Home » San Pablo Agrees to Place Sales Tax Measure on November Ballot

San Pablo Agrees to Place Sales Tax Measure on November Ballot

by CC News

On Monday, the San Pablo City Council voted unanimously to place a ½-cent local sales tax measure on the Nov. 3 ballot.

If approved by voters, it would increase the City’s sales tax rate from 9.5% to 10% for the first five years, before decreasing to 9.75% for the final five years, and is projected to generate an estimated $2 million annually in locally controlled funding. – to pass, it requires a simple majority vote.

If approved by voters, this locally controlled funding could be used to support City services and community priorities including crime prevention, police protection, daily senior meal programs, and continuing the youth scholarship program, which is set to lose its federal funding in December.

City Manager Matt Rodriquez shared that San Pablo is confronting mounting fiscal pressures driven by inflationary cost increases, aging infrastructure and deferred maintained obligations, rising public safety costs and growing community needs – he added many local services require reliable funding sources.

“General fund revenues remain insufficient to fully address the city’s current and projected service and infrastructure needs,” said Rodriquez.

He said without more revenue, the city is looking at challenging fiscal decisions and reduced service levels, program reductions, and quality of life issues.

He said, the city is facing a $4.4 million deficit for Fiscal Years 2026-27 and 2027-28, San Pablo had to rely on one-time, “rainy day” emergency reserves, funds strictly meant to be protected for major emergencies or catastrophic events.

“Like most cities in California who are dealing with fiscal challenges, San Pablo ha continued to use emergency one-time reserves to shore up deficits,” explained Rodriquez. “This is not a sustainable practice.”

Dr. G. Gary Manross, SRI Inc. shared data with the council and the findings from a voter survey—which included a sample size of 300 people including a sampling error of 4.5 to 5.8%.  The survey was taken May 28 – June 10, 2026.

He said the survey showed high satisfaction scores and constituents want you to continue to proving services, but 83% are not aware of financial health.

“It is absolutely essential that you reach out to your community and let them know of these challenges,” said Manross. “It is imperative that you reach out and let people know and understand what is going on with fiscal challenges.

Results:

  • I am a happy to be a resident: 86% agree while 9% disagreed
  • Satisfied with City Sponsored Services & Program: 79% satisfied while 16% dissatisfied
  • How satisfied are you with city owned parks, trails and rec facilities: 79% satisfied with 8% dissatisfied
  • Level of street maintenance: 63% satisfied with 26% dissatisfied
  • City’s effort towards preventing illegal dumping: 52% satisfied, 36% dissatisfied
  • Satisfaction with senior services: 53% satisfied with 6% dissatisfied
  • Satisfaction with youth services: 57% satisfied with 10% dissatisfied
  • Satisfaction with quality of education: 51% satisfied with 23% dissatisfied (Noting, this is measuring overall quality of life)
  • City’s effort towards assisting the homeless: 40% satisfied with 37% dissatisfied
  • Aware of overall financial health of the city: 83% not aware, 31% aware
  • If you learn about these issues from somebody you trust, does that make you concerned – 87% percent were concerned and 100% were concerned.

Results: Increasing Sales Tax

According to Manross, the survey results showed just 45% likely supporting the sales tax measure, however, the “potential yes” jumped to 62%. The likely support he believed was to be 59.5%.

He believed with proper messaging and outreach, the city would have 50%+1 support.

When asked residents if they would support a ½ cent sales tax for 5 years and a ¼ cent for 5 years (10 years total) – support jumped to 51.5% likely yes with opinion leaders at 57%.

“This sends a message to your voters that you are not greedy and your need is real,” said Manross. “That you are willing to take that ½ percent for 5 years and willing to reduce it for the second 5 years.”

He said the city should focus on maintaining what they have, ensure citizen oversight, and no applied threats of cutting services – even though in reality they will be faced with cuts. He also said arguments for the sales tax actually made the support level be reduced by threatening service cuts, deficit spending, roads maintenance.  He also added there is a “mood” regarding affordability nationally and in the state.

Commentary:

Councilmember Patricia Ponce said it was super important they make the community aware of the challenges they face.

Councilmember Rita Xavier explained the one thing that San Pablo doesn’t want to do is be like other cities dipping into their reserves where they ended up in “big trouble” and they didn’t want to get there.

Shawn Ray, speaking on behalf of the San Pablo Police Officers Association spoke in favor of the sales tax measure calling it a temporary 10-year bridge to protect services and build a thriving local economy.

Eugune Kolosov, president of the San Pablo Police Employees Association, also expressed support for placing the sales tax measure on the ballot. He said the city needed to have a stable and sustainable financial foundation calling the measure would strengthen the foundation by providing locally controlled revenue to support essential services and future needs.

Watch Meeting: Click Here

Language That Will Appear on the Ballot

To provide funding to maintain City services, including crime prevention, police protection, reducing illegal dumping, the City’s daily senior meal program, youth scholarship programs, assisting the homeless, street maintenance, and other general services, shall San Pablo enact a temporary ½-cent sales tax for 5 years, generating approximately $2,000,000 annually, then reduced to ¼-cent for 5 years, generating approximately $1,000,000 annually, then terminate; with all funds staying in San Pablo, citizen oversight, and mandated annual audits?

Time Period Total Sales Tax Rate Tax on a $100 Purchase Phase Description
Current — April 2027 9.50% $9.50 Current rate baseline.
April 2027 — Sept. 2027 10.00% $10.00 New measure goes into effect (+0.50%)
Oct. 2027 — Sept. 2032 9.75% $9.75 Measure S scheduled step-down (-0.25%)
Oct. 2032 onward 9.50% $9.50 Measure S completely expires (-0.25%)

For more information: Click Here

From the City of San Pablo

San Pablo Budget Breakdown

The City of San Pablo has implemented a strategic “Fiscal Discipline” approach to balance its biennial budget for Fiscal Years 2026–27 and 2027–28 (covering July 1, 2026, through June 30, 2028). This approach includes drawing from one-time operating reserves and prioritizing cost-saving measures, such as freezing vacant positions and reducing non-essential contracts. However, the City is projected to continue to face a structural deficit.

The San Pablo Lytton Casino is a unique revenue source not typical of most local cities, and accounts for nearly 59% of the City’s General Fund revenue annually. Since Fiscal Year 2022–23, the City has faced a shortfall of nearly $2.5 million in revenue from the San Pablo Lytton Casino. While Casino revenues historically grew at a stable 10-year average rate of 5.6%, long-term financial forecasts now show these revenues stagnating to a projected 10-year growth rate of 0.6%. This slowdown is reflected in the City’s projected $900,859 shortfall in Casino revenue for the fiscal year ending June 30, 2026.

In 2027, the existing Measure S sales tax rate will automatically drop from from 0.5 cents to 0.25 cents., leading to an additional $1 million annual loss, bringing the total deficit to $5.4 million Without additional, locally controlled revenue, the City is projected to face an ongoing structural deficit. The City will be forced to continue relying on its depleting emergency reserves to cover recurring operational costs, a short-term fix that independent forecasts warn is unsustainable.

To learn more about the City’s financial health, structural deficit and long-term budget planning, please visit www.sanpabloca.gov/BudgetUpdate.

A Local Investment

Unlike state or county taxes, if passed, 100% of the funds generated by the San Pablo Services Measure are legally required to remain entirely within San Pablo.

Currently, for every taxable dollar spent in San Pablo, you are taxed 9.5¢. Of that amount, the State receives 6¢, the County receives 0.5¢, and regional transit districts receive 1.25¢. This leaves exactly 1.75¢ that stays local to fund City of San Pablo services.

If approved, the proposed measure would add a half-cent (0.5¢) to that rate. For example, on a $20 restaurant bill, this would add 10¢.

Under this measure, the total sales tax rate would become 10¢ for every taxable dollar spent for the first five years, before automatically decreasing to 9.75¢ for the final five years. While the State, County, and transit districts will continue to receive their same fixed shares, the City of San Pablo’s locally controlled portion would increase to 2.25¢ per dollar for the first five years, and then settle at 2¢ per dollar for the remaining five.

Other Contra Costa County communities like Richmond, Pinole and El Cerrito all have higher sales tax rates than San Pablo.

What Is/Is Not Taxed

If approved, this sales tax does not apply to essential needs like rent, groceries, prescription medications, baby formula and diapers. Personal and professional service labor such as haircuts, nail care, auto repairs and gardening is also exempt.

The sales tax applies to general retail and dining purchases. This includes restaurant meals, prepared food and beverages, alcohol, tobacco products, gasoline, clothing, electronics, vehicles and home improvement supplies.

Because visitors also pay this tax when shopping and dining in San Pablo, the measure helps distribute the cost of City services across everyone who utilizes local businesses.

 

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