Vacaville leaders outline $9M shortfall and propose 1-cent sales tax education campaign

Mayor Corley and City Manager Sabita Chaudhary presented a detailed State of the City that described recent accomplishments, outlined a looming general‑fund shortfall and said city staff will launch public education about a possible 1‑cent local sales tax for the November 2026 ballot.

City Manager Sabita Chaudhary told attendees the city’s midyear projections show a general‑fund deficit of roughly $9 million with current cost‑saving measures in place and about $13 million without them. She said staff have delayed 22 positions, cut departmental budgets by 2.5% and used one‑time revenue sources to reduce the gap while seeking longer‑term options.

“Every one‑fourth cent gets us $7,000,000,” Chaudhary said, describing the city’s modeling of different rate scenarios and adding that the council in February authorized staff to begin voter education and outreach but has not taken a final vote. She framed the measure as a retention measure: “This is about retaining what we have already built.”

Chaudhary and the mayor described how Vacaville’s $294 million total budget is split among enterprise, special‑revenue and the general fund (the city said about $158.4 million is general‑fund spending). The presentation emphasized that public safety makes up about two‑thirds of general‑fund costs, and that projected revenue gains — including a recent one‑time sale-related bump — will not close structural gaps.

Officials flagged specific steps already taken to limit costs, including delaying hires and deferring roughly $2 million of capital projects designated for the annual CIP. Chaudhary also noted the city has used one‑time proceeds from past transactions to balance budgets, and identified a March 24 council return to present a draft reserve policy and more detailed budget information.

On services and capital, staff cited recent accomplishments and investments: procurement and contract management consolidation; financing for 17 fire vehicles; prepayment of a portion of CalPERS unfunded liability to save about $760,000 in interest; and grant funding for a regional real‑time information center. Chaudhary said the police and fire departments are updating coverage and training plans to respond to growth.

Chaudhary outlined community engagement plans if the sales‑tax education moves forward: focus groups, a public information session scheduled March 19 at the 3 Oaks Community Center and additional council briefings ahead of any final decision to put a measure before voters. She emphasized the measure would be local and the city council would set spending priorities if voters approve it.

During a question‑and‑answer period, city staff said a study found roughly 22% of Vacaville’s sales tax is generated by nonresidents (commuters or visitors), and an economist’s report will be released to the council. Residents at the event asked about park restrooms, workforce impacts of corporate closures, and power capacity for larger manufacturers; city leaders pointed to ongoing workforce development, retention outreach and infrastructure planning tied to specific growth‑area studies and the municipal services review (MSR) process with Solano LAFCO.

The city did not take any formal vote at the event. Chaudhary said the council will consider reserve‑policy updates March 24 and begin CIP and budget study sessions in May with the goal of adopting a budget in June. Any decision to place a sales‑tax measure on the ballot would be made later by the council and, if placed on the ballot, decided by voters in November 2026.