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ALBANY -- Voters on Tuesday appeared to approve three property tax increase measures proposed by city leaders looking for ways to cure the city's chronic revenue problems. Updated Nov. 6, 12:35 am
The measures -- F, G and H -- would, make up for the city's weak sales tax base and revenue siphoned off by the state, officials said.
With nearly 50 percent of votes counted, Measures F, G and H were winning 68.8 percent, 66.2 percent and 57.6 percent, respectively. Measures F and G required a two-thirds vote to pass, while Measure H needed a simple majority.
Measure F will raise $14.5 million to improve Albany's roads and public buildings by issuing bonds, while Measure G will increase the salaries of firefighters and paramedics by 10 percent. The third, Measure H, will allow an additional $200,000 to go into the city's coffers every year.
A quiet Bay Area city with 18,000 residents and few big retailers or manufacturers, Albany already relies heavily on property taxes for its revenues. Property taxes and real property transfer taxes constitute nearly 35 percent of the city's general fund revenue.
"We don't have a sales tax base. We don't have a big department store,'' said Vice Mayor Jewel Okawachi. "People that are against (the measures) seem to say 'Oh, you are always raising taxes,' but we have no choice.''
Albany did not experience the revenue boom seen in the late 1990s in other cities on the Interstate 80 and Interstate 580 corridors, which have hotels and significant retail establishments that generate sales tax revenues.
The city also claims that it has lost more than $5 million to the state and continues to lose $500,000 -- or 5 percent of its general fund revenue -- annually because of the state's decision in the early 1990s to shift property tax revenues to schools from cities and counties.
Opponents claimed that a further increase on property-related taxes will eventually depress Albany residents' property values. Instead, they demanded the city develop alternative sources of income, such as development along the freeway.
The city has stressed that among the three ballot measures, Measure H is particularly important because all the additional revenues raised by it would go straight into Albany's coffers.
Measure H would increase the real property transfer tax rate from the current $8.50 per $1,000 to $11.50 per $1,000, racking up more than $200,000 annually.
In the days leading up to the election, some city officials were confident of Measure H's passage, claiming that it will affect only those buying or selling property.
Measure G would raise the emergency medical services tax per residential unit by $26.69 to keep up the city's paramedics operations.
"I think this measure is practical -- and emotional,'' said Susan Rifas, who has lived in Albany for three years as a tenant. "And it will not directly affect me financially."
Firefighters lobbied this summer for salary and pension increases that would place them on the average of cities along the I-80 corridor.
"Strictly because of the pay, we have lost five paramedics over the last three years and will possibly lose two more,'' said Eric Agee, a paramedic at the Albany Fire Department.
"I love this city and the work I do. But I can do the same job in other cities and get better pay so that I can put my kids through college,'' said Agee, a 32-year-old father of two. "If this does not get passed, I will be leaving as well.''
Measure F would allow the issuance of bonds totaling $14.5 million to improve the city's infrastructure, such as roads and public facilities. The bonds would be repaid by taxes imposed on property, costing homeowners an average of $139 a year.
City officials had stressed the need to reinforce key city buildings built in the 1960s through Measure F.
"Every road is terrible. There are cracks everywhere and water gets down in the cracks and erodes the road base. The sooner we repair, the less it will cost us in the future,'' said Ann Ritzma, assistant city administrator of Albany.
"Our analysis done by experts showed that the fire department will collapse and engines will be trapped inside in an event of a big earthquake,'' she added.
Some citizens opposing the tax increase measures had been cynically claiming that just as Massachusetts got the nickname "Tax-achusetts,'' Albany may soon become known as "Take-It-All-bany.''