CITY COUNCIL REGULAR MEETING AGENDA PACKET

Page 5 of 8 • Inquiries about the economic impact and redevelopment plans for Stoneridge Shopping Center • Questions about the necessity of operating multiple facilities, including the Firehouse Arts Center, and the status of Capital Improvement Projects such as Century House and the skatepark • Interest in exploring sponsorship opportunities for parks and programs to diversify revenue streams • Requests for data regarding pension costs and police staffing levels (staffing levels high against a desire for a safe community) • Consideration of alternative taxes such as Transient Occupancy Tax (TOT) and Parcel Tax. Outreach Materials Over the past six months, the City has distributed four e-newsletters that provided information on the City’s fiscal challenges and the exploration of a revenue measure. As well, two direct mailers – the community survey and a special issue of Pleasanton Progress – were delivered directly to all residential addresses in the city. Additional copies of the community survey were produced and made publicly available at all City office locations and at the March State of the City event. The special issue of the Pleasanton Progress was delivered via mail in late May. Employee Engagement Concurrent with public outreach efforts, City staff across the organization have been provided with continuous information and updates regarding the City’s financial position and exploration of a revenue measure. These internal communications include an all-staff meeting in early March 2024 and seven email updates between January-May 2024 to keep employees informed, as well as departmental meetings to provide a forum for dialogue with the department director. As well, employees were encouraged to provide ideas for cost reductions and operational efficiencies, many of which were incorporated into the FY 2024/25 Mid-Term Budget reductions and the contingency menu for FY25-FY27. City Council Meetings/Workshops In addition to the engagement activities described above, the City also held budget meetings and workshops on March 19 and May 21, 2024 to share information about the City’s financial challenges, forecast assumptions used for the long-term financial projection, sales tax and economic impacts, cost reductions, reallocation of capital project funds to critical life and safety projects, and potential service reductions if there is no new revenue. These meetings and workshops provided the community with opportunities to provide feedback and for the City to address the comments received during the community engagement activities. Below are highlights of information that was presented and discussed at the budget meetings and workshops. March 19, 2024 Council Meeting Overview of General Fund Structural Deficit and Forecast Assumptions • The baseline scenario projects an annual average deficit of more than $13 million, and the cumulative deficit over an eight-year period is projected to exceed $110 million • If there is an economic downturn, the annual average deficit is projected to exceed $22 Page 311 of 428