KING CITY — King City voters will decide in November whether to increase and extend the city’s existing sales tax after the King City Council unanimously approved placing the measure on the General Election ballot during its July 28 meeting.
The proposed measure would increase King City’s sales tax rate from 1% to 1.5% and generate an estimated $3.6 million annually for general city services until ended by voters. The additional half-cent increase is estimated to generate about $1.2 million annually.
In a staff report prepared for the City Council, City Manager José Arreola stated the city has made significant progress in improving its financial position after facing a serious financial crisis over the past two decades. Arreola said the city paid off its debt in 2021 after nearly 20 years, has maintained balanced budgets for several years and established a financial reserve.
“The City is focused on protecting this progress to continue addressing our local needs and remain self-reliant,” he added.
Arreola said maintaining that progress is becoming more challenging due to increasing costs, unfunded state mandates and larger cities receiving more federal and state resources. The city’s existing 1% sales tax, Measure K, is set to expire in April 2029. Without reauthorization, the city would lose an estimated $2.4 million in annual revenue.
“Reauthorization of the current local funding, with an additional 1/2 cent increment would ensure the City’s financial stability and maintenance of critical public safety and community services,” noted Arreola.
The proposed funding would support general city services, including 911 fire, medical and police response, gang and violent crime prevention and investigation, firefighter protective equipment, and street and pothole repairs.
To better understand community priorities, the city conducted a voter survey from Sept. 18 to Oct. 13, 2025, and later launched the “Our King City” community engagement initiative. Arreola said hundreds of residents participated and shared feedback that helped shape the recommendation.
The survey of more than 200 King City voters found that 80% of respondents agreed the city needs additional funding to maintain essential services, while initial support for the funding measure was 63%.
Residents identified priorities including preventing and investigating violent crimes, maintaining financial stability, requiring public disclosure of spending, continuing gang prevention services, keeping public areas safe and clean, and increasing good-paying jobs.
According to Mayor Mike LeBarre, a majority of the sales tax revenue comes from people traveling through King City rather than residents.
“Interesting note about sales tax is that roughly 60% of those revenues generated are from people traveling by or through our city,” LeBarre said. “Only roughly 40% is paid by residents.”
He added that the measure would help the city continue improving while addressing community priorities.
“The sales tax measure is extremely important for the city to improve on the successes we have made over the (years),” LeBarre said. “And to make sure that the priorities of the community are met, especially when it comes to safety, infrastructure, youth and recreational programs.”
The proposed increase would raise King City’s sales tax rate from 1% to 1.5%, matching Soledad’s rate. Greenfield currently has the highest rate in South Monterey County at 1.75%, while Gonzales is also at 1%.
The measure includes accountability provisions requiring independent audits, public disclosure of spending and oversight by the city’s Budget Advisory Committee. Arreola said funds generated by the measure would remain under local control and could not be taken by the state.
A simple majority, or 50% plus one vote, is required for the measure to pass in the Nov. 3 General Election.
