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A proposal to place a ¾-cent sales tax increase on a special election ballot Nov. 5 will be considered by the City Council at its June 19 meeting. The proposed tax increase would raise about $1.5 million a year in local revenue.
The Council will also hear the results of a poll that showed 68 percent support among likely voters for the potential increase.
A sales tax increase was among several potential revenue sources proposed in a series of community meetings and an informal survey in March and April. The proposed ¾-cent sales tax increase was among the more popular of the potential revenue sources, which included construction of a small hotel, reuse of City parking lots, and expanded recreational opportunities in the Arroyo recreation area.
The City is seeking to close a budget deficit that is expected to grow larger in the coming years as infrastructure expenses, personnel costs, and pension obligations increase. The sales tax increase, if approved by voters, would close the budget gap for the next several years.
Similar tax measures have been adopted, or are being proposed, in many San Gabriel Valley cities whose sales tax is below the 10.25 percent state cap.
“South Pasadena does not currently have our own local sales tax,” said City Manager Stephanie DeWolfe. “This measure would generate local revenue that would be put to work directly in our City, maintaining the quality of life and customer service that our residents value.”
The City Council meeting will begin at 7:30 p.m. on Wednesday, June 19 in the Council Chambers, 1424 Mission St., South Pasadena. Please visit the City’s web site to view the full agenda and staff reports.
