March 5,2016-
In the next few weeks the Visalia City Council will take up the plan to put a 0.5% sales tax hike on the November ballot. Mayor Steve Nelsen says he believes there are at least four votes on the city council to support a vote of the electorate. The measure would need to pass by a simple majority. Two citizen committees voted earlier this year to support an increase in the tax to help stabilize the city’s’ financial situation. “Increasing the sales tax is the fairest way to spread the burden” not just on Visalians but all the people who travel here for services and shopping, says Nelsen. The Mayor says there was talk of imposing a utility tax like many other towns have but that tax would be imposed only on the residents.
Visalia’s sale tax has grown by 5% a year over the past forty years but more recently growth has been in the 3% range.Sales tax revenues make up almost 50% of the city’s general fund. Without new monies the quality of life, its streets, public safety and recreation programs would decline,many fear.
A citizen Ballot Measure Advisory Committee issued a report that cited a number of stresses on the city budget.They point to the aftermath of financial meltdown of 2008
• Sales tax revenues less than projected
• Recession forced significant personnel reductions
• City needs to rebuild cash reserves depleted by
over promised and under delivered.
Some factors are macro – not just local.Statewide, in1980 53% of personal income was spent on taxable sales.Today, just 33% spent on taxable items. There has been a big shift in buying from brick and mortar stores to the internet.
Meanwhile Measure T tax receipts for public safety are $1.1mm less than projections 10 years ago. Currently unable to meet adequate staffing and facilities demand to maintain expected “quality of life” targets. Public Works/Road Conditions: At current recession level of funding, in 20 years street surfaces will have deteriorated to the point that it would require $23mm annually to recover over the next 2 decades.Parks and Recreation Services: Current staffing budget is insufficient to maintain parks at the same quality that has been traditionally expected in Visalia. Staffing: Pre‐recession, Visalia had 5.7 employees per 1,000 population. Today, there are 4.8 employees per 1,000 population.
Meeting With Marymount California University Launches Study
Officials from Marymount California University met last week with Visalia Mayor Steve Nelsen and other local officials to discuss the kick-off of a local study to gauge the feasibility of establishing a satellite university campus in Visalia that could offer 4-year degrees. The university was represented by Co-President Steve Reeves and administrative staffer Sandy Escobedo who will oversee the $25,000 study expected to be complete by May.
“With the large Catholic population in the Central Valley the university believes there could be wide interest from area students who might want to study closer to home “says City Manager of Visalia Mike Olmos. The city paid $5000 to help fund the study.
“If it goes forward it will likely start out small” expects Olmos.
Jobless Rate 12.3% In January
The unemployment rate in the Tulare County was 12.3 percent in January 2016, up from a revised 12.2 percent in December 2015, and below the year-ago estimate of 13.7 percent. This compares with a rate of 5.8 percent for California and 5.3 percent for the nation during the same period. For January nonfarm jobs in the county were up 3900 compared to a year earlier while farm jobs were down by 100.