SDCTA opposes Proposition H - Chula Vista Utility Users Tax Increase, 2010
SDCTA opposes the proposed modernization of the Telecommunications Users' Tax because the City continues to fail to demonstrate sufficient fiscal responsibility to request additional revenue from taxpayers. In addition, SDCTA has concerns that the proposed ballot language does not properly convey to taxpayers the true implications of the measure, which is approval of a tax increase. The City of Chula Vista held a Special Election on May 5, 2009 to ask voters for a 10-year, 1% sales tax increase, which would set the rate from 8.75% to 9.75% (Proposition A), the highest in the County. The City Council spent between $255,000 and $285,000 of taxpayer money holding a special mail ballot election. The cost to place the measure on the ballot during a regular election would have likely cost half of that. SDCTA opposed the measure for the following reason: "The City of Chula Vista is facing a serious, self-created financial crisis due to increases in spending, increases in the General Fund Debt, and unsustainable compensation increases. These actions have forced the city to resort to deficit spending and a reduction of emergency reserves in order to balance the budget. In order to balance some of these shortfalls, Chula Vista proposed a special election to ask voters to increase the sales tax by 1%. SDCTA opposed this sales tax increase, recommending instead that the City make every effort to reduce labor costs, streamline operations and demonstrate fiscal discipline prior to seeking additional revenues from taxpayers."