10/16/2016
CHULA VISTA's PROPOSED TAX INCREASE
The woeful neglect of Chula Vista’s infrastructure is an unfortunate reality. It reflects poorly on several Mayoral administrations that no comprehensive plan was ever put forward to address this situation out of ongoing city resources.
The problem is now bigger than it ever should have been allowed to become. The fair and appropriate way to deal with infrastructure issues is considered by most to consist of handling normal deterioration through normal tax income. On occasion when a large new item of infrastructure is necessary and wise, its purchase is normally handled through a bond so that all the burden of the investment is not shouldered by current residents while future residents enjoy the benefits at no or an unfairly reduced cost.
Sales taxes are not normally associated with infrastructure. Its relative burden has little or no relationship to the fair individual cost of infrastructure. It is particularly disturbing that the relative impact of sales taxes hit the lowest income individuals the hardest.
Leaving aside the inappropriateness and unfairness of a sales tax increase, its utilization in this case could fairly be described as a crutch that allows the continuation of bad behavior. Not only does Chula Vista have a large infrastructure deficit, but it has been unwilling to keep up with correcting normal annual deterioration – the deficit has simply been allowed to grow larger.
The proper way for Chula Vista to fund its infrastructure needs has always been to increase tax income by increasing the amount of business activity. The city has a consistent bias toward new housing development, even at the expense of zoning for commercial and industrial development. The absence of an adequate tax income from these sources has predictably led to the attempt to squeeze more money out of individual residents.
The people of Chula Vista would have been much better served with a serious economic development plan accompanied by a bond exclusively dedicated to correcting past underfunding of city infrastructure. Harnessing enhanced business activity to increase tax revenue that would allow full funding in the future.
Instead – Chula Vista Prop P combined with County Prop A offer the prospect of a 9% sales tax in Chula Vista - that may be a drag on both local retail spending and sales tax income. Chula Vista deserves better than that.
