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Orozco, Norma <br />From: Tim Johnson < <br />Sent: Tuesday, July 03, 2018 2:45 PM <br />To: eComment <br />Cc: Solorio, Jose; Pulido, Miguel; Sarmiento, Vicente; Martinez, Michele; Benavides, David; <br />Villegas, Juan; Tinajero, Sal <br />Subject: Sales Tax Increase Agenda Item <br />I know I am pass the fpm cutoff for submitting comments on the agenda. I am hoping this can be considered though for <br />tonight's meeting with regards to the potential sales tax increase. I am concerned that the council seems to be poised <br />to allow a sales tax increase be put onto the agenda without sufficient information to determine how the revenue raised <br />would be utilized. The amount of revenue to be raised by both the 1% and 1.5% inceases seems to be more than the <br />amount that we are short in the budget, so there will be excess funds available. The council should have a serious <br />discussion about the use of these funds prior to suggesting that voters should decide on it. It feels that the cart is being <br />put before the horse in this instance. We, the voters, should have this information and you the council needs to have it <br />prior to suggesting that we vote on it. Additionally, considering the amount of potential revenue realized by a 1% or <br />1.5% increase, should you be considering a smaller increase that is more in line with our budget deficit? By increasing <br />the sales tax by so much more than the budget, you appear to be setting the city up to spend money that it currently <br />does not have. There needs to be a plan for this money prior to voting on it—and I mean prior to the Council voting to <br />put it on the ballot. Once a tax increase is approved, it is virtually impossible to reverse simply because an organization <br />will often spend to its means ... sure, there will be some reserves set aside, but it will be very difficult to reverse course on <br />this. It is such a large issue that the council needs to discuss it more fully. <br />I urge you to direct staff to come up with a multi-year pro -forma projection for how funds may be used (including <br />reserve account replenishment) and how this will impact the services that the voters receive in the City prior to putting <br />this plan onto the ballot. <br />Tim M. Johnson, CPA <br /> <br /> <br />