In a recent government meeting, officials discussed the impacts and implications of Measure H, a voter-approved local sales tax that was enacted following the approval of the November 3, 2020 ballot. This measure, set at a rate of 1.25%, replaced the previous Measure Q, which was a half-cent sales tax.

Director Miller addressed ongoing confusion among community members regarding the financial reporting of Measure H, clarifying that the additional funds reported were not hidden but rather a result of the transition from Measure Q. He emphasized that the half-cent from Measure H had already been allocated in the city’s budget for public safety and other essential services prior to the new measure taking effect.

Measure H was introduced to support a variety of community needs, including police and fire services, emergency medical response, youth and senior services, local business support, street repairs, community health services, homeless prevention programs, and park maintenance. The estimated contribution from Measure H for the fiscal year 2024-2025 is approximately $12.5 million, which accounts for about 30% of the city's general fund revenues. This represents an increase of approximately $7.5 million compared to the previous Measure Q.

The discussion highlighted the challenges in assessing the direct impact of Measure H on city operations, as it is classified as a general tax, allowing for flexible allocation of funds across various services. Director Miller noted that the best way to evaluate the utilization of Measure H funds is through a comparative analysis of the proposed budget against previous budgets under Measure Q.

The meeting underscored the importance of clear communication with the community to dispel misinformation regarding the funding and allocation of Measure H, as officials continue to navigate the complexities of local tax measures and their implications for city services.