Atascadero considers local sales tax measure for November ballot 

Since 2014, Atascadero has spent more than $17 million to maintain and upgrade 52 miles of roads in the city. But that funding could run dry in 2027 if the city doesn't pass a new sales tax measure.

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• File Photo By Jayson Mellom
• ROAD TAX Atascadero is considering a half-cent sales tax measure—earmarked to pay for maintenance and upgrades of neighborhood roads—to replace an existing measure that sunsets in 2027.

"It's not an additional tax measure; this one is essentially a continuation of what's already being paid," Deputy City Manager Lara Christensen said during the March 26 Atascadero City Council meeting. "This one will supplant F-14 when F-14 sunsets."

Atascadero voters passed Measure F-14 in 2014. The half-cent sales tax is earmarked specifically for maintenance and upgrades for neighborhood roads, and it sunsets on March 31, 2027. Christensen said without a new, similar measure to take over F-14, Atascadero would lose out on approximately $3 million annually without a way to replace those funds.

"We have a significant number of road miles—140 miles or 150 miles—that we're responsible for. ... We're a rather large city that way," she said. "Funding was a concern for this type of infrastructure before the city incorporated."

A nine-member committee currently oversees the F-14 revenues, expenditures, and an annual road report. The same committee also provides oversight for the funds, expenses, and projects of Measure D-20, a 1 percent sales tax voters passed in 2020 to fund public safety, infrastructure, city staffing, and other priorities. Atascadero's sales tax is currently 8.75 percent, which wouldn't change.

Christensen called F-14 "tremendously successful," highlighting the 13 projects completed with the funds, including 80 neighborhood road segments. Currently, the city has about 26 more roadway miles that are slated for projects, she said, but those won't have the funding to move forward if Atascadero doesn't pass a replacement tax.

The city does receive gas tax and SB 1 funding as well as federal and state grants for other roadway projects that amount to about $1.7 million per year.

"That's outside of Measure F-14," she said. "This is what we are looking at being available ... without a measure like F-14."

Geoff Auslen, who serves on the oversight committee, spoke during public comment, saying that the measure included a sunset date because the public didn't trust the government in 2014. However, he added that the funds from both measures have been used in the way they were intended, which has built that trust back up.

"There is no downside to what we are doing. We 100 percent have a city that is fiscally responsible, and we do count pennies," he said. "There's been no downside to this half-cent sales tax other than it's a half-cent sales tax."

City staff recommended that a new sales tax measure not include a sunset date, so Atascadero doesn't find itself in this situation again in the future, "because we run the risk then of not having the measure pass," Christensen said. The new measure would begin on April 1, 2027, the day after F-14 sunsets. Staff also recommended that the city embark on an education and outreach program so residents would understand that the measure doesn't increase Atascadero's sales tax.

Councilmember Charles Bourbeau said educating city voters would also be good because it might not be the only tax measure on the ballot, referring to the San Luis Obispo Council of Government's proposed half-cent transportation tax.

The City Council voted 5-0 for city staff to draft a measure and ordinance that will come back before the council on June 11 and require a 4/5 vote to pass. That would give staff enough time to submit paperwork to the county for the measure to appear on the November election ballot. General sales tax measures require 50 percent plus one of voters to pass.

Mayor Heather Moreno said it's taken time for the city to rebuild trust with the public.

"There was a time, like 15, almost 20 years ago now where there was not a lot of public trust with our government, council, staff," she said. "We're making incredible strides in our city with infrastructure, with public safety, with staffing, every single bit of that." Δ