The Abridged version:
- The Woodland City Council approved a plan to bring a 1 percentage point sales tax increase to voters in November.
- The move came after leaders discussed filling next year’s budget gap with reductions and reserves.
- The increase would require approval by a majority of Woodland voters.
Woodland leaders are turning to voters for help with the city’s growing budget deficit.
After discussing cuts and service reductions, City Council members this week unanimously approved a plan to place a 1 percentage point sales tax increase on the November ballot. If approved, the new tax could add about $16 million each year to the city’s struggling general fund.
“We don’t get to print money” Council Member Richard Lansburgh said. “Do we want deficits that are going to reduce significantly the level of service that we get in this community, that we love and like, or are we going to find a way to enhance our revenue?”
The approval came right after city staff presented the council with next year’s proposed budget, which closed a multimillion-dollar gap by relying on reductions and reserves. If no action is taken, city officials predict deficits will increase year after year as costs rise and reserves dwindle.
“We’re not interested in gilded lilies here, we’re only interested in providing quality services for a community that has come to expect them and has been receiving them,” Mayor Tom Stallard said.
Closing the budget gap
To address this year’s roughly $4.6 million gap, staff froze hiring on five vacant positions and reduced certain expenses like water for park landscaping. That made up roughly $1.5 million. City officials have planned to cover the rest by drawing from the city’s general fund reserve.
But that strategy will eventually become unsustainable, city officials said. If Woodland continues in the same direction, reserves could be gone by 2030.
That would force leaders to make drastic cuts to services while continuing to leave other needs unfunded.
“We have a growing community and we have needs that we can’t meet, service delivery levels that we can’t meet,” Council Member Mayra Vega said.
Lagging revenue
Woodland’s budget woes are the result of escalating costs paired with stagnant sales tax and development revenue.
The city has a lower sales tax rate than surrounding Yolo County municipalities. Woodland’s current rate is 8%, while Davis and West Sacramento sit at 9.25% and Winters has an 8.25% rate.
The proposed increase would raise Woodland’s rate to 9% when combined with county and state sales taxes, putting the city ahead of Winters but behind Davis and West Sacramento.
But voter approval in November is far from guaranteed.
Just two years ago, council members tried a similar sales tax hike with Measure U but were rebuffed by roughly 1,500 votes. The campaign against the measure was funded by a pro-business group spearheaded by Jeff Morgan called the Yolo County Business PAC.
In November, voters will get the chance to decide whether their minds have changed.
Daniel Hennessy joins Abridged from the California Local News Fellowship. He’s a reporter covering Yolo County.