The Chino Hills City Council voted 5–0 to place a one‑cent local transaction and use tax (TUT) measure on the Nov. 3 ballot, after staff presented a budget shortfall and revenue estimates.
City Manager Rodney told the council the city projects FY 2026–27 revenues of about $59.2 million and expenditures of roughly $63.5 million, producing a projected $4.3 million deficit. "A 1 percent TUT would generate approximately $11,500,000," Rodney said, adding that if approved the city rate would rise from 7.75% to 8.75% and that a majority of the additional receipts would likely come from nonresidents who shop in Chino Hills.
The measure is presented as a one‑cent add to the sales tax — "one cent for every dollar," Councilmember Moran clarified — but several speakers noted the percentage change relative to the current rate when discussing the community impact. Supporters and several council members framed the measure as necessary to maintain public safety, wildfire mitigation and basic infrastructure. "We are gonna be broke in four years if we don't find another alternative revenue source," Councilmember Bennett said in urging the council to place the question before voters.
Councilmembers discussed alternatives considered in prior budget work sessions, including property‑tax options and other revenue sources, and noted constraints such as Proposition 13. Rodney said the city currently retains about 1% of the total sales tax collected in Chino Hills and that the proposed 1% would increase the city's share to 2% under the described allocation model.
After approving placement of the measure, the council voted to authorize the city attorney to prepare an impartial analysis and to set priorities and timelines for written arguments and rebuttals. The council also authorized all five members to sign ballot arguments if they choose. The motion to place the measure on the ballot and the subsequent procedural motions passed unanimously.
The council did not adopt a campaign position beyond authorizing staff and procedural steps; if voters approve the measure it would become local policy subject to voter approval and any applicable state procedures. The next formal steps are staff preparation of the impartial analysis and the scheduling of materials and deadlines for arguments and rebuttals.