STAFF REPORT
Meeting Date:
June 9, 2026
STUDY SESSION
5 SUBJECT: 2026 SURVEY RESULTS, COMMUNITY OUTREACH UPDATE, AND DIRECT
STAFF WHETHER TO RETURN FOR FURTHER CITY COUNCIL
CONSIDERATION OF ANY POTENTIAL NOVEMBER 2026 REVENUE BALLOT
MEASURE
RECOMMENDATION: It is recommended that the City Council:
1. Receive a presentation on the results of the 2026 community survey from Probolsky Research;
2. Receive an update on the community outreach efforts conducted from February through May 2026, including four Community Town Hall meetings;
3. Discuss the three potential revenue measures evaluated in the survey: (1) a Transient Occupancy Tax increase, (2) a Sales Tax increase, and (3) a Business License Tax measure for bars and restaurants;
4. Provide direction to staff regarding whether to return to the City Council on July 7, 2026, with an agenda item to consider placing one or more revenue measures on the November 3, 2026, General Municipal Election ballot; and
5. If direction is given to bring any measure(s) forward, continue the Council Survey Ad Hoc Committee to work with staff and consultants on public education and outreach, assist in drafting final ballot measure language, and assist in preparing any resolutions and ordinances necessary to place the measure(s) on the November 3, 2026, ballot.
SUMMARY OF THE MATTER
This report provides the City Council with the results of the 2026 community survey conducted by Probolsky Research (Attachment 1), a summary of the community outreach activities conducted between February and May 2026, and information on three potential revenue measures that could be considered for placement on the November 3, 2026, General Municipal Election ballot. The three measures evaluated are an increase to the Transient Occupancy Tax (TOT), a local Sales Tax measure, and a Business License Tax measure applied to bars and restaurants.
The City Council is being asked to receive the information presented and provide direction to staff on whether to return at a future meeting (anticipated July 7, 2026) with resolutions to place one or more measures on the November 2026 ballot. Pursuant to California Government Code Section 53724 and California Elections Code Section 9222, a two-thirds (2/3) vote of the City Council (four affirmative votes for a five-member Council) is required to place a general tax measure on the ballot, and a general tax measure requires a simple majority (50% + 1) for voter approval.
Revenue Measure Survey Results at a Glance:
• Transient Occupancy Tax (12% → 14%, ~$3.0M annual): Strongest and most stable support – 74% initial yes, 75% informed yes, with 58% of informed-yes voters indicating a "definite" yes. 2026 SURVEY RESULTS, COMMUNITY OUTREACH UPDATE, AND CONSIDERATION OF POTENTIAL NOVEMBER 2026 REVENUE BALLOT MEASURE
June 9, 2026
• Sales Tax (1% local add-on, ~$7.8M annual): 47% initial yes / 49% no; 49% informed yes / 47% no. Significant improvement from October 2025 (informed yes up from 42.3%), but still short of the simple majority.
• Business License Tax (Bars & Restaurants, ~$8.6M annual): Weakest of the three – 44% initial yes / 48% no; no informed re-vote was conducted.
• Year-over-year trend: All three measures showed improved voter support from the October 2025 survey to the May 2026 survey, with the Sales Tax measure showing the most consequential movement (informed vote shifted from losing by approximately 2 points to leading by approximately 2 points).
There is no direct fiscal impact associated with receiving the report and providing direction. Costs associated with placing measures on the November 2026 ballot, including ballot printing and election services, would be brought forward as part of any future resolution placing the measure(s) on the ballot.
Alternatives: The Council may also direct staff to defer further consideration to a future election cycle.
DISCUSSION
Background
On February 27, 2024, the City Council directed staff to retain a community survey consultant and appointed a Council Ad Hoc Committee to work with staff in developing the survey objectives. Probolsky Research conducted a community survey in 2024 to evaluate potential revenue measures, and the City Council subsequently considered placing measures on the November 2024 ballot.
Since that time, the City's fiscal pressures have continued to grow. While balanced, the proposed Fiscal Year 2026-27 budget reflects rising costs for public safety staffing, wildfire mitigation, fuel modification, infrastructure maintenance, and construction, CalPERS pension obligations and insurance. To maintain a balanced budget, the proposed budget eliminates up to eight (8) positions, reduce contracts and capital outlay, and takes a conservative approach to revenue projections. Notable factors causing the fiscal pressures include reduced sales tax and transient occupancy tax receipts, the added public safety and other costs associated with mitigating visitor impacts, and costs related to the updating of aging infrastructure the implementation of the Facilities Master Plan (estimated at approximately $400 million over time and $25 million in the next five fiscal years).
In recognition of the City's long-term structural revenue needs, the City Council authorized renewed community outreach and a refreshed survey to evaluate community priorities and willingness to support locally controlled revenue measures.
Community Outreach Activities (February – May 2026)
Beginning in February 2026, City staff conducted an extensive community outreach campaign designed to inform residents about City services, infrastructure needs, the fiscal outlook, and potential revenue options, and to gather community feedback. The campaign included four Community Town Hall meetings (three in- 2026 SURVEY RESULTS, COMMUNITY OUTREACH UPDATE, AND CONSIDERATION OF POTENTIAL NOVEMBER 2026 REVENUE BALLOT MEASURE
June 9, 2026
person and one virtual), eight smaller “ask anything” neighborhood meetings, meetings with Visit Laguna Beach, presentations at the Chamber of Commerce Government Affairs Committee, an ongoing online community survey through the City website, and presentations posted on the City's Community Outreach webpage. Two Town Hall meetings were recorded and made publicly available on the City’s YouTube Channel, along with the slide-deck presentation for each town hall. The webpage highlighting each meeting can be found here https://www.lagunabeachcity.net/our-initiatives/community-outreach.
A summary of outreach activities is provided below with additional details provided in Attachment 2:
Date Outreach Activity
February 19,
2026
In-person Town Hall – Overview of City services, infrastructure, fiscal outlook, and introduction to potential revenue measures.
March 9, 2026 In-person Town Hall – Continued discussion of fiscal conditions; introduced Charter City concept; community feedback on parking, downtown traffic, and TOT comparisons.
April 16, 2026 In-person Town Hall – Focused on infrastructure, undergrounding, wildfire mitigation, and revenue options. Robust Q&A on enforcement, beach maintenance, and economic vitality.
April 28, 2026 City Council action – Council decided not to pursue a City Charter measure for the November 2026 ballot.
May 5, 2026 Meeting with Hotel – City Staff met with Visit Laguna Beach and representatives from local hotels to present the information provided at the Town Halls, present the potential ballot measures, and gather input.
May 19–27,
2026
Probolsky Research conducted a statistically valid community survey of 400 likely November 2026 voters whichwas a follow-up survey to the one conducted by Probolsky in the fall of 2025.
May 20, 2026 Virtual Zoom Town Hall – City Manager and Assistant City Manager presented the fiscal outlook, infrastructure needs, and three potential revenue measures (TOT, Sales Tax, Business License Tax) to approximately 60 attendees.
Ongoing An online community survey hosted on the City webpage for residents unable to attend Town Halls.
Recurring Community Themes. Across all four Town Halls, several themes were raised consistently by residents:
• Concern that visitors and day-trippers are not paying their fair share of the cost of services they generate.
2026 SURVEY RESULTS, COMMUNITY OUTREACH UPDATE, AND CONSIDERATION OF POTENTIAL NOVEMBER 2026 REVENUE BALLOT MEASURE
June 9, 2026
• Strong interest in underground utilities, including along primary evacuation routes, to reduce wildfire risk.
• Questions about whether the City has sufficiently reduced spending before considering new taxes. • Questions about capital choices, such as the investment in the Promenade, and the disposition of the Community and Recreation Center (CRC).
• Interest in parking management (including increased rates), more aggressive parking enforcement, and the potential use of the ACT V lot for employee parking. • Concern about the long-term funding of public safety services (Police, Fire, and Marine Safety). • Concern about aging City facilities, including fire stations, the library, and community centers. • Interest in maintaining the City's character, including local businesses, while addressing increasing visitor impacts.
Hotel and Visit Laguna Beach Meeting
In addition to the general community outreach, City staff met with Visit Laguna Beach and representative from the hotels on May 5, 2026, to present the potential revenue measure and gather input. Because hotels are the primary collectors of the Transient Occupancy Tax and have direct visibility into competitive market dynamics that affect TOT revenue projections, their input is included here as a separate stakeholder consideration for the City Council. Key points raised by hotel representatives included the following:
• Hotel representatives emphasized that Laguna Beach’s lodging industry operates in an increasingly competitive regional market and expressed concern that further increases to the Transient Occupancy Tax could affect the City’s ability to compete for overnight visitors, conferences, group bookings, and special events. Representatives noted that lodging taxes are highly visible to consumers and event planners and, unlike most other local taxes, are paid directly by visitors at the point of purchase. They indicated that maintaining Laguna Beach’s competitiveness as a visitor destination is important to sustaining hotel occupancy, visitor spending, tourism-related employment, and the local economic benefits generated by overnight guests throughout the community. Representatives noted that Laguna Beach’s existing TOT rate is already among the highest in Orange County and they also have the California Tourism Association tax and expressed concern that additional increases may place the City at a competitive disadvantage relative to neighboring coastal destinations. 2026 Community Survey – Methodology and Results
Methodology. Probolsky Research conducted a statistically valid community survey of 400 likely November 2026 General Election voters from May 19 to May 27, 2026. The survey was roughly 20 minutes in length and administered in English and Spanish by phone (34%) and online via email and text-to-web (67%). The sample was drawn from data obtained from the Orange County Registrar of Voters and matched to the demographics of likely 2026 General Election voters in Laguna Beach. The overall margin of error is approximately ±5% at the 95% confidence interval.
2026 SURVEY RESULTS, COMMUNITY OUTREACH UPDATE, AND CONSIDERATION OF POTENTIAL NOVEMBER 2026 REVENUE BALLOT MEASURE
June 9, 2026
Key Findings.
• 75% of voters rate the overall job the City government is doing as good or fair. • Reducing wildfire risk and maintaining parks, trails, and open space are the most important priorities to voters. Reducing wildfire risk also shows the largest gap between importance and current satisfaction.
• 64% of voters believe the City has a great or some need for additional funds to maintain current service levels.
• Voters expressed concern about the impacts of tourists and traffic congestion on Coast Highway and Laguna Canyon Road.
• 54% support the City taking ownership of Laguna Canyon Road along with the associated financial responsibilities, with most expressing ‘somewhat’ rather than ‘strongly’ support. • 61% support changes to the City’s land use code to allow more housing sites Downtown or along Laguna Canyon Road in response to State housing law requirements. • 88% say it is important to maintain a local 24/7 emergency room in Laguna Beach, primarily ‘somewhat’ important.
Revenue Measures Evaluated in the Survey
The survey tested three potential revenue measures. Each measure was presented to respondents twice – first as an initial vote, then again as an informed vote after voters heard positive and negative messages about the measure.
To be clear, the reason that the survey included persuasive messaging was to test the impacts of arguments both in favor and against possible measures, not to skew the results. It would not make any sense to purposefully seek responses that are not consistent with how residents and voters are feeling.
A summary of the survey results is provided in the table below, with detailed information following:
Measure Annual
Revenue
Initial Yes Initial No Informed
Yes
Informed
No
Transient
Occupancy Tax
(12% → 14%)
~$3.0M 74% 22% 75% 21%
Sales Tax (1% local
add-on)
~$7.8M 47% 49% 49% 47%
Business License
Tax (Bars &
Restaurants)
~$8.6M 44% 48% Not retested—
Note: Percentages may not total 100% due to rounding and inclusion of “unsure” responses. 2026 SURVEY RESULTS, COMMUNITY OUTREACH UPDATE, AND CONSIDERATION OF POTENTIAL NOVEMBER 2026 REVENUE BALLOT MEASURE
June 9, 2026
Measure 1: Transient Occupancy Tax (TOT) Increase
The TOT measure tested would increase the City’s hotel and short-term rental tax (paid by hotel guests and short-term rental occupants) from 12% to 14%, generating an estimated $3.0 million annually. The City currently has a combined effective TOT rate of 14% – 12% for the City of Laguna Beach and 2% for the Laguna Beach Tourism Marketing District (LBTMD). The proposed measure would increase only the City’s portion.
Survey Results: 74% of voters initially indicated they would vote yes on the TOT measure, with 75% indicating yes on the informed vote after hearing positive and negative messages. Among those who said they would vote yes on the informed vote, 58% said they would 'definitely' vote yes, indicating relatively firm support. The strongest message tested was that the TOT is paid only by hotel and short-term rental guests, not by residents, 68% of voters said this information made them more likely to vote yes. The negative message that the TOT would hurt local hotels moved relatively few voters. In a head-to-head test, 67% of voters agreed with the pro-TOT statement that the increase 'is paid by visitors and will help us stay in front of visitor impacts.'
Measure 2: Sales Tax Increase
The Sales Tax measure tested would establish a one percent (1%) local sales tax, increasing the total sales tax rate in Laguna Beach from 7.75% to 8.75%, generating an estimated $7.8 million annually. According to City data, approximately 55% of sales tax collected in Laguna Beach is paid by tourists and visitors from outside the City.
Survey Results: On the initial vote, 47% of voters indicated they would vote yes, and 49% indicated they would vote no. Of those opposing, 68% indicated they would 'definitely' vote no, suggesting hardened opposition. After hearing positive and negative messages, the informed vote showed 49% yes and 47% no, essentially unchanged. The most effective positive message related to wildfire risk reduction (60% more likely to vote yes), followed by tourist contribution to sales tax revenue (48% more likely to vote yes). The negative message that the tax would 'hurt working families and fixed-income seniors' moved 36.5% of voters to less likely to vote yes. In the head-to-head Archer/Todd statement test, 46% agreed with the antitax 'Archer' statement.
Measure 3: Business License Tax (BLT) for Bars and Restaurants The BLT measure tested would update the City's business license tax for bars and restaurants by removing the current $1,650 annual cap and imposing a graduated tax on gross receipts, generating an estimated $8.6 million annually. The current business license tax structure for businesses paying based on gross receipts (Groups 1, 2, and 3) has not been adjusted since 1996.
Survey Results: On the initial vote, 44% of voters indicated they would vote yes, and 48% indicated they would vote no. Of those opposing, 61% indicated they would 'definitely' vote no. No informed re-vote was conducted on this measure. In the head-to-head 'Smith/Jones' statement test, 46% agreed with the anti-BLT 'Smith' statement that the increase would be 'a burden on businesses.' 2026 SURVEY RESULTS, COMMUNITY OUTREACH UPDATE, AND CONSIDERATION OF POTENTIAL NOVEMBER 2026 REVENUE BALLOT MEASURE
June 9, 2026
Background Information on Current Tax Structures
Transient Occupancy Tax. The City of Laguna Beach imposes a combined 14% charge on overnight visitor accomodations, consisting of: a 12% transient occupancy tax (TOT) imposed by the City (allocated to the City's General Fund, the Capital Improvement Fund, and the Measure LL Fund) and a 2% assessment imposed through the Laguna Beach Tourism Marketing District (LBTMD). These charges are paid by hotel and motel guests, as well as short-term rental occupants, for stays of thirty days or less. The proposed measure would increase the City's TOT rate from 12% to 14%, resulting in a combined effective rate of 16%.
Sales Tax. The sales tax rate in Laguna Beach is 7.75%, which is similar to the rate in a majority of Orange County cities. The City's share of the sales tax is 1% of the 7.75% rate. The remaining 6.75% is distributed among the County of Orange, the State of California, and the Orange County Transportation Authority. A number of Orange County cities ( 11 by the most recent count) have implemented local sales tax measures to fund services exclusively within their cities. If a sales tax measure were to pass, unlike the 7.75% general sales tax, 100% of the revenues generated (initially estimated to be $7.8 million per year) would remain with the City.
Business License Tax. Laguna Beach Municipal Code Chapter 5.08 outlines the taxation of businesses based on gross receipts, with provisions for both annual and flat-rate taxes. Businesses are categorized into three groups: Group 1 (retail, wholesale, manufacturing, artists) taxed at $0.44 per $1,000 with a cap of $1,650; Group 2 (personal services, recreation, entertainment) at $0.88 per $1,000 with a cap of $1,650; and Group 3 (professional practices) at $1.10 per $1,000 with a cap of $1,650. The flat-rate tax is adjusted annually based on CPI, but the Group 1, 2, and 3 rates and caps have not changed since 1996. The City receives approximately $1 million annually in business license tax revenue.
Other Context for Council Consideration
Wildfire Mitigation. Almost the entire city falls within high or very high fire hazard severity zones. The City has constructed 27 fuel modification zones (now in maintenance mode) and has two additional zones (Diamond Crest View and Hobo Canyon) under development. Following the 2025 Palisades and Eaton fires, the City invested an additional $4 million in fuel modification, utility undergrounding, AI-assisted fire detection technology, and expanded outdoor warning sirens. The upcoming budget includes an additional $2 million toward wildfire safety. Reducing wildfire risk consistently ranks as the top priority among survey respondents.
Facilities Master Plan. The City's Facilities Master Plan identifies an estimated $400 million in long-term needs for the maintenance, modernization, and replacement of aging public facilities, including fire stations (the oldest dating to the 1950s–60s), the Police Department, the Branch Library, community centers, and Lang Park. Tranche 1 priorities (Years 0–5) are estimated at approximately $25 million. .
2026 SURVEY RESULTS, COMMUNITY OUTREACH UPDATE, AND CONSIDERATION OF POTENTIAL NOVEMBER 2026 REVENUE BALLOT MEASURE
June 9, 2026
Utility Undergrounding. The City routinely contributes up to 20% of the total cost of a resident-driven undergrounding assessment district. With at least three major parts of the community left to underground, these costs (at 20% of total costs) may run into the tens of millions of dollars. Later in 2026, the City’s consultant will return with better cost parameters as to the specific costs per parcel or residence for the areas remaining to be undergrounded in Laguna Beach.
Addressing Visitor Impacts. The community is relatively small compared to the amount of visitors who arrive here annually. As noted, visitors pay some of the costs of their beach visits, but not all. Parking, sales tax, and hotel taxes are all contributed by visitors in part – but the size of our Police, Marine Safety, and other services are high in large part because of services to visitors.
Ballot Measure Considerations
Voting Threshold for Ballot Placement. Pursuant to California Government Code Section 53724 and California Elections Code Section 9222, a two-thirds (2/3) vote of the City Council membership (four affirmative votes for a five-member Council) is required to place a general tax measure on the ballot. Per California Constitution Article XIIIC, a general tax requires a simple majority (50% + 1) of voters for approval.
General Tax vs. Special Tax. All three measures evaluated are general tax measures, meaning the revenue would be deposited into the General Fund and could be used for any general governmental purpose. General taxes legally cannot be restricted by the ballot question itself to specific uses; however, the City Council may adopt an accompanying resolution stating the intended uses of the funds. A special tax restricting funds to specified purposes would require a two-thirds (2/3) supermajority of voters for approval, rather than a simple majority.
Multiple Measures on the Same Ballot. The City Council may place one, two, or three measures on the November 2026 ballot. Each measure would be evaluated independently by voters. Staff notes that polling and election research generally indicate that voters may experience 'tax fatigue' when multiple revenue measures are presented on the same ballot, which can reduce support for each measure compared to standalone placement.
Year-Over-Year Comparison: 2025 vs. 2026 Survey Results Probolsky Research conducted a similar voter survey in October 2025, which tested the same three potential revenue measures for transient occupancy tax and sales tax and a modified verion of a business license tax measure. Comparing the two surveys provides important context regarding how voter sentiment has shifted over the past seven months and how each measure is trending heading into the November 2026 election:
2026 SURVEY RESULTS, COMMUNITY OUTREACH UPDATE, AND CONSIDERATION OF POTENTIAL NOVEMBER 2026 REVENUE BALLOT MEASURE
June 9, 2026
Measure Vote Stage 2025 Yes 2026 Yes Change Crosses 50%? Transient Occupancy Tax
(12% → 14%)
Initial Yes 66.5% 74% +7.5 pts Yes (both years)
Informed Yes 68.3% 75% +6.7 pts Yes (both years)
Sales Tax (1% local add-on) Initial Yes 39.8% 47% +7.2 pts No (both years) Informed Yes 42.3% 49% +6.7 pts Closer in 2026
Business License Tax (Bars
& Restaurants)*
Initial Yes 42.3% 44% +1.7 pts No (both years)
Informed Yes 47.0% Not retested— —
* Note on the Business License Tax: The 2025 survey tested a BLT measure projected to generate approximately $1.2 million annually, while the 2026 survey tested a larger measure projected to generate approximately $8.6 million annually. The two measures are not directly comparable due to the difference in scope.
Key Observations from Year-Over-Year Comparison:
• Sales Tax measure shows the most significant positive movement. Initial yes support grew from
39.8% to 47% (+7.2 points), and informed yes support grew from 42.3% to 49% (+6.7 points).
Notably, the informed vote in 2025 showed yes losing to no by approximately 2 points (42.3% to
44.3%), while in 2026 the informed vote shows yes leading no by approximately 2 points (49% to 47%) – representing a meaningful shift in voter sentiment toward the measure, though still short of the simple majority required for passage.
• Transient Occupancy Tax measure also strengthened across both stages, with initial yes support up 7.5 points (66.5% to 74%) and informed yes support up 6.7 points (68.3% to 75%). The TOT remained the strongest-supported measure in both years and now exceeds 75% on the informed vote – a level generally considered to provide a substantial cushion for general election dynamics. • Business License Tax measure showed only modest improvement on the initial vote (+1.7 points).
However, the 2026 measure tested a substantially larger revenue measure ($8.6 million versus $1.2 million in 2025), and remained the weakest of the three measures in both surveys.
Possible Contributing Factors. Staff and the consultant have identified several factors that may have contributed to the year-over-year improvement, including the impact of the January 2025 Palisades and Eaton fires on regional perceptions of wildfire risk; growing public awareness of the public safety and other costs associated with mitigating visitor impacts; sustained community outreach including four Town Halls between February and May 2026; and refinements to the ballot question language and accompanying messaging tested in the 2026 survey.
2026 SURVEY RESULTS, COMMUNITY OUTREACH UPDATE, AND CONSIDERATION OF POTENTIAL NOVEMBER 2026 REVENUE BALLOT MEASURE
June 9, 2026
Survey Conclusion
Based on the 2026 survey results and the year-over-year comparison with the 2025 survey, the TOT measure received the strongest and most stable voter support (74% initial yes, 75% informed yes), with the firmest 'definite' yes responses, and showed continued growth over 2025. The Sales Tax measure showed the most significant year-over-year improvement and now achieves a slight majority lead on the informed vote (49% yes to 47% no), although it has not yet crossed the 50% threshold. Opposition to the sales tax remains hardened, with 68% of 'no' voters indicating 'definitely no.' The BLT measure showed the weakest support of the three (44% yes, 48% no) and was not retested with an informed vote. The full 2026 survey results presentation is provided as Attachment 1, and the 2025 survey results are provided as Attachment 2 for reference.
Next Steps
Staff is requesting that the City Council provide direction on whether to return at a future Council meeting in later June or early July 2026 with one or more resolutions to place revenue measure(s) on the November 3, 2026, ballot. If direction is given to move forward, it is further recommended that the Council Revenue Ad Hoc Committee continue its work with staff and consultants to develop public education materials, refine ballot question language, and prepare the resolutions and ordinances necessary to place the measure(s) on the ballot.
Should the Council direct staff to bring forward one or more measures, the following timeline outlines the key milestones and statutory deadlines, with the complete County Election Calendar included in Attachment 5:
Event Scheduled Date
City Council Workshop – Review of survey results,
community outreach, and revenue measure options
June 9, 2026
Draft ballot question language and ordinances (if
Council directs)
July 7, 2026
Council action on ballot measure resolution(s); 2/3 vote of Council required to place general tax on ballot (four affirmative votes for a five-member Council)
June 23 or July 7, 2026 (latest is no
later than 88 days before election but
the OC Registrar sets an earlier
deadline)
Last day to submit City Attorney's impartial analysis
and City Manager's fiscal analysis
August 7, 2026
Filing period for arguments in favor, against, and
rebuttals
August 12 2026
General Municipal Election – Election Day Tuesday, November 3, 2026 2026 SURVEY RESULTS, COMMUNITY OUTREACH UPDATE, AND CONSIDERATION OF POTENTIAL NOVEMBER 2026 REVENUE BALLOT MEASURE
June 9, 2026
Revenue Ad Hoc Committee
Staff would like to express its sincere appreciation to the Council Revenue Ad Hoc Committee, consisting of Mayor Orgill and Councilmember Whalen, for their substantial time, thoughtful guidance, and leadership throughout this process. Should the City Council direct staff to move forward with placing one or more measures on the November 3, 2026 ballot, staff respectfully requests that the Revenue Ad Hoc Committee continue to assist staff and the City's consultants with refining ballot question language, developing public education materials, and preparing the resolutions and ordinances necessary to place the measure(s) before the voters.
FINANCIAL ANALYSIS
There is no direct fiscal impact as a result of the recommended action of receiving the report and providing direction to staff. Costs associated with placing measure(s) on the November 2026 ballot, including continued consultant services, City Attorney services for ballot question drafting and impartial analyses, ballot printing, and County election services, would be brought forward as part of any future resolution(s) adopting the measure(s).
Estimated Annual Revenue if Approved by Voters:
• Transient Occupancy Tax (12% → 14%): approximately $3.0 million annually. • Sales Tax (1% local add-on): approximately $7.8 million annually. • Business License Tax (bars and restaurants): approximately $8.6 million annually.
All revenues from any of the measures, if approved, would be deposited into the City's General Fund.
ALIGNMENT WITH CITY COUNCIL GOALS AND PRIORITIES
This action supports the City Council's 2026 Strategic Priorities, including Fiscal Sustainability, Public Safety and Emergency Preparedness, and Infrastructure Reinvestment. The community outreach and survey work directly support transparent, informed decision-making regarding the City's long-term financial sustainability and its ability to maintain the services and infrastructure that Laguna Beach residents value most.
ENVIRONMENTAL ANALYSIS
The recommended action is exempt from review under the California Environmental Quality Act (CEQA) pursuant to Sections 15378(b)(3) and 15061(b)(3) of the State CEQA Guidelines, as receiving information and providing direction to staff is not a 'project' under CEQA and has no potential to result in a direct or indirect physical change in the environment.
ATTACHMENTS
1. Probolsky Research – 2026 Voter Poll Results Presentation (Pgs. 12-45)
2. Community Outreach Summary (February – May 2026 Town Halls) (Pgs. 46-48)
3. Comparison of Transient Occupancy Tax Rates in Orange County Cities (Pg. 49)
4. Comparison of Sales Tax Rates in Orange County Cities (Pgs. 50-51)
5. Calendar for Orange County General Election, November 3, 2026 (Pgs. 52-54) 2026 SURVEY RESULTS, COMMUNITY OUTREACH UPDATE, AND CONSIDERATION OF POTENTIAL NOVEMBER 2026 REVENUE BALLOT MEASURE
June 9, 2026
Submitted By:
. Approved: .David A Kiff
Gavin Curran, Assistant City
Manager
Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Gavin Curran, Assistant City Manager