August 12, 2009 at 11:50 PM

May 5, 2009

CHULA VISTA – City voters overwhelmingly rejected a sales tax increase Tuesday, stifling Chula Vista's last-resort attempt at bringing in more revenue.

About 67 percent of those voting by mail ballot said no to Proposition A, a 1 percentage point sales tax increase, that was billed as the answer to layoffs and cuts in city services. The proposition required a simple majority to pass. The tally was 19,216 against the tax and 9,368 for it.

Mayor Cheryl Cox said in a statement after the count that deep cuts are on the way, although the bulk of them were made earlier this year.

Chula Vista officials in January declared a fiscal emergency, then asked voters to increase the sales tax rate 1 percentage point. At the time, the sales tax rate was 7.75 percent. But April 1, the state raised the rate to 8.75 percent, meaning voters were being asked to push the rate to 9.75.

It was a difficult request during a dismal economy.

“This is going to cause us to eliminate another 68 positions before June 30, including 10 police officers.” City Manager Jim Sandoval said. “After we make the rest of the cuts, we'll be back to 1990s staffing levels.”

Officials said they needed the higher sales tax rate to offset a projected budget deficit of $20 million for each of the next five fiscal years. The higher tax would have been in place for 10 years.

The recession nailed Chula Vista, resulting in a slew of foreclosures, layoffs and budget cuts. Declining sales and property tax revenues continue to shrink the city's budget.

Employee unions came out in favor of the tax increase because it meant saving jobs. They contributed thousands of dollars to promote the measure and were investigated by city attorneys for using a city phone line and building to make calls asking for voter support.

Councilman John McCann was the only council member who opposed the tax.

“We're very proud of the citizens of Chula Vista,” McCann said. “They've sent a clear message that City Hall needs to reform and that they don't want an increase in sales tax.”

City activist Ed Herrera, 22, said he thought the tax was regressive.

“I feel that we have safeguarded and stood up for the future generation that would have been most affected by this tax and the lack of leadership,” he said...

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