Vacaville, CA
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Accountability & Oversight
- Financial safeguards may include annual independent audits, public budget reporting, and oversight review processes.
The City is evaluating multiple transparency and accountability tools, which will include:
- Independent annual financial audits
- Public expenditure reporting
- Citizen oversight committee
- Regular budget transparency updates
Final provisions would be included in any ballot measure language.
What will prevent a money grab by bargaining units? Where is the increase in property tax going? Where is the internal review and accountability for spending and waste?
Thank you for sharing your concerns. Fiscal responsibility, transparency, and accountability are priorities for both the City Council and City staff.
Like all California cities, Vacaville must balance the need to attract and retain qualified employees with its responsibility to be a good steward of public funds. Employee salaries and benefits are regularly compared with those of similar agencies to remain competitive in recruiting and retaining the professionals who provide essential services such as police, fire, public works, engineering, and other municipal services.
Labor agreements are negotiated in accordance with California law and must ultimately be approved by the City Council during a public meeting. The Council also establishes the City's budget priorities each year and determines how available General Fund revenues are allocated. While personnel costs are one component of the General Fund budget, additional revenues do not automatically result in employee compensation increases. Compensation is established through collective bargaining and City Council approval, taking into consideration the City's overall financial condition, long-term fiscal sustainability, operational needs, and service priorities.
The City has also adopted a General Fund Reserve Policy at its April 14, 2026, Council Meeting that establishes how reserves are maintained and when reserves and one-time surplus funds may be used. The policy was informed through extensive community engagement, including resident surveys and focus groups, and was adopted by the City Council to support long-term fiscal stability and responsible financial management.
Beyond the independent annual financial audit, City management conducts ongoing budget monitoring, evaluates departmental expenditures, reviews staffing and vacancy levels, monitors overtime and operational costs, and assesses organizational performance throughout the year. These internal reviews complement the independent audit by helping identify opportunities for efficiencies, cost savings, and service improvements. The City is committed to continually evaluating programs and operations to ensure taxpayer dollars are used effectively and efficiently.
Before considering any new revenue measure, the City first implemented significant cost-saving measures totaling approximately $9 million annually, including:
- 2.5% departmental budget reductions
- Freezing three positions
- Delaying the hiring of sixteen positions
- Reducing or deferring selected services and programs
Despite these actions, the City continues to face an estimated $12 million structural General Fund deficit.
If voters approve a local sales tax measure, the revenue would remain in Vacaville and could not be taken by the State. Any revenues would be appropriated by the City Council through the annual public budget process, where spending priorities are established in public meetings with opportunities for community input.
The proposed measure also includes multiple accountability provisions, including:
- Independent annual financial audits.
- A Citizens' Oversight Committee to review revenues and expenditures.
- Annual public reporting on the use of funds.
- Continued expansion of the City's Transparency Portal to provide residents with easier access to financial information, performance reporting, and other public information.
Regarding property taxes, while new development contributes additional property tax revenue, the City receives approximately 16 cents of every property tax dollar, with the remainder distributed to schools, Solano County, and other local agencies under California law. As a result, property tax growth alone is not sufficient to keep pace with rising service demands, inflation, infrastructure maintenance, and the cost of providing municipal services.
Vacaville is not alone in facing these fiscal challenges. Communities throughout California are experiencing similar pressures due to inflation, rising costs, aging infrastructure, and increasing service demands. The City Council has placed Measure V on the November ballot to allow Vacaville voters to decide whether to approve a local funding measure. City of Vacaville - Staff Report
The City recognizes that residents expect government to operate efficiently before asking for additional revenue. That is why the City has prioritized reducing expenditures, delaying hiring, evaluating operations, and increasing transparency before considering a local funding measure. If approved by voters, any future revenues would remain subject to public oversight, annual budget review, City Council approval in open meetings, and ongoing financial reporting to the community.
Additional information about the City's financial outlook, budget actions, Transparency Portal, and the proposed 2026 local sales tax measure is available on the City's Choosing a Path webpage and Transparency Portal.
The Vacaville City Council adopts the annual budget in public meetings. Spending is also subject to:
- Independent financial audits
- State financial reporting requirements
- Public transparency laws
- If the time comes, City staff will recommend accountability measures such as independent audits, public reporting, and a citizens’ oversight committee.
Ballot Process & Voting
- No. The Vacaville City Council has not approved a tax increase. The City is studying options and providing information. Any new local tax would require voter approval.
- If placed on the ballot, the duration would be specified in the measure language until ended by voters. The City Council has not taken action to place a measure on the ballot.
If expenditures continue to grow faster than revenues over time, the City may need to consider:
- Service level adjustments
- Delayed maintenance
- Staffing reductions through attrition
- Other budget balancing measures
During the April 14, 2026 City Council meeting, City staff presented additional information about the current 2.5% reductions, along with another possible 2.5% (totaling 5% of their budgets), and what those impacts would be should the deficit continue without an additional revenue source.
- No. The City’s role is to provide factual, neutral information so voters can make an informed decision.
- The City Council will review financial data, community input, and policy options before deciding whether to place a measure on the ballot.
- If the City Council moves forward, a measure could appear as soon as the November 3, 2026, ballot.
- Vacaville voters decide. A general tax requires majority voter approval (50% + 1) to pass.
Community Info & Engagement
- The City plans to conduct outreach, including community meetings, surveys and questionnaires, and disseminating informational materials.
- No. The City’s role is to provide factual, neutral information so voters can make an informed decision.
- “Choosing the Path” is the City of Vacaville’s public information effort to help residents understand the City’s financial outlook and a possible local one-cent sales tax measure that may appear on the November 2026 ballot.
- The City Council will review financial data, community input, and policy options before deciding whether to place a measure on the ballot.
- Visit the City of Vacaville’s Choosing a Path webpage for the latest information, meeting dates, and materials.
Staff reports and presentations are available on the Engagement & Resources webpage. Budget documents and annual reports are available on the Finance Department website. Visit the City’s Financial Transparency portal for live revenue and expenditure reporting.
View staff reports, presentations and video recordings of the latest budget presentations to the City Coucil.
Essential Services
As a general tax, funds could support core municipal services such as:
- Maintaining police and fire staffing
- Supporting 911 emergency response
- Repairing streets and infrastructure
- Maintaining parks and facilities
- Addressing other General Fund priorities
Annual budgets adopted by the City Council would determine specific allocations.
- As a general tax, funds could be used for broad municipal services, with priority needs including public safety and essential City operations.
If expenditures continue to grow faster than revenues over time, the City may need to consider:
- Service level adjustments
- Delayed maintenance
- Staffing reductions through attrition
- Other budget balancing measures
During the April 14, 2026 City Council meeting, City staff presented additional information about the current 2.5% reductions, along with another possible 2.5% (totaling 5% of their budgets), and what those impacts would be should the deficit continue without an additional revenue source.
- The City will need to consider service reductions or other budget adjustments if costs continue to outpace revenues.
- Essential services generally include police protection, fire and emergency medical response, 911 dispatch, street maintenance, parks maintenance, and other core City operations.
Services most sensitive to General Fund pressures typically include:
- Police patrol and investigations
- Fire and emergency medical response
- 911 dispatch operations
- Street and road maintenance
- Park and facility maintenance
- Neighborhood quality-of-life services
Any specific cuts would be considered by the City Council at a publicly noticed meeting.
During the April 14, 2026 City Council meeting, City staff presented additional information about the current 2.5% reductions, along with another possible 2.5% (totaling 5% of their budgets), and what those impacts would be should the deficit continue without an additional revenue source.
- If placed on the ballot and approved by voters, the measure would generate locally controlled funding that could be used to help maintain essential City services.
Like many California cities, Vacaville is experiencing rising costs for essential services such as police, fire, 911 emergency response, and road maintenance and infrastructure, that are outpacing existing revenues.
Vacaville’s long-range financial forecast shows that the cost of maintaining current service levels is growing faster than ongoing revenues. Key drivers include:- Rising public safety personnel costs
- Inflation in equipment, vehicles, and materials
- Aging infrastructure needs
- Increased service demands in a growing community
Without additional ongoing revenue, the City may face future budget pressures.
The City regularly reviews operations for efficiencies and cost savings. However, rising costs for core services continue to exceed ongoing revenue growth. The City has already reduced the budget by $9.2 Million, $8 Million of which is General Fund.
During the April 14, 2026 City Council meeting, City staff presented additional information about the current 2.5% reductions, along with another possible 2.5% (totaling 5% of their budgets), and what those impacts would be should the deficit continue without an additional revenue source.
Financial Need & Budget Impacts
City of Vacaville retirees potentially have two benefits upon retirement: CalPERS Pension and retiree medical or access to a retirement health savings account. Any post-retirement benefits are determined based on multiple factors:
- age at retirement; and
- the year the employee started work with the city; and
- total years of service with the City and with CalPERS; and
- the union or bargaining group in which they were a member and respective MOU/Agreement negotiated with this group.
The City has a contractual agreement with CalPERS for pensions and negotiated, legally binding MOUs/Agreements with the unions/groups that stipulate the pension and post-retirement medical benefits that these employees shall receive in retirement. Under the “California Rule”, public employees’ pension benefits are protected as the benefit becomes vested as a contractual right the day the employee gets hired. City of Vacaville cannot reduce pension benefits without offering a comparable new benefit. Any changes to these benefits, including changes to current retiree benefits, would also need to be negotiated and agreed upon with the respective groups. Failure to do so would create significant legal liability.
To reduce expenses, the City has negotiated multiple changes to the retirement benefits offered. Additionally, the State of California has enacted changes to CalPERS law that impacts all public agencies and their rates.
2005 (Retiree Medical): Recognizing the need to address increasing costs and growing unfunded liability of this benefit, the Council directed staff to work with labor unions to find solutions and work towards a sustainable model. The City had paid for 100% of this benefit for active employees and retirees up to this point.
2009 (Retiree Medical): Reduced City contribution from 100% to 95%. Establishment of an OPEB trust fund and implementation of active employee contributions directly into that trust. $25 monthly employee contribution initiated. The City implemented a vesting schedule which required a minimum of 5 years of employment at the City of Vacaville to receive any level of retiree medical.
2010 (Retiree Medical): Reduced City contribution from 95% to 92%
2013 (Pension): The Public Employees’ Pension Reform Act (PEPRA) changed the retirement formulas for employees hired after Jan 1, 2013. This reduced new hire pension formulas from 2.7% @55 to 2% @62 (for Misc employees) and from 3%@50 to 2.7%@57 (for safety employees).
2015 (Retiree Medical): OPEB trust fund employee contribution increased to $50 per month for safety employees. The City adopted the OPEB Funding Policy that outlined the goal of increasing the funding of the annual actuarially determined contribution (ADC) in each successive year until reaching the full funding of the ADC in 2020.
2016 (Retiree Medical): Reduced City contribution from 92% to current 85%. OPEB trust fund employee contribution increased to $75 per month for safety employees and $50 per month for non-safety employees.
2017 (Retiree Medical): OPEB trust fund employee contribution increase to $100 per month for safety employees.
2018 (Retiree Medical): Miscellaneous employees hired on or after December 1, 2018, are no longer eligible for the full retiree medical program. These employees are enrolled in a retirement health savings account (RHSA) and will receive the PERS required minimum towards retirement medical premium costs, plus a flat amount based on years of service with City of Vacaville. Additionally, The City was able to reach the full funded ADC two years early due to increased contributions.
2020 (Retiree Medical): Safety employees hired on or after January 1, 2020, are no longer eligible for the full retiree medical program. These employees are enrolled in a retirement health savings account (RHSA) and will receive the PERS required minimum towards retirement medical premium costs, plus a flat amount based on years of service with City of Vacaville.
Current Status and Update (Pension):
PEPRA reduced pension benefits for employees hired on or after January 1, 2013. It lowered benefit formulas, increased retirement ages, and required employees to pay more towards their pensions. Seeing the savings of PEPRA has taken time because employees hired before PEPRA remain under older, more expensive formulas and pension contributions are impacted by CalPERS investment performance. However, as the workforce transitions to PEPRA employees becoming the larger share of employee payroll, these pension costs will start to level off. CalPERS projects this leveling off to occur in 2031.
Yes. The City routinely evaluates budgets, seeks efficiencies, and implements cost-containment strategies as part of its financial management practices. The City has implemented a number of cost-containment measures in response to projected budget challenges. These actions include:
- Reductions in departmental budgets
- Hiring freezes and delayed recruitment for certain positions
- Deferred maintenance and postponed capital projects
- Use of one-time funds to address short-term gaps
These actions have reduced near-term shortfalls but do not resolve an ongoing structural imbalance if recurring expenditures exceed recurring revenues.
- Preliminary estimates indicate a one-cent local sales tax could generate approximately $25–$30 million annually, depending on economic conditions and taxable sales activity.
If expenditures continue to grow faster than revenues over time, the City may need to consider:
- Service level adjustments
- Delayed maintenance
- Staffing reductions through attrition
- Other budget balancing measures
During the April 14, 2026 City Council meeting, City staff presented additional information about the current 2.5% reductions, along with another possible 2.5% (totaling 5% of their budgets), and what those impacts would be should the deficit continue without an additional revenue source.
- The City will need to consider service reductions or other budget adjustments if costs continue to outpace revenues.
Services most sensitive to General Fund pressures typically include:
- Police patrol and investigations
- Fire and emergency medical response
- 911 dispatch operations
- Street and road maintenance
- Park and facility maintenance
- Neighborhood quality-of-life services
Any specific cuts would be considered by the City Council at a publicly noticed meeting.
During the April 14, 2026 City Council meeting, City staff presented additional information about the current 2.5% reductions, along with another possible 2.5% (totaling 5% of their budgets), and what those impacts would be should the deficit continue without an additional revenue source.
What will prevent a money grab by bargaining units? Where is the increase in property tax going? Where is the internal review and accountability for spending and waste?
Thank you for sharing your concerns. Fiscal responsibility, transparency, and accountability are priorities for both the City Council and City staff.
Like all California cities, Vacaville must balance the need to attract and retain qualified employees with its responsibility to be a good steward of public funds. Employee salaries and benefits are regularly compared with those of similar agencies to remain competitive in recruiting and retaining the professionals who provide essential services such as police, fire, public works, engineering, and other municipal services.
Labor agreements are negotiated in accordance with California law and must ultimately be approved by the City Council during a public meeting. The Council also establishes the City's budget priorities each year and determines how available General Fund revenues are allocated. While personnel costs are one component of the General Fund budget, additional revenues do not automatically result in employee compensation increases. Compensation is established through collective bargaining and City Council approval, taking into consideration the City's overall financial condition, long-term fiscal sustainability, operational needs, and service priorities.
The City has also adopted a General Fund Reserve Policy at its April 14, 2026, Council Meeting that establishes how reserves are maintained and when reserves and one-time surplus funds may be used. The policy was informed through extensive community engagement, including resident surveys and focus groups, and was adopted by the City Council to support long-term fiscal stability and responsible financial management.
Beyond the independent annual financial audit, City management conducts ongoing budget monitoring, evaluates departmental expenditures, reviews staffing and vacancy levels, monitors overtime and operational costs, and assesses organizational performance throughout the year. These internal reviews complement the independent audit by helping identify opportunities for efficiencies, cost savings, and service improvements. The City is committed to continually evaluating programs and operations to ensure taxpayer dollars are used effectively and efficiently.
Before considering any new revenue measure, the City first implemented significant cost-saving measures totaling approximately $9 million annually, including:
- 2.5% departmental budget reductions
- Freezing three positions
- Delaying the hiring of sixteen positions
- Reducing or deferring selected services and programs
Despite these actions, the City continues to face an estimated $12 million structural General Fund deficit.
If voters approve a local sales tax measure, the revenue would remain in Vacaville and could not be taken by the State. Any revenues would be appropriated by the City Council through the annual public budget process, where spending priorities are established in public meetings with opportunities for community input.
The proposed measure also includes multiple accountability provisions, including:
- Independent annual financial audits.
- A Citizens' Oversight Committee to review revenues and expenditures.
- Annual public reporting on the use of funds.
- Continued expansion of the City's Transparency Portal to provide residents with easier access to financial information, performance reporting, and other public information.
Regarding property taxes, while new development contributes additional property tax revenue, the City receives approximately 16 cents of every property tax dollar, with the remainder distributed to schools, Solano County, and other local agencies under California law. As a result, property tax growth alone is not sufficient to keep pace with rising service demands, inflation, infrastructure maintenance, and the cost of providing municipal services.
Vacaville is not alone in facing these fiscal challenges. Communities throughout California are experiencing similar pressures due to inflation, rising costs, aging infrastructure, and increasing service demands. The City Council has placed Measure V on the November ballot to allow Vacaville voters to decide whether to approve a local funding measure. City of Vacaville - Staff Report
The City recognizes that residents expect government to operate efficiently before asking for additional revenue. That is why the City has prioritized reducing expenditures, delaying hiring, evaluating operations, and increasing transparency before considering a local funding measure. If approved by voters, any future revenues would remain subject to public oversight, annual budget review, City Council approval in open meetings, and ongoing financial reporting to the community.
Additional information about the City's financial outlook, budget actions, Transparency Portal, and the proposed 2026 local sales tax measure is available on the City's Choosing a Path webpage and Transparency Portal.
Staff reports and presentations are available on the Engagement & Resources webpage. Budget documents and annual reports are available on the Finance Department website. Visit the City’s Financial Transparency portal for live revenue and expenditure reporting.
View staff reports, presentations and video recordings of the latest budget presentations to the City Coucil.
Development impact fees are governed by California law and may only be used for specific infrastructure improvements needed to serve new development. These one-time fees are legally restricted and cannot be used to fund the City's day-to-day operations or address General Fund budget challenges.
The City had not updated its Development Impact Fees (DIF) since 1992. When the fees were comprehensively updated in 2022, they increased significantly, and the separate Community Benefit Contribution (CBC) fee was eliminated from all Development Agreements because its purpose had been incorporated into the updated fee structure. VandenGate's agreement inadvertently retained the CBC provision, and the City has since taken action to make it consistent with the other Development Agreements. All other applicable Development Impact Fees and the Community Facilities District (CFD) public safety assessment remain in place for the VandenGate development.
The City remains committed to ensuring that new development pays its fair share of infrastructure costs while applying its fee programs fairly and consistently in accordance with California law. We appreciate your engagement and encourage residents to participate in City Council meetings and other public discussions to participate in these public discussions, as community input is an important part of the decision-making process.
- Under California law (including Proposition 13), cities have limited flexibility with property taxes. Local sales tax is one of the primary voter-approved tools available to cities to fund general municipal services.
Like many California cities, Vacaville is experiencing rising costs for essential services such as police, fire, 911 emergency response, and road maintenance and infrastructure, that are outpacing existing revenues.
Vacaville’s long-range financial forecast shows that the cost of maintaining current service levels is growing faster than ongoing revenues. Key drivers include:- Rising public safety personnel costs
- Inflation in equipment, vehicles, and materials
- Aging infrastructure needs
- Increased service demands in a growing community
Without additional ongoing revenue, the City may face future budget pressures.
The City regularly reviews operations for efficiencies and cost savings. However, rising costs for core services continue to exceed ongoing revenue growth. The City has already reduced the budget by $9.2 Million, $8 Million of which is General Fund.
During the April 14, 2026 City Council meeting, City staff presented additional information about the current 2.5% reductions, along with another possible 2.5% (totaling 5% of their budgets), and what those impacts would be should the deficit continue without an additional revenue source.
- Under California law, local sales tax is one of the primary flexible revenue tools available to cities to fund general services. Certain taxes are reserved for the State, including personal income tax, cigarette tax, and alcohol tax. Local governments rely on the revenue sources available to them under state law to fund municipal services like property taxes and sales tax. Taxes represent approximately 80.83% of the City’s General Fund revenues, making them the primary source of funding for core municipal services.
Funding Options & Comparisons
Yes. The City routinely evaluates budgets, seeks efficiencies, and implements cost-containment strategies as part of its financial management practices. The City has implemented a number of cost-containment measures in response to projected budget challenges. These actions include:
- Reductions in departmental budgets
- Hiring freezes and delayed recruitment for certain positions
- Deferred maintenance and postponed capital projects
- Use of one-time funds to address short-term gaps
These actions have reduced near-term shortfalls but do not resolve an ongoing structural imbalance if recurring expenditures exceed recurring revenues.
- Sales tax rates vary across Solano County and neighboring communities. The City is reviewing regional comparisons as part of its evaluation process and will share information with residents.
- Sales tax rates vary by jurisdiction. The City is reviewing regional comparisons as part of its evaluation process.
Development impact fees are governed by California law and may only be used for specific infrastructure improvements needed to serve new development. These one-time fees are legally restricted and cannot be used to fund the City's day-to-day operations or address General Fund budget challenges.
The City had not updated its Development Impact Fees (DIF) since 1992. When the fees were comprehensively updated in 2022, they increased significantly, and the separate Community Benefit Contribution (CBC) fee was eliminated from all Development Agreements because its purpose had been incorporated into the updated fee structure. VandenGate's agreement inadvertently retained the CBC provision, and the City has since taken action to make it consistent with the other Development Agreements. All other applicable Development Impact Fees and the Community Facilities District (CFD) public safety assessment remain in place for the VandenGate development.
The City remains committed to ensuring that new development pays its fair share of infrastructure costs while applying its fee programs fairly and consistently in accordance with California law. We appreciate your engagement and encourage residents to participate in City Council meetings and other public discussions to participate in these public discussions, as community input is an important part of the decision-making process.
- Under California law (including Proposition 13), cities have limited flexibility with property taxes. Local sales tax is one of the primary voter-approved tools available to cities to fund general municipal services.
The City regularly reviews operations for efficiencies and cost savings. However, rising costs for core services continue to exceed ongoing revenue growth. The City has already reduced the budget by $9.2 Million, $8 Million of which is General Fund.
During the April 14, 2026 City Council meeting, City staff presented additional information about the current 2.5% reductions, along with another possible 2.5% (totaling 5% of their budgets), and what those impacts would be should the deficit continue without an additional revenue source.
- Under California law, local sales tax is one of the primary flexible revenue tools available to cities to fund general services. Certain taxes are reserved for the State, including personal income tax, cigarette tax, and alcohol tax. Local governments rely on the revenue sources available to them under state law to fund municipal services like property taxes and sales tax. Taxes represent approximately 80.83% of the City’s General Fund revenues, making them the primary source of funding for core municipal services.
Letter from the City Manager
- Developers pay impact fees for infrastructure. State law limits the amount that can be charged, and these fees cannot be used for ongoing services such as police or 911. View the annual Development Impact Fee Report.
Sales and property tax revenue are shared among schools, counties, and special districts.
Vacaville has the lowest sales tax rate in Solano County at 8.125%. For every $100 a customer spends, $8.13 is paid in sales tax. It is divided into the following way:
- State gets the majority at $6.00.
- City gets $1.75 ($1 Bradley-Burns and $0.75 Measure M).
- County local transportation fund gets $0.25.
- Solano County Library system gets $0.13.
The City only receives 16 to 18 cents for every dollar paid on Property Tax. Learn more about the breakdown from Solano County.
If the City were to proceed with a sales tax measure, it would propose to include:
- Independent annual audits
- A citizens' oversight committee
- Transparent public reporting
- A sales tax is a voter-approved tax on the retail sale of goods and some services. The money is collected at the point of sale and transmitted to the City for local uses.
- We agree that transparency is important. You can find the full budget, department spending, and financial reports on the Open Finance Vacaville portal. Residents are welcome to review the information and ask questions.
Measure Basics
- No. The Vacaville City Council has not approved a tax increase. The City is studying options and providing information. Any new local tax would require voter approval.
- Sales tax rates vary across Solano County and neighboring communities. The City is reviewing regional comparisons as part of its evaluation process and will share information with residents.
- Sales tax rates vary by jurisdiction. The City is reviewing regional comparisons as part of its evaluation process.
- If placed on the ballot, the duration would be specified in the measure language until ended by voters. The City Council has not taken action to place a measure on the ballot.
- The City is evaluating a possible one-cent (1%) local sales tax.
- Preliminary estimates indicate a one-cent local sales tax could generate approximately $25–$30 million annually, depending on economic conditions and taxable sales activity.
- No, the status of Measure V (approved or rejected), will not impact the Business License Tax.
- Measure M has helped fund essential services. The City is evaluating long-term financial needs beyond existing funding sources. Learn more about Measure M.
- If placed on the ballot and approved by voters, the measure would generate locally controlled funding that could be used to help maintain essential City services.
- If the City Council moves forward, a measure could appear as soon as the November 3, 2026, ballot.
- Sales tax is paid on taxable purchases made within Vacaville and is also paid by visitors and commuters who shop in the city.
- Under California law (including Proposition 13), cities have limited flexibility with property taxes. Local sales tax is one of the primary voter-approved tools available to cities to fund general municipal services.
- Under California law, local sales tax is one of the primary flexible revenue tools available to cities to fund general services. Certain taxes are reserved for the State, including personal income tax, cigarette tax, and alcohol tax. Local governments rely on the revenue sources available to them under state law to fund municipal services like property taxes and sales tax. Taxes represent approximately 80.83% of the City’s General Fund revenues, making them the primary source of funding for core municipal services.
- If a local measure is approved, the additional tax would generally apply to taxable online purchases delivered into Vacaville, consistent with California tax law.
- The measure under evaluation is a general-purpose tax, meaning revenues would support a broad range of City services rather than being legally restricted to one specific program.
Overview & Background
- Measure M has helped fund essential services. The City is evaluating long-term financial needs beyond existing funding sources. Learn more about Measure M.
- “Choosing the Path” is the City of Vacaville’s public information effort to help residents understand the City’s financial outlook and a possible local one-cent sales tax measure that may appear on the November 2026 ballot.
- Essential services generally include police protection, fire and emergency medical response, 911 dispatch, street maintenance, parks maintenance, and other core City operations.
- Visit the City of Vacaville’s Choosing a Path webpage for the latest information, meeting dates, and materials.
Revenue Use & Local Control
- No. Locally approved sales tax revenue stays with the City.
- Financial safeguards may include annual independent audits, public budget reporting, and oversight review processes.
- Preliminary estimates indicate a one-cent local sales tax could generate approximately $25–$30 million annually, depending on economic conditions and taxable sales activity.
As a general tax, funds could support core municipal services such as:
- Maintaining police and fire staffing
- Supporting 911 emergency response
- Repairing streets and infrastructure
- Maintaining parks and facilities
- Addressing other General Fund priorities
Annual budgets adopted by the City Council would determine specific allocations.
- As a general tax, funds could be used for broad municipal services, with priority needs including public safety and essential City operations.
- If placed on the ballot and approved by voters, the measure would generate locally controlled funding that could be used to help maintain essential City services.
The Vacaville City Council adopts the annual budget in public meetings. Spending is also subject to:
- Independent financial audits
- State financial reporting requirements
- Public transparency laws
- Yes. Funds generated by a locally approved measure would remain in Vacaville for local services and could not be taken by the State.
- The measure under evaluation is a general-purpose tax, meaning revenues would support a broad range of City services rather than being legally restricted to one specific program.
Shopper Impact & Exemptions
- No. Prescription medicines are exempt from sales tax.
- Sales tax is paid on taxable purchases made within Vacaville and is also paid by visitors and commuters who shop in the city.
- No. Groceries are exempt from sales tax under California law.
- If a local measure is approved, the additional tax would generally apply to taxable online purchases delivered into Vacaville, consistent with California tax law.