Resolutions Placing a General Tax
Measure on the November 3, 2026
General Election Ballot to Establish a
Temporary One (1) Percent General
Transactions and Use (Sales) Tax for 10
years
June 24, 2026
1 Background
• As part the development of the Fiscal Year 2025-2026 budget and the Fiscal Year 2026- 2030 Capital Improvement Program (CIP), the need to develop a comprehensive funding strategy to address approximately $327 million in unfunded capital projects was identified. • At the August 13, 2025 City Council meeting, Council authorized the then Interim City Manager to enter into a contract with Team CivX to evaluate the feasibility of a potential local funding measure (a sales tax measure).
• The scope of work included conducting a sales tax feasibility study, as well as working with staff to develop outreach and education material about the City’s budget and capital improvement program and assisting with the preparation of ballot materials, should the City choose to move forward with placing a measure on the ballot. • The sales tax feasibility study was conducted in late fall 2025, the results were presented to the City Council at the February 25, 2026 City Council meeting. 2 Fall 2025 Sales Tax Feasibility Study Results • The study tested a half cent sales tax approved for a ten-year period, estimated to generate $7 million annual in revenue. The potential measure would include independent audits, citizen oversight, and all money would be locally controlled. • Results showed 83% of residents surveyed rated the quality of life in Santee as good to excellent.
• The study presented potential arguments for and against a proposed measure. After being presented with that information, approximately 63% of respondents indicated they would either definitely vote yes or probably vote yes on the proposed measure. • Council direction at the February 25, 2026 City Council meeting was for staff to move forward with outreach and education about the City’s operations, budget, and capital improvement program and continue to work with the Infrastructure Advisory Group as part of the outreach efforts.
3 Study Results –Projects & Services • The sales tax feasibility study included the following question: If the measure passes, would you favor or oppose using some of the money to: _____, or do you not have an opinion? 4 72.5
59.9 60.0
65.4 67.3
60.9 55.6
53.8 51.3
40.7 41.8
52.0 20.3
30.5 29.3
22.4 20.3
26.0 31.2
31.8 29.9
37.3 34.8
23.7 0 10 20 30 40 50 60 70 80 90 100
Fix potholes, pave / maintain city streets
Keep streets, sidewalks, public facilities safe, clean, well-maintained Keep parks, playgrounds safe, clean, well-maintained
Make improvements to roads, intersections, bike lanes, signals to improve traffic safety, reduce congestion
Provide quick responses to 911 emergencies
Provide fire protection, paramedic services
Repair aging infrastructure incl storm drains, pipes, bridges, sidewalks, public facilities
Remove graffiti, clean-up piles of trash, litter along streets, sidewalks, in public areas
Provide crime prevention, investigations
Repair aging community facilities incl fixing deteriorating roofs, plumbing, electrical systems, removing asbestos, lead pipes where encountered
Build a new fire station, repair aging fire stations to improve 911 emergency response, community safety
Address homelessness
% Respondents
Strongly favor Somewhat favor
5 Funding City Council and Resident Priorities
• The adopted CIP includes over $327M in unfunded infrastructure projects and maintenance.
• If a half cent measure were to be approved by Santee voters it is estimated to generate $70M over the proposed 10-year authorization period.
• This would provide revenue for some progress toward addressing unfunded projects, but limited ability to meaningfully address City Council and resident priorities related to public safety, parks, and public infrastructure as identified in the CIP and in resident responses to the feasibility study.
• To meaningfully address priorities, the need for additional revenue was identified.
Following strong results from the first feasibility study, the City decided to explore the feasibility a one cent tax.
May2026 Second Sales Tax Feasibility Study Results
• To be transparent about the consideration of a full cent tax versus the half cent sales tax tested in 2025, Council approved a second sales tax feasibility on May 5, 2026. The results were presented to the City Council at its June 10, 2026 meeting.
• The study tested a one cent sales tax approved for a ten-year period, estimated to generate $14 million annual in revenue. The potential measure would include independent audits, citizen oversight, and all money would be locally controlled.
• The study presented potential arguments for and against a proposed measure. After being presented with that information, approximately 58% of respondents indicated they would either definitely vote yes or probably vote yes on the proposed measure.
• Resident priorities identified in the second feasibility study mirror feedback received in the first study, as well as information received from residents regarding funding priorities via a mailer send to all Santee registered voters.
• Resident priorities include roads and streets, public safety, and infrastructure maintenance. These priorities align with City Council priorities included in the adopted Capital Improvement Program (CIP). 6 City Council Direction at the June 10, 2026 City Council Meeting • Following the presentation of the second sales tax feasibility results and after Council discussion, the City Council directed staff to bring back action items to consider referring a temporary general one cent sales tax to the November 3, 2026 General Election ballot.
• Per Council direction, the proposed measure should include creation of a citizens’ oversight committee, as well provisions for independent audits of the use of the additional sales tax revenue.
• The City Council does not have the authority to establish an additional sales tax, it must be approved by a majority of Santee voters voting in the election. • While the proposed measure is a general tax, staff included a draft 10-year spending plan with the agenda item to illustrate the intended uses align with the adopted CIP and resident priorities.
7 8
Resolutions Placing a General Tax Measure on the November 3, 2026 General Municipal Election Ballot to Establish a Temporary One (1) Percent General Transactions and Use (Sales) Tax for 10 years • Three resolutions for City Council consideration and action. • Placing of the measure on the ballot, includes the ordinance implementing the tax, if approved by Santee voters. This includes the establishment of the citizens’ oversight committee.
• Adoption of the resolution requesting the San Diego Board of Supervisors consolidate the election, similar to action on the consent calendar related to the two City Council seats.
• Adoption of resolution providing for the filing of the direct and rebuttal arguments and setting the rules for filing of written arguments regarding a city measure to be submitted to voters at the November 3, 2026 General Municipal Election. 9