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City unveils proposed 1-cent sales tax to shore up general fund and expand public safety services
Summary
City staff presented a proposal to place a 1-cent sales tax on the Nov. 3, 2026 ballot to address a projected structural general-fund deficit (roughly $3M plus $2.4M in temporary property-tax sharing) and fund public safety priorities including ALS paramedic staffing; chiefs and council discussed staffing, polling and measure term; the council will consider formal placement at a June vote.
City Manager Sean and staff presented a multi-month outreach effort and polling-informed proposal on June 9 to place a sales-tax revenue measure on the November 3, 2026 ballot, proposing a 1-cent rate to address a structural general-fund shortfall and to fund public-safety, parks, and other locally controlled services.
Staff explained that the general fund faces a structural deficit of roughly $3 million plus an additional approximately $2.4 million currently covered by a limited-term property-tax sharing agreement with Plaster County, producing a combined funding hole that staff said could exceed $5 million without action. Staff's five-year forecast projects general-fund reserves could be exhausted by 2030 absent new revenue or expenditure reductions.
The city presented outreach and polling work showing public safety as the community's top priority for new local funding. Fire Chief (identified in transcripts as Chief Mahia/Mia) described the department's dependence on a for-profit ambulance provider for advanced life support (ALS), growing call volumes, and delays at hospitals; he urged funding to build an in-house paramedic program staffed with experienced lateral hires. Police Chief Alves outlined patrol minimum shortfalls, insufficient detective and traffic staffing, and specialty unit constraints; he proposed seven sworn positions that would close critical service gaps.
Staff described options that had been tested in polling, including a nine-year sunset or an open-ended measure "until ended by voters." Polling results presented showed conditional support levels around low- to mid-60 percent for certain framings (the presentation summarized an aggregate "definite yes / probably yes" and leaning undecided total that staff reported as roughly 62% for a favored framing).
Council members asked for additional technical analysis requested before final placement: (1) consistent normalization of the deficit numbers (structural deficit vs. property-tax sharing), (2) clearer modeling of the fiscal impact of different sales-tax rates and the estimated share of new revenue paid by nonresidents (sales leakage/visitors), and (3) further exploration of ballot term language. Staff said they will return with more detailed modeling and recommended language; a council vote to proceed with ballot placement is scheduled for the June 22/23 meeting (staff said a four-fifths council vote is required to place the measure on the county ballot in time for November). Staff also noted that once council acts, city staff paid by the city are restricted from advocating and that community groups would need to lead any campaign.
Public testimony at the meeting was broadly supportive of public-safety funding but emphasized clear messaging and accountability. Union and community representatives urged the council to consider a sunset carefully but said community champions and labor would support outreach and advocacy. Several residents expressed support for ALS and for retaining transparency controls such as independent audits and oversight committees.
Next steps: staff will incorporate council requests and technical analyses into a more detailed ballot package for formal council consideration in late June. If the council approves placement, county deadlines and four-fifths city-council approval requirements will shape the timeline and the community-led campaign that would follow.
