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Santa Ana council votes to seek voter approval to make local sales-tax surcharge permanent
Summary
City staff warned the council the city could lose up to $30 million by 2029 if a temporary sales-tax surcharge sunsets; after debate the council voted 5–2 to place a ballot measure on Nov. 3, 2026 and authorize written arguments for the measure.
City staff told the Santa Ana City Council that the city faces a projected revenue shortfall of as much as $30 million in 2029 if the temporary local sales-tax surcharge sunsets, and the council voted to ask voters whether to make the levy permanent.
In a staff presentation, analysts showed revenue scenarios with and without the surcharge and said keeping the tax in place would narrow the city’s projected budget gap. The presentation recommended asking voters this fall to decide whether the city should retain the additional 1.5 percentage points of local sales tax enacted in 2018.
Mayor Amezcua said the services paid for by the surcharge — including parks, street repairs, public safety and wildfire response — have made visible improvements in the city and that residents should decide whether to keep them. “We need to let the electors decide,” the mayor said, urging a vote to refer the question to the ballot. Several councilmembers agreed the choice belongs to voters, though they acknowledged it would be politically difficult.
Councilmembers raised concerns about long-term fiscal sustainability even if the ballot measure passes. Councilmember Hernández said the tax has funded new programs and services but warned it is not a long-term substitute for structural revenue solutions. Other members urged attention to contracting, spending controls and economic development to increase revenues without relying solely on taxes.
A substitute motion authorizing staff to place a measure on the Nov. 3, 2026 ballot and to prepare written arguments in support carried on a 5–2 vote. The council recorded Councilmembers Peñaloza and López as the no votes. The council also authorized staff to return with final measure language and next steps for voter materials.
The council did not adopt the measure itself — the vote merely directs staff to put the question before voters and to prepare the city’s official materials. If placed on the ballot, the measure would be decided by a simple majority of voters, per staff’s description of the process.
The council discussion closed with members emphasizing the stakes: staff warned of a sizable revenue shortfall without action, and members stressed the need for voters to weigh whether to preserve current services funded by the surcharge.
