Council Sends $5 Million Sales Tax to November Ballot as Deficit Hits Crisis Level

Pacifica's City Council convened a special meeting Aug. 5 to confront a stark fiscal reality: without new revenue, staff warned, the city will begin dismantling core services — police patrols, fire response, childcare, parks — as early as next year. After nearly four hours of staff presentations, public debate and council deliberation, the five-member body voted unanimously to ask voters to approve a 1% transaction and use tax projected to raise roughly $5 million a year.

• Council votes 5-0 to place a 1% transaction and use tax on the Nov. 3 ballot, projected to generate $5 million annually for general city services

• State vehicle license fee (VLF) losses compound Pacifica's structural deficit, pushing projections to $7 million next fiscal year and $9.8 million the year after

• Councilmember Espinosa votes yes reluctantly, warning of the regressive burden on residents earning under $50,000 and calling for accountability

• Sunset clause rejected after extended debate; council instead commits to creating a citizens oversight committee by resolution

• Public comment deeply split, with supporters citing the structural crisis and critics blaming the short-term rental ordinance and past spending decisions

The basics: Pacifica's general fund — roughly 70% of which goes to salaries — supports every municipal service from police and fire to parks and childcare. The city has fewer businesses than comparable cities, loses an estimated 67% of potential sales tax revenue to purchases made outside its borders, and has a limited visitor economy.