Geared toward out-of-town guests to Mission Viejo hotels and short-term rentals, Measure Y will appear on November ballot

This Press Release mimics the Ballot Statement in Favor of Measure Y. On July 9, 2024, Mayor Kelley recommended that the Chamber of Commerce write the argument in favor of the TOT measure and the Council agreed by consensus.

I wrote the following official Rebuttal:

The OCRegister opposes this tax increase and wrote: "Instead of being an excuse to increase the tax, enjoying the lowest TOT in OC ought to be Mission Viejo's brand."

Why is the Mission Viejo Chamber promoting taxes? Aren’t chambers supposed to advocate for businesses and oppose taxes?

According to the OCRegister, Chapman University Economic Research Director Raymond Sfeier states: higher TOT caused sales to drop at adjacent businesses. And from the study, "Taxing the Travelers," a $5.00 increase caused a decrease in occupancy.

Raising taxes actually harms the very businesses it claims to help.

Visitors have a budget. More taxes mean less spending.

Claiming that raising the TOT in Mission Viejo would make it more competitive with other cities is ludicrous. Raising prices does NOT make ANYTHING more competitive.

So, what’s the real goal for this 50% tax increase? Clearly, raising hotel prices would impair, not increase, visitor spending.

FACT: A $670,000 increase would be a very small percentage, which would NOT support all the promises for enhancement to public safety and infrastructure.

FACT: TOT revenue has a correlation with the health of the economy. There was a significant drop in TOT revenue with the Great Recession.

More recently, a 25% decrease because of COVID. It’s foolhardy to rely on TOT for public safety.

FACT: Having one of the highest tax rates in the County could send visitors to neighboring cities.

Don’t be fooled by the Chamber’s emotional argument. Let's keep Mission Viejo competitive.

A NO vote means more spending in Mission Viejo.

Cathy Schlicht, former Mayor, Mission Viejo

The City once again has crafted a process for a desired outcome.

First a survey that was geared on how to win at the ballot box, then creating 4 page color brochures disguised as educational material, when it is obvious to me, the City is promoting the passage of Measure Y.

These were my 05/14/2024 comments regarding the Community Survey:

05/14/2024
Public Comments - P1 - Survey - TOT -

Good evening, my name is Cathy Schlicht of MV

Once again, the public has been put at a disadvantage, and you are trying to sell a bill of goods based on the false premise that cuts to public safety and infrastructure are pending.

This March 2024 TOT survey was crafted in a manner to obtain the desired results. The questions were not only skewed, but were also based on the premise that public safety and infrastructure will suffer without tax increases.

Also, how can you call a 50% increase in taxes a modest tax increase?

And why wasn’t the public asked if they would prefer a special tax earmarked for a specific purpose or a general tax without any assigned purpose?

And there is also gamesmanship in play with this survey. The structure of the questions in the 2024 survey were rigged to get an increase from 23% Definitely Yes in the March 2022 survey to 32% Definitely Yes for this March 2024 survey.

Basically, this March 2024 Survey used fear mongering to generate the needed responses to support YOUR desired tax increases.

So let's separate fact from fiction.

It should be noted the Financial Report released on March 26, City reserves are at $37.8 million, which is above the target of $35 million for the current budget cycle.

The current survey reveals that less than 7% rated MV quality of life poor with a whopping 87% satisfied with MV City services.

So, since the vast majority of our community is satisfied with our City, what is the real purpose for the tax increases?

And also for public interest, though not clearly defined or distinguished in the questions, there are two types of BED Tax - Special Tax for a specific purpose, and General Tax for ANY purpose.

And why did you wait for two years to bring this forward? Maybe because in 2022 this council majority was running for election and knew that raising taxes would negatively impact your campaigns.

And by the way.

You are all hyped up about becoming a sports economy, and now want to soak our "guests" for a 50% rate hike for the privilege of visiting Mission Viejo?

So, if and until our community becomes dissatisfied with the condition of our City, you should not be promoting tax increases.

Doing so is an admission that there is an alternative motive: The reality is to backfill the costs of the lawsuits, the increases in compensation and benefits, the obscene amounts paid to consultants for the vision plans along with the debt service to pay back the $46 million in bonded indebtedness to help fund the purchase of the Stein Mart building.

Who in City hall helped to develop this line of questioning? Who gave misinformation to the True North? Because this City does not have a revenue problem, it has a spending problem

Government Code Section 54964 prohibits a city from using public resources in support or opposition to a Measure.

Does the City's effort seem like they are promoting passage of Measure Y?

Is the City using misinformation to sway its voters?

The City's TOT is NOT the lowest in the County. There are 3 city's that do NOT have a bed tax.
Most South OC cities TOT rate is 10%. What advantage is there in having the highest TOT in South Orange County?

Also, as a Mission Viejo resident, would we be exempt from the bed tax?
If the City's efforts were truly educational and informational, the City would have also acknowledged research by the Chapman University Economic Research Director Raymond Sfeier, a higher TOT caused sales to drop at adjacent businesses. And maybe the voter would also like to know that from a study, "Taxing the Travelers", a $5.00 increase caused a decrease in occupancy.

Wouldn't the voter like to know that the OCRegister opposes this 50% tax increase and wrote: "Instead of being an excuse to increase the tax, enjoying the lowest TOT in OC should be Mission Viejo's brand."

The Council's Number One Job is public safety.

The bed tax fluctuates with the economy. If the Council relies on the bed tax to support public safety, will we be at risk in a bad economy?

I think it is outrageous that the Council is placing the blame for the need to increase taxes on the police.

Because in reality, it is a false flag when the council has identified a $4 million increase in the Sheriff's contract over four years because public safety for the last four years has averaged about 31% of the annual budget, and was at 29% in fiscal year 2023/24.

The Council does not have a budget problem - they have a spending problem.

The City is clearly and unlawfully campaigning to sway people to vote Yes on Measure Y. This is in violation of Government Code Section 54964, that prohibits a city from using public resources in support or opposition to a Measure.

Additionally, by not giving full and complete information, isn't the City cheating its voters?

First, the City used a consultant to fine-tune the language that would solicit a Yes vote. Then they created a four-page color brochure that is not only misleading but contains incomplete information, leaving the voter unable to make an informed decision. The City has also posted numerous press releases on Facebook and its blog, as well as the creation of at least two YouTube‘s.

Not only is this extraordinary and unprecedented broadcasting, but it is above and beyond the City's usual and normal educational routine.

So far, every voter guide that I have come across, the recommendation has been a "No" vote. The City is supporting this massive tax hike that would make Mission Viejo non-competitive as well as a more expensive place to visit. Consequently, visitors will register in hotels in our neighboring cities.