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Glendale council backs fast track for quarter‑cent sales tax amid $20M forecast gap
Summary
City staff outlined a projected multi‑year structural shortfall and presented six revenue options. Councilmembers directed staff to prioritize a quarter‑cent sales tax pre‑authorization for a near‑term ballot and to study a private‑parking lot tax as a second priority.
Glendale officials signaled urgency Tuesday as finance staff presented a five‑year general fund forecast showing a structural shortfall that could require roughly $20 million annually to restore reserve policy compliance.
The council heard Finance Director Jack Leang summarize options to close the gap, including a quarter‑cent sales tax (or pre‑authorization), a business license tax, a commercial vacancy tax, a hotel transient occupancy tax increase, a private‑parking‑lot tax and a public‑safety parcel tax. Leang said the city could need between $22 million and $33 million annually to fully reach policy targets but that $20 million would restore reserves into compliance for the near term. “To bring our trend back to reasonable range…we are going to need at least $20,000,000 on an annual basis,” Leang told the council.
Why it matters: staff said doing nothing would push Glendale below its charter reserve threshold by 2027–28. Councilmembers repeatedly cited tight timelines because Los Angeles County supervisors are considering a competing half‑cent countywide sales tax that could reduce Glendale’s ability to capture a quarter percent of local sales taxes.
What the council decided: Councilmembers coalesced around moving quickly on a quarter‑cent sales tax pre‑authorization that would preserve local control if a county or regional measure advances. Several members also listed a tax on private parking lots as a secondary priority to study. Councilmember Brotman argued for immediate action: “For the pre authorization, at least…all we're doing is reserving our right. We're not actually implementing it,” he said.
Staff next steps and timeline: staff noted statutory deadlines to place measures on June or November ballots and advised returning with detailed revenue estimates, legal timelines, and cost projections for one or two measures. The city will monitor the county’s proposal and return with an analysis of whether a pre‑authorization should be filed for the June or November consolidated election.
Context and caveats: presenters emphasized that some options, like increases to hotel TOT, are limited in potential revenue and that commercial vacancy taxes face complex feasibility questions. Staff also said the city continues work on cost‑cutting measures and non‑tax revenue ideas, but that alone would not close the forecasted recurring gap.
Next procedural step: staff will prioritize the quarter‑cent sales tax for further analysis and return with draft ballot language, timeline and cost estimates; the council asked that public outreach and clear messaging accompany any proposal.
