Mountain House Ca Homes Adopts Tax Increase
At its monthly meeting Wednesday, the Mountain House CA Community Services District board of directors OK’d by a 4-1 vote the budget for the upcoming fiscal year that starts July 1. Board member Andy Su voted no.
“I am surprised and maybe a little disappointed that with all the residents speaking out about salary cuts and the number of times I’ve suggested them, that this proposal came back with still no salary cuts,” said Su.
In addition to cuts recommended by Paul Sensibaugh, the district’s general manager, the board OK’d a 4 percent increase to a special tax for roads, public safety and parks.
Sensibaugh said this equates to the community’s homes paying about $50 to $75 more per year.
“No one likes to see any increases in their budget, but going forward, it’s basically unforeseeable not to do that 4 percent,” said Bernice King Tingle, board vice president.
Consultant Dwane Milnes of Citygate Associates said residents are actually paying less money in taxes this year than last year. Residents are charged a 1 percent tax each year based on the value of their home, 15.5 percent of which goes to the district. Milnes estimated the average Mountain House Ca Home in the community is worth $325,000.
Milnes said property values dropped last year by about 20 percent, so each property paid about $810 less in property taxes this year — meaning the district collected about $125 less in property taxes.
Essentially, the district is taking in $125 less per home in property taxes and charging $50 to $75 more in special taxes, Milnes said.
Since Mountain House CA does not receive income from sales taxes, motor vehicles taxes or gas taxes like cities do, the district has to charge a special tax to pay for services. Milnes estimated that between property and special taxes, Mountain House receives about $1,788 per household.
The Wednesday board meeting drew about 25 residents, 12 of whom spoke to the board publicly. Many said they did not agree with the special tax increase. Some voiced their disappointment about the lack of a pay cut for district employees.
“Many of our Mountain House Ca residents have been laid off, and many of them have been having their salaries cut,” said resident and Mountain House Action Group member Jennie Bev. “Apparently, the salary of Mountain House management is not being cut. Why is that? There’s no morale? No good faith? No solidarity? We’re hurting here. At least show some solidarity.”
There was a small round of applause from some residents after Bev spoke, something board president Eric Payne said was not necessary.
The comments about district
employees were a continuation of Tuesday’s budget workshop, where some residents questioned why the changes didn’t include anything about employees.
“Our employees really had a lot of things said to them (Tuesday) that were not nice,” Sensibaugh said. “These employees have been dedicated for many years in Mountain House. Mountain House is our baby, our love.”
Lorrene Salazar, a district secretary and resident, spoke at Wednesday’s meeting to share her experiences.
She said people have asked her about her “$100,000 salary,” something she said is false. According to the district’s draft budget, the 13 full-time employees are paid a total of $1,063,055 in salaries and benefits, though one person has resigned.
“I was very upset that people can applaud people possibly losing their jobs or losing pay,” Salazar said. “It sounds like a lot of residents, my own neighbors, are wanting salary cuts even though (with) the budget, what was asked to be done was actually done. I kind of wonder where this spirit came from.”
Residents complained about “pay raises” for the top three district employees, something board member Matthew Balzarini said is not happening. Those people have voluntarily given up pay raises, saving the district $23,466.
In total, Sensibaugh and the board was able to shave about $1.4 million off the district’s annual expenses.
The district will start the fiscal year, July 1, with $4.7 million in the bank. In four years, the district figures it will end with a balance of about $930,000.
In the May 11 budget workshop, Milnes projected the district would be $6.2 million in debt in four years if no cuts were made.
Sensibaugh said he and the board would take a step back and look at the budget again in four months.
“Now we can go forward and carry out the services in the budget and get back to work, so to speak,” Sensibaugh said. “It seemed like a process that had a moving target. There were a lot of issues in a bad economy.”
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