The Editorial Board has serious concerns about the direction the fledgling “Quality of Life” sales tax or bond proposal is headed. What began as Mayor Don Gage’s idea to see whether Gilroyans would support some sort of tax increase to pay for capital improvement projects has morphed into a tax hike that would support city operations, specifically police and fire protection.
We fear that the hired consultants, FM3 Research, are steering the ship away from the original discussion. Of course, people want better police and fire protection. Of course, the survey of 400 Gilroy residents (out of 50,000 residents) would indicate support for that. Of course, FM3 wants to preserve its stellar record of getting tax increases passed.
A half-cent sales tax increase appears to be the front-running idea. That money would generate approximately $5.9 million a year and would staff a fire station to service the homes planned for Glen Loma Ranch along Santa Teresa and pay for more police. Leftover funds could be used for capital projects.
No doubt that FM3 has outlined what it considers to be the winning strategy: Place the measure on the General Election ballot in November for the best chance at passage, lift it to victory on the backs of sustained messages about how critical the measure is for public safety and go for the sales tax version which spreads the tax to non-Gilroy residents who shop and buy gas here.
Thus, “other people are paying the public safety tab in Gilroy,” will be the mantra. But should our community really want to rely on volatile sales taxes to fund ongoing operational expenses? What happens when sales plunge in the next downturn? Painful layoffs and drooping morale at City Hall. The consultants will be long gone at that point, of course.
We urge the City Council members to ask themselves the tough questions now. Extreme caution is in order before the Council ties city operational expenses to a sales tax. Are there better ways to do business? Should Gilroy follow Morgan Hill’s lead and contract with CAL FIRE to reduce costs for fire services?
Those and many others are serious questions our Mayor and Councilmembers must ask themselves before moving forward. This decision should not be made with an eye for short-term gratification. Our economic strategy should be sustainable and steady over the long term.
