Leland Yee: Temporary Fees Become New Tax

In 1993, San Francisco passed legislation that established a fee on phone bills to implement capital improvements to the Emergency 911 telephone response system.

The need for improved service became evident following the tragic events at 101 California St., where a gunman killed several people and terrorized hundreds. Emergency communications were slow in responding to the situation.

The initial fee to cover the cost of the improvements was 50 cents per home phone line, and $2.50 per business phone line, added to San Franciscan's monthly phone bill. This fee, called the Emergency Response Fee (ERF), was designed to expire after $60 million was collected. The fees collected were to be supplemented with General Fund contributions to fully fund the expected $166 million cost of the project.

Along with the improved communications equipment, San Francisco voters also approved a Lease Revenue Bond to build a new Emergency Communications Facility to serve as the communications center for all San Francisco emergencies. Originally estimated to cost $27 million, the building eventually cost more than $50 million.

To cover the cost overruns and enable the Emergency Communications Department (ECD) to continue its improvement program, the SF Board of Supervisors amended the ERF legislation in 1997 by doubling the fees to $1 per home line and $5 per business line. The board also raised the upper limit of what can be collected from $60 million to $100 million. From December 1993 to February 2002 the City collected more than $70 million in Emergency Response Fee revenues. Keep in mind that the original intent of this "fee" was that it should expire after $60 million was collected and be used only for "capital" improvements.

Now, in April 2002, the Board of Supervisors - by a 10 to 1 vote - adopted an ordinance that will increase the business line fee to $7.50 per line, institute a new high capacity trunk line fee of $135, eliminate any limit on the amount that can be collected and allow the revenue to be used for "operational" as well as capital costs. This is not what voters approved.

I am opposed to these changes, particularly to removing the cost limitation and to using the fees for the operation of the facility. This means that future inefficiencies and employee hires can and will be paid for with the now permanent and increased fees. The tax is projected to raise $15.4 million for the upcoming fiscal year that begins July 1.

This tax is yet another example of how some government officials are not keeping their word to the public. The Board of Supervisors said one thing in 1993, and is doing something very different in 2002.

The original legislation established a temporary situation that would have run its course by 2003. The passage of this ordinance will permanently fix the fee on your phone bill, which will increase whenever the Board of Supervisors looks for ways to save money for other General Fund purposes.

I voted against this ordinance because I believe the public should be told the truth right from the start. The capital improvements originally intended should be completed, the technological advances in communications systems should be incorporated into our 911 emergency response capabilities and the "fee" should be abolished.

Leland Yee is a San Francisco supervisor who represents District 4.