By Mike Allen
May 7, 2026 (Santee) — When the city of Santee got the results earlier this year of a study looking at increasing the city’s sales tax by a half-cent, the approval ratings were so high, its leaders decided it might want to try for a full penny increase.
At its May 5 meeting, the City Council extended another $29,000 to consultants to study that possibility for the November ballot. That addition would bring the total for the consultants, Team CivX, to nearly $170,000 so far.
The consensus among the five council members was the city’s finances are severely constrained, and to continue to deliver the same quality of services it needs increased revenue in the form of higher sales taxes.
The current rate is 7.75 percent on the dollar. A half cent would boost it to 8.25 percent while a full cent would bring it to 8.75 percent.
Mayor John Minto said escalating expenses, particularly from unfunded mandates by the state of California, makes it impossible for Santee to pay for the level of services the city provides without cutting budgets on other things.
As much as he hated the idea of increasing taxes, Minto said it’s important to find out what residents thought. “And if people say no way we have to listen to them,” he said.
The vote to approve the contract extension was 4-1 with Councilman Rob McNelis opposed. The results should be delivered at the council’s June 24 meeting, giving it sufficient time to decide whether to put the measure on the November ballot, said City Manager Wendy Kaserman.
While McNelis said he backed the 2024 half-cent sales tax increase for new fire stations and personnel, he didn’t want to support a more comprehensive approach that would pay for infrastructure, roads, parks and other services. He said because the increased tax wouldn’t be assigned to a specific expense, future councils could use it for some other purposes that he might not agree with.
“When these funds come in, we’re depending on the next (council) to do the right thing, and I don’t know that will be done,” he said.
He questioned the veracity of the study’s results, which showed 83 percent of those surveyed said the city’s quality of life was either good or excellent, and that 77 percent were either very satisfied or somewhat satisfied with the level of services the city delivers. The results were based on 626 interviews done late last year.
Councilman Ronn Hall also doubted a tax hike would pass given the conservative, anti-tax attitudes of much of East County.
“To me, it’s bait and switch,” he said, referring to the initial study of a half-cent increase, and then doubling the increase. “We have enough taxes as it is.”
Hall counted 28 tax hike initiatives that are slated to be on the November ballot including those for cities and school districts. Last week a group of organizers turned in over 151,000 signatures to get a half-cent hike on the sales tax for San Diego County to pay for social services and enhanced public safety protection.
“To do this, we have to understand the odds are against it,” Hall said.
In 2024, Santee voters by a 4 percent margin rejected a half-cent sales tax hike (Measure S) that would pay for new fire stations and fire fighters. The tax hike was unanimously supported by the City Council, but was spearheaded by the local fire fighters union.
Santee opened one temporary fire station in the Town Center area last year, and is planning another temporary station at Woodglen Vista Park in the northern part of the city that could open in 2027.
Aaron Hackett, a San Diego fire fighter who appeared at the May 5 meeting, said the need for additional permanent fire stations and personnel is greater than ever, and the best way to pay for these things is by passing a higher sales tax. “The need for a tax increase is no longer a debate, it’s a reality,” he said.
Founded in 1980, the city of Santee has grown considerably and now has about 60,000 residents. Its 2025-26 fiscal budget of $64.6 million comes mainly from property taxes (42.5 percent) and sales taxes (31 percent). The two largest expenditures, fire protection and the Sheriff’s Department contracts, make up 64.5 percent of expenses, according to the most recent budget report.
While Santee’s finances are robust, its staff said the city’s unfunded projects to date total $327 million, and achieving those without some additional revenue would be difficult.