The city of San Mateo is exploring a sales tax measure this November, citing long-term structural deficits that could start impeding basic city services and infrastructure needs.
The city is already facing a $14 million projected deficit this fiscal year, which ends in June, and a continuous shortfall in the future.
“We’re still looking at a $5 [million] to $7 million structural deficit for the next 10 years, and our reserves can get us by for the next few years, but we really need to look at how we get out of that structural deficit,” City Manager Alex Khojikian said during a council meeting Jan. 12.
Many cities are facing similar budgetary issues, as inflationary and other economic pressures continue elevating operating costs, among other issues. San Mateo also has a property transfer tax, and the slowdown in home sales has negatively impacted that revenue stream, Khojikian added.
According to a recently completed citywide survey, about 53% of voters would be in favor of a sales tax measure used to fund high-priority repairs and improvements to the city’s infrastructure, as well as other city services. A quarter-cent sales tax measure would be most feasible, the results showed, as other types of revenue measures, such as general obligation bonds, would be too risky. The former only needs a simple majority to pass, while the latter requires two-thirds of the vote.
Regional bodies are also weighing their options to add or extend sales tax measures soon. This November, Bay Area residents, including those on the Peninsula, will vote on a new sales tax measure to help close major transit agencies’ gaping deficits, and San Mateo County will have to decide if and when it plans to ask voters to extend Measure A, a countywide sales tax which expires in 2030.
“I don't think that any elected official wants to tax people especially during an economic downturn, but this is a really challenging time, and there are basic services that many folks need,” Deputy Mayor Nicole Fernandez said.
The sales tax wouldn’t apply to prescription medication and groceries.
“Sales tax gives us an opportunity to get revenue from visitors, and people who are not just members of the city, so it helps to spread the burden a little bit more,” Councilmember Lisa Diaz Nash said.
The city will make a final decision on whether to add the sales tax measure to the ballot by this summer.
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(3) comments
Folks, I’d pretty much guarantee the decision is already made and the city WILL add a sales tax measure to the ballot. I’d also add that sales tax proceeds will go towards ever-increasing government and union salaries, pensions, and benefits. Note that Councilmember Nash says the quiet part out loud, ““Sales tax gives us an opportunity to get revenue from visitors, and people who are not just members of the city, so it helps to spread the burden a little bit more.” The key words are “get revenue” because this tax is basically a money grab, and “spread the burden” because that’s what it is, a burden. Vote NO on this, and any, upcoming sales tax measures to subsidize government workers. If you have a change of heart, don’t worry, more sales and other tax measures will show up, over and over and over...regardless if this one passes.
If the City wants to raise more revenue, it needs to convince the voters that it will use their money wisely.
This means not spending $1.5+ million to increase free street parking in front of 56 homes on Humboldt street (while removing safety infrastructure). That's almost $30,000 per home. Surely there are better uses of $1.5 million for the other 40,000 households in the City.
... and let's not forget, the majority of these households had asked for more safety infrastructure and not less. The majority of these 56 homes don't want some car collector block the front of their home where there could be a nice little bike lanes their kids could be using to get to their school or the park.
This was all messed up by YIMBY politicians like Amo Lee, Diana Papan, Adam Lorraine and Nicole Fernandez. Shame on them for not protecting our children.
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