By Khalida Sarwari
San Jose voters appear to have passed two pension reform measures and a marijuana business tax, which will make San Jose the highest-taxing city in the state for medical marijuana facilities.
Measure U, which called for up to a 10 percent tax on marijuana facilities, passed with 121,847 votes, or 77.7 percent of the vote.
The tax will be placed on the planting, cultivation, harvesting, transporting, manufacturing, compounding, converting, processing, preparing, storing, packaging, and wholesale and retail sales of marijuana in San Jose.
There are around 40 to 50 marijuana facilities in San Jose.
Revenue collected from the facilities will have to undergo financial audits. Regulations will prohibit marijuana businesses from operating within 500 feet of homes, schools, libraries, parks or daycare centers.
Supporters, among them Councilman Pierluigi Oliverio, who proposed the measure, have claimed that the tax will help balance the budget and generate millions of dollars in revenue to fund city services like road paving, libraries, police, firefighters, parks and senior programs.
Opponents have said that the tax is too high and exploits the illnesses of medical marijuana patients.
Voters also passed two pension reform measures supported by San Jose Mayor Chuck Reed.
Measure V was passed with 96,290 votes, or 66.8 percent of the vote. The measure will change the mandatory arbitration process for police and fire department employee disputes.
Supporters have claimed that the measure will rein in the power of outside arbitrators by preventing them from giving pay raises that exceed the average increase in designated revenues over the past five years, and from giving retroactive benefits or creating unfunded liabilities.
They have said the measure will help the city regain control of its budget and protect the taxpayers.
Police and firefighters, however, have opposed the measure, claiming that its passage will make it easier to lay off firefighters, police officers and close neighborhood fire stations.
Measure W, another proposal opposed by police and firefighters, was passed with 105,260 votes, or 72.5 percent of the vote.
The measure will change the city charter’s retirement provisions for future employees by excluding them from the current retirement plan and providing them with a new plan.
The current charter requires the city to provide employees with a defined benefit retirement plan, an employer match of 250 percent, a retirement age of 55, and benefits for life based on final compensation.
Proponents have asserted that the city’s pension costs are unsustainable and that the measure will remove barriers to reform without taking away benefits from retirees and save the city millions of dollars.
Opponents have claimed that Measure W does not guarantee cost savings, does not limit employee pensions or protect the city’s general fund, but instead threatens funding for police, fire, library, and park services.
All three measures required majority approval.