Argument Against Measure G.
There are no compelling reasons to increase the sales tax in Los Gatos. Council Member Barbara Spector called the ballot measure misleading to our community. Now it is up to the citizens of Los Gatos to reject this idea with their votes.
Why vote NO:
1) Use of funds from the new tax are untargeted and unconstrained.
– The ballot language is misleading, implying the revenue will only be spent on essential Town services. Section 4 of the ordinance states “there is no specific commitment to how the revenue will be spent”.
2) The Town can fund its ambitious spending plans without increasing the sales tax.
– The Town Council approved a FY 2019 balanced budget which projects a $700,000 surplus while increasing staff salaries and benefits expenditures 11% and capital projects expenditures 60% over FY 2018 estimated actuals.
– The Town Council approved a fully funded $48 million five-year capital plan and a 5 Year Financial Plan that shows a cumulative surplus.
3) The Town has plenty of cash.
– Los Gatos has over $70 million in unrestricted cash on hand RIGHT NOW. Compare that to Saratoga ($23 million) and Campbell ($44 million). The town’s coffers are flush.
– The Town is projecting total revenues to increase in FY 2019 without a sales tax increase.
4) Increasing the sales tax will hurt our local merchants, not help them.
– Sales tax revenues are falling because of the shift to on-line retailing. Increasing the sales tax now will hurt our struggling local merchants. Los Gatos will have a higher sales tax than neighboring cities Saratoga and Cupertino.
Vote NO on this misleading and unnecessary sales tax. Keep your money in your pocket, not the Town’s bank account.
Sandy Decker, Former Los Gatos Mayor
Jak Vannada, Chief Executive Officer, Retired
Phil Koen, Chairman of the Board, Contegix
Rick Van Housen, Chief Financial Officer, Aktana, Inc.
David Lazares, Lazares Companies Manager
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