Possible sales tax hike under consideration in American Canyon
American Canyon voters may vote on raising the sales tax to pay for parks and recreation projects.
The American Canyon City Council on Tuesday approved $110,000 to hire consultants to evaluate a potential revenue measure. The vote was 4-0 to hire Fairbank, Maslin, Maullin, Mez and Associates, FM3 Research, to survey the community, along with Tripepi Smith and Associates, a marketing, technology and public affairs firm.
The Parks and Community Services Commission on Jan. 8 recommended contracting with the polling and public relations firm to evaluate a potential sales tax hike.
“I think we should go out and test the waters,” Vice Mayor Mark Joseph said.
Raising the current sales tax, now 7.75 percent, by 1 percent could raise $3 million annually, according to the city.
The money could fund a number of projects, including maintenance of existing facilities; a new gymnasium community center; a building estimated at $30 million; $4 million worth of upgrades at the Phillip West Aquatic Center and synthetic sport turf at three sports fields, a project estimated at $6 million.
Eventually, the City Council will have to decide whether or not to have a special sales tax ballot measure, which requires two-thirds voter approval to pass, or a general sales tax, which only requires 50-percent approval plus 1 vote to be successful.
By comparison, the city of Napa’s sales tax is now 8.75 percent while Vallejo’s is 9.25 percent.
Both the commission and the City Council decided against raising the hotel tax, or transit occupancy tax (TOT), charged to hotel rooms or raising the parcel tax on property owners.
Raising American Canyon’s TOT from 12 percent to 13 percent could raise $158,000 a year for parks and recreation. Raising the parcel tax by $100 a year could bring in $550,0000 annually.
Vice Mayor Mark Joseph said he would favor a general purpose sales tax measure, not only because of the lower threshold to have it passed but also because he wants the measure to appeal to all segments of the community.
Younger families are more focused on parks and recreation while “older folks” may be more interested on maintenance, road and other issues, Joseph said.
Down the road, the city may tap into that money to make ends meet and to have a balanced budget, Joseph said.
City Councilman David Oro said he would like to make sure the money goes to parks and recreation instead of the general fund. “I would love this to be clean”
The city does need a community center, Oro said. “I’m glad this is coming forward.”
The general sales tax measure is “the only thing that’s going to pass,” Oro said. “We’ll never get a ‘two-thirds’ vote, I think,” he said, referring to the threshold to pass a special sales tax measure.
Under the city’s timeline, polling the community could be done February through May; the City Council could consider a recommendation in June and place it on the November ballot.
The city is updating its parks master plan, a blueprint of what the city wants to recreate. The plan is expected to be completed in June.
Oro asked whether the city should first adopt the master plan to see exactly what is needed before considering the sales tax measure. Still, he did not ask for a delay.
He also suggested a subcommittee look over the consultant’s polling questions.
Addressing Oro’s timing question, City Manager Jason Holley the ballot measure could wait until November 2028. The new parks master plan could identify potential revenue sources such as development impact fees to fund improvements listed in the document.
Anti-tax groups in California have sued, resulting in the eventual possibility that all new revenue measures statewide would require a two-thirds majority to pass, Holley said. Sales tax measures could be challenged retroactively.
If the city’s general sales tax measure were to pass with a two-thirds majority, it would survive the statewide challenge. The money would go to the general fund giving the city the flexibility to use it for other purposes.
The city could set fiscal policies to keep the money for set purposes.
Money raised from a special revenue measure approved with a two-thirds majority could not be commingled with the general fund, Holley said.
An attorney for the city, Jon DiCristina, said general tax measures, unlike a special tax, must be on the voted during a general election during which voters also try to fill one or more city council seats. Special tax vote can be considered at any election.
That means a general tax measure would have to be on the ballot either in November 2026 or November 2028, Holley said.
Joseph said he would like to see the measure on the November 2026. A lot of details included in the parks master plan are not needed to find out “where people’s heads are at,” Joseph said.
Joseph reiterated that he would prefer to have a general tax measure. Using the funds for bonds for parks would earmark the money.
Holley noted that a potential sales tax measure could be on the same ballot as Measure L, an initiative that would bring 157 acres off of Green Island Road within the city limits. The initiative includes language about a sports complex.
The city’s parks master plan is not considering a sports complex for that location.
American Canyon resident Hugh Marquez said a general sales tax would benefit the city if it were committed to develop a new community center in the city. The money should be directed to parks.
Janelle Sellick, executive director of the American Canyon Parks Foundation, which is developing the Napa River Ecology Center, also spoke in favor of a revenue measure to raise money for parks. “I think it’s time,” Sellick said.
The city needs to make sure that what is promised is delivered, Sellick said.
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