Ceres district elections, hotel tax increase both pass

Ceres voters approved both measures put before them in Tuesday’s election.

Measure D, which moves the city from at-large to district-based council elections, passed with 66.3 percent of the vote, according to unofficial results released early Wednesday by the Stanislaus County elections office.

Measure E, doubling the transient occupancy tax paid by people who stay in hotels and motels, won 56.6 percent voter approval.

“Obviously, we’re pleased with the outcome,” said Ceres City Manager Toby Wells, who noted that Measure D will take effect with the next council election.

The measure divides the city into four equally sized, geographically focused districts. Council members will be chosen by district with the 2017 and 2019 elections. The mayor will continue to be elected citywide.

“The primary goal as stated by the folks who pushed it is to increase representation on the council by folks living in particular areas,” Wells said.

The city put the measure on the ballot because it received a letter from the Latino Community Roundtable – as did every other Stanislaus County city and school district – warning that it may be in violation of the California Voting Rights Act.

Ceres’ transient occupancy tax has stood at 5 percent since 1971. With passage of Measure E, it increases to 10 percent.

Since 2001, annual revenue from the 5 percent tax has averaged $70,500. The fiscal year 2014-15 budgeted revenue from the tax is $70,000. Doubling the tax, then, will bring an additional $70,000 to the city’s general fund.

“With our struggle coming out of the recession, the general fund still is not balanced,” Wells said. “This is an additional source to build our base of revenue into the future.”

The money can be used as needed: park maintenance, public safety, tourism, etc.

“In light of a $19 million general fund, $70,000 doesn’t mean great change,” Wells said, “but it could mean another employee, another parks worker, or a good portion of the salary for a firefighter or police officer.”

He said the city hopes the increase contributes to a positive cycle: Improving the city could improve tourism, leading to demand for more lodging, which then would create still more hotel-tax revenue.

Currently, there are two motels within city limits: the Howard Johnson Express Inn and the Microtel Inn and Suites by Wyndham, both on Herndon Road.

“In the long term, we want to grow our economic base and tout what we have to offer visitors, our tourism,” Wells said. “We see lots of future potential.”

This story was originally published November 4, 2015 at 2:21 PM with the headline "Ceres district elections, hotel tax increase both pass."