Arroyo Grande City Council extends Measure O sales tax

Arroyo Grande city voters approved Measure O back in 2006 on condition the half-cent local sales tax was reviewed every five years for its its financial impact and importance to city coffers.

The sales tax generates an estimated $2.2 million a year for the City of Arroyo Grande with most of the money going to street maintenance, parks and public safety.

That’s money that would have to come out of the city’s shrinking general fund if the half-cent sales tax was eliminated.

There was no public comment, for or against, when the issue came before the City Council Tuesday night.

As a result, the City Council voted unanimously to maintain the Measure O half-cent local sales tax for another five years.

It was pointed out at Tuesday night’s council meeting that property tax and sales tax, two of the city’s largest sources of revenue, can no longer be relied upon to pay for all basic city services including police and fire protection.