REPEAL OF GLENDALE SALES TAX NOT WITHOUT BUSINESS REPERCUSSIONS

Less revenue has come into the City during this prolonged economic recession through sales tax and state shared revenues, yet the City is still required to maintain its obligations for current programs and services.  For the current fiscal year, the City has an estimated $32 million dollar deficit.  The Council has approved $10 million in cuts for FY 2012-13 and determined any further reductions would seriously impact priority services such as public safety.  The temporary sales tax is expected to generate $22 million to help balance the budget, which is required by law.  The City has worked since 2009 to reduce expenses – 25% cuts to city departments ($40 million), 22% decrease to city workforce (307 positions) .
and city employees have taken mandatory furloughs resulting in $5.5 million in reductions.

So what does all this mean for Glendale businesses?  Should the temporary sales tax increase be struck down, businesses would likely see : noticeable reductions in public safety response times for fire and police, severely diminished overall economic development and job creation efforts;  city planning, code compliance, business licensing, graffiti assistance and other related business services would be compromised - further hampering business development efforts.

The temporary sale tax increase that went into effect August 2012 (2.2% to 2.9%) amounts to a 35 cent increase on a $50 purchase and a 70 cent increase on a $100 purchase.  It is being challenged through a ballot initiative by a group known as “Save Glendale Now”, five known individuals of whom only one is a Glendale businessperson and owns Glendale residences, one retired individual that is a Glendale resident and three that are not Glendale businesspeople or Glendale residents.

Glendale voters will have to decide on November 6 whether they want the same level of quality of life to continue in their community that they’ve come to enjoy….or for only 7 cents on a $10 purchase, protect the special interests of a small group of individuals and risk the proposed cuts to public safety and services that a city the size of Glendale should be providing to its citizens.

The Glendale Chamber of Commerce urges businesses and voters alike to familiarize themselves with the both the pro and con issues surrounding this ballot initiative before casting your vote November 6.  More public information is available on the City of Glendale’s website at www.glendaleaz.com