Q: What is Measure E?
A: Measure E is a ¾ cent (0.75%) transaction and use tax (similar to the sales tax), with revenues going directly to the City of Glendora. Measure E will be considered by Glendora voters at a Special Election on March 5, 2019.
Q: What is the intent of Measure E?
A: The City Council placed Measure E on the special election ballot, at the recommendation of the Ad Hoc Citizens Advisory Committee, to maintain critical services, such as maintaining police services, repairing streets, and maintaining services to the community. The table below has been presented to the City Council and other community groups illustrating the projected challenges with balancing the budget.
Without significant revenue increases or major service reductions, the City will have deficits for the foreseeable future and use all savings set aside for emergencies in the less than six (6) years.
|FY 16-17||FY 17-18||FY 18-19||FY 19-20||FY 20-21||FY 21-22||FY 22-23|
Reasons for the deficit include expected cost of business increases due to contracts, pensions, employee negotiations, unfunded state/federal mandates, and other similar factors.
Q: What is the Ad Hoc Citizens Advisory Committee?
A: In April 2018, the City Council approved a plan for a committee, called the Ad Hoc Citizens Advisory Committee, to review City General Fund revenues and expenditures in order to make recommendations to the City Council for consideration. Over 40 applications were received from community members. Twenty (20) committee members were selected. The committee met from June through October multiple times each month to consider various options. Information the committee reviewed can be found at www.CityofGlendora.org/MeasureE
Q: What has the City of Glendora done to address rising costs of doing business?
A: The City has reduced and contained costs through outsourcing services where it created efficiencies, increased use of technology, and reduced staffing levels by 23% since 2008. Additionally, Glendora has been a proactive regional leader in its pension reform efforts:
Steps taken by City
- Pension Obligation Bond –Safety (2009)
- Second Tier pension plan (2012)
- PEPRA Third Tier pension plan (2013)
- Employee contributions to pension plan
- City make annual payment on unfunded liability (2016)
PERS steps taken
- Changes to assumptions (mortality, earnings rate)
- Fixed amortization period - 30 years
- Accelerated rate increase during first 5 years (began in FY16)
- Changed discount rate from 7.5% to 7% over 5 year period
Q: When is the election?
A: The Special Election is March 5, 2019. Voters may vote by mail or in person at the local polling location. The polling locations will be determined by the Los Angeles County Registrar-Recorder/County Clerk. Check the following link for the polling location near you. https://lavote.net/locator
Q: When does the additional ¾ cent (0.75%) transaction and use tax authorized by Measure E take effect?
A: The new rate will go into effect on October 1, 2019. At that time, the combined total Glendora sales tax rate will become 10.25%. The funds will start being received after October 1, 2019. If approved by the voters, there is an implementation process with the California Department of Taxes and Fees Administration and the local businesses to ensure everyone knows to collect the increase in tax (March through September 2019).
Q: How much money is the City going to get?
A: The City expects to receive approximately $5 million annually. The first year of implementation, the revenue is estimated at $3.5 million due to only 9 months of revenue received (October 2019 through June 2020).
Q: What will the City spend the money on?
A: The City will use the funds to maintain existing services, and address street repairs and other facility and operational needs. The funds will go to maintain the quality of life and services the community has come to expect that make Glendora a good place to live, play and work.
The December 2018 Community Survey highlighted the following:
- 92% said Glendora was a good to excellent place to live;
- 91% said Glendora was a good to excellent place to raise a family;
- 85% of responses were satisfied with the job was doing providing services;
- 81% of respondents trust the City of Glendora;
- 79% are satisfied with the City’s efforts to share information
- 73% of households indicated that they spend half or less of their retail shopping dollars in the City.
See the full report at the following link - www.CityofGlendora.org/CommunitySurvey
Q: How will the Measure E funds be accounted for?
A: Measure E funds will be deposited and tracked in a separate account in the City’s General Fund budget and will be subject to the City’s annual independent audit.
Q: Will this tax cover all of the needs the City has?
A: The short answer is no. This tax will make a significant difference in maintaining services and addressing some infrastructure needs. However, the City has identified that to bring the condition of the streets up to a 75 Pavement Condition Index (PCI) from the current low level of 59 PCI would take over $75 million over the next 10 years. The City is over 100 years old and has many facilities, infrastructure, and streets to repair.
Q: What are the costs of the special election?
A: One time election costs are estimated at $400,000, including $360,000 paid directly to the County to administer the Special Election. The Special Election with be run by the Los Angeles County Registrar-Recorder/County Clerk.
Q: What is taxable under Measure E?
A: If enacted, Measure E will generate an estimated $5,000,000 through the ¾ cent sales tax. Measure E is not a property tax on homeowners. Visitors will pay their fair share of the costs to use our parks, roads, and public safety. Measure E does not apply to food purchase as grocers or prescription medication. The new tax will apply to any taxable event where goods are consumed (restaurants & over the counter purchases), delivered (building materials) or registered (autos, RVs, motorcycles) in/to the City of Glendora.
Q: Who will pay the Measure E Tax?
A: Measure E is paid by anyone who shops and dines in Glendora. Based on the 2018 Community Survey, “Approximately one-quarter (24%) of Glendora households reported that they spend the majority of their retail shopping dollars in Glendora, whereas 73% indicated that they spend half or less of their retail shopping dollars in the City.” The City estimates that more than 50% of Measure E revenue would be paid by non-Glendora residents.
Q: What is the impact on taxable purchases?
A: If passed, a taxable purchase of $100 in Glendora would cost an additional $0.75:
|CURRENT SALES TAX||SALES TAX WITH MEASURE E|
|$100.00 Taxable Purchase
||$100.00 Taxable Purchase
| 9.5% Sales Tax
||10.25% Sales Tax|
|$109.50 Total Cost
||$110.25 Total Cost|
|*$1.00 to City of Glendora
||*$1.75 to City of Glendora|
Q: Is this type of sales tax common?
A: Approximately 95% of the state’s population live in one or more transactions and use tax areas.
Q: What happens if Measure E doesn't pass?
A: Without significant revenue increases, the City will require major expenditure reductions. These reductions may translate to considerable service impacts or elimination of programs. Any process to reduce or eliminate programs and services would be public and subject to approval of the City Council in conjunction with the upcoming budget process in June 2019. Below is a breakdown of how funding is currently allocated in the General Fund: