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City manager outlines May 5 Measure K sales-tax initiative to close long-term budget gap
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Summary
City Manager Kendanique told the Calabasas Environmental Commission that the council is placing a 1¢ local sales-tax measure on a May 5 all-mail ballot to shore up general-fund revenues, citing a 10-year structural deficit forecast and the need to preserve reserves; staff explained what would be taxed, mailing/return deadlines and outreach plans.
City Manager Kendanique told the Calabasas Environmental Commission on March 10 that the City Council has scheduled an all-mail special election on May 5, 2026, to ask voters to approve a 1¢ (1 percent) local sales-tax measure (referred to in discussion as Measure K) intended to shore up the city’s general fund.
Kendanique said the council moved the measure forward in part to act before a separate county half-cent sales-tax initiative and to “capture the remaining gap” before other agencies potentially claim local sales-tax capacity. He presented a 10-year forecast staff prepared that shows a structural budget shortfall of roughly $6 million in year 10 under current policies and said the city’s general-fund reserves total nearly $20 million and would be drawn down in roughly five to six years if nothing changes.
Kendanique framed the proposal as a simple-majority general tax (requiring 50% plus one vote) rather than a dedicated tax that would require a two-thirds vote; that design lets the council use revenues across public safety, wildfire prevention, parks and recreation, street maintenance and other general-fund priorities. He said staples such as groceries and prescription medicines would be excluded, while most retail transactions already subject to sales tax—including many items sold at neighborhood retail centers and prepared foods—would see the additional penny. He noted gasoline already is taxed and would continue to show sales-tax charges at the pump.
On the ballot process and outreach, staff said mail ballots will be sent about April 6, in a bright-yellow envelope to distinguish them from the county ballot arriving later; ballots must be postmarked or dropped off by May 5 to be counted. Kendanique described a robust outreach schedule—about three speaking engagements per week—plus staffed tables at local grocery stores and direct presentations to neighborhood groups, HOA meetings and other community organizations.
Commissioners asked about likely turnout, what would happen if the measure failed and how revenues would be prioritized. Staff said the measure needs a simple majority to pass, and that the city is preparing two budgets this year: a status‑quo budget that assumes the tax passes, and an alternative budget that would begin cutting services and programs if it does not. Kendanique listed examples of rising costs driving the need for revenue—noting a 32% rise in the sheriff contract over ten years and large increases in utilities—and said personnel costs have been controlled, in part by reducing full‑time headcount from about 120 to 80 over several years.
Kendanique and staff repeatedly emphasized transparency: presentations, budgets and meeting materials will be posted on the Calabasas elections website and handouts are being distributed at community meetings. The commission had no formal action on the ballot measure; staff asked commissioners to continue serving as community liaisons as outreach continues.
What’s next: staff said ballot mailing will begin in early April, outreach events will continue through late April and voters must return or postmark their ballots by May 5 for them to be valid.
