Frequently Asked Questions
What are the benefits of Measure H?
Measure H will ensure that Lafayette’s General Fund continues to provide the same level of city services we all know and love. This includes road and street maintenance, public safety and police, storm drains and other infrastructure, zoning, development and building review and permits, parks and recreation, senior and youth services, and collaboration with the Lafayette School District and the Chamber of Commerce.
Why do we need Measure H now?
The city has been monitoring the budget situation for several years and forecasts an ongoing deficit of more than $2 million per year between expected revenues from existing sources and expected expenditures to maintain the current level of services and facilities provided by our City government.
The causes of the deficit are familiar to all of us: inflation and additional rules we have to follow mandated by the State of California. The top three sources of the deficit are:
- Street and Road Maintenance – the cost of maintaining the City’s 92 miles of roads and streets has increased by $1 million a year. The cost of contracted labor and materials has increased over 35% in the past five years compared to only a 23% increase in available revenue over the same period.
- Insurance—The cost to purchase general liability, property, and employment insurance has increased 144% over the past five years despite Lafayette's lack of disaster-related losses or large jury awards during this time period.
- Unfunded Mandates—The State of California mandates various programs and policies that cities must comply with without providing any additional revenue to cover the costs. Examples include stormwater pollution compliance (78% increase in mandated costs over ten years with no revenue increase) and the staff time, consultants, and other resources required to implement over 60 programs mandated by the CA Department of Housing and Community Development.
How much will Measure H raise for Lafayette?
Measure H asks the Lafayette voters to approve a one-half cent increase in the current sales tax for seven years. This would increase revenue to the City’s General Fund by approximately $2.4 million per year. The additional revenue will cover the deficit in the City General Fund. The current spending priorities will be maintained at current levels. The City is not expecting to take on any new major projects with the additional revenues, and there is no commitment for any new projects with this sales tax revenue. Without additional revenue, the City Council will have to reduce or eliminate currently existing services or facilities.
How much will Measure H cost residents? How much will it cost visitors?
The actual cost for any individual or family will depend on how much they spend on retail purchases within Lafayette. For example, if a family has dinner out at a restaurant in Lafayette that costs $100, the additional cost would be just fifty cents. We cannot predict how much of the increased revenue would come from people who do not live in Lafayette, but obviously, many people come to Lafayette from elsewhere to shop in our stores and dine in our restaurants and, as such, contribute to the revenue Measure H will provide.
What safeguards are put into place to ensure all funds are spent on community priorities? Is there taxpayer oversight?
Measure H includes fiscal oversight ensuring all funds are spent properly. A Citizens Oversight Committee will review the revenues and expenditures. An expiration date of seven years will hold the city council accountable to you—they must follow through on their promises. Otherwise, we, the voters, can reject any proposed renewal of the tax.
Will any funds go to funding pension liabilities or paying off debts?
No. Lafayette has no unfunded pension liabilities or long-term debt to service.
Do any funds go to the State of California or any outside agencies?
No. All funds stay within the City of Lafayette to pay for local community projects and services. By law, the State can not take this funding away.
Are there exemptions for seniors and low-income residents?
While no sales tax can legally exempt any demographic, Measure H does exempt all life necessities, including food, water, drugs, medicines, medical supplies, pet food, and senior meal deliveries. Consequently, most low-income and senior residents would pay very little each year.
What specifically happens to City services if Measure H does not pass?
If Measure H fails to pass, the City will be forced to make significant cuts in current services and facilities to balance the budget since the City cannot operate with a General Fund deficit. The likely cuts include, but are not limited to:
- Three police officers (from the seventeen we have today)
- Reduced preventive maintenance on roads will cause more deterioration and increase future repair, maintenance, and replacement costs.
- There will be less weed abatement on medians and other city property, which will not only look bad but also increase fire danger.
- Reduction in wildfire preparedness and traffic safety work
- Reduction in senior services
- No hybrid/Zoom city meetings, which means less public participation
- Slower turnaround at the Planning Department and slower (or no) counter service at City offices, thus delaying construction projects, home upgrades and re-modeling, business signage approvals and other citizen activities.
- Significantly less communication from the City in the form of newsletters, emails, and community outreach.
If this sales tax increase is approved, how will Lafayette’s total sales tax compare with neighboring cities’ sales tax rates?
Lafayette currently has the lowest sales tax in Contra Costa County and has not raised the sales tax in over 30 years. If the ½ cent sales tax is approved, Lafayette will STILL be among the lowest sales tax rates in Contra Costa County. We will be the same as Walnut Creek and Pleasant Hill and less than Orinda, Moraga, and Concord.
Current sales tax rates of area communities:
- Moraga: 9.75%
- Orinda: 9.75%
- Concord: 9.75%
- Walnut Creek: 9.25%
- Pleasant Hill: 9.25%
- Lafayette: 8.75%
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