SAN PABLO, Calif. — The San Pablo City Council voted July 13 to place the San Pablo City Services Measure, a local sales tax measure, on the Nov. 3 ballot. If approved by a majority of voters, the measure is projected to generate around $2 million a year for the general fund that would help fund general City services like public safety, senior and youth programs and street maintenance. This measure would temporarily increase the City’s sales tax from 9.5% to 10%. The proposed ½-cent increase would remain in effect for five years before automatically decreasing to a ¼-cent increase, bringing the total sales tax rate to 9.75% until the tax sunsets in 10 years.
San Pablo relies on its General Fund to pay for day-to-day operations and essential community services, including crime prevention, police protection, daily senior meal programs and a youth scholarship program set to lose federal funding in December. The City recently balanced its biennial budget for fiscal years 2026-27 and 2027-28 by using a “Fiscal Discipline” approach. This includes drawing from one-time operating reserves and prioritizing cost-saving measures, such as freezing vacant positions and reducing nonessential contracts. However, San Pablo is projected to face a continued structural deficit, and independent forecasts warn that relying on reserves for recurring expenses is unsustainable.
“We’ve managed costs and used reserves to close this gap, but reserves are meant for emergencies, not everyday operations,” said City Manager Matt Rodriguez. “This measure gives residents a say in securing sustainable, locally controlled funding that stays completely in San Pablo.”
The City is also facing rising labor costs, health care and insurance costs, combined with stagnating revenue from the San Pablo Lytton Casino. Additionally, on Oct. 1, 2027, the existing Measure S sales tax rate automatically drops from a ½-cent to a ¼-cent, which is forecasted to reduce General Fund revenue by an additional $1 million a year.
San Pablo’s current sales tax rate is 9.5%, among the lowest in Contra Costa County. For every taxable dollar spent in the City, 6¢ goes to the state, 0.5¢ goes to the county, and 1.25¢ goes to regional transit districts. This leaves 1.75¢ that stays local to fund San Pablo municipal services.
If approved, the measure is projected to generate about $2 million annually, and all funds are legally required to stay in San Pablo. Because it is proposed as a general tax measure, the revenue would go into the City’s General Fund and used to support essential community services, including crime prevention, street maintenance, illegal dumping cleanup, homelessness assistance, the City’s Rent Review Program, and senior and youth services. This includes the San Pablo Youth Scholarship Program, which is set to lose federal funding in December.
Sales tax does not apply to everyday essentials such as groceries, rent, prescription medications or personal services. Instead, it applies to retail goods and dining out. If approved by voters, the measure would include strict accountability requirements, such as mandatory annual independent financial audits and oversight from an independent citizens’ oversight committee.
The measure will appear on the Nov. 3, 2026, general election ballot. Ballots and voter information will be administered by the Contra Costa County Registrar of Voters.
For more information, visit www.SanPabloCA.gov/ServiceMeasure.
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- July 14, 2026 – San Pablo Agrees to Place Sales Tax Measure on November Ballot
