PLEASANTON — For the first time in history, Pleasanton voters are being asked to approve a half-cent sales tax the city says will help repair a growing budget deficit.
The City Council this week voted 4-1 to approve placing the half-cent tax measure on the November ballot, with Councilman Jack Balch the lone vote against doing so. If approved, it would add 50 cents to a retail purchase of $100, officials said.
The council said the measure is needed as a means to buffer an incoming budget shortfall, which is estimated to be $13 million annually over eight years, beginning in 2025.
City Manager Gerry Beaudin reminded council they already found $2.5 million in savings this year in part by delaying construction of a new fire station, instituting a hiring freeze in some departments and cutting a new skatepark out of the budget.
“What we’re really trying to do is take away programs, services and positions that don’t have an immediate and serious impact on the services that we provide to the community,” Beaudin said.
But Beaudin said the ballot measure is needed to “prevent cuts.” If approved by a simple majority of voters, the measure is expected to bring in $10 million a year for a total of $100 million when it would sunset in 2035.
“This money does not solve the problem completely. But without this money there will be significant cuts,” Beaudin said.
But Balch was not convinced a tax increase is the answer to the city’s money problems.
“I rarely ever see a silver bullet to solve the problems,” he said.
Fire Capt. Craig Freeman urged the council to unanimously adopt the measure to prevent fire station closures and cuts to department staffing, which he said would be detrimental to public safety.
“You’re going to leave a big hole somewhere. These holes will result in longer response times,” Freeman said. “Whether it’s a cardiac arrest, a major car accident requiring rescue, a house that’s on fire, it doesn’t matter. When it takes longer for us to get there to do our jobs, it has negative outcomes attached to those things.”
Mayor Karla Brown, Vice Mayor Julie Testa and councilmembers Jeff Nibert and Valerie Arkin all praised the measure as essential to the public’s interest. In a press release announcing Tuesday’s vote, the city said “even if voters approve a sales tax increase, the city will need to make additional cuts and is continuing to find ways to do that.”
Balch said he wanted to pursue “all options” other than the measure for solving the deficit and asked why the city didn’t cut spending sooner since officials had known that “the budget challenge is looming.”
“I’m dismayed that so much of the conversation presented is that everything good, everything right in our city is predicated on this sales tax increase — that this is our only hope and our only solution,” Balch said. “A budget is a reflection of our values. There’s not doubt I value our public safety individuals in the room and out on the field right now. But all our values should not be dependent on a single electoral vote or action this November.”
Balch demanded the city start a task force to attack the budget deficit issues and wanted a “well crafted plan.”
“Once that’s done for me, I will be able to look the voter in the eye, and be able at that time to ask for a sales tax, if that is what we decide,” Balch said. “But today I’m not able to do that.”
Balch did not get what wanted. Instead, the city is sending the county election’s office a draft of the approved ballot measure before the Aug. 9 deadline so it can appear on the Nov. 5 ballot.
