Revenue Measure Initiative Update
and Polling Results
JULY 21, 2026
1 Background
Rapidly shifting economic factors and changes in federal and state regulations are impacting the City’s ability to sustain and expand vital services.
2 Balanced but Constrained Budget
• Fremont has a long-standing reputation for strong fiscal management, prioritizing fiscal sustainability as a stated City Council Priority for many years. • A reduction of $3.2 million in ongoing maintenance support was made during the Fiscal Year 2025/26 budget adoption.
• An additional $3.1 million cut occurred in ongoing personnel, supplies, and services as part of the Fiscal Year 2025/26 budget rebalancing measures. • The Fiscal Year 2026/27 budget, though balanced, lacks funding to:
• Restore cuts in Fiscal Year 2025/26
• Increase or enhance service delivery
• Address the City’s expanding unmet needs
3 Structural
Revenue
Challenge
4 Revenue Enhancement Exploration
• In 2025, City Council directed staff to evaluate potential revenue enhancement options. • After preliminary polling in summer of 2025, City Council held a work session in October of 2025 regarding the viability of a potential general sales tax measure. • Subsequently, City staff conducted community engagement to collect input on funding and service priorities.
5 Community Engagement
In consideration of exploring different options to
enhance the City’s revenue, the City formed two
committees:
• City Manager’s Community Ad-Hoc Committee
• 3 Meetings: January, March, and May
• Departmental Staff Team
6 • City Manager’s Office
• Economic Development
• City Attorney’s Office
• Finance Department
• Police Department
• Fire Department
• Community Services Department
• Community Development Department
• Human Services Department
Listening to Our Community
• My City, My Voice community listening
exercise
• 600+ residents engaged in the online
community survey
• 2 mailers
• Newsletter articles
• Social media posts
• Sign boards at City events with QR Code
• Digital marketing
• Various Commission and Community
Meetings
7 Economic
&
Voter
Environment
What’s changed since last summer?
• Global instability due to the war.
• Inflation remains elevated, and residents are
increasingly concerned about rising costs for
essentials such as food and gas.
• Local revenue measures performed poorly in the June
primary, signaling voter hesitancy.
• The November ballot is expected to be crowded,
increasing competition and confusion for voters.
8 FM3 Presentation
9 Key Takeaways
• Resident satisfaction remains strong – optimism appears to be growing with an increasing share of voters indicating Fremont is headed in the right direction. • Feedback aligns closely with City Council Priorities – residents emphasize the importance of maintaining basic local services including fire and police protection, street maintenance and homelessness.
• Looking ahead:
• Staff will continue to monitor revenue conditions and provide regular updates to City Council. • Re-assess options at City Council Retreat in early 2027. • The next community satisfaction survey is planned for fall of 2027. 10 Council Feedback and Direction
Following the presentation, including updated survey results, direct staff to either:
◦ Defer consideration to a future election and continue with financial evaluation and community dialogue.
OR
◦ Adopt a resolution to submit a general half-cent-per-dollar (0.5% or $0.005) Transactions and Use Tax measure to City of Fremont voters for consideration on the November 3, 2026, election ballot and introduce an ordinance imposing a Transactions and Use Tax.
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