Will Manhattan Beach voters agree to a new 1/2 cent sales tax in the city? The City Council is preparing to move forward to place such a measure on the November 5 ballot.
The City Council discussed the issue at its
July 16 meeting, agreeing that although any new taxes were unpalatable, this sales tax would allow the city to fund needed infrastructure improvements. Councilmembers voted, 5-0, to bring a resolution to their August 6 meeting. If approved on August 6, that resolution would put the measure on the general election ballot.
The current sales tax is 9.5% in Manhattan Beach. An extra half-cent sales tax would generate approximately $5 million for the city's General Fund.
The proposed funding would be used to maintain the city's streets, sidewalks, parks, and other infrastructure; repair and upgrade aging community facilities; and improve parking availability and traffic safety.
Councilmembers emphasized that the Manhattan Beach sales tax would be a
way of asserting "local control," given that the money would stay in the
city.
Manhattan Beach councilmembers also pointed to an analysis that showed
that 61.3% of the city's actual sales tax revenue in 2023 was generated
by non-residents - meaning that non-residents would presumably bear the
greatest burden of any new tax.
Furthermore, finance Director Steve Charelian explained that while the city has a balanced budget and has reserves, it does not have enough revenue to pay for larger projects with a bond.
"We have a
high expectation in our community for services and our infrastructure,
and we do not have the revenue streams to pay for them," said
Councilmember David Lesser. "This is the best way to move forward. No
one wants to raise taxes; but this is a way to share that [cost] with
those who live here and those who visit."
"This is not
about now. This is for the future," said Councilmember Steve Napolitano.
"It’s not the city raising taxes; it’s the city asking voters if they
see the value in raising sales tax on themselves and visitors. Nobody
likes taxation, but if we want things we need the money to pay for them.
Wishes and dreams don’t fund things. Bake sales don’t fund things. We
need an ongoing revenue stream."
"Our needs are outweighing the budget that we have to pay for them," added Mayor Joe Franklin. "Let's control our money; let’s control our destiny."
After a 5-0 vote instructing staff members to go forward with preparing the resolution for August 6, councilmembers agreed that Mayor Pro Tem Amy Howorth and Councilmember Richard Montgomery would take
the lead on developing a community-led public outreach campaign
regarding the
measure.
Where Do Sales Taxes Go?
Sales taxes within California are currently broken down as follows: 6% to the state; 1% to local city/county operation funds; and 0.25% to county transportation funds. Sales taxes above the 7.25% are
levied locally by local city, county, public services, and special
districts. Manhattan Beach's
current tax rate of 9.5% is tied for the
"lowest" in the county, along with 30 other cities and unincorporated
areas.
Meanwhile, a coalition of civic groups has secured a spot on Los Angeles County's November ballot to take away L.A. County's 1/4 cent "Measure H" sales tax for the homeless (passed in 2017) and replace it with a
1/2 cent sales tax for additional homelessness prevention and services. That measure is supported by leaders of the California Community Foundation, the United Way of Greater Los Angeles, and additional local homeless services and housing nonprofits.
If that tax and the proposed new Manhattan Beach tax are both approved, it would bring the total Manhattan Beach sales tax to 10.25%, the statewide sales tax limit. [One concern from councilmembers was that if the city did not raise its own sales tax, the county would raise tax to the limit, thereby claiming the money for the county rather than Manhattan Beach.]
Sales tax measures on the ballot have done relatively well in California: Since 2020, 132 local sales tax measures in have been approved in the state, with an average passing rate of 76.3%.
Survey Shows Support for Measure in Manhattan Beach
At its meeting, Manhattan Beach City Council heard a report from polling firm True North Research Inc., a firm that has carried out multiple surveys in the city, on the feasibility of a sales tax increase on the November ballot. The firm surveyed a sample size of 409 likely Manhattan Beach voters in June 2024.
Given residents' overall positive feelings about the city, the firm found "solid natural support" (64%) for establishing a one-half cent sales tax to provide funding for city services in Manhattan Beach. The firm's report said that such a measure would be "feasible for the November 2024 ballot provided that it focuses on the projects and services that voters identify as their priorities and is accompanied by robust community/opinion leader engagement, education, and communication."
(Infrastructure projects include this construction to upgrade and replace the railings on the Manhattan Beach Pier.) Although the City Council would have the discretion to decide how to spend the sales tax revenues, the survey results indicated that voters are primarily interested in using the funding to fix potholes and maintain city streets (88% strongly or somewhat favor), keep local streets, sidewalks, infrastructure, and parks safe, clean, and well-maintained (87%), improve e-bike traffic enforcement and safety (80%), make improvements to roads, intersections, bike lanes, and signals to improve traffic safety and reduce congestion (79%), and expand sidewalks downtown to allow outdoor dining and improved access (73%).
However, the survey results are meant to be a guide; not a promise of a certain outcome, noted True North survey author Timothy McLarney. “As promising as these results are, it's important to remember that these results are a snapshot in time; they’re not a crystal ball," he said.
(Infrastructure projects include this construction to upgrade and replace the railings on the Manhattan Beach Pier.) 