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Calabasas council studies options to close a growing structural deficit, staff favors 1¢ sales tax
Summary
City staff told a Sept. 10 study session that Calabasas faces a multi-year structural general‑fund deficit and recommended either a 1¢ sales tax or a staged sales-tax/TOT approach; residents urged prioritizing public safety and debated sunsets, business taxes and deferred‑maintenance funding.
Calabasas city staff told residents and council members at a Sept. 10 special study session that the city faces a structural general‑fund deficit that will widen without new revenues or large service cuts.
Kendan Meek, the city manager, said staff compiled a 10‑year historical series and used averages to project future revenues and expenses. “Expenses outpaced the revenues year after year,” Meek said, and staff’s model shows “about a $1,300,000 deficit next fiscal year, growing almost at 2,000,000 and then 2.6, 3.34” in later years if no action is taken. He and Chief Financial Officer Ron Ahlers warned the city cannot rely on reserves indefinitely.
Staff described several revenue options and their trade‑offs. A model for a 1¢ general sales‑tax increase was estimated to generate about $5.3 million beginning in the 2027–28 projection year and to restore the…
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