Calexico considers sales tax increase By GREG HOLT, Staff Writer
Wednesday, February 7, 2007 11:08 AM PST
CALEXICO Voters here could decide on a sales tax increase as early as June if the City Council approves a special election as a way to raise funds for city projects.
During Tuesday’s council meeting, City Manager Ralph Velez proposed that the city allow its residents to vote on raising sales tax a quarter of 1 percent in a special election.
If the measure were approved, sales tax in Calexico would increase from 7.75 percent to 8 percent.
Velez said the sales tax increase would be a good way to raise funding for many of the city’s big-ticket projects, including a community swimming pool, additional baseball and soccer fields, and street resurfacing in residential neighborhoods, among others.
“We need $8 to $10 million to complete these projects. How else do you raise that much?” Velez said.
The council could approve the special election as early as its next meeting if the proposal receives the majority support of the council.
However, the City Council was divided by the idea of raising sales tax rates, even in its initial reaction to the proposal.
Mayor Pro Tem John Renison said it would be difficult for the proposal to win approval in a city that has learned to be skeptical of tax increases.
“We’ve been down this road before, and the hospital tax burned us this will be a tough sell,” Renison said.
City Councilwoman Carmen Durazo said a sales tax increase should be a last resort for the city.
“If we’re in trouble, and this is our only option, then I’ll support it. But we shouldn’t look for an easy fix,” Durazo said.
City Councilman David Ouzan said it would be best to let voters decide if they want to pay for city improvement projects through a higher sales tax.
“Our voters are intelligent, and letting them decide is the most democratic way,” Ouzan said.
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