Meaning of Voting Yes/No

A YES vote of this measure means:

You want to approve a two (2) percent T.O.T. rate increase for a performing arts center.

A NO vote of this measure means:

You want to reject the proposed two (2) percent increase in the T.O.T.

This measure would increase the T.O.T. from nine (9) percent to eleven (ll) percent in two steps over a one year period. If passed, the increased portion only, that is, the additional two (2) percent, would be placed in a special fund and could be used only for the purpose of funding a City contribution of $7.5 million to a performing arts center. The increase would remain in effect indefinitely until the $7.5 million contribution has been made. Under the proposed measure the tax rate would then automatically revert to nine (9) percent.

The City Council has indicated that if this measure passes, they will also commit Redevelopment Agency funds (30% of tax increment surplus) to help make the City's $7.5 million contribution.

Since the tax increase is to be used for a specified purpose it is a "special tax" under Proposition 218, and must be approved by a two-thirds (2/3) vote.

Contact FOR Measure F:

Bruce R. Frohman, Councilmember

Contact AGAINST Measure F:

Bill Conrad, Councilmember

Modesto Bee

• "Bee's ties to Measure F draw look at paper's objectivity." 11/3/00
• "Performing Arts Center Backers Gain Ally."
• "Measure F-Modestans debate tapping into taxes to build arts center." - includes links to articles entitled: "facts & fiction...", "the need...", "what is an endowment?", "the Bee's opinion".
• "Claims of deceit from both sides of hotel tax measure."
• "Measure F forum has public airing".
• "Center has big backers, but those against Measure F still plan to win..."
• "Which is it-spend or save? Community Columnist, John Flint notes only 5% interest rate on endowment."
• "Center's earnings debated...10% interest rate reasonable."

Supporting this increase, which will expire when the debt is retired, is important because of the positive impact the Performing Arts Center will have on future economic development in our community. The arts center brings added vigor to downtown, it increases job opportunities and attracts regional visitors. This is an excellent opportunity for Modesto to become the Valley's regional center for the arts. In addition, the Center will provide our children excellent opportunities to expand their cultural horizons through exposure to an expanded variety of professional artistic events.

Modesto is known for its high quality of performing arts organizations but many of them struggle with the challenge of finding a venue in which to perform. Your vote will help ensure we have facilities available to share our local talents as well as being able to attract well-known entertainers.

Your yes vote will culminate in a partnership between the City, the County and the private sector to make this project feasible. The business community is solidly behind this issue. In fact, even the hotel industry is supportive. By voting for this measure you will transform a dream project into a reality.

/s/ Bruce Frohman
City Councilmember

/s/ Kenni Friedman
Vice Mayor

/s/ Neil Khatri

/s/ Cecil Russell

It is time to tell the "Special Interests" Not This Time--Not This Year. Public Safety First. Vote "No on F".

Measure F's passage would trigger an avalanche of indebtedness through County General Obligation Bonds and the Redevelopment Agency Tax increment. This debt would total millions of dollars levied against our children and our family's future. Vote "No on F".

Illegal overcharges on your water and sewer bills totaling over 7 million dollars should have been refunded directly to you and other taxpayers. Instead your money was diverted into the General Fund by a majority of the Modesto City Council. Can we trust them to put "Our Interests" before "Their Interests"? Vote "No on F".

/s/ Bill Conrad
City Councilmember

Increasing unseen/hidden taxes like the Transient Occupancy Tax ("T.O.T.")to ll% is like watching a cancer spread. Can it be stopped? Vote "No on F".

The Performing Arts Center is for the ENTIRE community. Everyone will benefit from the Educational and Cultural Opportunities, Job Creation, and Economic Growth the center will generate. The economic growth will generate additional tax revenue that is expected to more than pay for the cost of the project over the 30 years of debt service. The annual cost to service the debt will be less than one half of one percent of the annual city budget--not an avalanche of debt.

The Performing Arts Center has nothing to do with your water bill. It will not be paid out of the General Fund. It will be paid by the Transient Occupancy Tax, the same type of tax you pay to other cities when you use their hotels and motels.

Private donors have already committed $l8 million to this project. Modesto will commit less than half of the private contributions when you vote to approve $7.5 million. We have talked about building a Performing Arts Center for many years. Now is our opportunity to build it at a minimum of cost to the City of Modesto.

For a better quality of life in our entire community, common sense is to vote "Yes" on Measure F.

SECTION 1. AMENDMENT OF CODE. Sections 8-20603 and 8-2.615 of Article 6 of Chapter 2 of Title B of the Modesto Municipal Code and hereby amended to read as follows:

SEC.8-2.603. TAX IMPOSED

For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the following amount:
(a) Commencing July l, l985, a tax in the amount of seven (7) percent of the rent charged by the operator.
(b) Commencing July l, 1986, a tax in the amount of eight (8) percent of the rent charged by the operator.
(c) Commencing July 1, 1987, a tax in the amount of nine (9) percent of the rent charged by the operator.
(d) Commencing December 1, 2000, a tax in the amount of ten (l0) percent of the rent charged by the operator.
(e) Commencing December 1, 200l, a tax in the amount of eleven (ll) percent of the rent charged by the operator.

Said tax constitutes a debt owed by the transient to the City which is extinguished only by payment to the operator or to the City. The transient shall pay the tax to the operator of the hotel at the time the rent is paid. If the rent is paid in installments, a proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due upon the transient's ceasing to occupy space in the hotel. If for any reason the tax due is not paid to the operator of the hotel, the Tax Administrator may require such tax shall be paid directly to the Tax Administrator.

SEC. 8-2.615. DISPOSITION OF PROCEEDS.

(a) Except as set forth in subdivision (b), all moneys received by the City under or pursuant to the provisions of this article shall be deposited and paid into the General Fund of the City.
(b) All that portion of the tax greater than nine (9) percent which is collected pursuant to subdivisions (d) and (e) of Section 8-2.603 shall be placed in a special fund to be used for a City contribution of seven million five hundred thousand dollars ($7,500,000) to a performing arts center and for no other purpose. It is contemplated that the City will finance its contribution. Once that debt has been paid in full the tax rate shall immediately revert to nine (9) percent.

SECTION 2. Nothing herein shall prohibit the City Council from amending or repealing those provisions of Article 6 of Chapter 2 of Title 8 of the Modesto Municipal Code which remain unaffected by this ordinance. In no event, however, may the City Council alter the provisions of those portions of Sections 8-2.603 and 8-2.615 of the Modesto Municipal Code enacted by this ordinance without the approval of two-thirds (2/3) of the voters of the City of Modesto voting on the question.

SECTION 3. EFFECTIVE DATE. This ordinance shall be effective only if approved by two-thirds (2/3) of the voters voting thereon and shall, pursuant to Elections Code Section 9217, go into effect ten (10) days after the City Council confirms the canvas of the vote.