WILLIAMS, CA (MPG) – The Williams City Council hopes the third time will be the charm for residents to come together on a tax measure that could help the city fix roads.
City officials said they will decide by June whether to float another half-cent sales tax increase on the Nov. 5 ballot. Efforts to secure a sales tax increase failed in both the 2020 and 2022 elections.
Williams City Administrator Frank Kennedy said at the city’s special workshop on April 3 that had the 2020 tax initiative passed, budget coffers would have increased by about $3.5 million for infrastructure and services, collected mostly from Interstate 5 travelers who stop in Williams for gas, food, and lodging.
“That is a significant amount of money for a city of our size,” Kennedy said.
For the first time, Williams officials may consider a special tax, which requires a higher voter threshold of 66.67% to pass, but would give voters the assurance the tax could only be spent on a specific purpose, such roads, parks, and infrastructure, as opposed to a general tax, which requires only 50% plus one vote to pass, but gives control to city officials how to spend the money, including salaries and services.
Williams’ voters have opposed the last two tax general tax measures to block public employee unions from demanding the lion’s share of the proceeds.
“If it could be earmarked for roads and parks, I would be behind it,” said Dan Sehnert. “Nothing against fire; nothing against police. I back those guys 110 percent…but we need the infrastructure taken care of.”
According to the city’s road pavement index, the city would need about $40 million to build new roads citywide and spend about $850,000 a year to maintain the city’s roads in their current condition, Kennedy said.
Aside from a grant for the E Street project, the city last year received $535,000 from gas taxes and local transportation funding, which was the highest amount the city has ever received, due to high gas prices.
“It’s interesting to note that even though we have a lot of gas stations and generate a ton of sales tax on gasoline, it does not get returned (by the state) to where it is generated but returned based on population,” Kennedy said.
While North State officials have lobbied the state for a higher portion of gas taxes, none believes the formula will ever change.
“Nobody here buys gas in San Francisco,” Kennedy said. “They would buy gas here and drive to San Francisco. We are creating the tax base.”
Because a 0.5% tax increase would only apply to the purchases of tangible goods, such as gas, fast food, and household goods, city officials said the majority of the proceeds would not be borne by Williams residents, who tend to shop out of town, but by motorists who stop on their way to other destinations.
“What we don’t have in the City of Williams is a lot of residents, but what we have is a great location,” said Council member Maria Belmontes-Leyva. “The need for seven gas stations and two more coming in is providing us with a great sales tax revenue base. It makes a lot of sense…Should we invest $5 to receive $100? I will, will you? The City Council is committed to finding a solution to meet the city’s many needs. Although we continue to seek all sources of funding, we need to take control of our future.”
Williams resident Stephen Dieves commented that he would not support any new tax measure because of the state’s wasteful spending, but Kennedy confirmed the state would not get any more than their current 6%, as the entire revenue from the half-cent increase would be earned by Williams alone.
The City Council said it intends to hold another public workshop in early May, prior to the council’s regular meeting on May 13, to discuss a possible local tax measure on the November ballot.
The council said it is seeking more comment from the public on whether they would support a special tax which could be less risky than a general tax, given the ballot will also have a statewide initiative that aims to require a two-thirds voting threshold for all taxes, fees, and other charges imposed by local governments.
Should the city go out for a general tax, the passage of the statewide measure increasing the threshold regarding new taxes could potentially change the outcome.
“Even though it would be easier to get it across the finish line with only being 50.1% versus 66.6%, there is a chance, if the other thing passes, it will go away and you wouldn’t have anything,” Kennedy said. “So, there is some risk to it.”
Currently, Gov. Gavin Newsom is seeking California Supreme Court intervention to have the statewide measure removed from the ballot.
Failing its removal, a yes vote would require all new taxes to have the higher voter threshold to become effective, including any new taxes passed by simple majority on the same ballot, Kennedy said.
Williams Mayor Don Parsons said the city may also consider doing what Colusa did in 2022 by asking voters to pass a tax with a four-year sunset to show citizens what a tax increase can accomplish.