City prepares to put sales tax hike on ballot

After months of debate, on Monday the Petaluma City Council finally agreed to seek a permanent 1-cent sales tax increase this November, which would bring in roughly $10 million in revenue each year.

After the council’s July 7 meeting, it looked like discussion on the sales tax increase had stalled when the council was told that a “supermajority” of six out of seven votes was needed to put the measure on the ballot. With Councilmember Teresa Barrett and Mayor David Glass dissenting, the council lacked the votes needed to move forward. But after a July 21 staff report showed that the measure needed just five council votes to make the ballot, the debate came to a resolution on Monday.

Councilmembers Gabe Kearney, Mike Harris, Chris Albertson, Mike Healy and Kathy Miller voted in favor of placing the measure on the November ballot, although a final vote on the measure won’t happen until August. Glass and Barrett again dissented, reaffirming their concerns that a general tax measure does not guarantee that funds go toward voter-supported projects like the Rainier cross-town connector.

Earlier this month, they proposed two measures, a half-cent general sales tax increase and a half-cent special tax dedicated for road projects. Other council members were hesitant to seek a special tax, which have been historically difficult for the city to pass because they require a two-thirds majority, rather than a 50-plus-one vote. Glass said without a special tax, he fears the new revenue will go to unfunded employee pensions instead of repairing roadways. Barrett echoed that sentiment, stating that any spending promises made today may not be kept, as the council’s makeup and priorities shift over time.

The majority of the council seemed satisfied with City Manager John Brown’s suggestion to bond the new revenue to ensure that funds are allocated to services that are most important to voters, such as street repairs and traffic relief projects. The measure calls for the creation of a citizen oversight committee to monitor the spending, and states that the funds must be placed in their own budget rather than the general fund.

Included in Monday night’s staff report was the ballot language for the proposed “Better Roads Safer Petaluma Measure,” which states that all proceeds would go toward “governmental purposes such as street and sidewalk maintenance and repair, traffic improvements like the Rainier Crosstown Connector/Interchange, flood protection, storm drainage, vehicle replacement, restoring public safety positions and public facilities improvements,” among other uses. At 8.25 percent, Petaluma currently has one of the lowest sales tax rates in Sonoma County. Santa Rosa, Sonoma, Rohnert Park and Healdsburg all have 8.75 percent sales taxes. In June, Cotati’s sales tax rose to 9.25 percent after voters there passed a 1-cent sales tax hike, making it the highest in the county.

(Contact Allison Jarrell at allison.jarrell@arguscourier.com)