IIMPERIAL VALLEY – In November, Brawley officials will campaign to pass Measure J, a sales and use tax initiative that politicians say is urgently needed to balance the state budget and provide essential services.

If the 1 percent increase is approved on Nov. 5, the sales tax would rise to 8.75 percent, making it the highest in the Valley. For comparison, the other two highest tax rates in the Valley are Calexico and El Centro at 8.25 percent.

Over the past few weeks, the Chronicle has been researching sales tax information across Imperial County, compiling data and speaking with various businesses and residents to compare the various sales tax rates in effect. This information can be used to further estimate the potential sales tax increase in Brawley.

The sales tax in California is 7.25 percent. In Imperial County, it is 7.75 percent as a base rate due to Measure D, a half-cent statewide sales tax collected throughout the valley for road construction and repairs and other work.

RELATED STORY: City of Brawley goes through the ABCs of Measure J

One troubling detail on the ballot that has prompted some, like Norma Aguilar of Calexico, to issue warnings to Brawley residents is the specific wording of the ballot proposal, which could give voters further insight into exactly how and where the money will be spent.

As a member of the Measure H fiscal oversight committee, Aguilar said, “The money raised centrally for Measure H goes to the bond and not to the original purpose or the way it was sold to the community.”

If Measure J, the Brawley Public Safety, Roads and Essential Services Measure, is approved, “an additional 1 percent sales tax will be imposed on certain purchases in Brawley, such as at restaurants, bars, gas stations and retail stores.”

In the cities mentioned, the financial climate is completely different. However, in Brawley, similar to Calexico with Measure H, the proposed tax will generate revenues earmarked for essential services, while the tax money collected by El Centro would have been used to invest in the city’s infrastructure.

Another difference between the three cities is that the tax rate in Calexico and El Centro is half a percent, while in Brawley it is a full percentage point higher. The need for the tax increase became clear when the 2024-2025 budget for Brawley showed a $237,000 deficit for that fiscal year.

“Our revenues are not keeping pace with our expenses and costs,” said Tyler Salcido, Brawley City Administrator.

In the remaining cities of the valley and in the areas of Seeley, Heber, Salton City, Ocotillo and Westmorland, the sales tax is 7.75 percent.

According to Brawley staff, Brawley’s general fund revenues over the past five years have amounted to 7.75 percent of sales and use taxes:

2018-2019: $2.28 million

2019-2020: 2.5 million US dollars

2020-2021: $2.26 million

2021-2022: $2.9 million

2022-2023: 3.4 million US dollars

Measure P in El Centro

El Centro Mayor Sylvia Marroquin spoke about how the increased sales tax has affected her city. Measure P is the half-percentage point sales tax increase approved by El Centro voters in November 2016 with the goal of improving and increasing the daily lives and opportunities of the city’s residents.

The revenues of the City of El Centro since the enactment of Measure P are:

2020: 5.22 million US dollars

2021: 6.11 million US dollars

2022: 7.52 million US dollars

2023: 7.989 million US dollars

2024: 8.11 million US dollars

“It was made perfectly clear to the public that the money would not be used for salaries, only for general funds… We have become a little more flexible with it now, but we still do not use it for general funds or employee salaries,” Marroquin said.

Mario Renteria, spokesman for the city of El Centro, said the city had three arguments in voting on Measure P: the new police headquarters, the new library and the guarantee that no salaries would be funded.

“Looking back, we wish it had been permanent because then we would have had to go to the voters again before it expired. Since it has brought so much to the community, I can imagine that the councillor, whoever is in office then, would want it to continue,” Marroquin said.

Measure P was introduced with a 30-year sunset period that would end in 2046. Without retaining the sales tax in her city, Marroquin isn’t sure what El Centro will do in the future. Brawley’s proposed Measure J doesn’t mention a sunset option, but simply states, “The City’s sales tax revenues must be spent locally to meet the needs of citizens through independent financial audits until voters terminate it.”

The City of El Centro raised $38 million to build a new police station thanks to the city’s sales and use tax. Another proud use of Measure P funds for El Centro was numerous improvements in Bucklin Park. Projects such as the city’s new $17 million public library, the Aquatic Center, and First Responders Park in El Centro were all funded at least in part by Measure P.

Marroquin said the city also wants to reinstate the downtown facade improvement program, which previously used $125,000 of Measure P funds in 2022 to provide small grants to business owners.

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Businesses such as Dairy Queen, Jersey Mike’s, GoodWill and Legacy MD Medical Center have all opened in El Centro within the last three weeks, a testament to the business-friendly approach El Centro is taking.

“Can you imagine the impact this will have on Measure P because it will generate VAT revenue?” asked Marroquin, thinking about the new fiscal year.

The mayor said the director of community development, the director of public works and the director of municipal services are sitting together and working together to figure out how to streamline processes and make things easier for developers and retailers in the city.

“Sustainability (of the city) also plays a role because we as a city rely on sales tax revenue to keep the general fund functioning. But maybe with all the new businesses coming in here, we’ll have a healthier general fund. But that still doesn’t allow us to do everything we’d like to do,” she said.

“Maybe they should get a little more creative and use us as an example of what can be done with the money they would get from an increase or a small percentage of sales tax revenue,” the mayor said of Brawley’s situation.

Marroquin said two council members and department heads oversee Measure P projects in the unofficial style of an oversight committee.

“I think they really need to promote their city to attract more businesses. Because even if they tax the residents, it’s not going to be as successful,” she said.

Calexicos Measure H

Calexico’s Measure H passed with a 50 percent plus one vote, giving the city freedom to use the funds less restrictively depending on the city’s budget needs. “The City of Calexico has been using Measure H money to balance its budget for at least eight years,” said Norma Aguilar of the Measure H Oversight Committee as she discussed the history of the tax, which is set to expire in the 2029-2030 fiscal year.

Unfortunately, despite repeated requests from this publication, the City of Calexico has not provided complete data on Measure H.

“Measure H revenues will cover annual debt service on Measure H bonds issued in 2011 to finance capital projects, including improvements to the fire station, parks and a swimming pool,” Calexico’s Measure H budget documents state.

For Calexico’s 2024-2025 fiscal year, the Measure H increases will not create new services but will allow the City to absorb the increasing costs of current services.

From 2015 to 2021, Measure H funds were used to maintain operations and replenish the fund reserve. “While this was happening, it was clear to many in the community that the funds were actually only for police, fire and recreation, while in reality Measure H benefited a general fund initiative,” Aguilar explained.

In order for the measure’s funds to be allocated to a specific purpose, as is the case with Brawley’s proposed Measure J, it would have had to be a special tax under municipal law and require a two-thirds vote. Aguilar raised this as a concern that Brawley residents need to be clear about, unlike the convoluted mess that Measure H has brought to Calexico’s budget.

Controversy arose in the city after residents noticed that the City Council was using Measure H revenue to fund fire and police salaries, which then-City Manager Esperanza Colio Warren said was a necessary step.