Nov. 4--SAN MATEO -- Voters made it clear in Tuesday's election that they would prefer to endure higher taxes rather than face cuts to city services.

Voters passed both tax hike initiatives called Measure L and Measure M. Measure L will raise the city's sales tax from 9.25 percent to 9.5 percent and generate $3.2 million annually while Measure M will bump the city's hotel tax from 10 percent to 12 percent and produce $800,000 per year.

A total of 60.8 percent had endorsed Measure L and 74.5 percent approved Measure M, with mail ballots counted and all 61 precincts completed. Both measures needed a simple majority to pass.

With the city's budget deficit at $4 million, the measures combined would create enough revenue for the city to balance its finances. City leaders earlier this year faced an $8 million budget hole and slashed $4 million, hoping voters would approve the two tax initiatives to erase the remaining deficit.

The city had insisted, however, that it would be forced to cut services much deeper if the measures had failed. They say just about every department would have been susceptible to reductions, including fire, police, parks, recreation and the library.

The sales tax increase will result in consumers spending an extra quarter for every $100 purchase. On a larger scale, shoppers would pay an additional $12.50 in sales tax by the time they spend $5,000.

It appears the city will have the largest sales tax in San Mateo

County. All other cities have a 9.25 percent rate, but San Carlos had put a measure on the ballot to increase their rate to 9.75 percent. Voters shot it down, however.

The hotel tax increase, meanwhile, joined five similar measures on Tuesday's ballot in cities near San Francisco International Airport. Voters passed them all.

"Yes on L and M" signs on lawns and parked trucks had filled the city, while there had been no organized campaign against the measures.

Staff writer Mike Rosenberg covers San Mateo, Burlingame, Belmont and transportation issues. Reach him at 650-348-4324.

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