See Also: Index of all Measures

The City of San Bruno proposes to repeal existing municipal Code Chapter 3.16 setting forth the current schedule of business license taxes.

Business license taxes are imposed upon every person transacting, engaging in, or carrying on a business within the City of San Bruno, except for businesses excepted or exempted from such taxes under local, state or federal law. Business license taxes are levied in several different ways, including: based upon a percentage of a business' gross receipts, square footage of the place of business, or the particular business activity conducted.

The dollar amounts of the minimum taxes in the City of San Bruno's schedule of business license taxes have not increased since 1947. Most businesses will see their taxes increase under this ordinance. A new category of commercial property business will be established and a tax imposed. Businesses may or may not pass these additional costs on to customers.

In fiscal year 1998-1999, business license taxes (excluding gambling club table taxes) contributed $580,000, or 3%, to the City's general fund. The new schedule of business license taxes is expected to increase by $170,000 monies collected to $750,000 for fiscal year 2000-01.

If the measure is approved, the City of San Bruno Municipal Code will be amended and the new schedule of business license taxes will be effective January 1, 2000.

City of San Bruno

San Bruno residents should consider the following regarding Measure I:

• The minimum business license tax was last increased 52 years ago.

• 59% of all San Bruno businesses currently only pay the minimum, which will increase to $75.

• Current business license revenue of $580,000 pays the cost of police and fire services for only 28 days each year. Measure I will result in a revenue increase of $170,000 toward these services.

San Bruno's business license fees average among the lowest within San Mateo County cities. Other cities require a higher minimum tax so that all businesses pay their fair share.

Additional revenue is needed to maintain a balanced budget, to fund widely desired programs such as paramedic service and fire dispatch, expanded library hours, after-school recreation, Senior Center services, and to provide for the community's long-term building and facility needs.

All business license category rates will be adjusted, but generally not greater that $50 or 25%.

Please join us in voting YES on Measure I.

/s/ Mayor Ed Simon

/s/ Councilmember Ken Ibarra

/s/ Councilmember Irene O'Connell

/s/ Councilmember Jim Ruane

Measure I is really a tax on San Bruno's residents. Businesses will pass the cost of this tax on to their customers by charging more for products and services.

While other San Francisco Bay Area cities are reaping the rewards of a surging economy, San Bruno's City government is a financial basket case. In our opinion, tax revenues are not the problem, incompetent management is. Measure I rewards this incompetence, providing further incentive for failure to a City Manager and Council who refuse to cut the fat and waste from San Bruno's City budget.

Approving more tax revenue for San Bruno's fiscally incompetent City government is like spraying gasoline on a fire that is burning your house down or pouring water on a hill that is sliding out from under your house.

It is our opinion that the institutionalization of incompetence and waste makes San Bruno's City government the financial failure it is today. It is also our opinion that San Bruno's City government is a place where: problems are covered up, not resolved; budget deficits and mismanagement are paid for by increasing taxes, not cutting costs and assessing responsibility; political performance, and not job performance, is the measurement of success.

In our opinion, City Manager Hedley's costly, destructive management decisions are the root of San Bruno's ongoing budget deficit. We believe that San Bruno's City government is doomed to financial failure unless City Manager Hedley and his Council associates are removed from office and replaced by professionals committed to management excellence and balanced budgets.

/s/ Bill Baker, Co-President of San Brunans for Better Government

/s/ Dirk Sutton, Co-President of San Brunans for Better Government

/s/ Joe Welch

/s/ Steve Johnson

/s/ W. Skip Henderson

VOTE NO ON MEASURE I

TAX INCREASES proposed in this Measure validate MISMANAGEMENT of San Bruno's financial resources by those leading the City down the path to financial ruin; namely City Manager Frank Hedley and the City Council.

MISMANAGEMENT EXAMPLES: In 1996 the City Manager and Council hired real estate broker, now Mayor candidate, Larry Franzella to represent the City of San Bruno in what we believe was an impractical real estate venture, spending $410,000 of San Bruno taxpayer money to purchase the Wells Fargo building in "as is" condition. The building needed substantial repairs. This building is still vacant, the $410,000 is neither available to fund City operations or earn interest in the City's treasury. In 1998, Superior Court Judge Craig Parsons found the City liable for negligence resulting in mudslide damages to San Bruno homes. This judgment against the City could cost San Bruno citizens as much as $1,700,000. The City's payroll continues to balloon. It is now loaded with at least 9 City of San Bruno Department managers earning $100,000+ annually in salaries and benefits.

City officials blame slow sales tax revenue growth for the City's budget deficit. Yet they also want to increase business taxes! Sales tax revenue growth is proportional to business growth. HIGHER TAXES SLOW BUSINESS GROWTH AND THUS SALES TAX REVENUES!

City officials argue that San Bruno's business license taxes must be increased to reach parity with other Bay Area cities. The current business tax rates are probably the main reason why we have any business growth in San Bruno. Increasing business taxes risks even less business growth and larger budget deficits!

Budget deficits are resolved by reducing spending and lowering business taxes to stimulate business activity, NOT INCREASING BUSINESS TAXES.

For more information please visit our internet site at:

http://www.e-a-d.com/badtax.html

/s/ Bill Baker, Co-President of San Brunans for Better Government

/s/ Dirk Sutton, Co-President of San Brunans for Better Government

/s/ Joe Welch

/s/ Steve Johnson

/s/ W. Skip Henderson

Homeowners have seen property taxes increase 2% a year under Proposition 13. The minimum business license tax has remained unchanged since 1947, 30 years before Proposition 13. Measure I fairly adjusts the small and big business categories to ensure equitable sharing of taxes.

San Bruno residents should consider:

• The minimum business license tax has not been increased by 52 years (1947).

• Nearly 1,700 of 2,800 total businesses (55%) would pay the $75 minimum tax. A $75 tax will not negatively impact business growth and is not an unfair burden on an individual business.

• San Bruno's average business license fee is among the lowest in San Mateo County. This proposal brings it up to the average.

• Current business license revenue of $580,000 pays the cost of police and fire service for 28 days each year based on current costs of $9.5 million. The updated tax schedule will contribute an additional $150,000 annually.

Revenue is necessary to maintain a balanced budget for future years and ensure continued funding of newly implemented programs such as paramedic service, fire dispatch, expanded library hours, after-school recreation, senior Center services, and provide for the community's long-term building and facilities needs.

Please support your City...vote YES on Measure I.

/s/ Mayor Ed Simon

/s/ Councilmember Ken Ibarra

/s/ Councilmember Irene O'Connell

/s/ Councilmember Jim Ruane