Although the presidential election might be the most important in a generation, for El Cerrito officials and employees, the issue that really counts is tied to their own pocketbooks.

Supporters of ballot Measure K say collection of the existing Utility Users Tax (UUT) is necessary to help fund a host of city services, including the police and fire departments. Opponents say the tax as currently structured amounts to a blank check for wasteful spending.

Nearly all city officials, including current Mayor Letitia Moore and 13 former El Cerrito mayors, are backing the measure and have actively supported the campaign when they are off duty.

El Cerrito residents pay the tax as part of their utility bills for telephone, electricity, natural gas, and cable television services. The monthly cost per household, according to the city manager, is approximately $13.

When the City Council adopted the UUT in 1991, courts had ruled that cities could adopt general taxes without a citywide vote. When the California Supreme Court overturned those earlier decisions, El Cerrito city officials found themselves legally responsible for procuring voter approval on the tax.

“It’s a classic hidden tax,” said Sewall Glinternick, El Cerrito Chamber of Commerce Manager. “Most people don’t even know that they are paying it every month.”

Spending on Measure K strongly favors the proponents. The Save El Cerrito Services Committee for Measure K, a group composed of citizens and city workers, has raised $30,451 to convince voters the current tax is essential compared with only $3,662 the opposition committee had raised as of October 16.

“Opposing residents carefully reduce contributions so they don’t have to be reported. Few will risk coming to the attention of City Hall,” said Peter Loubal, the treasurer for El Cerritans for Tax Justice.

The main argument supporters make is that if the UUT is discontinued, the city will lose about $2.2 million annually and could face a general fund budget deficit of 12 percent. “Of that amount, two-thirds goes to pay for police and for protections services,” wrote City Manager Scott Hanin in a letter to the residents of El Cerrito, asking for their support.

Pumpkin lighting vigil in support of Measure K; Photo by Debbie Weeks

Backers of the measure say loss of revenue could also mean reductions in the city’s workforce and cutbacks in community services such as street repairs and sidewalk maintenance, after-school care and senior citizen programs. “Some reductions to staffing and services would be immediate,” said Hanin. “And larger, permanent ones would take a bit more time.”

“If it fails, it will have a severe impact on the police department, that like any other department will have to cut 12 percent of its budget,” said Scott Kirkland, El Cerrito Chief of Police. According to Kirkland, it means a $777,000 hole in the police budget.

Kirkland said that the first two places that would be hurt in his department are the traffic program and the detective positions (only two detectives would remain). He also said that no follow-up investigations would be made after a crime report had been taken. “Not one person from those I have spoken to wants to see these services diminishing,” he said.

A number of contributions to the pro-Measure K committee came from city employees and labor unions, including the El Cerrito Professional Firefighters Association, Service Employees International Union Local 790 and the East Bay Sanitary Company, Inc. that each contributed $5,000.

The El Cerrito Police Officers Association gave $2,500 and the Peace Officers Research Association of California, a political issues committee, donated $2,000.

Four firefighters, two police officers, and both the police and fire chiefs gave $500 to the campaign. Hanin also donated $500, and together with his wife, a UCSF Health Care Manager, donated $151 worth of “postage and supplies for campaign mailing.” The city clerk Carol Wilson gave $150.

The Measure K opposition committee, El Cerritans for Tax Justice, accuses the city of fraudulent behavior and reckless spending. In their literature, one example of the city’s fiscal mismanagement they cite is the 19 percent raise given to Hanin, getting “his total compensation now to rival the governor’s salary.”

“I would be happy to trade my annual income for that of the governor,” Hanin said in response to the accusation. “My salary is more than 10 percent below the average in Contra Costa County.” Hanin rejects the claim of fraudulent behavior and says the city has a “deficit-operating budget.”

Kirkland also rejects opponent accusations regarding Hanin. “It’s unfair what they are doing to him. I remember how we all laughed at the low salary that he got when he was first hired. And even now, after the raise that was approved by the city council more than a year ago, he earns less than the median wage.”

The Tax Justice group opposes the measure until a number of alleged flaws are fixed. “The city has sufficient reserves to carry it over until it will be carefully examined,” their literature claims.

“[The supporters] are trying to panic the gullible,” said Tax Justice treasurer Loubal. “El Cerrito voters are not dumb; they just pay more attention to global issues than to local ones.”

Loubal doesn’t buy the argument that this tax is essential to keep important public services. “Nothing threatens actual workers’ jobs. At stake are the council’s political power and some undeserved payments, like to the City Manager.”

Other objectors to the measure are the El Cerrito Citizen’s Alliance, a city government watchdog group and Ken Berndt, former Mayor of El Cerrito. Gina Brusatori, the only councilmember against the measure, contributed $200 to the campaign.

Although the current ordinance also imposes the tax on water, garbage, and recycling, the city does not collect the tax on those services. The proposed changes to the ordinance in Measure K include eliminating garbage and recycling from the list of taxable services.

“El Cerrito is really a small community,” said Michelle Fadelli, volunteer for the tax campaign. “Unlike other taxes, 100 percent of this tax will stay in El Cerrito. It’s for us.”

Loubal doesn’t agree. “Whatever the vote, I doubt either side will give up,” he said.
Updated 11/2/04 11:01 PM