POINT ARENA, CA., 10/08/24 – Point Arena voters will head to the polls to decide on Measure X, which would establish an additional 0.875% sales tax to fund city services such as public safety, Arena Cove pier operations and general government operations.
According to Point Arena’s City Council, the sales tax would generate an estimated $85,000 to $90,000 annually for the city’s general fund. In the argument in favor of Measure X, signed by the five city council members, the council stated that the city “can barely afford to maintain basic services like local street repaving or pothole repair, trash and litter pick-up, park maintenance and pier operations.” The city’s funding hasn’t been able to keep up with inflation, and a drop in sales from local businesses has put a dent in revenue coming into the general fund.
“Sales tax generated $50,000 last fiscal year, dropping 37% from $79,000 in fiscal year 2021-2022,” the council wrote in its argument. The council also warned that “city finances have hit a major pothole that threatens our independence as an incorporated city.”
Point Arena residents now pay state and local taxes of 8.38%. Of this 8.38%, only 0.5% is imposed by the City of Point Arena. If Measure X is passed, the total combination of sales taxes would equal 9.25%. Measure X taxes would remain in effect until repealed by voters and revenues would be audited as part of the city’s annual audit of the general fund and documented in the city’s annual financial report.
Although Measure X funds are meant to support the Point Arena community, some shop owners are concerned that the tax increase could impact already dwindling local sales.
“Any increase in taxes could affect small businesses in our community,” said Jacqueline Strock, owner of Roots Herbal Apothecary, a boutique that sells bulk herbs, teas and homeopathic remedies in downtown Point Arena. She added that the decline in the cannabis industry has already harmed several businesses in the coastal community.
“Cannabis going legal has changed the economy,” Strock said, adding that Point Arena, like many small towns in the county, has seen a drop in revenue as money spent locally by trimmers and cannabis tourists has declined.
The city council emphasizes that Measure X is a crucial component in continuing to provide basic services to the city.
“The revenue will be used for basic city services as well as to build a financial reserve to weather lean years and stabilize our organization,” stated the argument provided by the city council. “Something must be done to keep our city financially healthy.”
No arguments have been submitted against the measure, which requires a majority vote to pass.
As a community, it is important to remain united.We shouldn’t rely on Government to take care of us
Maybe the answer is for Point Arena to disincorporate and be replaced by a sewer district. Why waste money on the administration costs associated with a city that doesn’t actually provide services? The county doesn’t do much well but they seem to keep paving projects moving so residents might be better off if the county managed the streets.