Carpinterians will vote on a 0.25% sales tax measure this fall. The tax would apply to items purchased at city businesses, including those in the city's downtown business district along Linden and Carpinteria avenues. Some items, like prescription medications, would be exempt from the sales tax.
Carpinterians will vote on a 0.25% sales tax increase measure this fall. The tax would apply to items purchased at businesses within city limits, including those in the city's downtown business district along Linden and Carpinteria avenues. Some items, like prescription medications, would be exempt from the sales tax. Credit: Evelyn Spence / Noozhawk photo

Carpinterians will vote to reject or approve a 0.25% sales tax increase this fall, following a Carpinteria City Council decision on Monday.

The council — citing growing expenditures and stagnating revenues — moved to put the measure, known as a transactions and use tax, on the Nov. 3 ballot.

The city’s total sales tax rate is currently 9% and the measure would increase the rate to 9.25%. Under current state regulations, it is capped at 9.25%.

The new measure, which if approved is estimated to bring in approximately $700,000 annually, will help fund general city needs. The council will ultimately be in charge of where exactly that money goes, but ballot language generally describes it as a public safety, roads and city services measure.

But that $700,000 is only a drop in the bucket needed to help bring the city’s budget back into balance and prevent any program cuts, according to city staff.

The city is facing $133.6 million in unfunded project costs and $24 million in deferred street and pavement maintenance.

Staff had planned to do several pavement projects over the past few years to help repair Carpinteria’s roads. But those projects have been continually pushed back as inflation and other larger costs — such as the Santa Barbara County Sheriff’s Office contract — continue to rise and eat away at the city’s discretionary funds.

That Sheriff’s Office contract is set to hit $6.9 million in fiscal year 2026-27, up from $3.9 million in 2019. Public safety costs are the city’s largest discretionary expense, per staff.

City Manager Michael Ramirez said staff have been in discussions with other local governments, such as the city of Santa Barbara and Santa Barbara County, about ways to help Carpinteria’s pavement at a lower cost.

Mayor Natalia Alarcon asked what the “unavoidable” impacts would be if the council didn’t vote Monday to put the sales tax increase measure on the fall ballot.

Ramirez said there is no “predetermined answer,” given that the council is ultimately in charge of making budget decisions. But one thing is clear: tough choices are ahead if the city cannot find other ways to increase revenues by 2028.

The new sales tax measure will help, but city programs that generate minimal or no revenue — like the city’s library or AgeWell senior services — could be at risk if nothing changes.

“I don’t want to scare anyone… but the service impacts would be substantial if (the revenues are) not addressed at all,” Ramirez said.

Ramirez said the city has begun making short-term adjustments, but the city ultimately needs long-term revenue solutions.

— Noozhawk South County editor Evelyn Spence can be reached at espence@noozhawk.com. Follow Noozhawk on Twitter: @noozhawk, @NoozhawkNews and @NoozhawkBiz. Connect with Noozhawk on Facebook.