From the Campaign to Re-Elect Mayor Steve Young, received September 5, 2024

First let me say I am actively running for reelection as the Mayor of Benicia. 

I firmly believe that an effective Mayor’s role is to inform and educate the community, guiding us towards a shared vision of the future.

The three Measures on the November’s ballot are crucial for our progress and future. Because they are so important, I am dedicating my reelection campaign to advocating for their passage.

It’s important to note that the Solano County Association of Realtors, all of Public Safety Unions , (Police, Fire and Dispatch), the Napa-Solano Labor Council and the Solano County Democratic Central Committee have all endorsed passage of each of the three measures.  

The City of Benicia faces complex financial challenges. Our primary revenue sources are property taxes (from which we receive only 26 cents per dollar) and sales tax.

Unfortunately, sales tax revenue has remained flat due to our limited retail base. While property values have surged, property tax revenue hasn’t kept pace because new assessments only occur upon sales.

With minimal new construction and limited home sales (likely because residents enjoy living here), property tax growth has been constrained.

A significant factor in our slow property tax revenue growth is that 42% % of Benicia properties haven’t changed hands since the 1990’s. These homes are taxed based on 1978-1990’s property tax values.

Consequently, these properties pay much lower taxes compared to neighbors who bought more recently.

This situation forces the City to cover 2024 expenses with much of our revenue based on property tax assessments prior to 2000—which is unsustainable.

Measure F

This measure, brought to the ballot by a Citizen’s initiative with 2,000 signatures, proposes a 1/2 cent sales tax increase dedicated SOLELY to road repairs. It is expected to generate $4-4.5 million annually. Combined with gas tax and some General Fund money, this will enable the City to repair all streets over a 15-year period.

Measures G and H

 These measures are interconnected. Measure G would convert Benicia to a “limited” charter city, allowing us to impose real estate transfer taxes. This change is restricted by the language in Measure G to only affect Real Property Transfers—nothing else- and can only be modified by the voters.

Measure H

This measure proposes a Real Property Transfer Tax (RPTT) of 0.4% (or $4 per $1,000) for sales under $2 million.

Sales over $2 million would be taxed at 0.6%, and properties over $10 million at 0.8%. This tax applies only to real estate sales, not affecting renters or those passing properties to heirs, even if the heirs rent them out.

Both measures G and H must pass for the RPTT to be implemented.

Let’s look at an example of how this would affect the average home sale in Benicia: the RPTT  on a $850,000 home would be $3,400.

For many long-time Benicia homeowners, this amount would be a very small percentage of the accumulated increase in equity. And that equity increased, in large part, to the improvements the City (and its taxpayers) have made over the decades.

In conclusion, this additional funding from Measure F would solely support fixing our deteriorating roads.  Measure G and H will be used to repair many old and deteriorating City facilities including City Hall, the Police Department, the Clocktower, the SP Depot, the Marina, the Senior Center, the pool, the library, the gym, and the Camel Barns.

We cannot achieve fiscal sustainability through staff cuts alone. Slashing the city payroll would necessitate closing many programs that Benicians have repeatedly expressed they want, expect, and deserve.

I am calling on my fellow Benicians to continue the progress the City has made to get its financial house in order  and agree that we  need to look at new revenue sources that will help Benicia continue towards a solid fiscal future.

Please join me, the Benicia City Council and many community groups and vote yes on Measures F, G and H in November.

Steve Young
Mayor, City of Benicia