ENCINITAS — The fate of a 1% sales tax hike in Encinitas is now in the hands of local voters after the City Council voted 4-1 to add the proposal to the November ballot.
Councilmember Bruce Ehlers was the lone dissenting vote during the May 22 council meeting, saying he would be “more supportive of a half-cent sales tax increase.”
The measure also divided residents at Wednesday’s meeting over the proposed tax hike.
“We do not need more taxes; we need you, the mayor and the council to prioritize expenditures more economically,” said Sheila Cameron, a former mayor of Encinitas who has lived in the city for 50 years.
Resident Rachel Graves agreed.
“I’m happy to pay an increased sales tax once I feel like this council can be accountable and fiscally responsible with the money we already give you,” Graves said.
In Encinitas, the combined sales tax rate is 7.75%, one of the lowest in California. The city does not currently levy a municipal sales tax. The revenue from the sales tax increase is expected to generate an additional $15 million annually for the city.
Mayor Tony Kranz acknowledged that getting locals to support the increase may be an uphill battle but thinks the measure has a “pretty good chance of success.”
Part of the sales tax measure’s funding would potentially be earmarked for city services such as fixing potholes, upgrading aging storm drains and building two new fire stations. However, the measure does not specify how the revenue will be spent.
The results of a recent city-funded survey conducted by True North Research showed that approximately 60% of 1,242 survey participants would vote in favor of adopting a sales tax if the measure were on the November ballot, either voting definitely yes (27.2% to 30.5%) or probably yes (30.4% to 33.5%).
Resident Judy Berline said it was a “difficult” decision but favors the rate increase overall.
“What kind of damage will we see to our businesses from the flooding? What kind of accidents will we see from not maintaining our streets?”
Dick Sten, president of the Ranch Community Association, shared a similar view.
“I think this is a small and reasonable price to pay for improved roads, safety drainage and safety measures,” Sten said.
General taxes on local ballots require approval from a simple majority of voters. An oversight committee will be created to track how the money is spent.
