Ballot Measure 2C: Existing Food Sales Tax – Proposed Use Amendment

November 3, 2026, Coordinated Election

During the November 3, 2026, coordinated election, City of Evans voters will consider Ballot Measure 2C, which proposes expanding the authorized uses of revenue generated by the City's existing food sales tax.

The measure asks voters whether to allow revenue from the existing tax to be used for two additional purposes: economic development incentives and operations that support and sustain eligible City facilities and public improvements.

The proposal does not establish a new tax, increase the existing food sales tax rate, or change which purchases are subject to the tax.

The information below explains the proposed changes, what would remain unchanged and how the revenue would continue to be managed.

Understanding the Existing Food Sales Tax

The City's existing food sales tax applies to food for domestic consumption, generally including groceries and similar products intended for preparation or consumption at home.

Voters originally authorized uses of the food sales tax revenue in 2002 for capital improvements involving parks and recreation facilities, trails and walkways, streets, bridges and traffic-control improvements.

In 2021, voters expanded the allowable uses to include financing the design, construction, equipment and maintenance of a new City police station.

Ballot Measure 2C would not eliminate or replace any of these previously authorized uses.

What Would Ballot Measure 2C Add?

If approved, the measure would authorize two additional categories of expenditures.

1. Economic Development Incentives

The proposed amendment would permit existing food sales tax revenue to support economic development incentives intended to encourage qualifying commercial investment and development within the City.

One potential approach involves performance-based incentives, in which a business receives an incentive after meeting specific requirements established in an agreement with the City.

Under a performance-based, pay-as-you-go arrangement, a participating business could receive a portion of new sales tax revenue generated by its project over an agreed-upon period after satisfying the agreement's performance requirements.

However, the proposed authorization would also allow existing food sales tax revenue to support an approved incentive. Incentive payments would not necessarily be limited to revenue generated by a participating business.

Each proposed incentive would require separate public consideration and City Council approval, including review of funding terms, performance requirements, anticipated community benefits and available funding.

In Resolution No. 28-2026, adopted September 15, 2026, City Council expressed its current intent to prioritize previously authorized uses and consider economic development incentives when additional funding is available, taking existing budget commitments into account.

2. Operations and Maintenance of Eligible City Facilities

The proposed amendment would also allow existing food sales tax revenue to support qualifying operations, maintenance and repair expenses associated with eligible City facilities and public improvements.

Examples of potentially eligible expenditures include:

• Maintenance of parks and recreation facilities.

• Maintenance of public trails and walkways.

• Street and bridge maintenance and repairs.

• Maintenance of traffic-control equipment.

• Utility expenses associated with eligible facilities.

• Equipment, materials and supplies necessary to maintain eligible improvements.

• Preventative maintenance and contracted maintenance or repair services.

The proposed change would expand the City's authority to use existing revenue for these purposes, rather than limiting expenditures primarily to previously authorized capital improvements and police station-related expenditures.

Some maintenance expenditures, including maintenance of the new police station, are already authorized under existing voter approval.

What Would Remain Unchanged?

Regardless of whether Ballot Measure 2C is approved, several provisions would remain in effect.

Food Sales Tax Rate and Taxable Purchases

The current food sales tax rate would remain unchanged. The measure would not expand or alter the categories of purchases subject to the tax.

Previously Authorized Uses

All existing voter-approved uses of the revenue would remain authorized, including eligible capital improvements and previously authorized police station expenditures.

Restrictions on Revenue

Revenue from the food sales tax would remain restricted to purposes authorized by voters. Approval would not make the revenue available for unrelated City expenditures or unrestricted General Fund purposes.

City Council Budget Oversight

Expenditures would continue to be considered and approved through the City's established public budgeting and appropriation process.

Any proposed economic development incentive would also require separate, project-specific Council consideration and approval.

How Would the Revenue Be Managed?

Voter approval of Ballot Measure 2C would authorize the two additional categories of expenditures. It would not automatically approve any specific project, incentive or expenditure.

City Council would retain responsibility for determining whether and how to allocate available revenue within the categories authorized by voters.

On September 15, 2026, City Council adopted Resolution No. 28-2026, documenting its current policy intentions regarding the proposed additional uses.

Those intentions include:

• Prioritizing previously authorized uses and existing budget commitments.

• Emphasizing performance-based economic development incentives when appropriate.

• Maintaining previously financed public improvements, including the police facility, as a priority.

• Not using food sales tax revenue for City employee salaries, wages, benefits, overtime or other City personnel costs.

The resolution expresses the current City Council's policy intentions. It does not create additional legal restrictions on voter-authorized expenditures or bind future city councils.

All expenditures would remain subject to the applicable ballot language, voter-approved restrictions and state and local law.

What Happens if Ballot Measure 2C Is Approved or Not Approved?

If Approved

The two proposed categories of expenditures would be added to the City's existing authorized uses of food sales tax revenue.

City Council could consider qualifying economic development incentives and operational expenditures through its established public review and budgeting processes.

The existing food sales tax would continue at its current rate.

If Not Approved

The existing authorized uses of food sales tax revenue would remain unchanged.

The two proposed additional uses would not be authorized under Ballot Measure 2C.

The existing food sales tax would continue at its current rate.

Additional Information and Resources

The City of Evans has prepared additional informational materials to provide residents with more detailed explanations of Ballot Measure 2C.

Ballot Measure 2C Fact Sheet

A summary of the proposal, including what would change, what would remain the same and the restrictions governing the use of food sales tax revenue.

Ballot Measure 2C Frequently Asked Questions

Detailed information addressing how revenue could be allocated, examples of performance-based economic development incentives, qualifying operations and maintenance expenditures, personnel costs and the oversight responsibilities of City Council.

City Council Resolution No. 28-2026

The resolution outlining the current City Council's stated intentions regarding implementation of the proposed additional uses.

Residents are encouraged to review the ballot language and supporting informational materials to better understand the proposal before voting in the November 3, 2026, coordinated election.