Another sales tax push in Yuba City? Officials consider cuts amid budget woes

The last time Yuba City put a sales tax measure on ballots its residents shot down the proposal.

With the city’s pocketbooks faring no better now, officials have begun talking about making another pitch to Yuba City and Sutter County residents for a tax that could prove a windfall relative to the city’s flat revenue streams of late.

“There are some discussions going on with the county in regard to the viability of a tax measure again,” said Yuba City mayor Marc Boomgaarden. “There are citizens who have interest as well, whether that would be a general sales tax or special tax for roads, public safety.”

A new tax of some kind, potentially split in some manner between the city and county, could land on ballots in November. In the meantime, city officials continue to look at ways to minimize a budget deficit that would grow without intervention.

City officials this week assessed the current budget, more than halfway through its cycle, while projecting what to expect for the next budget, which begins July 1. The talks were preliminary, but pointed to another wave of cuts, including those to public safety and city services, such as parks and recreation.

“We’ve gotten to a point where the deficit is significant enough to where the reductions are really causing some severe operational issues as well as programs that can be offered or not offered,” said Robert Bendorf, city manager.

Yuba City budget woes

City officials approved a budget with a $6.2 million shortfall over the summer after spending the previous fall advocating for an added 1% sales tax that would have funded road work and public safety while sharing proceeds with Sutter County.

Voters rejected that tax measure, which could have brought the city almost $12 million a year and Sutter County nearly $6 million. A similar tax measure championed by the county in 2022 failed by a narrower margin than the city’s attempt in 2024.

The city has leaned on its rainy-day reserves and discretionary funds to cover the deficit for the current budget cycle. Sales tax revenue in the city dipped in the year before deciding the current budget, an example of the city’s concerns with flatlining revenue while expenses continue to rise.

“We have an obligation to continue to balance our expenses with revenues, but we have an equal obligation to figure out how to increase revenue,” Boomgaarden said. “And even though we may run into a lot of resistance there, we have to do the education effort.”

The current budget remains mostly on track, Bendorf said, but it could widen by about $1.5 million — a $7.7 million deficit — in the next cycle without significant changes.

Cuts to police and fire

The fire department suggested cuts of about $500,000 and police found about $1 million to slash, primarily from not funding or hiring for vacant positions. If approved, the police department would have 15 fewer positions compared to last year.

The result for both departments would involve less overall coverage.

“That should be a wake-up call to everyone that we just don’t have the resources needed,” Bendorf said. “People always say, ‘Well, you have to do more with less,’ right? We’re doing less with less. Make that very clear.”

Police Chief Jim Runyen said police could continue to operate as they do now if those cuts go through, but it would hurt the department’s ability to adapt as employees leave or take time for injuries.

“It’s the razor-thin line of, if you keep losing positions, or unfunding them I should say — 15 positions in one year is 15% of my staff,” Runyen said. “… It makes the line very tight, and you don’t want our staff to get burnt out.”

The city would need about $8 million to $10 million in new revenue to restore the recent and proposed cuts to the police and fire departments, Bendorf said. The city also has a number of road repair projects to complete — a central part of the previous sales tax pitch — and reserve accounts to strengthen.

The cuts officials discussed include hits to parks and recreation, including lost jobs and upping fees charged to residents by 50% or more. The city also suggested dropping a number of its youth camps and adult sports offerings, leaving only its youth summer camp, and funding for Gauche Aquatic Park and the Senior Center.

Employee morale

Yuba City Council members expressed concern over the well-being of employees who have navigated the recent waves of cuts while the city finances remain gloomy.

“Well, if I may be frank, I don’t know that city employees feel that they are doing less … with less,” Gina Rowland, human resources director, told council members. “When I’m out there speaking with employees, I think they are still experiencing the effects of previous cuts from previous years when divisions were eliminated and positions were eliminated, and other cuts were made. And I think they’re still being asked to do more with less staff.”

She said the city has struggled to hire and retain workers while paying below market rate, which could worsen with the proposed cuts.

“You have a really good group of dedicated and committed and passionate employees who really care about the city and the residents and the community that we serve,” Rowland said. “They’re trying really hard to do everything that they can to do a great job for this organization, but I hear them feeling very frustrated, and I think that’s going to continue, unfortunately.”

The city hosts a budget workshop in May before finalizing its budget decisions in June.