Measure P

Measure P is a general 1% sales tax increase that was placed on the November 3, 2026, General Election ballot by the City Council. It is projected to generate approximately $3.7 million annually, and could help fund local City services, public safety, wildfire mitigation programs, infrastructure and parks and recreation initiatives.

The City's Fiscal Year 2026/27 budget is balanced. However, the City is projected to face a General Fund shortfall of approximately $400,000 in Fiscal Year 2027/28, growing to about $4.1 million over the next five years. These projections assume the City continues providing its current level of services with existing staffing, even as American Canyon grows and demand for City services increases. They do not include additional police officers for patrol and traffic enforcement, additional resources for fire mitigation, expanded parks and recreation services, or other staffing and infrastructure needs that may arise as the community grows. As a result, the City's actual funding needs could be greater than the projected shortfall. 

Sales tax is one of the City's largest revenue sources and helps support essential City services such as public safety, fire mitigation, parks, recreation, and other community services.

If approved by the voters, all revenue generated by Measure P would remain in American Canyon and be under local control. Funds would be deposited into the City's General Fund and could only be used to support general City services. Examples of what these funds could be used for includes maintaining and investing in 911 emergency response, fire mitigation efforts, and parks and recreation programs and services here in American Canyon. 

If Measure P passes, the community will continue to have a voice in how City resources are prioritized. Residents elect and entrust the City Council to represent the community, manage the City's finances responsibly, and establish policies that reflect community needs and priorities. Residents can share their input at open public meetings, and the Council listens to feedback when making decisions about how City resources are used. 

The City also undergoes annual independent financial audits and has a strong track record of financial stewardship. For the past 10 years, the City has received the Government Finance Officers Association's (GFOA) Distinguished Budget Presentation Award, a national recognition for excellence in budgeting and financial transparency. 

American Canyon's sales tax is the lowest among its closest neighboring cities. The proposed sales tax increase would make the City's rate the same as Napa's rate. 

California law exempts most essential household expenses from sales tax, including groceries, prescription medications, rent, and utilities. The tax applies to taxable retail purchases, such as dining at restaurants or purchasing beverages from a coffee shop. For a typical household in American Canyon, a one-cent increase amounts to $1 on a $100 taxable purchase. Because the tax applies to purchases made within the City, it is not paid only by residents but also commuters and visitors who shop and dine in American Canyon, including those traveling along the Highway 29 corridor.

Business location decisions are based on many factors, including access to customers, proximity to major transportation corridors, available workforce, land and lease costs, and the overall business environment. Sales tax is one of many considerations, and a one-cent difference is generally not the primary factor in where businesses choose to locate. Many communities throughout California has adopted local sales tax measures to help fund essential City services. American Canyon's location along the Interstate 80 corridor, its growing population, and its strong business community continue to make it an attractive place for retailers, restaurants, wineries, and other businesses.

Yes. If approved by the voters, Measure P is projected to generate approximately $3.7 million annually in additional local revenue for the City of American Canyon. The City is projected to face a General Fund shortfall of about $400,000 beginning Fiscal Year 2027/28, growing to approximately $4.1 million over the next five years if no additional revenue is generated. 

These projections assume the City continues providing its current level of services with existing staffing, even as American Canyon grows and demand for City services increase. They do not include additional police officers for patrol or traffic enforcement, additional resources for fire mitigation, expanded parks and recreation services, or other staffing and infrastructure needs that may arise as the community grows. As a result, the City's actual funding needs could be greater than the projected shortfall. If Measure P generates revenue beyond what is needed to address the City's budget shortfall and maintain existing services levels, the City Council could consider investing in additional community priorities. Because Measure P is a general tax, all revenue would remain under local control, and spending decisions would be made by the City Council during public meetings as part of the annual budget process. 

American Canyon's sales tax base comes from a variety of businesses, including local retailers, stores, restaurants, wineries, and distribution facilities. Many of the City's warehouse facilities are wineries or wine-related businesses. Although many wine purchases are made online, the products are stored and shipped from facilities located in American Canyon. Because the point of sale occurs in American Canyon, they generate local sales tax revenue for the City. Wine-related warehouse businesses account for approximately 17% of American Canyon's total sales tax revenue. 

American Canyon is also home to distribution and logistic businesses, including Amazon, Biagi Bros., and G3 Enterprises. These businesses provide local jobs, support the regional supply chain, and contribute to the City's economy in a variety of ways. While they generate little to no direct local sales tax because the taxable purchase occurs elsewhere, they remain an important part of the City's diverse business community. 

The estimate that more than 50% of purchases are made by nonresidents is based on the City's existing sales tax activity, the types of businesses generating that revenue, and regional travel patterns. Because sales tax data does not identify where each individual customer lives, the percentage is an estimate rather than a precise point-of-sale calculation.

The City's analysis considers several major sales tax categories that serve customers outside American Canyon. For example, wineries and wine-related warehouses ship almost all of their product to customers outside the City, building material suppliers serve projects throughout the region, and an estimated 75% of fuel station activity is associated with nonresidents and through traffic. Three out of the four fuel stations consistently rank in the top 10 sales tax revenue contributors in the City.

If approved by the voters, the additional 1% local sales tax would generate approximately $3.7 million annually and would go directly to the City of American Canyon. The revenue would remain local, would not be shared with the State or County, and could only be used to support general City services and community priorities identified by American Canyon residents. 

Today, the City receives 1% of the existing 7.75% sales tax. The remaining portion is distributed to the State of California, Napa County, and other agencies. If Measure P is approved, the City's local share would increase from 1% to 2%, while the State and County shares would not increase as a result of Measure P. 

The City evaluated several potential sources of additional revenue. However, state law and practical limitations restrict how much funding many of these options could provide: 

• Property Taxes: The City evaluated the option of a parcel tax. However, unlike a local sales tax, a parcel tax would be paid only by local property owners. The City sought a revenue option that would be shared more broadly by residents, visitors, and others who make purchases in American Canyon, rather than placing the full burden on local property owners. In addition, Proposition 13 limits the City's ability to increase property tax rates, and American Canyon only receives a portion of the property taxes collected locally, with the remaining share allocated to schools and other public agencies. 
  
  
• Hotel Taxes: American Canyon currently levies a 12% Transient Occupancy Tax (TOT) on hotel stays, plus an additional 2% that is dedicated to the Napa Valley Tourism Improvement District (NVTID). The City's four hotels: DoubleTree, Fairfield Inn, Holiday Inn Express, and Home2 Suites, generate approximately $2 million in annual TOT revenue for the City. The City evaluated whether increasing the TOT could generate additional revenue. While the City could consider increasing TOT by an additional 1%, it would generate an estimated $167,000 annually. 
  
  For comparison, the City of Napa also has a 12% TOT, plus the additional 2% dedicated to NVTID, but has 52 hotels compared to American Canyon's four. Increasing American Canyon's TOT above Napa's rate could make the City's hotels less competitive with nearby communities when visitors choose where to stay while visiting the Napa region. Based on this evaluation, the City identified a local sales tax as the option with the greatest potential to generate meaningful revenue while distributing the cost more broadly among residents, visitors, commuters, and others who make taxable purchases in American Canyon.   
  
  
• Permit and Recreation Fees: The City completed a comprehensive cost recovery study in 2023 and has been gradually adjusting permit and recreation fees to better recover the cost of providing these services. Recreation programs include both resident and non resident rates, with non residents paying 15% more than residents. At the same time, the City strives to keep recreation programs affordable and accessible while continuing to provide many community services and events at little to no cost. This includes community celebrations, community grants that support local nonprofits and community partners, and other services that help bring residents together. Permit and recreation fees help offset the cost of providing specific services, but they are not intended to fund essential City services such as public safety, parks maintenance and infrastructure, and other General Fund needs. 
  
  
• New Development: New homes, businesses, wineries, and distribution facilities contribute to the City's economy and generate additional property tax, sales tax, and other revenue over time. However, the amount and timing of this revenue depend on the pace and type of development. New development also increases demand for City services and infrastructure, including public safety, parks, and recreation. While continued economic development remains an important part of the City's long-term financial strategy, it is not expected to generate enough revenue in the near term to address the City projected General Fund shortfall.   
  
  
• Local Sales Tax: The City evaluated a local sales tax because it is one of the few revenue options available that could generate funding on a scale comparable to the City's projected General Fund shortfall. Unlike a parcel tax, the cost is shared by residents, visitors, commuters, and others who make purchases in American Canyon. If approved by the voters, the additional revenue would remain in American Canyon, not shared by the State or County, and remain under local control, and would be used to support general City services and on community priorities. 

The $3 million figure presented in January was an early projection developed by City staff. In February, the City's consultant completed a more detailed analysis that included additional taxable purchases, accounting for approximately $490,000 annually that was not included in the original projection. This contributes to the updated projection of approximately $3.7 million annually.

American Canyon's current sales tax rate is 7.75%. Of this, the City receives 1%, which generates approximately $3.5 million annually. 

If approved by American Canyon voters, Measure P would increase American Canyon's sales tax rate by 1%, from 7.75% to 8.75%, and is projected to generate $3.7 million annually. The projection includes taxable purchases made in American Canyon, including retail stores, building material stores, restaurants, wineries and wine related businesses, gas stations, as well as online and vehicle purchases. Measure P is a transaction and use tax, which means, it applies to taxable purchases made in or associated with American Canyon. The difference between what the City currently received and the projected $3.7 million from Measure P comes down to how the additional 1% is distributed. The City would receive the full additional 1% which would remain in American Canyon, under local control and would not be shared with the State, Napa County or other agencies. 

Measure B is a separate, citizen-led initiative, and the City was not involved in the decision to place it on the ballot. We recognize the changes in sales tax rates can be one factor in consumer behavior, but they are not the only factor that influences where people shop. People may make purchasing decisions based on what they need, where the business is located, convenience, price, and availability. For example, residents may travel to Napa or Vallejo to shop at Costco, or Fairfield for stores and shopping centers that are not available in American Canyon. 

Approximately $505,000 annually, or 14% of the projected $3.7 million in annual revenue generated from Measure P is estimated to come from online purchases delivered to American Canyon addresses. Separately, approximately $490,000 (13.24%) annually is projected to come from vehicle purchases and leases by residents and businesses that register those vehicles within American Canyon.

Purchases that are shipped outside American Canyon would not be subject to Measure P because the purchase was delivered outside City limits. For example, if someone who lived outside American Canyon purchases wine online and chooses to pick up the order at a warehouse in American Canyon, that purchase would be subject to Measure P because the transaction takes place in American Canyon.

The City budgeted $110,000 for contracted services related to Measure P public opinion research, community outreach and education, along with $5,000 for community mailers, for a total budget of $115,000. To date, approximately $49,500 has been spent. This includes $28,000 for public opinion research, $20,000 for community outreach and education support, and $1,500 for one mailer to American Canyon residents. 

We do not expect to spend the full amount that is budgeted. The City decided to not move forward with the second round of polling, and City staff is handling much of the outreach and education work. We are planning a second community mailer in October to make sure residents continue to have access to information about Measure P before Nov. 3. 

The City has not identified three specific projects that would immediately move forward if Measure P passes. Our first priority would be addressing the City's financial outlook and supporting the level of General Fund services our community relies on every day. Beyond that, decisions about additional investments would be made with community input through the City's public budget process. We know there are many priorities our community would like to see addressed. For example, the City's Parks and Recreation Master Plan, shaped by extensive community input identifies more than $58 million in projects and initiatives. 

If Measure P does not pass, the City will continue to balance its budget and operate within its available resources. Our focus will remain on providing services our community relies on every day and managing those resources responsibly. Working within our existing resources also means there is limited capacity to take on additional projects, programs, and initiatives beyond what the City is already doing today. As part of the City's ongoing public budget process, the City Council will continue to evaluate resources, community needs and priorities, and the City's long-term financial outlook.  

Yes. Measure P is a general tax, which means the revenue can be used for any general City service or community priority within the General Fund, including a variety of initiatives like local roads and street improvements.

The underlying five-year financial forecast did not change and has consistently projected a General Fund shortfall beginning in FY 2027/28. Earlier materials highlighted that annual shortfall would reach nearly $1 million by FY 2028/29, but based on resident feedback, we realized this was not clearly communicated that the shortfall begins next fiscal year and growing over the next five years. We revised the materials to show that progression, beginning with the actual projected shortfall of approximately $400,000 beginning next fiscal year, and growing to a cumulative shortfall of approximately $4.1 million over the next five years.

Before placing Measure P on the ballot, the City Council considered both a 0.5% and a 1% sales tax, as well as whether it should be special or general tax. 

A significant part of that discussion was what we heard from the community. Through the National Community Survey (NCS), polling, the Parks and Recreation Master Plan, and feedback during Commission and Council meetings, residents identified a broad range of priorities including public safety, fire mitigation, parks, recreation, streets, and other general City services. The Council also considered where the General Fund stands today. The City's existing resources focus on maintaining the level of services our residents rely on every day. At the same time, the community has identified additional projects, initiatives, and improvements for the future that are beyond what the General Fund can currently support. For example, the Parks and Recreation Master Plan identifies more than $58 million in projects and initiatives that currently does not have a funding source. 

Those factors were part of the Councils decision to place a 1% general sales tax on the ballot. In considering 0.5% verses 1%, the City Council looked not only at the City's financial outlook, but also the broader needs and priorities identified by the community. Because the community identified priorities across many areas rather than one specific use, the Council also determined that a general tax provided the appropriate flexibility to address community needs and priorities as they change over time. Decisions about how General Fund resources are allocated would continue to be made through the City's public budget process, with opportunities for community input and involvement. 

Measure B, Measure P, and the City's investments in the Sites Reservoir are separate initiatives with different purposes and decision-making processes. 

Measure B is a countywide, citizen-led initiative. The City of American Canyon was not involved in the decision to place Measure B on the ballot this November. If approved by Napa County voters, Measure B would add 0.5% to the sales tax rate throughout Napa County, including American Canyon. The revenue would be administered at the County level and used and distributed according to the requirements of Measure B. 

Measure P is a separate City of American Canyon measure placed on the ballot by the City Council. It proposes a 1% local sales tax. If approved by the American Canyon voters, all of Measure P revenue would remain in American Canyon, under local control, and could be used for general City services and community priorities that residents rely on every day. One example is fire mitigation. Today, the City's General Fund supports vegetation management through sheep grazing and mowing by City crews. This fiscal year, these efforts have addressed more than 800 acres throughout American Canyon. 

If both Measure B and Measure P are approved by the voters, the combined effect would be a 1.5% increase in American Canyon's sales tax rate, from the current 7.75% to 9.25%. However, these two measures are separate: Measure B is a countywide measure with revenue administered at the County level, while Measure P is a City measure with revenue remaining under local control in American Canyon. Ultimately, voters will decide on both Measure B and Measure P separately. 

The Sites Reservoir is also separate from both ballot measures and is it's own separate project with it's own funding. However, if determined by the City Council, General Fund dollars may be used to fund this public purpose project. 

Before Measure P was placed on the ballot, the City spent significant time listening to our community through public opinion research, the National Community Survey (NCS), the Parks and Recreation Master Plan, and public meetings with our Commissions and City Council. What we heard reflects a broad range of community wants and needs, from public safety and fire mitigation to parks, recreation, streets, and other general City services. 

Measure P is a general City services tax, providing flexibility to respond to community priorities and needs as they change over time rather then restricting the revenue to specific list of uses. 

If approved by the voters, Measure P revenue would remain in American Canyon under local control, with spending decisions made by the City Council through the City's public budget process. Residents would continue to have the opportunity to review the budget, attend public meetings, provide feedback, and help inform decisions about community priorities. 

The City already has several layers of financial transparency and accountability in place. The City undergoes an annual independent financial audit and publishes an Annual Comprehensive Financial Report (ACFR), providing detailed information about the City's finances. We also produce a Budget in Brief, which breaks down the City's budget in a more accessible, resident-friendly way. For the past 10 years, the City has also received the Government Finance Officers Association's Distinguished Budget Presentation Award, a national recognition for meeting established standards in government budgeting and financial transparency. These practices, along with our public meeting process, give residents multiple ways to see how the General Fund resources are being managed and opportunities to stay involved in helping shape the future of American Canyon. 

Measure P is a general City services tax, which means the revenue is not restricted to a specific list of uses and could be used for any lawful general City public purpose or community priority, including projects. Decisions about how General Fund resources are allocated would continue to be made by the City Council through the City's public budget process, taking into consideration the City's financial needs and community priorities. Residents would continue to have opportunities to participate in public meetings, provide feedback, and help inform those priorities. 

The Sites Reservoir is currently an investment of the City's Water Enterprise Fund, which has its own funding and financial process separate from the General Fund. As a public purpose project, Site Reservoir could also receive General Fund revenue if the City Council determines that doing so aligns with City and community priorities through the public budget process. 

The City Council has the authority to borrow fund for certain capital projects without additional voter approval, subject to applicable legal requirements. Before taking on debt, the City evaluates its long-term financial outlook and ability to make future payments while continuing to provide services our community relies on. 

Measure P itself does not authorize borrowing. If approved by the voters, the additional sales tax revenue would be part of the City's General Fund. The City Council could consider these resources when evaluating funding options for community projects, such as a new community center. Any decisions would take into consideration community needs and priorities, available funding, and the City's long-term financial responsibilities through the public budget process. 

Budget scrutiny is an ongoing process conducted monthly, quarterly and annually, including mid-year adjustments and formal annual audits. 

Since American Canyon is a service organization driven by personnel rather than product manufacturing, controlling operational costs requires constant evaluation. The City’s staffing levels have remained nearly flat over the last decade (adding approximately two positions), despite significant population growth and expanded service demands. American Canyon has also implemented information technology upgrades that allow us to operate far more efficiently online than in past years. While our operations are lean, we continue to actively evaluate ways to improve efficiency.

The City Council placed Measure P on the ballot without an expiration date in consideration of the City's long-term financial outlook, rising costs, and the evolving needs of our community. The City's General Fund supports the services American Canyon residents rely on every day, from public safety and fire mitigation to parks, recreation, streets, and other general City services.

As a general tax, Measure P would provide ongoing revenue to the General Fund, with decisions about how those funds are allocated made by the City Council through the public budget process, taking into consideration community needs and priorities.

The City would continue doing what we've always done—essentially treading water by balancing our budget, reviewing spending, deferring equipment replacements and projects,  and prioritizing the services our community relies on every day.

Property tax revenue generally grows by about 2% annually for most properties, while the cost of providing City services increases by approximately 5% to 7% each year, creating ongoing budget challenges.

Funding public infrastructure, such as building and maintaining subdivisions and their improvements, serve a clear public benefit. Therefore, General Fund dollars can be used for these projects regardless of whether Measure P is passed by voters.

No. Proposition 43 was introduced after the City Council decided to place Measure P on the ballot. Furthermore, Proposition 43 applies specifically to citizen-led voter initiatives, not to measures placed on the ballot by a local government or City Council.