Several weeks ago, I participated in a focus group composed of city business owners to discuss our municipal budget problems and to provide feedback. The information provided by the city was shocking.

Previous City Councils had grossly over-compensated and over-expanded our city labor, and to hide the extent of our problems, moved money between accounts and deferred road and building maintenance. They created a mess that, unless dealt with, will send the city to fiscal insolvency and eventual bankruptcy.

With this knowledge, the group reluctantly and tentatively agreed to support a sales tax increase, and possibly a future parcel tax increase. But we were unanimous in demanding that new tax increases be temporary, to be replaced with permanent revenue increases and expense cuts, and we received this assurance.

With respect to increased revenue, the city of Davis derives it from two primary sources: sales tax and property taxes. Residential property becomes an eventual drain as the property tax revenue fails to keep up with the expense of related city services. Conversely, business tends to generate tax revenue in excess of the cost of related city services. So, cities must rely on business property and business economic activity as a primary source of property and sales tax revenue.

However, Davis, possibly because of the existence of UC Davis (note, a business that pays zero property tax), has tax revenue per capita significantly lower than any comparable city.

Unfortunately, recently the mayor and a council majority failed to give adequate time for a critical presentation on proposed economic development. The agenda item was tabled for four weeks. This action, combined with the money and time council is dedicating to other nonessential topics, makes it clear that the majority of our current council is only paying lip service to the urgent need to develop our economy.

For that reason I have changed my mind and will vote no on any tax increase measure. I urge my fellow citizens to do the same. And I also encourage all citizens to ask current council candidates their position on city economic development and vote accordingly.

Jeff Boone

Davis

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