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  • Measure M: More money pours into sales tax battle in Citrus Heights

    Measure M: More money pours into sales tax battle in Citrus Heights

    A ‘Yes on M’ campaign billboard can be seen on the 8600 block of Greenback Lane located just outside the city limits, in Orangevale. // M. Hazlip

    Updated Oct. 26, 10:06 a.m.–
    Sentinel staff report– Latest campaign finance reports filed Thursday show unusually large amounts of money are being contributed to campaigns for the proposed Measure M sales tax in Citrus Heights.

    Political campaigns in Citrus Heights, usually City Council races, typically see $10-20,000 in total contributions and expenditures for winning campaigns. But the fight over Measure M, a 1-cent-per-dollar sales tax increase that would raise an estimated $12 million annually and bring the sales tax rate up from 7.75% to 8.75%, is resulting in record amounts of contributions and spending.

    Proponents say the tax is a small price to pay to cover services like escalating road repair costs and to fill vacant positions in public safety, while opponents claim the city has mismanaged its current funds and say the wording of the tax measure allows funds to be spent on anything, including pay raises.

    Legally required campaign finance disclosures for the period of Jan. 1 through Oct. 17 show the Yes on Measure M committee brought in a total of $47,427 in contributions, with one additional contribution over $1,000 on Oct. 20. The top donation for October is from Le Gaming Inc. for $5,000, which lists an Anaheim address and has ties to Stones Gambling Hall. Additional donations of $2,500 apiece came from Sacramento-based MMS Strategies and the Northern California Carpenters Regional Council Issues PAC.

    A separate committee formed to support Measure M was also created under the name Citrus Heights Residents for a Better Community. The committee has separately raised $17,000 from two large donors who each gave $8,500.

    The committee’s donations came from “The Sanctuary” cannabis dispensary in Sacramento and a company with a New Hampshire address listed as Ajala, Inc. The committee’s only reported expenditure is an $8,500 contribution to Councilwoman Porsche Middleton’s 2022 campaign committee.

    *Editor’s note: This article originally listed an $8,500 contribution involving Middleton’s campaign as being “from” her campaign committee instead of “to” her committee. We apologize for this unintentional error.

    Opponents of Measure M have also bumped up their fundraising activity since the last reporting period that ended Sept. 19, which was previously reported on by The Sentinel. The “No on CH Measure M” committee reported a total of $6,553 in contributions through Oct. 17.

    Prior report: Money pours into battle over Measure M sales tax hike in Citrus Heights

    The opposition campaign’s top donor is the Sacramento Taxpayers Association, which gave $2,000. The Sacramento-based organization’s president, Bruce Lee, has been spearheading the campaign against Measure M and also gave $450 of his personal funds to the campaign.

    The campaign’s other large donors are Pastor Auto Care, Inc., and El Tapatio Mexican restaurant. Both businesses gave $1,000 each and have been vocal opponents of Measure M.

    Campaign responses
    Lee criticized the Yes on M campaign in an email statement Saturday saying “the VAST amount of money has come from non-Citrus Heights businesses who are not impacted by sales taxes and who sell their services to the city.” He called it a “a blatant ‘pay to play’ program.”

    Out-of-town involvement on both sides has come up as an issue during the campaign, with Lee being prevented from speaking at a Citrus Heights Chamber of Commerce forum due to him not being a resident of the city. Lee has responded that the taxpayers association he heads has members in Citrus Heights, whom he represents.

    The Sentinel in an email on Saturday offered both campaigns an opportunity to comment on the latest financial filings. Each acknowledged receipt, but only the “No on M” campaign submitted a statement by publication deadline.

    The Yes on Measure M campaign previously issued a brief statement regarding its contributions last month, calling the level of support “very encouraging” and stating that contributions “have been made by local community members, local businesses and organizations that genuinely care about Citrus Heights.”

    Stones Gambling Hall, whose parent company gave a $10,000 contribution to support Measure M last month, also previously issued a statement, saying: “we have always supported initiatives that are for the betterment of the community we serve, our support of Measure M is consistent with that objective.”

    The Sentinel also sought to contact the second committee formed in support of Measure M, known as Citrus Heights Residents for a Better Community. The committee’s treasurer, Courtney Shinn, was reached briefly by phone at her home on Saturday, but said she was not available to give an immediate comment on Measure M and offered to give a statement early next week.

    Election 2020: Who’s running for Citrus Heights City Council?

    The Sanctuary, which gave $8,500 to Shinn’s committee, was contacted by The Sentinel on Friday evening where a man who identified himself as the manager on duty said he was not familiar with Measure M and had no knowledge of any campaign contributions by the store. When asked about the owners of the business, the man abruptly ended the phone conversation.

    The Sentinel also reached out to Councilwoman Porsche Middleton and Ajala Inc. regarding contributions relating to the Residents for a Better Community committee but did not receive responses by press time Saturday night.

    Expenditures
    Expenses for both campaigns have also racked up quickly, with voters seeing at least one billboard pop up on Greenback Lane and multiple mailers being sent out.

    The Yes on M campaign has reported close to $42,000 in expenditures through Oct. 17, with top expenses being for consulting services. The campaign has accrued a bill of $10,000 for consulting services from Townsend Calkin Tapio, Inc., and paid another $5,000 to KMP Strategies, LLC.

    The next top expenses were $4,400 to the US Postal Service for postage, and $2,800 to Citrus Heights-based All Star Printing for campaign literature and mailings.

    The No on Measure M committee has reported total expenditures of around $4,300, including several accrued expenses. Top expenses were $1,151 to the US Postal Service for postage, $630 for online ads on The Sentinel, and just over $600 to Orangevale Copy for literature and mailings.

    The next campaign finance disclosure reports are required to be submitted by Feb. 1, 2021, with the exception of donations over $1,000 which must be reported individually within 24 hours of receipt.

    To view current filings for all campaigns, click here.

    Undecided about Measure M? See guest columns written from each side below:

  • 31-point action plan unveiled for Auburn Blvd; funding questions remain

    ABBA, Richard Hale
    Richard Hale, chairman of the Auburn Boulevard Business Association, holds up a sheet with several funding options for a 31-point action plan during a Nov. 14 meeting at city hall. // CH Sentinel

    Sentinel staff report–
    A long-awaited action plan for improving a heavily trafficked commercial section of Auburn Boulevard in Citrus Heights was unveiled to a group of about 50 business representatives, city leaders, and property owners during a Nov. 14 meeting at city hall — but the group remained undecided on how the extensive plan would be funded.

    The 31-point action plan was presented by a pair of consultants hired by the Auburn Boulevard Business Association, which represents business and property owners along the boulevard from Sylvan Corners to the Roseville border. Action points revolved around three areas of focus: maintenance and security on the boulevard, land use and advocacy, and marketing and communication.

    Specific action items include coordinating litter removal and weed abatement, exploring the hiring of private security or off-duty police to enhance security, working closely with code enforcement to address concerns, potentially hiring an advocate to represent local businesses before state and local governments, marketing the corridor to help fill vacancies, and working with the city to explore hiring a dedicated “navigator” for the boulevard to help address what business owners listed as their number one concern: homelessness.

    Related: Read all 31 action items planned for Auburn Boulevard

    The action plan followed a survey that was sent to property owners in August and more brainstorming and input provided by business and property owners during a pair of meetings held in September. The meetings were led by MMS Strategies, an area consulting firm hired by ABBA using a $25,000 grant from the City of Citrus Heights.

    Top issues and problems identified during the process were related to cleanliness and safety, vacant store fronts, homeless-related concerns, and lack of a brand or unique identity for the boulevard.

    Based on the input received, MMS crafted the action plan as a way to address the concerns and issues raised, but funding remained the unresolved question of the night.

    “That’s all great, but how do you fund it,” MMS Consultant Michelle Smira asked rhetorically to the audience, before delving into three funding options.

    Funding options
    According to MMS, fully funding the action plan would run an estimated $275,000 to $400,000 annually, but Smira said costs could be lowered if funding came from grants and other sources. All 31 points also wouldn’t have to be fully implemented in order to lower costs, she said.

    Two main funding options presented were to build the business association’s current membership up from its current total of 21 businesses, or forming a Business Improvement District like the Sunrise MarketPlace did back in 1999. A third hybrid option would be a mix of the two main options.

    The first option would focus on increasing membership and influence with ABBA, although the estimated revenue presented for the option would only raise about $5,000 annually. Discussion quickly focused on the second option of forming a Property-based Business Improvement District (PBID), where property owners in a defined area vote to pay a tax to fund specific additional services and promote their district. The tax would be tacked on to annual property tax bills on any properties located in the business district, which in this case would be about 127 parcels that lie along Auburn Boulevard from Sylvan Corners to the Roseville Border.

    Business Improvement Districts have risen in popularity during the past several decades in California, following the state legislature’s authorization of the districts, beginning with the Parking and Business Improvement Area Law of 1989. According to Smira, there are currently 15 such districts in the City of Sacramento and four in Sacramento County.

    MMS consultants said key benefits of a PBID would include ensuring that all property owners contribute financially to improvement efforts in the area and that, unlike other taxes, money would go straight to the PBID for use only on projects that benefit the area being taxed.

    Business owners present at the meeting appeared to resonate with the idea of each property owner being required to chip in — contrasted with trying to increase ABBA’s membership, which would be voluntary. However, PBIDs also require a majority of owners in the district, weighted by assessment, to approve the plan.

    A local example
    The Sunrise MarketPlace formed as a business improvement district in the city in 1999 and is currently the only PBID in Citrus Heights. The city recently funded a joint effort with the MarketPlace, agreeing to contribute $300,000 towards a new pop-up stadium as part of a four-year $2.6 million investment the marketplace and mall have planned to attract consumers to Citrus Heights’ primary shopping district along Sunrise Boulevard.

    Mayor Jeff Slowey, who attended the Nov. 14 meeting at city hall, has previously spoken favorably of the business improvement district model. In his 2017 State of the City address in August, Slowey said “when businesses vote to tax themselves and spend that money on promoting themselves… as the public partner, I am willing to go in and spend money with them.”

    Related: Sunrise Mall to get new 2,500-seat stadium for outdoor concerts, events

    Kathilynn Carpenter, executive director for the Sunrise MarketPlace, told The Sentinel in an interview on Friday that her PBID enjoys popular support from businesses and has successfully renewed its assessment district three times by a vote of property owners in the district. Although PBIDs are free to calculate assessments in various ways and at various amounts, Carpenter said the cost to property owners in her district is 3-cents per square foot for office-zoned parcels and 6-cents for retail, which raises $750,000 a year from a total of about 120 parcels in the district.

    Carpenter, who has served as executive director of the Sunrise MarketPlace since its inception, said she is a “a big believer” in PBIDs.

    “It’s something organic and the property owners have to say ‘yes’ they want it,” said Carpenter. “To me, it’s just a perfect funding mechanism to do what really a public sector city can’t do — that we can just do better in the private,” she said.

    Asked what the MarketPlace would look like without the PBID being formed, the executive director said things would look “much different.”

    “I can’t think of anyone who’s shined a brighter light on the city than us,” said Carpenter, citing concerts, media awareness, generating traffic, and improving cleanliness and safety. “It’s usually us who’s doing something big.”

    She also said keeping an eye on local policies and state legislation that affect local businesses has been a key benefit to forming an improvement district.

    “Advocacy is a big part of what we do,” said Carpenter. “When we call the city, it’s 440 business and about 80 property owners… That’s one of the strongest reasons for forming a BID; having that advocate for you at city hall.”

    Although a passionate advocate of Business Improvement Districts, Carpenter said some property owners disagree and have voted against her PBID, which legally must be renewed by a vote every 5-10 years. She also said initial startup costs to get the PBID going can be significant, estimated by MMS Strategies to run about $60,000.

    “Some will be fine and some will be opposed… depends on whether they’ll see the benefit,” she said, recalling the initial vote to form her area’s PBID nearly 20 years ago. “The good news is the smaller properties which may say ‘I don’t see how this benefits me’ will also see a very low tax assessment.”

    Objections:
    Primary objections and concerns raised about pursuing a PBID during the Nov. 14 meeting revolved around how much each land owner in the district would actually be taxed, and whether property and business owners should be voting to tax themselves any more than they already pay.

    “The question being asked here is can we tax ourselves to pay for what we’re already paying for,” said property owner Chris Airola, referring to the city’s code enforcement and police services as those already best-suited to handle concerns like homelessness. “The services already exist.”

    In an interview following the meeting, ABBA Chairman Richard Hale sought to respond to Airola’s objection, calling it a matter of “priority.” He said while police and other municipal services are responsible for the entire city and have to prioritize service calls, a PBID would always have Auburn Boulevard businesses as its sole priority.

    The question of how much each land owner would be need to be taxed to raise necessary funds remained unanswered during the meeting, but Hale told the group several options for how to calculate a PBID assessment tax would be presented at ABBA’s next meeting on Dec. 12th.

    Although a funding option was not decided on, Hale said he anticipates a path forward to be decided over the next 60 days.

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