Pittsburg Considering Sales Tax Increase on November Ballot

If approved, 100% of the revenue generated by this increase will remain in Pittsburg and be dedicated to deferred maintenance of streets.Photo byCity of Pittsburg

Pittsburg, Calif. - The City of Pittsburg is considering placing a funding measure on the November 2024 ballot, asking local voters to authorize increasing the City’s sales tax by ½ percent (“half-cent”) to address pressing challenges presently facing the City’s roadways and bike lanes.

Pittsburg City Manager Garrett Evans explains that the City is presently facing a backlog in maintenance of the approximately 345 miles of roadway, many of which include (or are planned to include) bike lanes, at an estimated cost of around $84 million.

The present sales tax rate for purchases made in Pittsburg is 9.25%; under the potential measure, the sales tax would increase from 9.25% to 9.75%. If passed in the November 2024 election cycle, the measure will result in an increase of one penny for every $2 spent locally. A half-cent increase in the local sales tax will generate between $5.5 and $6.5 million annually.

If approved, 100% of the revenue generated by this increase will remain in Pittsburg and will be dedicated to deferred maintenance of streets, roads, and bike lanes in the City to the benefit of Pittsburg residents. As the funds generated by this measure will be dedicated to a specific purpose, passage will require 2/3 voter support. Since the need for increased revenue is due in large part to normal inflation, this increase will be permanent.

City officials recognize the fact that these roadways must be properly maintained, or the quality of life for all Pittsburgh residents will be negatively impacted. The City Manager points out that the negative impacts resulting from poorly maintained roadways include more potholes, increased wear-and-tear on vehicles, decreased economic development opportunities, and an overall lowering of quality of life for Pittsburg residents.

Absent an increase to local sales taxes, Evans points out, “City officials may be forced to consider cutbacks in services and programs presently being provided by and/or through the City, while some services may have to be eliminated. If this backlog is not addressed soon, the negative impacts of deteriorated roadways will become intolerable,” he says.

Evans explains that City officials are considering asking Pittsburg voters to authorize the increase in the City’s sales tax, rather than addressing the City’s fiscal challenges through another potential funding mechanism, for three reasons:

1. A sales tax provides funding that cannot be seized (taken away) by the State; thus, assuming the funding measure secures requisite voter support, the revenue will remain in the City to benefit Pittsburg residents.

2. The tax would be paid by Pittsburg residents as well as non-residents who frequent local restaurants, shop in Pittsburg, and purchase goods such as gas or clothing, helping to fund infrastructure maintenance for Pittsburg residents.

3. Most groceries and prescription drugs are exempt from being charged sales tax; thus, the cost of these items will not be affected by any local sales tax increase.

While the City does maintain reserve balances in nearly all City funds, Evans points out that, “City reserves are intended to be used when the City is faced with unforeseen emergencies, such as earthquakes or other natural disasters; these are one-time funds…once they are used, they are gone, forever.”

Assuming such a funding measure passes, a five-member Citizen Oversight Committee will be created to monitor expenditures and recommend a spending plan. An outside audit will also be conducted annually, with a report produced and made public.

“As we continue to address the fiscal challenges presently facing the City of Pittsburg, we will keep the community informed regarding Pittsburg’s financial status,” Evans concludes.

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About The City of Pittsburg

Incorporated in 1903, Pittsburg is located on the south shore of the Sacramento-San Joaquin River Delta in Northern California, 30 miles east of San Francisco. The City has a population of 77,752, and operates under the council/manager form of government with its own Police, Public Works, Community and Economic Development, Finance, Community Services, and Recreation Departments, as well as its own utility divisions operating as the Pittsburg Power Company and Pittsburg Water.

With more than 5,000 new housing units in the development pipeline, as well as large industrial corridors slated for redevelopment, Pittsburg is one of the fastest-growing cities in Contra Costa County. For more information, please call the City Manager’s Office at (925) 252-4850.