Much to no one’s surprise, the Santa Maria City Council on Jan. 17 voted to adopt a series of resolutions setting up an emergency election to decide on a proposed quarter-cent citywide sales tax.
With a unanimous vote, council members agreed the “crisis state” of the city’s finances necessitated the special election, to be held June 5 in conjunction with the statewide primaries.
“We’ve never asked the people of Santa Maria to do this before,” councilwoman Alice Patino said. “I do think this is a fiscal emergency. I think we’ve seen our budget, and we’ve cut and cut, and I just don’t know where we can cut anymore, and I don’t think that’s what the people of Santa Maria want us to do.”
In a presentation to the council, City Manager Rick Haydon said declines in sales and property tax revenue have caused the city’s general fund to lose more than $11 million since 2007, directly affecting essential services like public safety.
Despite cuts to operating costs, staff reductions, and concessions with employee groups, Haydon said the city still can’t afford to hire additional police officers or enough firefighters to staff the new Fire Station No. 5, which would put nearly the entire city within a desired five-minute response time for emergencies.
“Our revenues are not in a position to sustain our operational expenses,” Haydon said. “In light of the financial challenges that lie ahead of us, the only viable option to maintain the bare minimum staffing levels necessary to preserve public safety, health and welfare of the community, is to obtain an additional revenue source in the general fund.”
The temporary measure, which would sunset in nine years, would also require a citizen oversight committee to review audits, and revenue would need to be spent locally and couldn’t be taken by the state, Haydon added. The tax revenue would also be used to finish repairs on the Santa Maria River Levee Project.
The proposed increase would require a simple majority to pass. If approved, beginning in October a tax would be imposed of 25 cents on every $100 spent by consumers, or about $1 per week for the average resident, according to the Santa Barbara County Association of Governments. The city would begin receiving revenue in January 2013—about $4 million annually per city projections.
A poll conducted last September by an independent firm concluded 65 percent of Santa Maria residents would support a quarter-cent sales tax with a nine-year sunset.
This article appears in Jan 26 – Feb 2, 2012.