There is a Better Way - Let’s Stand up for Lafayette
This past Wednesday I was able to take part in a Lafayette election tradition - the Lafayette Homeowners Council Candidate Forum. It’s a great opportunity not only for voters to learn more about us candidates, but also for us to know what is important to the voters. Clearly, the biggest issue of the night was our stance on Measure H. We were all asked to share our thoughts during our opening statements.
As you can watch in this video, I shared why I oppose it:
I’d like to use this space to expand on my thoughts so that we can dive deeper into my reasoning and you can make a more informed decision as you vote.
RECOUPING EXISTING ONLINE SALES TAX REVENUE
As I stated, Lafayette is losing out on a conservative estimate of least $1.1 million dollars a year in online sales tax revenue. This is 50% of our annual budget deficit.
Current CA state tax law is that 1% of the sales tax you pay is allocated back to the point of sale (where the store is located). Unfortunately, when it comes to online sales, the entire 1% goes to the cities with distribution centers, not where the actual sale takes place or where the item is being delivered - Lafayette!
In speaking to a friend who works at Amazon, California cities the same size of Lafayette generate about $41 million a year in sales. Considering Lafayette’s average household income is about 2.5 times that of other California cities, this brings us an estimate of $102 million in sales annually and therefore $1.1 million dollars in online sales tax revenue. Add in the fact that Amazon has only a 37% market share rate for online purchases, we’re looking at closing our annual budget deficit with the hard-earned tax dollars we are ALREADY spending.
How do we do this?
The League of California Cities’ is already on this! Its Sales Tax Working Group has published a report earlier this summer acknowledging this issue. In this article from the Ventura County Star, even the city manager of Oxnard, a city with an Amazon distribution center, acknowledges the fault in the tax structure and is on record stating that they are prepared to split the 1% tax 60/40 with other cities like ours. Considering that this will bring tax dollars back to cities all across the state, I believe that a proposition on the 2026 ballot can happen and would easily pass.
All we need is leadership and the political will to fix a broken system.
Back of recent postcard sent out by Lauren McCabe Herpich for Lafayette City Council 2024
IT’S TIME TO PRIORITIZE AND FOCUS
As I shared when I first addressed the possibility of adding a sales tax increase to the ballot, the city should meet us at least halfway before asking for more of our hard-earned dollars:
Get reimbursement for unfunded mandates. With at least $300,000 a year, this comprises 15% of the annual deficit.
More accurately reflect our revenue. The city has consistently underestimated total funding sources by $250,000. That’s another 12%.
Assess current city-owned real estate like the Campana Music building, which may become just a surface parking lot that cost us $3.75 million. That bridges the gap for nearly two years.
Reflect on smaller budget line items like the Experience Lafayette website, which costs $100,000 in ARPA funding and has had no review in success metrics, and the tens of thousands of dollars spent to advertise our budget crisis and Measure H. Each one of these mailers costs $10,000. “Small” expenditures like these add up!
In my opening statement, I share that the threat of cutting essential services is nothing more than a scare tactic. I believe that’s true in reviewing the budget and observing the process that got us to this point. The current council not only settled on the .5% increase when it was explained that the majority of voters would most likely not pass a .75% or 1% increase (what they clearly wanted), but also decided not to make the staff proposed 10% budget cuts before asking you for more money. I’m reminded of the 1993 movie “Dave” and this scene about prioritizing needs versus wants:
MORE FROM THE CANDIDATE FORUM
For your convenience, here are links to my statements regarding the other topics addressed during the Candidate Forum. That said, I do I encourage you to watch the entire forum for full context.
CLOSING STATEMENTS
To end the evening, as well as this post, I want to reiterate my message. We are at a crossroads in deciding Lafayette’s future. Clearly with unfunded mandates, a broken tax structure and unrealistic housing expectations, we need a council with members who are willing to prioritize, speak up and fight for Lafayette.
Here is my closing statement:
There are still three weeks left until Election Day. If you would like to discuss this more or chat about anything else as it pertains to Lafayette and the role of city council, please join me in one of my remaining planned events. You can also email me at lauren@laurenforlafayette.org.