As part of its ongoing efforts to address long-term fiscal sustainability, the City of Tulare is evaluating placing a local sales tax measure on the November 2026 ballot. Financial forecasts indicate that in the coming years, the City is expected to face a structural deficit as revenues fall short of covering the rising costs of public safety, homelessness response, street maintenance and other general services.
A structural deficit occurs when a City’s expenses are expected to consistently exceed its revenues, creating a long-term imbalance. If left unaddressed, it can force the City to reduce essential services and programs, delay maintenance and repairs of public facilities and limit investments in community priorities.
Although the City has taken proactive measures to reduce costs, such as delaying capital improvement projects and deferring maintenance on streets and facilities, these actions alone will not be enough to meet future service demands, improve years of road deficiencies and build healthy emergency reserves. The sales tax measure will allow the City to repair its deteriorating streets, which are the result of decades of underfunding and postponed repairs. The measure would also help fund other essential needs, such as the $3 million in annual operating costs required to open and maintain a new emergency shelter in 2026.
The City faces ongoing challenges in maintaining adequate public safety services. As the population grows, more police officers and firefighters are needed to sustain response times and service levels. However, current funding is not sufficient to support the staffing increases required without reducing other essential services. Recent firefighter positions were funded through a temporary federal grant, and the City will need stable, long-term funding to retain these roles once the grant expires.
First surfaced to the City Council in March of 2025, and after months of discussions with City consultants, staff recommends placing a sales tax measure on the November 2026 ballot as a critical step to ensure fiscal sustainability and continue providing essential services and programs. With the available cost-saving measures already implemented, the City of Tulare views a voter-approved sales tax as the most effective tool to secure stable funding that would help maintain current service levels and prevent future cuts. Staff recommend the Council consider a general tax measure as the only viable option to provide flexible, locally controlled funding that sustains essential services and programs for the community.
“After years of doing what we can to tighten our belts and delay projects, our long-term financial forecast shows that Tulare is on track to a structural deficit if we do nothing,” said City Manager Marc Mondell. “Taking a hard look at the possibility of a local sales tax is about planning ahead, preserving the services our residents count on and being transparent with the choices in front of us.”
If approved by voters in the 2026 General Election, the proposed measure would begin revenue collection in April 2027, with the City’s first receipt of funds expected in October 2027.
The City Council will continue to review the proposal and gather public input as it determines the next steps.
For more information, visit www.tulare.ca.gov/government/agendas-staff-reports-minutes-audio-listing.