Potential 3/4-Cent Sales Tax Measure on the November 3, 2020 Ballot
With expenditures anticipated to outpace available resources in the near future, the City is taking steps to ready itself for this fiscal challenge. One of these steps is identifying new locally-controlled revenue streams to ensure the City can continue to provide and improve on existing service levels community members have come to expect and appreciate over the last 30 years.
How has COVID-19 impacted City finances?
With a majority of businesses closed, travel limited, and consumer spending reduced to slow the spread of COVID-19, the economic impacts of the pandemic are unprecedented. For local governments like the City of Diamond Bar, whose budgets are largely dependent upon sales and transient occupancy (hotel) tax revenues, the effects will be immediate and lasting. With revenues down significantly, the City is forced to make difficult cuts to programs, services, capital improvements, and key maintenance projects. The City’s careful fiscal planning over the years has built an emergency reserve that will help balance the budget in the interim, but the use of these funds is not sustainable for an extended period.
- What type of measure is being considered?
- Why have local revenue trends slowed?
- How much would the measure generate?
- How would the funding be used?
- Can the State or County divert the funds from Diamond Bar?
- If Diamond Bar voters were to not approve a City sales tax measure, could the sales tax rate in Diamond Bar increase anyway?
- Would there be accountability/transparency protections in place for this measure?
- Have other local Cities adopted a sales tax increase?
- What has the City done to proactively manage costs?
May 20, 2020 | Assistant City Manager Ryan McLean
The current COVID-19 pandemic has been challenging on many fronts, forcing us all to adapt in our work and personal lives.
Those of you who have been following the regular updates from our governor and county public health officials know that while progress has been made in securing personal protective equipment, improving testing, and expanding hospital surge capacity, there is still a long way to go. Read More