EL CAJON COUNCIL WEIGHS SALES TAX EXTENSION, APPROVES INCUBATOR BUSINESS CENTER

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Story and photos by Bransen Harper
Miriam Raftery contributed to this report
 
View video of full meeting; view agenda
 
May 6, 2024 (El Cajon) -- The El Cajon City Council discussed matters of pivotal importance at its April 30 meeting, including a potential extension of the Proposition J sales tax measure previously approved by voters. Council also approved a landmark deal with the Chaldean Community Council to create an incubator business program for refugees and immigrants, as well as funding social services. 
 
The half-cent sales tax increase has been in place since voters approved Proposition J in 2008. It generates $14 million, or about 13% of the city’s revenue stream, according to a report presented to the Council, and has been instrumental in continuing to provide much-needed funds for local police and fire departments. But it will sunset, or end, in 2028, unless a new ballot measure is approved to extend it.

 
If that doesn’t happen, alternatives are already being considered by the City Council to remediate most of the lost funds in order to provide increased revenue for these essential services. Councilmember Steve Goble commented, “This (sales tax) is for defense… We aren’t asking for any new things. We want to keep what we have.” He emphasized the need for public education on what the city would lose “if we don't continue the current situation.”
 
According to City Manager Graham Mitchell, a poll commissioned by the city found an overall positive reaction from the community for continuance of the Prop J half-cent sales tax which sunsets after 2028. A total of 910 people were interviewed via text, email and survey and found that most were content with the current tax situation instead of some of the alternatives that were being proposed, such as no new fire department staffing, police layoffs, an increase in fees, legalizing cannabis sales, and even converting one of the public parks to low-income housing to bring in revenues.  Mitchell recommended interactive town halls as a next step, followed by a new poll to help Council determine whether or not to ask citizens to approve a new ballot measure to extend the current sales tax level.
 
The Council also approved an agreement with the Chaldean Community Council (CCC) to provide social services and an incubator business center in a building at 405 East Lexington Avenue, which the city has agreed to lease to the Council for just five dollars over five years, using leftover federal COVID funds. The CCC also received a half-million dollar grant from the county, paid for with federal ARPA funds.
 
Approval of the social services funding for the CCC passed 3-1, with Mayor Bill Wells recusing himself due to a potential conflict, citing campaign finance laws and Councilmember Michelle Metschel voting no.
 
But a heated exchange took place over a provision added at the city manager’s request that would have allowed the city or the CCC to cancel the incubator business center’s lease with six months notice. The provision aimed to give the Council flexibility in case the sales tax initiative doesn’t pass or there is a future recession, as well as provide an out if the incubator business center should fail to meet expectations.
 
CCC spokesperson Kaye Turpin told the Council that this last-minute proposal “blindsided us.”   
 
Noori Barka, PhD, (at the microphone, photo left) who came up with the incubator business center plan, said a six-month cancellation option would cause “damage” by creating uncertainty, such as for future grant applications. He voiced confidence that the incubator business program would succeed, noting that he already has 10 applications for the program and that the only other incubator business center in our county has been very successful. He added that he will work with the city on incentives, and emphasized that participants must start businesses in El Cajon, which will bring in revenues for the city.
 
Councilman Steve Goble initially pressed for the six-month termination option, stating,  “One of the things we have to do as a Council is balance everybody’s interests” including residents, since the city is providing rent-free space. 
 
Vice Mayor Phil Ortiz suggested adding metrics to the contract to measure success.  Councilman Gary Kendrick agreed that metrics would be helpful but said, “It would be very difficult for any business to plan if they don’t have that five year lease.” Kendrick added, “Dr. Barka has a string of successful businesses he’s started, so he knows what he’s doing.”
 
Barka chimed in with a compromise proposal that would allow either party to opt-out after three years, with six-months notice. Councilman Steve Goble then motioned for the Council to adopt this proposal, which was approved 4-0 with Mayor Wells recused.
 
Another matter brought to the city leaders’ attention during public comments was a petition by more than 100 El Cajon residents urging the City Council to help curb drivers' frequent speeding in some of the smaller neighborhoods where there have already been several severe accidents. 
 
One woman during the public comment section stated, “We have to do something before somebody gets killed. Our kids should be able to go out in the neighborhood and play.” 
 
Deputy Mayor Ortiz expressed his sympathies for local residents and argued that perhaps increased education on the hazards of speeding or even a blitz in police ticketing is required in order to stabilize the situation. Ortiz also expanded on this, suggesting, in tandem with Council member Steve Goble, that perhaps a possible re-designing of some of the streets by adding more stop signs and engineering broader avenues in these critical areas might be underway. 

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Comments

13% of the city’s revenue stream

It generates $14 million, or about 13% of the city’s revenue stream It was never intended to be a revenue stream for the city. That's why I would not vote for it. It was for a new police station Fire up grades and Animal control facility. If they made it strictly for Police and fire Equipment, personal, and payroll I be in but not for the city to spend at will.

Different Sales Tax Measures (Prop O & Prop J)

Hi, You're right that there was a temporary half-cent sales tax measure (Prop O) to fund the public safety facility improvements like you mentioned, but that was passed by voters in 2004 and expired in 2015. However, this article is talking about Prop J, which is a 20-year half-cent sales tax measure passed by voters in 2008 for the city's general fund revenue. The City Council proposed Measure P in 2022, which would have been a tax increase, but voters (myself included) rejected that. It now sounds like they're going to propose a new measure that would extend the sales tax measure at its current level. State law requires that tax measures for dedicated purposes (like public safety) be approved by 2/3 of voters, but general fund tax measures (like Prop J) only require a simple majority. That's probably why they're not proposing a tax for a dedicated purpose; it's just harder to pass. -Patrick

thanks for the reminder

I still hope it passes, but didn't remember that it was meant for capital improvements. Thanks for filling me in on some of the details. You get what you pay for.

Speeding vehicles

People in a hurry traveling over the speed limit, running red lights, disrespecting pedestrians and more unacceptable behavior has become the new normal. Police cannot be everywhere to catch these people, nor do they have the resources to do so. Then when lawbreakers get caught, they often have a negative reaction to a police officer doing their duty, which sometimes can turn violent. Red light cameras need to be brought back online, in addition to street cams placed in other needed areas. Additionally, another trend I've seen is many vehicles parking in No Parking zones, including red curbs, and in front of fire hydrants for long periods of time, often overnight, with apparent impunity. Some continue violating parking laws even after being ticketed. Something is wrong with society.