Council reviews Measure Z mechanics: 0.5¢ tax supports wastewater assessments, staff says

Council discussion on the consent agenda pull focused on Measure Z and how it functions to support local sewer-related costs.

Staff described Measure Z as a voter-approved special tax: "it was reauthorized in October or November 2024 at a rate of 83% approval," and said it is a 0.5¢ sales tax that is essentially passed through to the High Desert Water District to be used to reduce wastewater assessments for property owners in Assessment District 1. Staff estimated the measure provides roughly $3,000,000 annually and covers roughly 50% to 60% of the assessment district’s annual cost for affected property owners.

The change proposed in the staff report would extend a related agreement for an additional 10 years to align with the voter reauthorization. Staff also noted that the ordinance allows up to a 5% administrative fee that can be used to cover auditing and accounting costs associated with the measure.