Council Meeting
Potential Sales Tax Measure
Item L.2
May 06, 2025
1 Timeline
Jan – Council Retreat
March 11 – Study Session
April 8 – Study Session
2 3
• Frozen Positions – 24.5
• Reduced Total General Fund Budget3.77%
Reduce Expenditures
• Credit Card Processing Fees
• Business License Tax – Estimated $800K - $1.2M in additional revenue • Transient Occupancy Tax – 2% Increase
• Updated User Fees - Estimated $800K in additional revenue Increase Revenue
Efforts to reduce Expenditures and Increase Revenues
4 Austerity Options Presented
Parks and Rec
Signature
Events
Downtown
Theatre
Concerts in the
Park
Pool Capacity
Activity Guide
Police
PAL
Sworn Officer
Positions
Domestic
Violence
Community
Engagement
Fire
Brown Outs
CMO
Winter Shelter
Homeless
Services
Council
Digital Annual
Report
Community
Development
Economic
Development
Planning
Admin
Employee
Engagement
Vendor/Payroll
IT Reductions
Public Works
Landscaping
Services
Neighborhood
Park Closures
Community
Park Closures
Fleet Reduction
Sales Tax – Measure P Background
2012
• Measure P
Approved
• 1 percent
sales tax
for five
years
• Ordinance
2012-20
established
2013
• Ordinance
2013-31
established
Measure P
Committee
2016
• Voters
approved
extension
of Measure
P through
Mar 31,
2033
2017
• Ordinance
2017-235
enacted
sales tax
extension
and the
terms of
office for
Measure P
committee
2033
• Measure P
sunset
5 6
Most recent sales tax increases in Solano County
City Percent
Increase
New Rate
effective April 01, 2025
Old Rate
Benicia 0.5% 9.625% 9.125%
Dixon 1% 8.375% 7.375%
Rio Vista 1% 9.125% 8.125%
Suisun City 0.75% 9.125% 8.375%
4 of the 7 cities in Solano County increased sales tax in Nov 2024 7 Sales Tax Rates in Solano County
8.125% 8.375% 8.375%
9.125% 9.125% 9.250%
9.625% 9.750%
Vacaville Dixon* Fairfield Suisun
City*
Rio Vista* Vallejo Benicia* Solano
County
Cap
*Effective 4/1/2025
Impact of each percent increase on Sales Tax
Estimate of Additional Revenue
Cent Tax Increase
Per Dollar Percent Increase
Projection
(in today’s dollars) Sales Tax Rate
Current
Measure P Taxes
$24.77 M
8.375
1/4 0.25 $6.19 M 8.625
1/2 0.5 $12.38 M 8.875
3/4 0.75 $18.57 M 9.125
7/8 0.875 $21.67 M 9.25
1 1 $24.77 M 9.375
Each 1% tax equates to a one cent per dollar tax on taxable goods (not groceries) 8 Estimated Additional Revenue
Estimates of Additional Revenue
Percent
Increase Projection Projection Projection
3%
Growth
3%
Growth
3%
Growth
3%
Growth
3%
Growth
3%
Growth
FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31 FY 31-32 FY 32-33 Current
Measure
P Taxes
$24.77 M $24.83 M $25.56 M $26.33 M $27.12 M $27.93 M $28.77 M $29.63 M $30.52 M
0.25 (1/4 cent)
$6.19 M $6.21 M $6.39 M $6.58 M $6.78 M $6.98 M $7.19 M $7.41 M $7.63 M
0.50 (1/2 cent)
$12.38 M $12.42 M $12.78 M $13.16 M $13.56 M $13.97 M $14.38 M $14.82 M $15.26 M
0.75 (3/4 cent)
$18.57 M $18.63 M $19.17 M $19.75 M $20.34 M $20.95 M $21.58 M $22.22 M $22.89 M
0.875
(7/8 cent)
$21.67 M $21.73 M $22.37 M $23.04 M $23.73 M $24.44 M $25.17 M $25.93 M $26.71 M
1.00 (1cent)
$24.77 M $24.83 M $25.56 M $26.33 M $27.12 M $27.93 M $28.77 M $29.63 M $30.52 M 9 Cost to administer Election per registered voter
City of Fairfield - 65,728
registered voters
General Election $5
Total Cost - $328,640
Reduced to 0.50 cents
per voter for November
2026 election for a total
of $32,864
Primary Election $7
Total Cost - $460,096
Special Election - $15
Total Cost - $985,920
10 Council Direction #1
Sales Tax
General Sales
Tax (50% +1
voter approval)
Special Sales
Tax (2/3 Voter
Approval)
11 Council Direction #2
How much Percent
Increase
¼
cent
½
cent
¾
cent
7/8
cent
1 cent
12 Council Direction #3
Ballot Measure Election Date
June 2026 November 2026
13 Council Direction #4
Measure P Sunset
Combining Sales Tax
Increase and Remove
Sunset of Measure P
Separate Sales Tax Increase
and wait for ballot before
2033 for removing sunset
of Measure P
14 Next Steps
Issue RFP to select Consultant
for Public Outreach for Polling
Financial Impact - $250K
15 Questions
16