20,411 / 78.2% Yes votes ...... 5,675 / 21.8% No votes

See Also: Index of all Measures

The City of San Mateo proposes to add Section 3.56.035 to its Municipal Code to increase its existing Hotel Transient Occupancy Tax from 8% - 10%. The Hotel Transient Occupancy Tax is imposed on persons who rent rooms for a period of thirty days or less. The hotel operator is obligated to collect the tax and remit it to the City. If the tax is not timely and properly remitted, interest and penalties may be imposed.

The 2% increase is designated for City capital improvements, including police and fire facilities as a priority expenditure, and also for street and sidewalk improvements, parks, and other City buildings and facilities. The priority expenditure for police and fire facilities is for designated improvements that are listed in the ordinance; the designated improvements include seismic upgrading, gender modifications, disability modifications, functional improvements, and a 7500 sq.ft. addition, as well as remodeling to the Police building. The priority requirement exists until the designated police and fire facilities are complete at which time police and fire facilities will have no greater legal priority than other City capital improvements. The City Council can determine in its judgment when the police and fire facility priorities have been met.

A May 1998 study done for the City discloses that most jurisdictions surrounding the City of San Mateo currently have a 10% tax. The study further reveals that the 2% increase is expected to yield additional tax revenue in 1999-2000 of $600,000 - $900,000, depending on whether the anticipated new hotels in the City are on-line. This increase in hotel tax revenues, if used to issue bonds for capital improvements, is expected to fund $11.4 million in bonds.

The City's long-term capital needs for existing facilities such as streets and sidewalks, parks and recreation, public safety improvements, etc. have been estimated by City Staff at $60 million.

If the measure is approved, the City of San Mateo Municipal Code will be amended and the hotel transient occupancy tax will increase effective January 1, 1999.

ROY C. ABRAMS, CITY ATTORNEY

The funds from the hotel tax increase will be used for seriously needed capital improvement projects in the City of San Mateo. The first priority is to seismically reinforce and modernize our Police and Fire stations.

Why is this work necessary?

Police and Fire buildings do not meet current earthquake safety standards. Hotel tax funds would be used to improve seismic stability and enhance the City's ability to serve the community following a major earthquake.

Police and Fire buildings are old and need replacement of major building systems (plumbing, electrical, life safety and mechanical). Improvements will provide fire sprinklers and modern levels of communications and technology.

The Police Station is so overcrowded it is necessary to use unsecured passageways to move prisoners. The proposed design changes will increase security.

A "YES" vote is a vote for your safety. Measure "C" is urgently needed to upgrade our Police and Fire facilities, some of which are 50 years old. Only by upgrading these buildings will we improve the City's ability to provide emergency response following an earthquake. The longer we wait, the higher the risk. We must approve this measure now!

PLEASE VOTE YES FOR THE SAFETY OF YOUR COMMUNITY!

The undersigned authors of the primary argument in favor of ballot Measure C at the Special Municipal Election for the City of San Mateo to be held on November 3, 1998, hereby state that such argument is true and correct to the best of their knowledge and belief:

SUE LEMPERT, Mayor, City of San Mateo
JERRY HILL, Deputy Mayor, City of San Mateo
IRVING WITT, Chairman, San Mateo Senior Citizen Commission
MIKE GALVIN, District Vice President, San Mateo County Firefighters Local 2400
WILLIAM E. POLLETT, President, San Mateo Police Sergeants' Association

(No arguments against Measure C were submitted)

ADDING SECTION 3.56.035 TO THE SAN MATEO MUNICIPAL CODE TO ESTABLISH A SPECIAL TAX OF TWO PERCENT (2%) FOR CAPITAL IMPROVEMENTS BY INCREASING THE TRANSIENT OCCUPANCY TAX TO TEN PERCENT (10%)

(November 3, 1998 Ballot Measure)

The People of the City of San Mateo, California, ordain as follows:

Section 1. 3.56.035 SPECIAL TAX. Effective January 1, 1999, the transient occupancy tax shall be increased from 8% to 10%. The 2% increase shall be a special tax for the purpose of financing capital improvements within the City; provided that the increase shall first be expended for the following police and fire facilities:

Police Station:

Seismic upgrading, gender modifications,
Americans with Disabilities Act modifications, remodel
lobby and an addition of approximately 7500 sq. ft., and
related works and structures necessary or convenient for
said improvements; and

Fire Stations:

Seismic upgrading, gender modifications,
Americans with Disabilities Act modifications, building
system upgrades, minor functional improvements, and
related works and structures necessary or convenient for
said improvements.

The term "first" as used herein with respect to police and fire facilities shall mean an initial priority but not a continuing priority. When the initial priority is met as determined by the City Council in its judgment, police and fire facilities shall have no legal priority over other capital improvements with respect to the increase.