San Diego council advances 1' sales-tax ballot measure after hours of testimony

San Diego's City Council voted unanimously on July 22 to send a proposed 1' general transactions and use sales tax to the Nov. 5 ballot, advancing a measure city staff say would raise roughly $400 million annually for neighborhood infrastructure and core city services.

Mayor Todd Gloria urged the council to let voters decide, saying the city has cataloged decades of deferred maintenance and needs a stable local revenue source. "It's time to take that data and to take action," Gloria said during the presentation, asking council members for support.

City staff and presenters, including Michael Simonson and Matt Yagagan, laid out the measure's mechanics and oversight features: it would add Chapter 3, Article 2, Division 1 to the San Diego Municipal Code and raise the city's sales tax from 7.75% to 8.75%. Staff projected the new 1' levy would yield about $400 million a year and said the ballot language would include citizen oversight, independent audits and quarterly reporting.

The proposal prompted prolonged public comment. Labor unions, public-safety associations, arts groups and parks advocates testified in support, arguing the revenue would shore up streets, storm drains, libraries, police, fire and lifeguard services. Jeremy Huff, vice president of the San Diego Police Officers Association, told the council the measure would help with police staffing and response times.

Opponents described the tax as regressive and warned of misuse of funds. "When a major goal of these new funds is to help underprivileged communities rebuild and maintain their infrastructure, it seems wrong to fund those improvements with the option that places the greatest burden on them," said a public commenter who cited the California Budget & Policy Center. Other speakers urged the council to prioritize cost controls, better contracting and direct assistance.

City officials pointed to the scale of the infrastructure backlog and rising construction costs as reasons to seek new revenue. Presenters cited a five-year capital-improvement outlook that identified roughly $9.25 billion of needs and noted sharp increases in construction and equipment prices since 2019.

Council discussion emphasized choice for voters and the seriousness of the fiscal shortfall. Councilmember Raul Campillo, who moved the staff recommendation, summarized the rationale: "The city is in dire need of additional revenue to start to tackle the enormous backlog of deferred maintenance," he said. The motion to approve subitems A and B'including placing the measure on the ballot and directing the city attorney and analysts to prepare ballot materials and a fiscal impact analysis'passed 9-0.

What's next: If certified by the council, the measure will appear on the Nov. 5, 2024 ballot. Subitem B directs the city attorney and independent budget analyst to prepare an impartial analysis and fiscal impact statement and assigns who will write ballot arguments.

Why it matters: The proposed tax would be a major near-term funding source for a city that staff say receives only 1 percentage point of the roughly 7.75% sales-tax rate collected on purchases; proponents say the new revenue could allow the city to accelerate repairs and upgrades to roads, parks and public safety systems. Opponents warn the measure would place an additional burden on lower-income residents and that city accountability should be strengthened in tandem with any new levy.

Provenance: Staff presentation and revenue estimate (City staff/Mayor's office presentation); public comments for and against the measure (public comment segment); council vote (council roll call).