Voters in Vallejo, which recently exited bankruptcy, appeared set to defeat a 1% sales tax hike measure after Tuesday's election.
Mayor Osby Davis won a second term in a slim victory over City Councilwoman Joanne Schivley.
Davis had pushed for the sales tax that would have helped the city restructure its tight budget. It lost, though city voters did pass a tax on medical marijuana dispensaries.
More than three years after filing, Vallejo officially exited from Chapter 9 bankruptcy protection earlier this month after finally satisfying the conditions of its plan that was approved in early August by a bankruptcy judge.