The City of Santa Barbara hopes a proposed half-cent sales tax increase will rake in $15.6 million annually.
The measure is on the Nov. 5 ballot. The City Council met Tuesday to talk about the types of things the money would go toward.
The council voted 7-0 to approve a list that includes a variety of priorities, including maintaining 911 emergency fire, paramedic and police response, making contributions to the city’s Local Housing Trust Fund, improving housing affordability and addressing homelessness.
The list also includes keeping local fire stations open, maintaining library services, and keeping public areas and parks safe and clean.
“Things happen — buildings fall apart, rain does something, fire does something,” Councilman Mike Jordan said. “As long as we have maximum flexibility with all of these items, we’ve done our job.”
The City of Santa Barbara closed a $7.1 million deficit for this budget year but is looking at an ongoing structural deficit. The city hopes voters approve the sales tax increase, to 9.25%, to avoid more cuts to services.
A few people spoke at the meeting and requested that affordable housing be the main priority for the money.
Megan Turley, housing chair for the League of Women Voters, said affordable housing should be among the priorities.
“It is important for members of the public to know where our dollars are going,” Turley said. “We strongly believe the investment of deed-restricted affordable housing is one of the best uses of taxpayer dollars.”
Santa Barbara recently created an affordable housing trust fund.
“We appreciate that the City Council is taking the necessary steps to ensure the long-term health of the city,” Turley said. “We encourage the council and staff to continue to explore ideas for a dedicated source of revenue for affordable housing.”
Lauren Trujillo, executive director of the Santa Barbara Public Library Foundation, asked the council to support the library.
“Keep the library as a top priority,” she said. “Investing in social infrastructure in addition to housing and public safety is essential for the long-term well-being of our people and our city.”
If approved, the sales tax increase would take effect April 1. The money would go into the general fund. Although the list includes priorities, where the actual money goes will depend on how the council spends during the annual budget cycle.
“This list is a snapshot in time,” Jordan said. “All kinds of mayhem can happen in the course of a funding pot that you are not anticipating. Things at the bottom of that list can move to the top of that list in real time. Things not on that list can appear in those priorities.”
Keith DeMartini, finance director, said there is no current priority for the items on the list, and those decisions would come later. Councilwoman Meagan Harmon said the real work will come during the budget sessions, when “the rubber hits the road.”
Kelly McAdoo, city administrator, said it’s too early to plan out the future of the money.
“We need to look at the city’s financial picture. Once the revenues start coming in, let’s stabilize the city’s budget, let’s get us to a balanced budget place, let’s make sure we are funding the reserves properly, and then there could be a conversation about enhanced services,” McAdoo said. “But first and foremost, we need to make sure we are focused on maintaining our existing services.”

