Half-cent sales tax makes up about 12% of the city’s General Fund revenue
The Healdsburg City Council voted Monday night, June 14, to formally put the renewal of Measure V on the November 2020 ballot. The measure is a one-half cent sales tax for general use, and the city is seeking to renew the tax for an indefinite amount of time. (It would be in effect until repealed by voters).
The vote passed 4-0, with Councilmember Joe Naujokas present but unable to vote due to technical difficulties.
The sales tax measure was initially adopted by voters in November 2012 and is set to expire in March 2023.
According to a presentation by city housing administrator Stephen Sotomayor, a survey about the tax renewal indicated that 70% of the people surveyed were initially willing to support the measure, with 47% indicating that they would “definitely vote yes.”
The council reviewed the measure during its May 18 meeting and again on June 1, when it gave direction to city staff to prepare ballot measure language for a resolution and ordinance.
During the May 18 meeting, the council directed city staff to make the language of the ballot similar to the one presented in 2012, with additional direction to leave the sunset year of the tax extension vague, making it so voters would have to vote on stopping the measure.
The only additional direction given at the June 1 council meeting was changing wording to make the measure language more clear.
According to the language of the resolution presented to and approved by the city council, much of the need for the continued tax stems from the city’s loss of revenue due to COVID-19.
“Escalating operating costs that outpace the growth of city revenues, in addition to the economic crisis brought on by COVID-19, a virus that had caused a global pandemic that has prompted multiple shelter-in-place orders, business closures and temporary shut-downs, and led to the dramatic decrease of city revenues, constrain the city’s ability to maintain the quality of services provided and address its ongoing capital needs,” the language states.
The resolution states that, without additional revenue from the continuation of Measure V, the city would have to make reductions to programs and services “that may jeopardize the public health, safety and general welfare of residents and visitors.”
Thus far, Measure V has brought in an estimated $2.1 million per year, accounting for 12% of the city’s General Fund revenue.
