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San Carlos council puts half‑cent local sales tax on November ballot to fund streets, parks and safety
Summary
The City Council voted 4–0 to place a half‑cent general local transaction and use tax on the Nov. 3, 2026 ballot. Staff estimates the measure would raise about $6 million annually for general city purposes, with a 14‑year sunset and annual council budget discretion over spending.
The San Carlos City Council voted on June 22 to place a half‑cent local transaction and use tax before voters at the Nov. 3, 2026, general election, a measure city staff says would generate about $6 million a year and would sunset after 14 years.
City staff framed the proposal as a way to keep sales tax dollars local and to help cover rising costs for street repairs, parks and public safety. Administrative Services Director Rebecca Mendenhall told the council that although San Carlos maintains conservative budgeting and substantial reserves, the city projects structural deficits of $1–$2 million annually and faces rising construction and service costs.
A separate polling presentation from True North Research found that likely November voters tested well above the 50% threshold needed for passage. Dr. Timothy McLarney said the firm’s May tracking poll showed 66% support on an initial ballot test and 63% support on a final ballot test after hearing both pro and con messaging. The survey indicated the top spending priorities were street and sidewalk repairs, parks and community facilities, and emergency services.
Supporters at the meeting and during public comment urged voters be given the choice, saying local control keeps revenue in San Carlos rather than elsewhere in the county or state. Small‑business owners and longtime residents said they value downtown and services and would back a modest tax increase to sustain them.
Opponents and some residents voiced concern about the effect on small businesses and household budgets, and asked for clearer, itemized commitments. Multiple commenters also warned against the perception of asking voters for more revenue while approving costly capital projects.
Procedural and legal details were discussed at the meeting: city staff noted the countywide sales‑tax cap of 9.875% leaves limited capacity and that other county measures could use remaining room. The proposed San Carlos tax would not apply to exempt items such as groceries and prescription medicine, and staff emphasized that the proceeds would flow 100% to San Carlos.
By resolution the council also decided not to have the council author the official ballot argument; that priority will fall to eligible voters and bona fide citizen associations. The council authorized the filing of rebuttal arguments. The vote to place the measure on the ballot passed 4–0 (Vice Mayor absent).
Next steps: the city clerk will post the official ballot language and fiscal estimates and the city attorney will prepare an impartial analysis. The city may publish neutral informational materials describing the measure, and community members and associations will be permitted to file arguments for or against the measure for the voter information guide.
