The City Council on Tuesday will vote on whether to take a 1/2 percent add-on tax to the voters in November. The tax could bring in millions of dollars. It is one way the city is hoping to compensate for a $400,000 deficit, and also a way to start rebuilding the city’s reserves.

Here is a snipet from the staff report, which you could view in full by clicking here.

Like municipalities throughout the State of California, the City of El Monte’s budget has been strained and stressed in recent years by a succession of economic and legislative developments, including the stagnant national economy, a depressed housing market, inflated prices for fuel and construction materials (e.g., diesel fuel for trucks and petroleum-based construction materials like roadway asphalt), increased costs for municipal services as well as State take-a-ways and regulatory mandates (e.g. state requirements for massive storm drain improvements).

This report offers one possible solution to the City’s current budget challenges: the implementation of transactions and use tax – a variety of sales tax.

According to the staff report, 53 California cities use the tax, including Montclair (%) , Inglewood (%), Laguna Beach (%), San Bernardino (%) and most recently the City of Southgate which in June of this year adopted a full 1% transactions and use tax add-on to the general sales and use tax of 8.25%.

The meeting begins at 5:30 p.m. on Tuesday.