Mayor proposes 1% citywide sales tax increase for roads and ballot measure to expand PEDCO spending criteria; council raises concerns

City staff presented two proposed measures for the Nov. 4 ballot: a citywide 1% sales‑tax increase and a ballot question to extend and revise the city’s existing half‑cent PEDCO sales tax. The measures drew extensive council debate about strategy, language and likelihood of voter approval.

City staff said the proposed 1% increase would raise the city sales tax from 3.7% to 4.7%, producing an estimated $26 million annually based on 2024 collections; staff proposed dedicating the first year’s receipts to road projects slated for 2026–2029. “This proposal, if passed by city council, would be on the November 4 ballot,” city staff said during the presentation. Staff noted the city’s sales tax had not been raised in more than 50 years and that existing capital funding for streets had declined in recent years.

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