By Jesse Jones, The Paper. — Burqueño voters will have one fewer question on the November ballot after the City Council narrowly rejected a proposed $113 million gross receipts tax increase, marking the second defeat for a measure that had already been revived once.
The City Council voted 5-4 Monday to kill Resolution R-26-43, a co-sponsored measure by Councilor Brook Bassan and Council President Klarissa Peña that would have put a 0.4875% gross receipts tax hike — nearly half a percent — on the November ballot for city projects. Councilors Tammy Fiebelkorn, Renée Grout, Dan Lewis, Stephanie Telles and Vice President Dan Champine voted against the measure, prompting the council to withdraw its companion ordinance. Opponents repeatedly cited the proposed North Domingo Baca Aquatic Center in Bassan’s district as their reason to reject the tax.
The tax would have raised about $113 million a year for 21 years to fund city wages and construction projects before expiring. Bassan said half of the revenue would have supported operations, wages and other city needs, while the rest would have been split across 10 buckets so each council district and the mayor could select capital projects. She said each share would amount to about $36 million per district and the mayor, calling the approach “equitable, not equal,” and said it would allow councilors to set priorities for their own areas.
Lewis warned the tax would expand government spending after the city budget grew from $800 million to $1.5 billion under the current administration. “Our operating budget will grow automatically by about $50 million next year if this were to pass,” Lewis said, adding that the city would spend every penny. Fixed-income seniors and conservative groups argued the tax would hit low-income residents hardest, criticizing it for covering a $70 million cost overrun for the North Domingo Baca Aquatic Center.
Burned-out city employees, including solid waste drivers and BioPark keepers, urged passage, citing mandatory 70-hour workweeks where they cover multiple jobs. Peña noted that residents demand better services, but the city hasn’t significantly raised worker pay in her 12 years on the council. “This is a unique opportunity for us to really be able to put confidence in our employees, and for me has nothing to do with the pool,” Peña said, noting nine other councilors and the mayor also have priorities alongside the raises.
With the tax defeated, city leaders must fund employee raises and facility costs through the approved $1.5 billion budget. To complete neighborhood projects like the North Domingo Baca pool, Lewis said districts must rely on city fund balances and municipal bonds rather than expanded spending, noting an expected $57 million revenue increase next year.