CITY COUNCIL REGULAR MEETING AGENDA PACKET

Page 1 of 6 Item #20 CITY COUNCIL AGENDA REPORT June 18, 2024 Finance TITLE: RECEIVE A REPORT OUTLINING POLLING RESULTS, DRAFT BALLOT MEASURE LANGUAGE, AND OTHER CONSIDERATIONS RELATED TO A LOCAL SALES TAX BALLOT 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 seeking input from the community regarding Pleasanton’s service priorities and to identify potential options for increasing revenues. This poll was conducted in September 2023. After exploring potential revenue sources in the poll, at a December 2023 meeting, the City Council received a presentation noting a focus on a ½ cent sales tax increase. A target date for placing a measure before voters is the November 2024 municipal election, if the City Council determines to proceed with a ballot measure. At this December meeting, the City Council also directed staff to launch a comprehensive outreach plan to engage, inform, gather, and listen to input from residents and other stakeholders on City needs and the proposed plan to meet these needs. Since the start of 2024, staff has engaged the community and met with community leaders and local community groups making them aware of the City’s forecasted deficits and gathering questions and feedback to further inform the City Council. The public engagement results were presented to the City Council at its June 4, 2024 meeting. A second public opinion poll was conducted between May 15-21, 2024, to re-assess the viability of a ½ cent sales tax measure. This report presents the polling results, draft ballot language, and the draft resolution and ordinance that are required to place the ½ cent sales tax measure on the November 2024 ballot. RECOMMENDATION Staff recommends the City Council: 1. Review and discuss the polling results toward assessing placement of a local sales tax measure before the voters in November 2024; and, 2. Provide direction on the content of legislation that would be approved at a future City Council meeting to be held no later than July 16, 2024, placing an ordinance before the voters of the City of Pleasanton imposing a Transactions and Use Tax to be administered by the California Department of Tax and Fee Administration; and, 3. Discuss the content of information to communicate with the public about a local sales Page 231 of 248