SMART to launch sales tax renewal efforts in response to grand jury report

The SMART Board of Directors voted on Wednesday to embrace county grand jury recommendations to intensify its public outreach as it moves toward a crucial sales tax renewal measure.

The June grand jury report states the passenger rail agency faces the loss of its primary funding source — a sales tax in Marin and Sonoma counties — in April 2029 unless renewed by voters in the coming years.

The renewal of the sales tax is critical for the Sonoma-Marin Area Rail Transit District’s  continuation, the grand jury states, as it provides about 60% of the agency’s annual income while fares only make up only about 4%.

To address voters’ concerns that the grand jury states led to the failure of a tax renewal measure in 2020, the report calls on the agency to take several actions before the end of the year.

The recommendations include launching a public process to assess how SMART will continue financing itself beyond 2029; determining when to place a tax measure on the ballot with the help of consultants; and developing a more robust marketing and outreach plan.

The board voted unanimously on Wednesday to agree with all the recommendations.

“We have a lot to do in the next few months, but that work will decide what the answer to that question is,” SMART board member and Sonoma County Supervisor Chris Coursey said, referring to the report’s title: “SMART at a Crossroads: Here Today, Gone Tomorrow?”

SMART currently operates 45 miles of passenger rail from Larkspur to Santa Rosa with planned expansions to Windsor, Healdsburg and Cloverdale. The grand jury report states SMART has not lived up to its promises made in 2008 when the sales tax was approved by voters to complete its 70-mile rail and meet its ridership goals. The report attributes the failure of the 2020 sales tax renewal measure to voters lacking confidence in the agency’s leadership to fulfill these goals.

“SMART should address and acknowledge its performance to date and educate voters on why its continued operation is in the best interest of Marin and Sonoma counties,” the report states. “The analysis should include a clear explanation of its financing options and the likelihood of future success.”

SMART General Manager Eddy Cumins told the board on Wednesday that work will begin on all three of the report’s recommendations in the coming months.

“I feel like we have to hit the ground running,” Cumins told the board.

He said the agency plans to meet in November to begin discussions on when to place a new sales tax measure on the ballot. The agency will also come back with an analysis in September regarding SMART’s financing beyond 2029.

A strategic marketing plan will be presented to the board in October, followed by a proposed budget for these efforts in November. Cumins said a discussion also will be held in October on hiring consultants to evaluate the timing and feasibility of a sales tax renewal measure.

SMART board members who drafted the responses stated that the responses were kept succinct despite some debate on the report’s wording and descriptions.

“In the spirit of continuous improvement and knowing that we always want to get better, we always want to improve, it was simple for us to say we agree with that. We want to do better as well,” SMART board chairman and Marin Supervisor Eric Lucan said during the meeting.

“Part of the transparency that the grand jury called for I think is making sure that we don’t try to dismiss it in one line and that we take our time and do a thorough job,” SMART board member Barbara Pahre said during the meeting.

The grand jury report can be found at marincounty.org/depts/gj/reports-and-responses.