase permit fees, license taxes, parking fees, usage fees, "the list goes on."

Proponents see Measure G as necessary to secure funding for infrastructure, as only charter cities are permitted to get these taxes, and they say Benicia needs that revenue. The money would go toward streets and roads, repairing public facilities, funding safety services and allow essential city services and programs to remain solvent. It would also be overseen by not one but two citizen oversight boards.

Measure G needs majority approval for Benicia to become a charter city. If Measure H receives a majority of votes, it will only take effect if Measure G passes as well.

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