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HomeMy WebLinkAboutPresentation - Item 22 - Ballot MeasureConsider Ballot Measure to Remove Sunset on Local Sales City of Santa Ana -July 7, 2026 In 2018, Santa Ana voters approved Measure X, a 1.5% local add -on to sales tax⚬Rate decreases to 1.0% on April 1, 2029⚬Tax completely sunsets on April 1, 20 39 Local add -on tax has funded park maintenance, graffiti removal, pothole repairs, 911 response, homelessness mitigation, street and sidewalk repairs, and more FY26 -27 annual tax collection is expected to be $84 million or 20% of the General Fund budget If no action is taken, City would lose as much as $30 million of revenue in 20 29 Background Recommended Actions Adopt a Resolution to place a measure on the November 3, 2026 election ballot to remove the rate reduction and sunset on the local tax 1 Adopt a Resolution to authorize written arguments for and against the measure2 December 2025 March 2026 City Coun cil approved to conduct a tracking survey, prepare public information materials, and a ballot measure May 2026 Survey indicated 63% support for a potential ballot measure Tra cking survey indicated 61% support for potential ballot measure Sc ie ntific Polling & City Council Direction The proposed ballot measure would require a simple majority to pass Examples of Other Cities Local Sales Tax Rates Proposed Ballot Question To maintain city services,such as fixing potholes; keeping streets,sidewalks,parks,and playgrounds safe and clean;removing graffiti and litter;providing fire protection,paramedic,crime prevention,and 911 emergency response,shall City of Santa Ana’s ordinance be amended to maintain the 1.5 cent sales tax without sunset providing approximately $84,000,000 annually for services until ended by voters,with independent audits,resident oversight, and all money locally controlled? General Fund Ten -Year Outlook –June 2, 2026 Budget Public Hearing Reflects Measure X rate reduction in 2029 General Fund Ten -Year Outlook –If Voters Approve the Proposed Ballot Measure Reflects maintaining Measure X at the current rate with no sunset QUESTIONS?