Lifetime Citizen Portal Access — AI Briefings, Alerts & Unlimited Follows
Soledad staff warn Measure Y sunset could create multi‑million dollar cliff; polling under way on parcel tax to fund Cal Fire staffing
Loading...
Summary
City staff told the council Measure Y will sunset in 2032 and represents about 16% of Soledad's revenues; staff are polling residents about a parcel tax targeted to fund increased Cal Fire staffing and plan to return with recommendations this summer.
City staff told the Soledad City Council that the scheduled February 2032 sunset of Measure Y — the city’s transaction‑use tax — is the single largest long‑term fiscal threat to municipal services and that the city is testing a narrowly targeted parcel tax to pay for increased CAL FIRE staffing.
Finance staff said Measure Y currently accounts for about 16 percent of city revenues and cited consultant projections of roughly $2.4 million annually. Staff warned that if Measure Y expires without replacement, the city could face a revenue shortfall in the $2 million–plus range that would require difficult choices including layoffs or service reductions.
To address a near‑term funding gap for fire services, staff said they are pursuing polling and outreach. The model under consideration is a partial parcel tax patterned after a nearby city’s approach; if polling shows voter appetite, staff said the measure would be structured to be dedicated to fire services only. Staff said poll results are expected at the end of the month and that they plan to return to council with recommendations in August.
Why it matters: staff said rising costs for CAL FIRE contract staffing are already pressuring the budget. The contract requires the city to move to three personnel on an engine consistent with national safety standards, a change that raises recurring personnel costs. Staff emphasized that any parcel tax, if proposed, would be earmarked for fire services and that education and outreach would be needed to explain how sales tax and transaction taxes are paid in part by non‑residents who shop in Soledad.
Details from staff presentation: - Measure Y adoption: originally adopted in February 2012; staff noted the city has used some Measure Y proceeds to build reserves and to cover public‑safety and departmental costs over time. - Staff projection of Measure Y revenue: roughly $2.4 million annually (consultant HDL projection stated in meeting). - Parcel tax approach: staff said the proposal under study would be a partial parcel tax paid by property parcels and dedicated to fire services; staff said the parcel tax would not cover the entire CAL FIRE contract but would narrow the gap and be structured to be revenue‑earmarked for fire services only. - Timeline: staff said a consultant poll will report results at the end of the month; staff anticipated returning with recommendations to council in August.
Staff cautioned the council against placing multiple ballot measures too close together and said outreach would be needed to explain the difference between extending an existing tax (Measure Y) and creating a new parcel tax. Staff noted the city’s previous experience: Measure Y funds are currently fully allocated under prior council actions and largely committed to public‑safety costs and related items.
Ending: Finance staff urged the council to begin strategic planning now to avoid a fiscal cliff in 2032 and said staff will return with polling results and a recommended schedule if the public shows sufficient appetite for a parcel tax to help stabilize fire funding.
