Potential Three-Quarter Cent Sales Tax Measure on November 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. Identifying new locally-controlled revenue streams to ensure the City can continue to provide and improve on existing service levels is one of these steps.
In 30 years as an incorporated city, Diamond Bar has maintained its status as a desirable community to live and visit. Contributing to this status are the safe neighborhoods, well-maintained roads, and clean and attractive parks, trails and recreation facilities.
The City has been able to do its part to keep Diamond Bar looking and operating its best and to provide the programs and services valued by the community by practicing responsible fiscal discipline and thoughtful budgeting.
- 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?
Long-Term Financial Outlook
Although the City’s current financial condition is strong, Diamond Bar faces long-term financial challenges that will negatively affect the City’s ability to continue to meet the community’s needs and priorities.
In 2019, the City completed an extensive effort to assess its long-term financial outlook in light of growing costs and the absence of new revenue streams. This effort concluded that Diamond Bar is approaching a financial crossroads where measures will have to be taken to align expenditures with revenues. These measures may include deferring maintenance of roads and landscaped areas, delaying or abandoning plans for new construction or renovations of parks and public facilities, or paring down municipal services to core necessities.
2019 State Auditor Report
The State Auditor recently studied the financial condition of 471 California Cities and published its findings in Nov. 2019.
Diamond Bar placed 54th and earned a ranking among the top 13 percent. The City received perfect scores for liquidity. General Fund reserve, and responsible handling of public pension obligations. However, it was scored low on revenue trends.
Consistent with the City’s long-term financial outlook, the State Auditor found that overall revenue growth has slowed. This downward trend may put the future delivery of municipal services at risk.