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HomeMy WebLinkAboutCC 03-17-2026 Item No. 10 Ballot Measure Options_Staff PresentationCC 3-17-2026 #10 Potential Revenue Ballot Measure Options Presentation Potential Revenue Ballot Measure Options March 17, 2026 City Council Administrative Services Jonathan Orozco •Purpose of Tonight’s Item •Fiscal Context •Revenue Options Overview •Utility Users Tax (UUT) •Sales Tax (TUT) •Business License Tax •Additional Considerations •Next Steps / Council Direction Agenda Purpose of Tonight’s Item •Follow-up to February 19 Council direction •Provide deeper analysis of key revenue options •Receive Council feedback on potential ballot measure Fiscal Context •Sheriff’s contract under negotiation •Long-term fiscal sustainability considerations •Need to evaluate both revenues and expenditures Council Direction from February 19 •Focus on: •Utility Users Tax (UUT) •Sales Tax (TUT) •Business License Tax •Evaluate: •CIP and staffing impacts •Business competitiveness Revenue Options Overview Tax Option Revenue Potential Key Consideration UUT Moderate-High Regressive, stable Sales Tax Moderate-High Non-Resident share Business Tax Moderate-High Competitiveness Utility Users Tax (UUT) •Current rate: 2.4% (sunsets in 2030) •Generates ~$3.9M annually •Potential: •Increase rate (up to ~$7.9M at 4.8%) •Modernize tax base (+$0.3M–$4.4M) •Senior exemption in place Sales Tax (TUT) •Up to 0.25% capacity available •Revenue: •0.125% ≈ $2.7M •0.25% ≈ $5.4M •~28.8% paid by non-residents •Sensitive to economic cycles Business License Tax •Structure dates to 1992 •Lower than many peer cities •Potential updates: •Employee-based or gross receipts models •Industry-specific tiers •Must balance competitiveness Expenditure & Policy Considerations •CIP project prioritization •Staffing and operational efficiencies •Economic development strategies •Business-friendly policies Next Steps / Council Direction •Identify preferred option(s) •Direction on polling and outreach •Potential November 2026 ballot Thank You!