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Arroyo Grande considers sales tax increase to address community needs

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Founded more than 100 years ago, Arroyo Grande is beloved by San Luis Obispo County residents like Arthur Cocks;

“We're so happy it hasn't changed significantly.”

But city leaders say they are facing challenges in service upkeep and budget balancing and admit that parts of the town are deteriorating.

“Obviously, costs have been escalating across every industry, definitely after the pandemic and the kind of the supply chain issues that everybody has experienced," City Manager Matthew Downing said.

That's why the City has sent out this community survey; asking people who live and work in the community to rank items on the list from most to least important.

With a quick look at the survey, some people believe repairing and paving roads stand out.

“Because I drive on the streets a lot, the repair and paving of the streets would be noticeable and I would appreciate it,” Chris Heinrichs, who lives in Arroyo Grande said.

Nancy Depue agreed; “If I filled it out, I think we need to improve our roads.”

And others like Linda Osty, say maintaining 911 rapid response times is her #1 priority.

As the city discusses options to address people's needs, Downing says they are looking into increasing the city’s sales tax to help close the budget gap.

“Another option is adjusting our service levels, adjusting how often we empty trash parks, how often we mow the lawn," Downing said. "So any number of things like that too, in order again, to balance our budget with the increase in demands as we continue to move forward.”

Heinrichs lives in the city and says he doesn’t mind a sales tax increase if it means the city's maintenance and preservation is at its finest.

“I'm not so worried about the amount of tax as long as we get something for it," Heinrichs said. "Like this bridge that we're standing next to, is a great example. Its an old bridge, and it probably cost a little bit more to save the old ironwork, but that's what makes Arroyo Grande, Arroyo Grande.”

However, Ali Saleh, who owns a café in the village tells me he worries an increase could affect his business.

“It’s a concern for a lot of customers. I mean, it's inflation is already high. We raised prices in the last couple of years. Everything has gone up. And to add more taxes I think is going to affect our business for sure.”

The decision on whether to increase the sales tax and if so, by how much, will be made later this year, once the city council addresses the topic and considers all of the survey responses.