Tax ballot measure unanimously approved by Indio City Council
The Indio City Council approved a November ballot measure calling for a 1 percent sales tax, which city officials say will generate $8.5 million of much-needed revenue. The “Transactions and Use Tax” was unanimously approved at the council’s Wednesday night meeting.
If approved, the measure would bring Indio’s 8 percent sales tax in line with the 9 percent mark in Palm Springs, Cathedral City, and Coachella. If approved by voters, the tax would go into effect starting in April 2017.
The measure is part of the city’s efforts to obtain local funding sources to bolster emergency services and fund more than $790 million in capital improvement projects to repair streets, bridges, traffic signals, parks, drainage systems and more.
A city staff report points to “external challenges” — including state- mandated uses of local funds — as exacerbating an already-dire fiscal situation caused by the recent economic recession.
“Sacramento continues to find new and creative ways to take local funds,” the report reads. “Whether it is the loss of redevelopment tax increment, vehicle license fees or mandated reimbursements, the city remains vulnerable to future state takeaways and cuts to funding.”
The report also says the city faces a greater need for emergency services, following the passage of both realignment bill AB 109, which shifted low-level offenders from state prison to county jails, and Proposition 47, which re-categorized a number of nonviolent felonies as misdemeanors.
City officials say the tax increase would address citizen concerns voiced in about 1,000 surveys collected at a series of six town hall meetings and six public outreach events held this year. Survey results indicate top issues among residents include public safety, upgrading road quality, and maintaining senior services, city officials said.
“After thorough review, new local revenue generation seems to be the only option in order to fulfill the service and infrastructure priorities identified by residents of the city,” the report states.
