The city of Goleta is considering a 1 percent sales tax increase for the November ballot, but will likely survey the community before putting the item before voters.
The Goleta City Council will vote on the matter at Tuesday night’s meeting. The city already conducted a poll in February that showed support for a 1 percent increase, but in light of the COVID-19 pandemic, questions have arisen about whether now is the time to put a greater financial squeeze on the community.
“I am a bit reluctant right now, given the fact that 15 percent of our constituents are said to be unemployed,” Goleta City Councilman Roger Aceves said. “I heard that 50 percent of all Americans have suffered some financial hardship. I just don’t know about timing. I think we need to look at other ways to raise the money and bring it back on another date.”
The meeting comes at a time when businesses are reeling from the economic shutdown, with questions flaring about how many might never re-open. About 22,000 people have filed for unemployment benefits in Santa Barbara County. The COVID-19 pandemic has delivered an indiscriminate blow to just about everyone, in all walks of life.
A city staff report ahead of Tuesday night’s meeting says, “Goleta businesses have struggled with closures and reduced operations, placing many of them in financial crises ranging from serious to critical.”
At the same time, Goleta wants to raise revenues to help pay for its costs in response to the pandemic. Among the areas of focus are public safety, community sanitation, disaster preparedness and response, and support for social programs for Goleta residents who are impacted by the COVID-19 pandemic, including vulnerable and disadvantaged populations.
Goleta also plans to focus on economic development initiatives to support businesses and job recovery.
“These needs will likely remain an area of focus for the city for the next several years as we play our part in efforts to contain and recover from the pandemic and resulting economic crisis,” the staff report states.
City Councilman James Kyriaco said he has a lot of questions about the timing of the proposal and the message it sends during a time of anxiety and uncertainty.
“I also understand we are overdue for making needed investments in our physical and human infrastructure,” Kyriaco said. “I am trying to determine if this is the best path, and best time to make those investments.”
Goleta’s sales tax is 7.75 percent. Santa Barbara’s is 8.75 percent and Carpinteria’s is 9 percent.
Goleta does not receive the full 7.75 percent sales tax. Under a Revenue Neutrality Agreement between Goleta and Santa Barbara County, the county receives 30 percent of the sales tax revenue, a holdover from when Goleta incorporated.
The city had budgeted $50,000 to initially survey the community, and Tuesday will consider spending another $32,000 to ask people again in the aftermath of the COVID-19 pandemic.
— Noozhawk staff writer Joshua Molina can be reached at jmolina@noozhawk.com. Follow Noozhawk on Twitter: @noozhawk, @NoozhawkNews and @NoozhawkBiz. Connect with Noozhawk on Facebook.

