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Page 1 of 5 <br />Item #9 <br /> CITY COUNCIL AGENDA REPORT <br /> <br />July 7, 2026 <br />City Manager <br /> <br />TITLE: ADOPT A RESOLUTION ORDERING THE SUBMISSION TO THE QUALIFIED <br />ELECTORS OF THE CITY OF PLEASANTON A MEASURE TO APPROVE A <br />UNIFORM TRANSIENT OCCUPANCY TAX INCREASE; REQUESTING THAT <br />THE ALAMEDA COUNTY BOARD OF SUPERVISORS PERMIT <br />CONSOLIDATION OF THE MEASURE AND RELATED MATERIALS WITH THE <br />GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 3, 2026; <br />DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS; <br />AND PROVIDE DIRECTION ON WRITTEN BALLOT ARGUMENTS <br /> <br />SUMMARY <br />Since 2025, the City has been exploring a potential ballot measure to allow voters to consider <br />increasing the Transient Occupancy Tax (TOT), also known as hotel tax, to secure new <br />revenue for the City. On June 2, 2026, the City Council directed staff to return with a final <br />resolution and ordinance for a TOT measure on the November 3, 2026, general municipal <br />election ballot. The TOT is paid by hotel and motel guests, primarily out-of-town visitors rather <br />than Pleasanton residents. If approved by voters, the measure would increase the City’s TOT <br />rate from 8 percent to 10 percent effective July 1, 2027, and from 10 percent to 12 percent <br />effective July 1, 2028. The measure would require a simple majority (50 percent plus one) <br />affirmative vote of eligible voters. <br /> <br />Once the full 12 percent increase takes effect the measure is expected to generate <br />approximately $2.8 million per year, all of which would remain in Pleasanton. Adoption of the <br />resolution, which includes the related ordinance as Exhibit A, is the formal action that places <br />the measure on the ballot. This report also requests the City Council's direction on filing written <br />ballot arguments. Approval of a TOT increase, combined with ongoing efforts to reduce <br />spending, would help reduce the structural operating budget deficit and offset impacts on City <br />services and programs. <br /> <br />RECOMMENDATION <br />Staff recommends the City Council place a Transient Occupancy Tax measure on the <br />November 3, 2026, ballot, including approval of the following legislative actions: <br />1. Adopt a resolution ordering the submission to the qualified electors of the City of <br />Pleasanton a measure to approve a Uniform Transient Occupancy Tax increase; <br />requesting that the Alameda County Board of Supervisors permit consolidation of the <br />measure and related materials with the general municipal election to be held on <br />November 3, 2026; and directing the City Attorney to prepare an impartial analysis. <br /> <br />2. Provide direction on the filing of written ballot arguments. Staff recommends that the <br />City Council elect to file a written argument in support of the measure and form an ad <br />hoc subcommittee of two Council members to draft the primary argument and any <br />Page 133 of 214