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Vacaville council places 1¢ local sales tax on November ballot to address $11M structural gap
Summary
Facing a projected structural general-fund deficit, Vacaville’s council voted to place a one-cent local transaction and use tax (Measure V) on the Nov. 3, 2026 ballot. Staff projects roughly $28 million annually (estimate subject to behavioral effects); the measure would create independent audits and an oversight committee if approved.
The Vacaville City Council voted June 23 to submit Measure V — a proposed one-cent local transaction and use tax — to voters at the November 3, 2026, election to address an estimated structural general-fund shortfall of roughly $11 million for the coming fiscal year.
Assistant City Manager Georgian Megar Smith summarized the process leading to the recommendation: staff reviewed internal cost-saving measures that cut approximately $9.2 million in recurring costs, conducted voter-research surveys, and explored revenue options under California law. A local sales tax emerged as the option capable of generating the most significant locally controlled revenue. Staff estimated the tax would raise about $28 million annually and recommended guardrails including a five-member citizens’ oversight committee, annual independent audits and public reporting.
City staff and council emphasized the measure is a voter choice rather than a council tax. Mayor John Carly and multiple council members framed the item as letting residents decide whether to increase local revenue to maintain current services including 911 response, fire and ambulance, crime prevention, parks and streets, and other general municipal services. City Attorney and staff clarified that because the proposal is a general tax for general government purposes, it requires a simple majority (50% + 1) for approval.
Council discussion focused on transparency and oversight. Vice Mayor Silva and others asked for clear guidance on the oversight committee’s role and composition. Staff said the committee would be appointed using a public application process, meet quarterly with finance staff, and report annually to council. Staff also noted the oversight committee would apply to Measure M (an existing local revenue measure) whether or not Measure V passes.
Public commenters urged the council to continue looking inward for additional efficiencies and to make clear what items the tax would or would not apply to; staff and council noted the state Department of Tax and Fee Administration maintains a list of taxable categories and that groceries and medical supplies are generally exempt from sales taxes.
What happens next: Council directed staff to prepare the impartial analysis and ballot materials and to request consolidated election services with Solano County. If voters approve Measure V, it would take effect April 1, 2027, and be subject to local oversight, audits and reporting as specified by council procedures and the oversight committee’s charter.
Quote: “The action before council tonight is not whether to impose a tax. Rather, it is whether voters will have the opportunity to consider the measure in November,” Assistant City Manager Georgian Megar Smith said.
Bottom line: Council placed Measure V on the ballot and set a process for oversight if voters approve the tax.
