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Crime & Safety

Council Approves Ballot Argument for Hotel Tax

City Council also tentatively supports reducing retirement benefits for new police officers and firefighters.

The City Council Monday night approved a ballot argument for a Nov. 8 measure to increase the city’s hotel tax rate by 1.5 percent.

With backing from the Foster City Chamber of Commerce and the city’s two hotels, the argument says raising the transient occupancy tax would “raise almost $250,000 a year in much needed new revenue” to help offset a $2.8 million structural deficit.

“Going forward, our choices are clear—find additional revenue or face deeper cuts in essential services,” the statement says.

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The council also formally adopted .

Foster City has the lowest transient occupancy tax in San Mateo County; other cities have a 10 percent or 12 percent rate. The city’s TOT hasn’t been increased since it was established in 1981, and even if voters pass the tax, the city’s rate would still be the lowest in the county.

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Reductions in PERS benefits tentatively approved

Asking for employee concessions is another strategy the City Council is using to reduce the city’s deficit.

At last night’s meeting the council adopted a resolution of intent to change the California Public Employees’ Retirement System formula for new police and firefighter positions.

New public safety hires would receive 2 percent of “employees’ highest three-year average compensation per year of service” if retiring at the age of 50.

The CalPERS contract change, which would go into effect Jan. 1, 2012, would replace the current “3-percent-at-50” retirement formula, according to a city staff report.

“It does not apply to current employees or employees who have already retired,” the report says. “It similarly does not apply to former employees who have left (Estero Municipal Improvement) District service prior to the effective date.”

The district board is scheduled to approve a final resolution approving the contract change at its Sept. 6 meeting.

 

 

 

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