SANTA CRUZ >> Campaign finance disclosure statements for measures and offices on the city of Santa Cruz’s March ballot were recently published and showed that two corporations made substantial contributions to the campaign endorsing Measure L, which would increase the sales tax in the city of Santa Cruz by a half percent if passed in March by a majority vote.

The measure was placed on the ballot by the Santa Cruz City Council at the end of last November and was created by the council’s ad-hoc budget committee, which is composed of Santa Cruz Mayor Fred Keeley and Councilmembers Sandy Brown and Scott Newsome. The group had been formulating strategies over the past year alongside the accounting firm Baker Tilly to quell the city’s structural budget deficit of about $10.5 million.

The measure is seemingly identical to Measure F, which failed to gain a majority vote in the summer of 2022 with 8,563 votes in favor or 49.85% of the total votes, and 8,613 opposed or 50.15%. Like the failed measure, Measure L increases the sales tax rate in the city from 9.25% to 9.75%. It is estimated to raise about $8.3 million annually. Revenue raised by the proposed sales tax increase would go into the city’s general fund and could be used for any purpose.

According to the campaign finance disclosure statements filed with the city clerk, in the period between Dec. 11 and Dec. 31, 2023, the campaign endorsing Measure L, called Santa Cruzans for a Healthy City, received two substantial donations of $12,500 from Long Beach-based corporations La Bahia Holdco and S.C. Beach Hotel Partners for a total contribution of $25,000.

Also during that reporting period, Service Employees International Union Local 521 Issues PAC contributed $5,000 to Santa Cruzans for a Healthy City. No expenditures were reported in that period.

Between Jan. 1 and Jan. 20, one contribution of $1,000 was given to the campaign by Santa Cruz Mayor Fred Keeley, whose wife Barbara Keeley serves as the treasurer for the Santa Cruzans for a Healthy City campaign with former Santa Cruz City Councilmember and Mayor Cynthia Mathews serving as the assistant treasurer. At the end of the January reporting period, the campaign had no expenditures and a balance of $31,055.

After the reporting period ended, two donations of more than $1,000 were made. On Jan. 22, the Santa Cruz Seaside Co. gave $5,000 to the campaign and on Feb. 6, Roaring Camp Big Trees Narrow-Gauge Railroad also provided the campaign in favor of the sales tax increase with $5,000.

There is no official campaign opposing the measure and no filing activity against Santa Cruzans for a Healthy City to report.

For comparison, according to the California Department of Tax and Fee Administration, as of Jan. 1, about 190 cities in the state had an effective sales and use tax rate between 7.25% and 8%. About 155 cities had a rate between 8% and 9%, while about 125 cities had a sales tax rate between 9% and 10%. About 70 cities in the state had a sales tax that was between 10% and 10.75%, which was the highest tax rate reported by six cities, all in Alameda County.

To see the text of the initiative and campaign finance disclosure statements, visit cityofsantacruz.com.