ENCINITASENCINITAS — Raising the city’s sales tax by 1 percent could generate $15.4 million a year and pay for much-needed infrastructure improvements, according to a proposal that’s getting an initial airing at Wednesday’s Encinitas City Council meeting.
While Encinitas is a “relatively young city” because it only incorporated in 1986, “the drainage system and most of the roadways were built prior to the city becoming incorporated, and many don’t meet standards,” according to a consulting company report.
The “most significant and achievable” way to improve this situation is to increase the city’s sales tax rate, states the report, which was produced by Kimley-Horn and Associates for the city’s Infrastructure Task Force.
“Nine other cities in San Diego County have previously approved a local sales tax increase. The city of Encinitas has not,” it notes.
Encinitas has a sales tax rate of 7.75 percent. If that increased to 8.75 percent, it would match what’s now charged by Chula Vista, Del Mar, Imperial Beach, National City and Solana Beach, data from the California Department of Tax and Fee istration indicates.
Carlsbad, Escondido, San Marcos and the city of San Diego charge the same rate as Encinitas, while Oceanside and Vista charge 8.25 percent.
The state’s standard rate is 7.25 percent, which includes a mandatory local rate of 1.25 percent that goes directly to cities and counties. Cities, counties and districts can increase that 1.25 percent rate as long as the area’s combined sales tax total does not exceed 10.25 percent.
In order to increase its sales tax by 1 percent, Encinitas will need to put a measure on the ballot and win approval from the city’s voters. Council will debate whether to move in this direction at Wednesday’s meeting.
They’re scheduled to vote on increasing a consulting company’s contract to $173,500 to pay for additional community survey work and assistance with a ballot measure-writing process. If the community surveys done by the TeamCivX company show there is public for increasing the sales tax, the City Council could vote in May to put the item on the November ballot, a city staff report states.
The meeting starts at 6 p.m at City Hall, 505 S. Vulcan Ave.
Encinitas has 172 miles of roads, 66 miles of storm drains, 152 acres of park lands, six public beach areas and 10 civic buildings, the Kimley-Horn report states. About 68 percent of the city’s revenue comes from property taxes. Each year, there’s typically about $5.5 million to $8 million in new revenue available for infrastructure projects, and about $4 million of that goes for repaving city roadways.
At a recent meeting, city engineering employees told the council that solving some of the Leucadia area’s flooding issues could require at least an additional $8 million for storm drain system upgrades.
