61,045 / 42.6% Yes votes ...... 82,164 / 57.4% No votes

See Also: Index of all Measures

In 1995, the Mayor convened the New Realities Task Force which was comprised of 25 citizens from a broad cross-section of the community, with representatives from business, labor, clergy, academia and neighborhood groups, to study organizational efficiency, revenue, expenditure and personnel issues. One goal of the Task Force was to design a comprehensive package of proposals and reforms to correct the structural imbalance that exists between the City's revenues and expenditures. On April 16, 1996, the Task Force presented a package of recommendations to the City Council. Included as part of the Task Force package was the imposition or increase of three general taxes, referred to as the New Realities Taxes. The implementing ordinances, adopted by the City Council on October 29, 1996, did the following:

1. Increased the City's business tax, for the first time since 1983, by 3%, and provided a method for annually adjusting the rates for inflation by no more than 3% per year.

2. Expanded the City's 5% telephone users tax, which previously applied only to in-state telephone calls, to include out-of-state phone calls.

3. Changed the methodology for calculating the business tax on fuel tank farms to be based on fuel storage capacity or number of employees, depending on which method resulted in the higher amount.

In the last fiscal year, the City collected an estimated amount of over $11,000,000 from these three sources of revenue. Therefore, if this measure fails to pass, the City's current General Fund revenue will be reduced.

JOAN R. GALLO, City Attorney
City of San Jose

The above statement is an impartial analysis of Measure AA. If you desire a copy of the ordinance, please call the City Clerk's office at (408)277-4424 and a copy will be mailed at no cost to you.

In 1996 the city created the New Realities Task Force - a citizens' committee representing neighborhood groups, small and large businesses, labor, churches and other community-based organizations. After completing the most thorough review of

city operations ever attempted, the committee found over 30 ways to make our government more efficient. Recommendations included improved employee safety programs, performance-based budgeting, and additional opportunities for the private sector to compete to provide government services. Together, these changes have saved taxpayers millions of dollars and improved basic services.

Three of the recommendations from the citizens' task force were adopted by the City Council in 1996. Measure AA reaffirms this 1996 decision.

How will Measure AA benefit San Jose? The Mayor's budget proposal, unanimously adopted by the City Council, state that Measure AA funds can be used for the following priorities:

• Hiring 24 additional police officers

• Improved training in the Fire Department

• Expanded emergency preparedness

• Increased street maintenance

• Reducing the backlog of streetlight and traffic signal installation

• Improving parks throughout San Jose

• Repairing community centers

• More library/homework centers for youth

• Increased library hours

Measure AA keeps us on the right track. These funds help guarantee vital services like police, fire, parks library and transportation improvements
- at no new costs. Measure AA simply keeps these programs going and neighborhoods strong.

For the security of our neighborhoods, please vote YES on Measure AA.

SUSAN HAMMER
Mayor
City of San Jose

FRANK FISCALINI
City Councilmember
City of San Jose - District 6

Rev. JOHN L. FREESEMANN
Holy Redeemer Lutheran Church

CORAZON TOMALINAS
Community Activist
New Realities Task Force member

TERRY CHRISTENSEN
Chair, Political Science Department
San Jose State University

Because Proposition 218 was approved by the voters, the City Council has now been forced to give the people the right to vote on these taxes.

We believe you should vote "No" for three simple reasons.

First, these $5 million of tax increases are part of a package of broken promises. They were supposed to come with a commitment from city government to become more efficient and cut waste. Those promises were broken. The cost savings claimed by the supporters of these taxes are greatly exaggerated and mostly imaginary.

Second, City Hall has not done enough to improve government efficiency since these taxes were imposed. The City recently adopted new rules that discourage local businesses from bidding to provide services and reduce costs. These rules stopped those outside of city government from competing for work.

Third, the taxes just don't make sense:

• Higher business taxes hurt the economy and drive jobs to other cities.

• New utility taxes on telephone calls will put an additional cost on families.

• The new gas tank tax will make the cost of storing fuel higher here in San Jose, where prices are already higher than in other parts of California.

• It's not okay to break promises to reduce government waste.

• It's not okay to charge these three taxes for the last two years without giving the people of San Jose the right to vote on them.

PAT DANDO
San Jose City Councilwoman

KATHY CHAVEZ NAPOLI
San Jose Businesswoman and Taxpayer

PAM WATSON
Homemaker and Neighborhood Leader

KATHLEEN O'CONNELL-SUNDARAM
President, Santa Clara
County Taxpayers Association

TOMMY FULCHER, past Chair
San Jose Silicon Valley Chamber of Commerce