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Page 3 of 9 taxable purchases made by them. A ½ cent sales tax is estimated to generate $10.0 million annually. All funds would be locally controlled and would stay in Pleasanton; the state would not be able to take this funding away from the City. A ½ cent sales tax increase would benefit both residents and businesses by sustaining Pleasanton’s high quality of life as funds would be used to maintain essential City services and partly fund infrastructure improvements as described below. • Public Safety: Protect 911 rapid-response, fire, emergency medical, and police services; maintain crime prevention, disaster preparedness, safe traffic flow, pedestrian safety, etc.; keep existing police and fire stations in good condition. • Road Repair & Maintenance: Repair potholes; maintain local streets, roads, sidewalks, crosswalks, pedestrian pathways, and trails. • Stormwater Systems: Maintain stormwater drainage systems to prevent flooding and protect water quality. • Quality Parks and Open Spaces: Maintain safe, clean, high quality parks, play fields, and open spaces. • Economic Vitality: Support small businesses; attract new businesses, jobs, and economic activity. • Library, Youth & Senior Programs, Recreation and Other City Services: Maintain library services and hours, programs that help youth and senior citizens, recreation and other general city services Water infrastructure and improvements are not included among these services as they are funded by the users of the water enterprise fund. The City evaluated various funding options to generate additional revenues to support both City services and infrastructure with the least impact possible to Pleasanton residents. Sales tax is not just paid by residents; it is also paid by businesses and visitors who make purchases, thus the funding is collected from everyone who benefits from the City's activities. There has been input that consumers may change their shopping patterns due to an increase in sales tax. Based on its years of experience, HdL confirms that years of sales tax data tied to local transactions and use taxes across California demonstrates there is no exodus by local residents making shopping, dining or buying decisions in neighboring jurisdictions that have lower tax rates. Importantly, when residents shop locally they support directly businesses and through sales taxes support valued City programs including public safety, library services, youth and senior services, etc. Long Range Financial Forecast As part of the biennial budget development process, staff evaluates the City’s overall financial health by 1) examining actual revenues and expenditures from recent fiscal years; 2) projecting the current fiscal year’s numbers based on year-to-date actuals and prior year trends; and 3) forecasting revenues and expenditures for several years beyond the two-year period. Forecasting is a critical component of any prudent financial management practice, as it provides insight into the organization’s financial state in the near future and allows for proactive planning and development of relevant fiscal strategies to address potential issues on the horizon. Page 214 of 228