UUT Opposition May Have Made Some Mistakes on Facts Sheet

If you visit MaryAnn MacGillivray’s campaign website, you will find a list of what she describes as UUT facts. Some of the things she said didn’t jibe with my understanding of the current and proposed UUTs, so I looked into it a little deeper. I think MaryAnn (or whoever prepared the Facts list) may have made a few mistakes. I’ve spelled them out in the table below.

UUT  Facts per MacGillivray Website Right or Wrong?
The UUT is not going away Right
The UUT is currently 10% Right
The UUT will remain at 10% until July 2014 unless the City Council changes it WRONG.  The UUT as currently in effect will go to 12% in July of 2012 and/or July of 2013 unless the Council takes action to prevent it.  In fact, if Measure 12-1 is passed, it will freeze the rate at 10% through July, 2013, taking away the possibility of it going to 12% in 2012.
The City council is authorized to increase the UUT to 12% anytime up to June 30, 2014 …. Then …. Right
In July 2014 the UUT would go back to 10% Right, if the UUT were currently above 10%.
In July 2015 the UUT would decrease to 8% Right, if the UUT were currently above 8%.
In July 2016 the UUT would decrease to 6% Right, if the UUT were currently above 6%.
This is clear, there is no uncertainty Right
The tax is a General Fund tax and not a special tax Right
Public safety is funded now with the 10% WRONG.  The PD, since the 2011 – 2013 budget was adopted, has a Captain position and an officer position that are unfunded, and has been making additional cuts to help the City keep a balanced budget.  As I understand it, the City has cut $300,000 from the police budget for each fiscal year 2011-13 and froze two positions. Given the loss of the RDA, the City has now cut another $131,000 from that budget, and that still does not address a currently projected shortfall of $300,000 in revenue for this fiscal year (including $160,000 less than projected from the UUT.)
Public Safety is a priority and will continue to be funded Right.  The question is, what level of funding will be available.
The City has 3 years to evaluate the budget and make proposed changes WRONG.  The next budget will be for 2013 – 2015, and must be in place by July 1, 2013.
There is another election in 2 years so changes to the UUT could be voted on at that time after the community has time to evaluate any changes in service other than Public Safety Right.  However, by that time Council will have already had to make decisions for the 2013-2015 budget based on the anticipation of possibly lower levels of funding in 2016.
THERE IS NO URGENCY AT THIS TIME Depends on your point of view
A NO vote on Measure 12-1 leaves the UUT at the rates listed above WRONG.  A NO vote leaves the UUT at the rates described in this column above.
A YES vote on Measure 12-1 raises the UUT rate to 12% in July 2013 and keeps it there until June 30,2018 (5 more years)…. Then …. Right and WRONG.  A YES vote raises the UUT rate to 12% on July 1, 2013 UNLESS THE COUNCIL TAKES ACTION TO PREVENT IT.  Each July 1st after that, the rate goes to 12% unless the Council takes action to prevent it.  Note – the current Council has elected NOT to raise the tax to 12% two years in a row, and has therefore taken action to prevent an increase.
In July 2018 the UUT would go back to 10% If it had been raised to 12%.  If it is at 10% it will remain there.  If the Council has lowered the rate to less than 10%, they will have the option of raising it to 10%.
In July 2019 the UUT would decrease to 8% If the then current rate is above 8%.  If the then current rate is 8%, it will remain there.  If the Council has lowered the rate to less than 8%, they will have the option of raising it to 8%.
In July 2020 the UUT would decrease to 6% If the then current rate is above 6%.  If the then current rate is 6%, it will remain there.
Note: The UUT baseline is 6%; it doesn’t go away Right.