Category Archives: Benicia’s Budget Crisis

Benicia CA, Benicia Mayor Steve Young, Benicia's Budget Crisis, Local elections

Mayor Steve Young: Join the Conversations on Benicia’s Real Property Transfer Tax Proposal

Benicia Mayor Steve Young. | City of Benicia.

By Benicia Mayor Steve Young, June 9, 2024

Tomorrow, on Tuesday, June 11th, the City Council will hold the first of a series of public hearings on a specific tax proposal that, if passed, would increase taxes solely on the sale of real estate.

These public hearings will focus on the proposed structure of a proposed Real Property Transfer Tax ( RPTT), targeting only residential and commercial properties when they are sold, with the potential for the issue to be decided by our voters on the November ballot.

No one likes taxes.

And it is challenging to ask voters to approve new ones, even when applied to a limited number of people. But the City’s financial situation, while improving, is not yet stable.

The overwhelming approval by Benicia voters of Measures A and B provided critical funding to maintain service levels for most City programs. But it will not provide enough to address our remaining financial challenges.

We still have a shortfall of tens of millions of dollars to address our need to upgrade deteriorated city facilities, improve our parks, and continue to maintain top quality employees.

The City Manager has been quite transparent in discussing his plan to develop enough sustainable revenue to carry Benicia forward into the future and address our many unfunded needs. At the same time, he will shortly announce even more internal, significant, cost-savings brought about by restructuring of departments and reduction in personnel.

A Real Property Transfer Tax already exists. Solano County taxes all Benicia property at $1.10 per $1000 of sales price (0.11%).  We are asking voters to allow it to be raised in a way that is similar to other neighboring communities. It is paid by either the buyer or seller (or negotiated) in real estate transactions, and is paid as part of closing costs.

Historically, there are between 200-250 property sales per year in Benicia. Unless and until you plan to sell a property here, you would be unaffected.

We should also look to the possible future housing growth in the city.  If we do see new home construction, we will have in place a taxing tool to collect our fair share of the sales transaction.

Only charter cities are allowed to increase this tax (if approved by voters), so a companion measure is required that authorizes a limited Charter, restricted only to this use.

Related issues that will be discussed by the Council, and for which public comment is desired, include the following:

    • Should there be a flat tax where all property sales be taxed at the same rate?  Or should the rate be progressively higher as the sales amount increases?
    • What rates are appropriate in each case?
    • Should property sales under $500,000 (for example) be exempt?
    • Should transfers among immediate family members be exempt?
    • How will commercial property sales (which do not happen often) be managed—variable or flat rate?

Other anticipated exemptions involve circumstances such as sales due to a divorce, non-profit ownership, sales by government entities, and corporate re-organizations under bankruptcy laws

Again, your input is desired, either by attending any of the meetings (in person or virtually) listed at the end of the staff report, or by submitting written comments to the city clerk at lwolfe@ci.benicia.ca.us.

Save these dates

Below is the City of Benicia’s projected timeline for next steps to place the limited charter and RPTT on the ballot for the November 2024 election:

  • Tuesday, June 11, at 5:30pm (tomorrow): Special City Council Meeting – Limited Charter Public Hearing #1; Direction on RPTT Rate Models and Exemptions*
  • Sunday, June 23: Notice of Public Hearing #2 (by publishing in Benicia Herald Sunday Edition and posting at three public places within the City)
  • Tuesday, July 16: Limited Charter Public Hearing #2 – City Council Meeting
  • Tuesday, August 6: Last day for City Clerk to submit resolutions to Registrar of Voters to place a measure on November 5, 2024 Ballot

For more information about attending these meetings, either virtually or in-person, view the City of Benicia’s Tuesday, June 11 Full Agenda Packet.

*The City has a closed session starting at 4:30pm. The public portion of this meeting is scheduled to start at 5:30pm, but may start as late as 6pm.

Benicia CA, Benicia Measure A, Benicia Measure B, Benicia Measure C, Benicia's Budget Crisis, Local elections

Benicia resident Mark Christian: Benicia’s given us a lot. Give a bit back by voting ‘Yes!’ on A, B, & C

Image by DALL-E.

By Mark Christian, February 25, 2024

I’m writing in today to show my support for Measures A, B, and C, which are on the March 5 Primary ballot. All three of these measures are focused on laying the groundwork for Benicia’s continued growth and well-being:

  • Measure A will slightly increase the hotel tax, bringing in an extra $250,000 a year without costing us residents a dime. These proceeds can help improve city services that benefit everyone in town.

 

  • Measure B proposes a sales tax increase, but the impact on our wallets will be tiny: about $10 a month, or less than a Netflix subscription. In exchange, we’ll get better emergency services, get to keep all of our parks open, and improve library services.

 

  • Measure C is near and dear to my heart because it focuses on our schools: it will allow the school district to issue $122 million in municipal bonds so we can upgrade our educational facilities, making them safer and better equipped to get our kids ready for the future. That means better technology, safer buildings, and improved learning environments for every student in town. (I don’t know about you, but I would prefer my kids not to be sitting in a musty old classroom that was already old when their parents were sitting in it.) Whether you have kids in the district or not, investing in education today will pay dividends for generations to come.

Voting yes on these measures is voting yes for a better Benicia. It’s about protecting and improving our city’s infrastructure, safety services, and education. Together, these three measures will keep Benicia the great place to live, learn, and grow that always has been.

Benicia’s given us a lot; it’s time we gave it a bit back.

Sincerely,

Mark Christian
Benicia resident

Benicia CA, Benicia Measure A, Benicia Measure B, Benicia Measure C, Benicia's Budget Crisis, Local elections

Benicia resident Larnie Fox: Supporting Benicia’s best future is as ‘easy as ABC’

Benicia resident and artist Larnie Fox.

By Larnie Fox, February 22, 2024

It’s generally understood that Benicians really like Benicia ~ maybe a bit more than residents of other towns like their towns.

Why is that? Answering for myself: I like that my wife feels safe walking home after dark. I like that we greet each other on the street. I like that the value of my house is steadily rising. I like that we have a strong arts community here, a gem of a local art center, a good local history museum, and wonderful local events. I like my neighbors, and am grateful that it’s easy to connect with them. I like knowing that the neighbor kids are getting a good education. I like our parks and our library. I like being able to walk to good restaurants, cafés, bars and galleries. I like our vibrant local democracy, where any of us can show up to a City Council meeting and tell them what we want ~ and they will listen! Benicia is an interesting, beautiful, historic place, and I feel safe here.

Why is that? It’s because of Benicia’s community and their government. Government is what we decide to do together. That’s why I’m asking you, neighbors and friends, to vote on or before March 5, and vote YES on Measures A, B and C. None of us will feel much financial pain from these votes, but all of us will benefit. We’ll benefit by maintaining our good schools. If you don’t have young kids, you might own a house that will keep its value, and you might be a bit safer if our kids are well nurtured. That’s Measure C. Measures A and B will directly affect your safety through supporting fire and police. It will keep our library afloat, help support our downtown, and hopefully maintain some support for our hard-working local nonprofits that do so much to take care of our less fortunate neighbors and make this a vibrant community. And, it would be nice to get the roads fixed.

For me this is a no-brainer. Please vote, and vote yes on Measures A, B and C.

Larnie Fox
Lower East Side, Benicia

Benicia, Benicia City Council, Benicia Economic Development, Benicia's Budget Crisis, Climate action

City of San Luis Obispo launches Sustainable SLO initiative (and Benicia could take note)

[Note from BenIndy: There are many paths to a balanced budget in a small town like ours. Paths that emphasize local economic development by enhancing active transportation safety and accessibility, minimizing fossil fuel reliance, and boosting both outdoor and indoor air quality set a course for a San Luis Obispo that is cleaner, healthier, and safer…and yet still financially stable and self-sustaining. San Luis Obispo and Benicia have a lot of common: SLO is another full-service town like Benicia, with a larger population but many of the same values.]

San Luis Obispo.

PublicCEO, January 29, 2024

San Luis Obispo has set big goals to reduce pollution and adapt to the climate crisis, and we’re making big progress. To highlight this work, the City is adding a new Sustainable SLO mark and illustrated graphic on a variety of public facilities and equipment in San Luis Obispo.

“The City of San Luis Obispo is leading on climate action, and we’re excited to tell our story over the next few months,” said Chris Read, the City’s sustainability manager. “Now through Earth Day 2024, we will highlight everything from our new electric buses to our recycling bins and will share resources for how community members can make changes to save money, reduce pollution in their own homes and businesses and help reach communitywide carbon neutrality by 2035.”

Community members may have already seen the new Sustainable SLO mark and illustrated graphic throughout San Luis Obispo and will likely be seeing it more often. Climate action is a major City goal for the City of San Luis Obispo and the City has been working for years from its Climate Action Plan to reduce pollution and make San Luis Obispo more resilient to the effects of climate change.

Sustainable SLO demonstrates how the City is leading by example by phasing out fossil fuels from public facilities and fleet vehicles, reducing greenhouse gas emissions from organic waste and restoring the beautiful natural ecosystems that make San Luis Obispo such a wonderful place to live. These efforts include but are not limited to:

  • Installing new bike lanes and using all-electric buses that make it safer and easier to get around,
  • Conserving open space properties throughout the greenbelt to protect natural resources,
  • Transitioning the City’s fleet to electric vehicles to save money and use less fossil fuels,
  • Installing new trash and recycling bins downtown to reduce litter and landfilled waste,
  • Adding more public-facing electric vehicle chargers in SLO so it’s easy to charge on the go,
  • Planting 10,000 new trees in streets, parks and open space areas by 2035,
  • Switching to energy-efficient lighting at City facilities to save money and use less energy, and
  • Installing a large battery at the Water Treatment Plant to save money and create a more resilient facility.

With generous federal, state and regional funding resources, incentives and technical assistance available to support climate action, it’s becoming easier for organizations and individuals to make sustainable choices in SLO. Over the next few months, the City will share more about Sustainable SLO and suggest ways organizations and individuals can take local action on the climate crisis.

“We’ll be telling this story on social media, local news channels and at in-person events,” said Lucia Pohlman, the City’s sustainability and natural resources analyst. “Everyone can find Sustainable SLO ‘in the wild’ to see tangible ways we’re making a difference. Hopefully, this will inspire community members to cut climate pollution and prepare for increasingly hazardous floods and fires. It’s no easy task, but with the community’s help, we can reach our goals and ensure our community thrives into the future.”

Learn more about the City’s Sustainable SLO initiative at www.slocity.org/sustainableslo and subscribe to email updates at www.slocity.org/Subscribe.

January 29, 2024 | Cities, Climate Change, Conservation, Environmental Policy, Infrastructure, Local Government, Planning and Development, Technology

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