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Council approves ordinance to put 1.25% sales-tax proposition on May ballot
Summary
Council considered and approved Ordinance No. 2280127 to order a May 2, 2026 election asking voters to adopt a 1.25% local sales/use tax (redistributing an MDD 0.25% into sales tax) and to elect mayor and two aldermen; staff emphasized the ballot description must state it is a tax increase though the reallocation preserves municipal development funding.
Council considered Ordinance No. 2280127 to order a May 2, 2026 election that would (1) submit a proposition to adopt a 1.25% local sales and use tax (redistributing a 0.25% municipal development district — MDD — levy into the general sales tax base) and (2) conduct elections for mayor and two aldermen. Staff explained the mechanics: the MDD special tax currently collects 0.25% separately and must be renewed; because of election timing the city would otherwise lose those two months of MDD revenue. "We're just redistributing it from that 0.25 percent currently taking for MDD. We're gonna put it over into sales tax," staff said, adding the state comptroller paperwork prompted the change.
A council motion to approve Ordinance No. 2280127 was made and seconded, and the Chair called for the vote: "All those in favor... And that passes." The transcript records approval language but does not include a roll-call tally. Staff clarified that the overall tax rate figure shown on the ballot will be described as an increase even though the intent is to preserve MDD and EDC funding and avoid the lapse that renewal timing would cause.
