CITY COUNCIL REGULAR MEETING AGENDA PACKET

Page 1 of 8 Item #14 CITY COUNCIL AGENDA REPORT June 4, 2024 Finance TITLE: PRESENTATION OF COMMUNITY SURVEY AND PUBLIC ENGAGEMENT RESULTS TO FURTHER EXPLORE THE FEASIBILITY OF A REVENUE MEASURE SUMMARY The City is facing a severe and increasing structural deficit, meaning that expenses have and will continue to grow faster than revenues. Current forecasts indicate an average budget shortfall of approximately $13 million annually over the next eight years, which City staff has been working to address proactively with a combination of reduced costs and new revenue. In light of the City’s financial challenges, in 2023 the City Council directed staff to conduct a public opinion poll to seek input from the community regarding Pleasanton’s service priorities and identify potential revenue options. After exploring several possible new revenue sources in the poll, including a potential infrastructure bond, at its December 5, 2023 meeting, the City Council received a presentation noting the focus is now on a small ½ cent sales tax increase that would be placed on the November 5, 2024 ballot, if the City Council chooses to put this option before the voters. At the meeting, the City Council also directed staff to launch a comprehensive outreach plan to engage, inform, gather, and listen to input from residents and stakeholders on City needs and the proposed plan to meet those needs. During the first half of 2024, staff has been engaging the community and meeting with community leaders and local community groups to bring awareness of the City’s structural budget deficit and gather questions and solicit feedback to provide to the City Council. This report provides an overview of these public engagement efforts. RECOMMENDATION Receive a presentation of community survey and public engagement results to further explore the feasibility of a revenue measure. BACKGROUND The reasons the City is facing a structural deficit go back many years and include factors that other cities across the state and country are also facing. Contributing factors include: • Slowing real estate development activity • Declining retail sales activity, including at the Stoneridge Shopping Center • Increasing insurance costs • Increasing operating supplies and materials costs • Increasing contract service costs • Growing number of unfunded mandates from the State • Rising personnel costs, including pensions Page 307 of 428