Voters in the city of Monterey will decide on June 2 whether to increase the local sales tax by a fraction of a cent to close the city’s budget deficit and fund a range of general services.
Measure D would raise about $4.5 million a year that would be dedicated to the city’s general fund and be used for a variety of city services. It would be the second recent increase to the sales tax that generates unrestricted money for the general fund. Three other temporary local increases have targeted uses for the money generated, including transportation and infrastructure.
Measure D would increase the sales tax charged within the city limits by another 0.375% for nine years. It needs a simple majority to pass.
Latest in a string of tax measures
The current rate is 9.5%, which includes the 7.25% base state sales tax plus four other temporary increases.
Measure G added half a cent, or 0.5%, to the sales tax in 2020 through June 2029, to be used in similar fashion as Measure D this time around. Money would be unrestricted and intended to close a $12 million budget deficit and maintain current city services, including public safety, 911 response, and infrastructure improvements.
Measure S added 1% in 2018 for eight years in a continuation of a previous increase that began in 2014 under Measure P, according to the city. Those funds are set aside specifically for streets, sidewalks, and related infrastructure work.
Measure X increased the tax in 2016 by 0.375% throughout Monterey County, including its incorporated cities, to fund the Transportation Agency for Monterey County. That tax expires in 2047, after 30 years.
Monterey-Salinas Transit also sought funding through Measure Q, which voters approved in 2014 and went into effect the following year. It created dedicated funding for services and equipment on public transportation for seniors, veterans, and people with disabilities. It expires after 15 years.
Supporters: Measure avoids ‘significant cuts’
Measure D received unanimous backing from the Monterey City Council and Mayor Tyller Williamson, who said the tax would protect essential services and would be a “temporary, responsible solution” to the city’s budget shortfall.
“Without this measure, the city will be forced to consider significant cuts to essential services residents rely on every day, including police protection, fire response, 9-1-1 emergency dispatch, disaster preparedness, and other vital city services,” Williamson wrote in the supporters’ argument in the official voter guide prepared by the Monterey County Elections Department.
There were no opposition arguments formally submitted.
There would be no citizens’ oversight committee for the money, but the measure includes public reporting of the money’s use and independent audits. None of the funding generated by the measure would be contributed to the state.