Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Taxation topic
No spam. Unsubscribe anytime.
Santa Cruz County Board holds Truth in Taxation hearing, adopts FY2025-26 budget and tax rates
Summary
At a special Aug. 6 meeting the Santa Cruz County Board of Supervisors held a Truth in Taxation hearing, heard finance staff outline a four‑year plan to cut the primary property tax rate by 3 cents per year, and then approved the county's FY2025‑26 budget and tax rates by motion.
The Santa Cruz County Board of Supervisors on Aug. 6 held a Truth in Taxation hearing on the county's property tax and then voted to adopt the FY2025‑26 budget and the FY2025‑26 tax rates.
Finance staff presented the hearing required by state statute and outlined a plan to lower the county's primary property tax rate by 3 cents each year for four years. Jesus Chavez, the county finance presenter, told the Board: "we have a plan of reducing the tax the primary tax rate by 3¢ every year for the next 4 years." He said the county's current tax rate from last year was 4.0065 and that the tentative budget reflects a 3.9765 tax rate — a three‑cent reduction from last year.
The Truth in Taxation process is intended to give the public an opportunity to comment on changes to the tax rate. Chavez noted the county used the state Department of Revenue formula to calculate levy limits and said the assessor provided four‑year projection data used in the planning. He told the Board that, because countywide assessed values rose, the tentative decrease in the rate would still increase taxes on an average $100,000 home by about "$9.17." He also said the county's proposed primary tax levy (about $18,000,000) remains below the formula's allowable levy limit (about $21,000,001).
Chavez summarized secondary‑tax effects, saying movement in the primary rate also affects the flood control district's secondary rate and that, combined, the primary and secondary changes translate to about an "$11 increase or about 92¢ per month" on a $100,000 home, as presented to the Board.
After the presentation the Board moved to adopt Resolution No. 2025‑08, "adopting the Santa Cruz County budget for fiscal year 2025‑26," and later moved to adopt the FY2025‑26 tax rates for jurisdictions within Santa Cruz County. A motion to approve the resolution was made and seconded and carried by the Board; a separate motion to adopt tax rates carried unanimously.
Why it matters: Adoption of the budget and tax rates sets the county's spending plan and the formal tax rates that will be used for the coming fiscal year. The four‑year plan to reduce the primary tax rate is a multi‑year policy direction presented at the hearing; staff said they will reassess annually based on assessed valuations and revenue projections.
Board members and county managers emphasized transparency and presentation materials provided to the public in the hallway and online. Chavez reminded the Board there is no formal approval required for the Truth in Taxation hearing itself; the hearing is a required public notice and comment step ahead of formal budget and tax rate approvals.
Details and immediate next steps: Resolution No. 2025‑08 was approved by motion at the meeting; the Board then voted to adopt the FY2025‑26 tax rates for jurisdictions within Santa Cruz County. Staff said they will continue quarterly monitoring of assessed valuations and revenues to determine whether the multi‑year 3‑cent reduction remains feasible.
(Ending) The formal budget resolution and tax‑rate motions concluded the hearing portion of the meeting; the Board moved on to other business and adjourned after a unanimous vote to approve the tax rates.
