San Carlos officials consider sales tax increase

San Carlos officials are considering placing a half-cent sales tax measure on the November ballot to fund downtown plans and address a projected budget shortfall. The city expects a deficit estimated between $500,000 and $1 million each year for the next 10 years. If approved, the tax would generate about $6 million to support city services such as downtown improvements, road maintenance, parks, and public safety for 14 years. If voters reject the measure, the city may reduce services, including funding for the Sheriff’s Office, which provides contracted police services. The city receives limited shares of sales and property tax revenue, while the remainder goes to state, county, transit agencies, and schools. The tax would also help pay for projects such as the bicyclist bridge on Highway 101, whose cost increased from $62 million to $112 million.

"San Carlos officials are looking at placing a half-cent sales tax measure on the November ballot to help pay for its plans for downtown and cover a possible budget shortfall. If voters reject the tax increase, one of the things the city may cut is funding for the Sheriff's Office. The city may have a budget deficit estimated between $500,000 to $1 million annually over the next 10 years, and a tax measure would help, Administrative Services Director Rebecca Mendenhall told the city's planning commission on Monday."

"If a half-cent sales tax gets approved, it will generate $6 million to support city services such as downtown improvement, road maintenance, parks and public safety for 14 years, Mendenhall said. "Our costs are exceeding our revenues," Mendenhall said. If the city decides not to place the measure on the ballot, it will have to look at reducing services, such as its police services."

"San Carlos is one of the cities in the county that contracts the sheriff's office for police services, and it has saved them $2 million yearly, according to Mendenhall. The city gets revenue from sales taxes, but it receives only 11 cents of each dollar, while the rest goes to the state, county and transit agencies, Mendenhall said. The city also gets property taxes, under which it receives about 13 cents of every dollar collected, with the rest going to schools, Mendenhall said."

"The proposed tax will help the city with projects such as the bicyclist bridge at Highway 101, which has increased in cost from $62 million to $112 million, Mendenhall said. The city is looking to make improvements after Andrea Vallebueno, 31, of Palo Alto, died after colliding with a car on Holly Street near the Highway 101 overpass on Nov. 16, 2024. The tax measure would just add a few pennies per purchase, Mendenhall said. For example, with a $10 purchase, the tax would add five cents, she said."

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