Failed measure adds to Cal City’s budget crisis

CALIFORNIA CITY — Tuesday’s City Council meeting was an opportunity to hash out theories as to why the recent Measure A special parcel tax measure failed and debate the likelihood of success for another such ballot measure, but the city came no closer to a decision as to how to cope with the looming budget crisis.

Measure A, intended to ensure continued funding of city services, asked voters to approve a special parcel tax starting at $146 per parcel per year, with a formula to reduce the rate over the five-year period as other revenues increase. It was effectively a five-year continuation of the voter-approved special parcel tax that has provided the majority of public safety funding since 2018.

According to unofficial final election results, Measure A received 964 votes against it, or 55.75%, and 765 votes in favor of it, or 44.25%.

The current special parcel tax, set to expire June 30, follows a decades-long practice in California City of using such measures to fund a significant portion of the city’s budget — in this case the police and fire departments.

The existing special parcel tax is projected to provide approximately $6.7 million of the city’s $31.2 million budget. As of now, the city has no other revenues to make up for the loss of those funds when the tax expires.

Mayor Kelly Kulikoff requested Tuesday’s agenda item to discuss the measure’s failure and opened the floor to public discussion without a proposed action.

Historically, the special tax measures have required more than one attempt before passing.

Low turnout was cited as one potential issue with the measure on the March 5 primary ballot. According to Kern County elections officials, 1,729 people voted on Measure A; California City has 4,236 registered voters, which means about 40% of registered voters took part.

A lack of information and voter education related to the measure was also seen as contributing to its failure, something that would need to be corrected should the city decide to make another attempt.

Police Chief Jesse Hightower referred to his prior recommendation that the city hire a consultant with a proven track record to help craft a measure that voters could support and to help effectively present the case for it. Such assistance would be needed for a measure to have a chance, he said.

Some residents said they believed a revamped special parcel tax measure that is dedicated to supporting the police and fire departments only would have a better chance at passage than Measure A, in which the revenues were designated simply for city services.

“I think that was a real turnoff (to voters),” resident Al Hutson said.

Should the council decide to move forward with asking voters to approve a special tax measure again, the question becomes whether to hold a special election — at an estimated $70,000 to the city — or wait until the November general election.

Waiting until November has the drawback of a delay in collecting the new tax, should it be approved by

votrs, until next year, leaving an immediate budget gap.

Both Mayor Pro Tem Ron Smith and Councilmember Michael Kulikoff said they believed the city would have to wait until November, as the extra cost of a special election is too much for the cash-strapped city.

The measure’s loss earlier this month underscores the need for the city to develop other sources of revenue.

“There’s a great chance this will never pass,” resident Tami Johnson said.

Mayor Kulikoff said he is looking mainly at private-public-partnerships with large corporations as an alternative source of revenue, but that these partnerships require careful, time-consuming vetting to ensure they are beneficial to the city.

The city has been counting on the cannabis industry to be the alternative revenue source, but it has not grown as quickly or as much as hoped, and city efforts to enforce permit fees and collect taxes have been inconsistent. It is estimated that cannabis businesses owe some $700,000 in uncollected fees and taxes.

“Horrible cuts are going to be made in our community,” Smith said. “Going after cannabis taxes is going to be vital.”

The council decided to take more time to gather information about what is needed and how to go about it before making a decision on a second attempted special tax measure.

“I feel like we are in dire need of a special tax, based on our deficits,” Councilmember LaShelle Cooper said.