Woodland considers sales tax increase amid rising cost of living

A proposed penny sales tax measure that would increase the city’s current tax rate of 12.5 percent will be discussed by the Woodland City Council at its next meeting.

The council will consider putting the tax measure on the ballot for the November 5, 2024 general municipal election after receiving public comments and discussing the reasonableness of a tax increase for a community already struggling with inflation , higher PG&E rates and general cost increases.

The draft text for the proposed ballot measure is as follows.

“Keep Woodland safe, clean and well-maintained by increasing police and fire protection, reducing emergency response times, repairing roads and sidewalks, addressing homelessness, improving and by maintaining parks, enhancing children and youth programs, and supporting other general governmental uses, shall the City of Woodland’s measure providing for a one-cent sales tax, providing approximately $16,500,000 per year for 10 years, be adopted, with independent audits, public spending disclosures, local control and all funds remaining in Woodland?

The report says this language is intended to emphasize that these revenues will be used to increase funding for public safety, road rehabilitation, combatting homelessness, park maintenance and youth services.

Spencer Bowen, communications and strategic policy manager, explained that state local taxes in a jurisdiction cannot exceed 2 percent in total and can only be increased in multiples of 0.125 per year.

Additionally, he noted that Davis is also discussing a one-cent sales tax measure that would increase the city’s tax rate from 8.25 percent to 9.25 percent, while Woodland’s would increase from 8% to 9% if adopted.

“It’s not really a case of ‘We have to adopt this, otherwise we’re cutting things back’, it’s an option to support better quality services, which we’ve heard is a priority for people,” Bowen emphasized. “It’s about asking, ‘Should we give the community the opportunity to vote on this’ if we want to fund these things that we’ve heard are important. »

One way the sales tax would take into account is that the city currently operates with far fewer employees than its comparable counterparts in Yolo County. Woodland has 313 full-time employees total, while Davis and West Sacramento have 376 and 425, respectively.

Bowen used the police department as an example of how the tax measure could help improve public safety in the city.

“Just in terms of officers sworn in for their public safety, West Sacramento has a lot more than we do,” he pointed out. “We are operating with the same staff as when the city was about half the size. For better or worse, local governments don’t have many tools to generate revenue that will stay local and fund these services, and this is one of them.

Although the city has not assessed how the funds would be spent given that it is still only a proposed ballot measure, Bowen said the funds would likely lead to the hiring of staff in more other departments.

Assuming the city’s projections of $16.5 million in sales tax revenue are accurate, that would mean an increase of about $270 in annual costs for the average Woodland citizen. A significant portion of that would be offset by sales by out-of-town individuals, but the city has not calculated that amount.

Bowen addressed this issue by saying the city “does not want to downplay the fact that daily costs are high for everyone right now.”

“We pay energy bills and also have expenses, so the city as an entity is feeling that pain as well and we in no way want to minimize the impact of taxes on people’s daily budgets,” he said. -he sympathized. “We just think it’s worth our elected representatives having the opportunity to discuss whether this is something we should put before the voters.”

Additionally, the report explains that decades of deferred investments and lack of proactive maintenance of the city’s more than 200 kilometers of track have resulted in road maintenance needs of more than $150 million.

“At the current rate of investment and increasing cost of road construction work, the city will not be able to adequately meet these maintenance needs,” the report adds.

The proposed tax would be limited to a duration of 8 or 10 years so that the city has sufficient time to implement projects and programs consistent with the intent of the measure. If passed, it would take effect in April 2025 and the city would receive its first revenue from the tax in June 2025.

The council discussed the ballot measure at its meeting on Tuesday, June 4, and disagreed on the tax increase.

Councilor Rich Lansburgh noted that while some of his colleagues were concerned about raising taxes, “there’s never a good time to raise them.” He stressed the need for more police officers, noting that the number of police officers has not increased in more than 40 years, even though the city’s population is three times as large.

“Same thing for the fire department, library, roads and code enforcement,” he said. “So, is there a right time to ask for taxes? No, of course not, but it’s a necessity.

Lansburgh also addressed concerns expressed by Councilwoman Victoria Fernandez that lower-income residents will feel the burden of the tax more, arguing that “everyone shares in the wealth of this community.”

“By that I mean our parks, our officers and our fire department,” he noted. “We need top-notch people working for us to provide these kinds of services. Don’t forget that we have 65 or 67 fewer employees today than in 2008.

However, some council members argued that an additional one-cent sales tax on top of Measure F and Measure R – which are a half-cent and quarter-cent sales tax, respectively of one hundred – and other additional costs residents face would not be reasonable at this time. this time.

Councilwoman Mayra Vega said Lansburgh’s comment that there was never a good time to raise taxes appealed to her, but said she thought “now is not the right time.”

“I was talking to some people about increasing home insurance,” she said. “These policies are being canceled and new ones are being written that cost thousands of dollars more. »

Additionally, she noted that Mello Roos taxes increase by 2 percent for people living in the Spring Lake area, which she represents.

“It’s not just about the individual potential sales tax, it’s about adding it to everything,” she stressed. “PG&E rate increases are also happening this year, so I would say looking to push them out to 2026 might be something we should consider.”

Councilwoman Victoria Fernandez was undecided, emphasizing the need for the sales tax while expressing concern for residents who have faced inflation and general rising costs.

“Maybe a penny doesn’t seem like a lot, but when you add up a penny for everything I buy at Target, it adds up,” she pointed out. “On the other hand, I realize it’s only a penny and together a penny makes a difference, because look what we did with a half-cent tax or a half-cent tax. a cent in our community. The city succeeds because of the people who work for it and I truly believe that staff should be compensated for the work and quality of work they do.

However, she noted that voter turnout will be higher in 2024 due to the presidential election which will result in a greater likelihood that the sales tax measure will pass.

“If we as a community think this is something we need… then now is the time because it’s a presidential election and you have higher turnout,” she said. Express. “We all want to maintain this level of service, but I believe we need revenue if we want to maintain these services. »

The board directed staff to conduct outreach in English and Spanish so community members can express their support or concerns about the ballot measure.

At its next meeting, the council will either modify the resolution to modify the amount of the tax, the duration of the tax, the amount and duration of the tax, or take no action and postpone the tax measure to a future vote. .

Public comments can be submitted before the Tuesday, June 18 council meeting to [email protected]. Written comments received at least two hours before the scheduled start time of the meeting will be provided to the council and posted on the city’s website as part of the official meeting record, but will not be read into the account rendered.

For more information on how to comment and view the agenda, visit cityofwoodland.gov/654/Meetings-Agendas.