Financial Outlook Prompts Emergency Discussions in Meeting
Culver City is facing an escalating financial crisis, prompting the City Council to take steps toward declaring a fiscal emergency and considering a 0.25% sales tax increase for the August 2025 ballot.
During a March 17 meeting, the City Council unanimously directed city staff to draft a declaration of fiscal emergency, which will be brought back for approval at a future session. If approved, the declaration would allow the Council to place a sales tax measure before voters in August 2025. In addition, staff has been instructed to conduct scientific polling to gauge public interest in the proposed tax increase.
The decision follows the February mid-year budget update for Fiscal Year 2024/2025, which revealed that Culver City’s financial outlook is worsening. The city is grappling with a projected $35.5 million deficit in the General Fund for the next fiscal year. Without corrective action, financial forecasts indicate that reserves will plummet from $151.4 million in the current year to just $10.4 million by 2034/2035.
Currently, the sales tax rate in Culver City is 10.50%, including state and local levies. If the proposed measure is placed on the ballot and passed, the rate would rise to 10.75%, reaching the new post-AB 1679 statutory maximum. No additional increases would be permitted without state legislative approval.
To pass, the measure would need the support of more than 50% of Culver City voters. If approved, it is projected to generate approximately $5.6 million annually in additional revenue.
The City Council will review and vote on the draft fiscal emergency declaration at an upcoming meeting. Meanwhile, polling efforts will assess voter sentiment on the proposed tax measure before a final decision is made on whether to proceed with the August 2025 ballot initiative.
