www.powerinn.org
 June 30, 2010

Proposed Business Operations Tax would add $8.8 million to city's general fund by its third year.
City Proposes Business Operations Tax Increase Based on Gross Revenue

To augment its coffers, the city of Sacramento is proposing to place an increase in the Business Operations Tax on the November 2 ballot. This will be a tax on gross revenues for businesses located in or doing business in the city.
 
At the end of a 3-year phase-in period, the new annual BOT tax would be 70 cents per $1,000 of gross revenue. The maximum tax that a business would pay increases from the current cap of $5,000 to a new cap of $50,000.
 
While rationale for the increase is based on need to “fund essential city services like police, fire protection, park maintenance and recreation programs,” the revenue is not earmarked and will go into the general fund where it can be used for anything. In addition, it is tied to a medical marijuana tax, which would give it a definite edge for passage.
 
The Metro Chamber is seeking input from all city businesses and has an excellent survey at the link below. The Alliance encourages all members to indicate their reaction to this proposed tax and the impact it will have by completing this survey.
 
The issue is expected to go before City Council on July 13.

Take Metro Chamber Survey, click here.

The bus stops will be replaced with “not in service” signs, and with the hopes of someday returning better routes.

Power Inn Area Looses Primary Bus Service


Regional Transit recently confirmed that two main busses that serve this area fell victim to RT’s budget woes. Bus No. 8, connecting the Power Inn light rail station to South Sacramento, has been eliminated. Service for bus No. 61 on Florin-Perkins Road has been reduced on weekdays and eliminated on weekends. The Gold Line is the only train that will continue into downtown after 9pm on weekdays.

Getting bus 8 was one of the first achievements of the Power Inn Alliance (formerly Power Inn BTA). In the late 1990s, the BTA board of directors, then chaired by Dain Domich, advocated strongly for a bus route to connect Power Inn to its new light rail station. “It was a big deal and a big accomplishment,” said Wendy Hoyt, then executive director of the BTA. “Even Darrel Steinberg supported it.” It’s the reason the Alliance phone number ends in 8888.

The news disappointed Alliance Program Manager Dawn Carlson. “I was seeking a grant to get shade structures or benches for our routes.”

The elimination of this bus is a hardship to non-profits like St. John’s Shelter and the schools along Power Inn. “Women and staff depended on this bus service,” said Rochele Burton of St. John’s Shelter. “It has affected how women get to and from work.”

Cutting busses 8 and 61 was a difficult decision for RT, according to Paul Marx, RT’s Director of Planning. “It was one of the routes that made us gulp to have to cut it,” he said.

RT had very strict guidelines in order to meet the $25 million dollar Fiscal Emergency deficit. Bus lines that were not over 70% ridership per hour were stopped. Bus 8 needed 514 riders per day – their studies showed a very close 499 riders.

Fortunately RT is determined to restore service to Power Inn and is creating a Technical Advisory Committee to revisit bus routes in the area. The process will take about a year and a half and RT promises to involve the Alliance in the study.

To see all RT changes, click here.