Study Session:
2026 Ballot Revenue Measure
July 14, 2026Special Meeting of the City Council
AGENDA
I. Recap
II. Refinement
III. Recommendation
IV.Questions
2 ADVERSE REVENUE ACTIONS BY STATE
$20.6M+ Annual Revenue At Risks
The State is shaping the City’s fiscal future.
STATE ACTIONS THREATEN CITY REVENUE
VLF IN - LIEU
$7.0M
$3M loss in FY27
Potential additional loss
TAX SHARING
AGREEMENT
$8.0M
potential annual loss
+ One-time payment
EXCESS ERAF
$2.2M
potential annual loss
CARDROOM
$3.4M
potential annual loss
3 RECAP
Business License Tax (BLT)
• Currently Regressive – marginal rate declines at higher receipts • General Tax
• Not polled
• Simple Majority (50%+1)
4 RECAP
• June 23 Study Session - Business License Tax
Model 1 – Flat Rate $1/$1000 (or 0.1%)
Model 2 – Categorized Rates ranging from $1-$3/$1000
• Proceed with Model 2 and refinement
• Revenue Subcommittee – June 30
• Recommendation – Revised Model 2
5 6
Jurisdiction Comparison
Demographic and Economic Statistics by Location
Location Population* Business Count Business Tax
Revenue**
Revenue Per
Capita Revenue Per Business Ordinance
Last Modified Tax Basis Cap Presence?
(Y/N)
Brisbane 4,661 983 $5,390,411 $1,156.49 $5,483.63 2023 Gross Receipts Y Emeryville 13,314 2,600 $9,527,818 $715.62 $3,664.55 1993 Gross Receipts Y Sausalito 6,856 2,000 $2,142,427 $312.49 $1,071.21 2019 Gross Receipts N Richmond 112,735 5,200 $14,463,504 $128.30 $2,781.44 2021 Gross Receipts N Tracy 96,609 4,700 $8,807,071 $91.16 $1,873.84 2023 Gross Receipts Y Daly City 101,424 2,500 $6,680,000 $65.86 $2,672 2004 Gross Receipts N Burlingame 30,513 8,400 $1,909,822 $62.59 $227.36 2023 Gross Receipts Y San Bruno 42,152 4,200 $2,199,484 $52.18 $523.69 1999 Gross Receipts N South San Francisco 64,601 6,500 $3,175,739 $49.16 $488.58 2025 Per Employee N San Carlos 29,420 4,300 $1,342,096 $45.62 $312.12 > 10 years Per Employee N Millbrae 22,689 1,916 $552,000 $24.32 $288.10 1976 Hybrid Y Hayward 159,770 12,300 $3,782,779 $23.68 $307.54 > 10 Years Per Employee N *Population Data is from the United States Census
**Business Tax Revenue is collected from the State Controllers Office Data – FY 2024 8 Business Category Rate per $1000 Gross Receipts (above $75k) Flat Base (up to $75k) Contractor $2.00 $75.00
General Retail/Administrative Headquarters $1.00 $75.00 Professional and Advanced $3.00 $75.00
Property Rental $3.00 $75.00
Services/Other $2.00 $75.00
Categories and Example business:
• Contractors — Construction, repair, plumbing, HVAC, builders • General Retail / Administrative HQ — Retailers, restaurants, general businesses, and corporate headquarters Professional & Advanced Services — Law, medicine, consulting, R&D, and other licensed or credentialed professions
• Property Rental — Commercial leasing, residential rental, hotels, and short-term rentals • Services / Other — Salons, landscaping, personal services, and any business not fitting another category MODEL 2 – “3-2-1”
9 MODEL 2 - REFINED
Business Category Model 1 Option 2A Option 2B Option 2C Recommended Contractor $1.00 $2.00 $1.50 $1.50 $2.00
General Retail/
Administrative Headquarters
$1.00 $1.00 $1.00 $1.00 $1.00
Professional and Advanced $1.00 $3.00 $2.00 $2.00 $2.00 Property Rental $1.00 $3.00 $2.00 $10.00 $3.00
Services/Other $1.00 $2.00 $1.50 $1.50 $1.50
10 11
MODEL 2 - RECOMMENDED
Business Category Rate per $1000 Gross Receipts (above $75k) Flat Base (up to $75k) Contractor $2.00 $75.00
General Retail/Administrative Headquarters $1.00 $75.00 Professional and Advanced $2.00 $75.00
Property Rental $3.00 $75.00
Services/Other $1.50 $75.00
FISCAL IMPACT
• County Cost to run Mayor and City Council
• Additional for adding 1-3 ballot initiatives
• Additional legal ads / translation from the City Clerk 12 On the Ballot County Low +Increment County High +Increment Mayor/Council Seats Only $118,000 $141,600
Mayor/Council +1 Measure +13,000 +15,600
Mayor/Council +2 Measures +27,000 +32,400
Mayor/Council +3 Measures +47,000 +56,400
NEXT STEPS
• Staff Return July 28 with Resolution
• Submit to County by August 7, 2026
13 Date Item
July 28 City Council Adopts Resolution Calling the Election August 7 FINAL DEADLINE (88 days before election)
August Argument & Rebuttal Windows
September County Ballot Production
October Ballots Mailed; Outreach Continues
November 3 Election Day
RECOMMENDATION
• Receive the 2026 Ballot Revenue Measure: Business
License Tax Options Report and Provide Direction
Confirming the Revenue Subcommittee’s
Recommended Model 2 Rate Structure.
14 15
QUESTIONS AND DIRECTION
CITY OF SAN BRUNO
POST 4TH OF JULY
RECAP PRESENTATION
Michael Ku
Fire Chief
Matt Lethin
Police Chief
July 2026 | Presented to City Council
SB
AGENDA
1 Objective
2 Background
3 Community Education and Engagement
4 Operational Efforts
5 Workload Review
6 Cost Review
7 Questions
2 OBJECTIVE
Share a presentation with City Council
summarizing staff’s work and cost impact for
the 4th of July.
3 SB
BACKGROUND
• 4th of July presents well-known safety challenges
• Widespread illegal fireworks use
• Noise, animal impacts, PTSD in residents, risk of injury • Fire hazards
• This year – 4th of July fell on a Saturday
• 250th year celebration
• Parties, large/unruly gatherings
• Increased alcohol use
• All cities in our region experience illegal fireworks use • We can’t stop it – but we can responsibly manage it
4 COMMUNITY EDUCATION
• Focus is on helping our community make good
choices to enjoy the holiday safely and
responsibly
• Robust outreach and communications efforts
• Pre-4th contact with previous violators/residences
• PSA video and other social media postings
5 OPERATIONAL EFFORTS – POLICE
Pre-Holiday enforcement details
• From 7/1-7/3
• 3 calls for service (compared with 27 last year) and 0 citations (compared with 3 last year)
Holiday staffing
• Regular patrol + additional officers/support staff
Data Review from the Fourth
• 49 calls for service with 8 citations
Takeaways
• Fireworks incidents were significantly reduced this year, in San Bruno, and throughout our region
• PD likely to pursue a data-driven, reduced operational approach to the holiday in 2027 6 SB
WORKLOAD REVIEW – PD
7 25 26
15 12 8
179
144
114 113
49 0
20 40
60 80
100
120
140
160
180
200
2022 2023 2024 2025 2026
Year
Impact of 4th of July - Police
Citations FW CFS
SB
OPERATIONAL EFFORTS – FIRE
• San Bruno Fire Department fully staffed
• 1 extra ALS Engine Company (E151) staffed for the holiday • 3 Engines, 1 Truck in the city
• Extra Battalion Chief on duty
• Drone pilot deployed for aerial monitoring
• All fire prevention staff on duty
• Fire Marshal / Investigator and Fire Inspector staffed extra hours
8 SB
WORKLOAD REVIEW – FIRE
Fireworks-related fire incidents, 7/4–7/5/2026 (NERIS data) Incident Location Summary
BF26-2254
Vegetation/grass fire
1st Ave. near Lyon's Field (Caltrain/BART
ROW)
Wind-driven ~20'x40' fire; Caltrain service halted, then resumed. Multi- unit response (E51, E151, BC16).
BF26-2257
Trash/dumpster fire 2850 Sneath Ln Fireworks-related trash fire; spent fireworks found in dumpster. SSFFD responded as auto aid while all SBFD units were committed.
BF26-2259
Trash fire, upgraded 1281 Kains Ave
Upgraded en route to a structure-fire response after report fire was threatening a house; spent fireworks found under cardboard; gas meter compromised, PG&E called.
BF26-2263
Trash can fire
1178 El Camino Real (Tanforan / Hyundai
lot) Smoldering exterior trash can; discarded/smoldering fireworks found in debris. 9 SB
OPERATIONAL EFFORTS – OTHER DEPTS
PUBLIC WORKS
• Street Division clean-up, July 5, 2026
• 2 Maintenance Worker II's on overtime (14
combined hours)
• Equipment: pickup trucks + street sweeper
• Fireworks/holiday debris pickup along city
streets
10 COMMUNITY SERVICES
• Parks Division clean up
• 4 Maintenance Worker II’s on overtime (32
hours)
• Equipment: 2 pickup trucks
• Fireworks/holiday debris cleanup
• New approach to parks (lights and sprinklers)
SB
ADDITIONAL COST REVIEW
Department Cost
Police $30,518.83
Fire $17,451.48
Community Services $3,999
Public Works (clean-up) $5,602.80
Miscellaneous costs $3,882.48
Total $61,454,59
11 QUESTIONS?
2026 GENERAL OBLIGATION BONDS
First Series – Election of 2024 Measure Q
July 14, 2026
City Council Meeting
Nick Pegueros
Administrative Services Director
AGENDA
I. Objective
II. Background
III. Financing Strategy & Structure
IV. Credit Rating & Market Factors
V. Financing Documents & Schedule
VI. Fiscal Impact
VII. Recommended Action
2 OBJECTIVE
Authorize the issuance and sale of the first series of Measure Q general obligation bonds, in a principal amount not to exceed $37 million, to fund street and roadway improvements.
3 BACKGROUND
• On November 5, 2024, City voters approved Measure Q
Authorized up to $102 million in general obligation bonds Passed with 73.09% approval, above the required two-thirds (66.67%) supermajority
• Measure Q restricts bond proceeds to specific purposes Repair deteriorating storm drains
Repair potholes and city streets
Upgrade fire stations
• Repaid by an ad valorem property tax levy for as long as the bonds are outstanding
4 FINANCING STRATEGY
• Issue the first series in a principal amount not to exceed $37 million (the “2026 Bonds”)
Issuing in multiple series matches debt to project cash flow and avoids interest on funds not yet needed
• Proceeds fund street and roadway improvements, including pavement rehabilitation
May also fund planning, design, and engineering for a future Measure Q fire station project
• Bonds sold through a competitive sale
Awarded to the bidder offering the lowest true interest cost, within Council-approved parameters
5 ESTIMATED BOND SIZING
6 Sources Amount
Par Amount $34,885,000
Net Premium $2,014,130
Total Sources $36,899,130
Uses Amount
Project Fund $34,500,000
Debt Service Fund $2,014,130
Cost of Issuance $245,460
Underwriter’s Discount $139,540
Total Uses $36,899,130
10 Years
Optional Redemption
Sept. 1, 2056
Final Maturity
4.52%
True Interest Cost
$63.6M
Total Debt Service
Preliminary, as of June 22, 2026. Actual results will vary with market conditions at the time of pricing.
ESTIMATED ANNUAL DEBT SERVICE
7 Total net debt service by bond year ending September 1 – preliminary, subject to change $0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
2055
2056
CREDIT RATING
• S&P assigned its highest rating,
‘AAA’, with a stable outlook
• A strong rating reflects an
independent assessment of the
City’s creditworthiness and
financial health
• Supports lower borrowing costs
and broad investor demand
• Improves access to the market
for future Measure Q bond
issuances
8 S&P
AAA
Stable Outlook
FINANCING DOCUMENTS
• Paying Agent / Bond Registrar Agreement
Agreement with U.S. Bank Trust Company, N.A. to pay
principal and interest to bondholders and maintain ownership records
• Preliminary Official Statement
Primary offering and disclosure document; describes the City, Measure Q, and the security for the bonds for investors • Official Notice of Sale
Sets the terms and procedures for the competitive sale, including bidding requirements and how bids are evaluated 9 FISCAL IMPACT
• Debt service is paid solely from ad valorem property taxes levied under Measure Q
• No impact to the City’s General Fund
• Estimated par amount of approximately $34,885,000, providing about $34,500,000 for projects
• Final maturity on September 1, 2056; total payments of approximately $63.6 million over the life of the bonds
• This is the first of multiple planned bond issuances under the $102 million Measure Q authorization
10 FINANCING TEAM
• Municipal Advisor
Fieldman, Rolapp & Associates, Inc.
• Bond & Disclosure Counsel
Jones Hall, A Professional Law Corporation
• Paying Agent / Bond Registrar
U.S. Bank Trust Company, N.A.
11 TONIGHT’S RECOMMENDED ACTION
• The Resolution also:
Sets a maximum underwriter’s discount of 1% of the principal amount Approves a competitive sale and the form of the financing documents Delegates authority to City officials to award the bonds to the lowest true interest cost bidder within Council-approved parameters 12 Adopt the Resolution authorizing the issuance and sale of General Obligation Bonds in an aggregate principal amount not to exceed $37,000,000, and authorizing the execution of documents and other related actions.
NEXT STEPS / FINANCING SCHEDULE
13 Date Milestone
July 14, 2026 City Council considers approval of bond issuance On or about July 30, 2026 Post Preliminary Official Statement & Notice of Sale (marketing) On or about August 6, 2026 Competitive sale – bonds sold and interest rates set On or about August 20, 2026 Closing – bonds delivered and project proceeds received Schedule is preliminary and may be adjusted based on market conditions.
QUESTIONS?
14