Next Steps in
Exploring Potential Revenue
Measures
City Council meeting
February 17, 2026
1 February 17, 2026 1
PREVIOUS COUNCIL DIRECTION
February 1, 2025
• At the Special Meeting and Annual Council Planning Session, the Council directed staff to explore potential revenue measures for the November 2026 ballot.
June 2025 (FY 2026-27 Budget Adoption Process)
• Staff proposed a General Fund allocation of $500K to further explore viability. • Council did not include the funding in the adopted budget. • Council directed staff to return once year-end fund balance estimates were available.
December 1, 2025
• Council considered survey work; motion to proceed did not pass.
December 15, 2025
• Council directed staff to explore potential Nov. 2026 revenue measures, including community outreach and a feasibility survey.
February 17, 2026 2
COMMUNITY POLLING
Based on 12/15/25 Council direction, staff engaged a pollster to conduct a scientific survey of the community
Methodology
February 17, 2026
3 • 20 to 25-minute internet and telephone interviews
• 600 (n=600) total San Leandro registered voters likely to vote in the November 2026 election
• Develop topline report of aggregate findings
• Time allows for only two potential measures to be
scientifically surveyed
February 17, 2026 4
TAX TYPES TO CONSIDER POLLING
1. Business License Tax Modernization
2. Parcel Tax
3. Utility Users Tax Rate (UUT) Modification
4. District Sales Tax
5. Vacant Property Tax
February 17, 2026 5
BUSINESS LICENSE TAX • The current Business License Tax is calculated using a flat rate based on business type and number of
employees.
• FY 24-25 total revenues received: ~$6.9M
• Analysis of potential tax assumes:
• A rate $1.25 /$1,000 of gross receipts in lieu of current employee-based structure
• Consolidates business types and reduces the tax for small businesses
• Projected additional revenue of $3.8 - $4.3 million annually • Gross receipts model business license taxes can be more volatile
• Requires 50%+1 for approval
• Staff could not identify any past polling data regarding a potential change to this tax
February 17, 2026 6
PARCEL TAX
• The City does not currently assess specific parcel taxes • Analysis of potential tax assumes:
• Potential structure models
• per parcel or
• square footage
• Projected revenues of $5-$7 million annually
• Requires 66.7% “yes vote” for approval
• In 2024 a potential parcel tax polled at an approval rate of 57.9% by informed likely November 2024 voters
February 17, 2026 7
UTILITY USER TAX MODIFICATION
• The current Utility User Tax rates are between approx. 5.5%-6%. • Current rates are similar to other neighboring jurisdictions • FY 24-25 total revenues received: ~$14.1M
• Analysis of potential tax assumes:
• An increase of 3.4%
• Potential additional revenue of approx. $6-7M annually • Would create a rate higher than most in the area
• Requires 50%+1 for approval
• Polled at approval rate of 46.5% by informed likely Nov. 2024 voters February 17, 2026 8
DISTRICT SALES TAX
• Current total sales tax rate of 10.75%, at or above neighboring jurisdictions • Analysis of potential tax assumes:
• A one-half cent increase would generate an increase of approx. $11-$14M annually • Any further increases to sales tax would require an exemption from the State Legislature • The City rate is currently at the State-imposed cap of 2% for City (0.5%) & County (1.5%) District tax limit
• Requires 50%+1 for approval
• No recent polling data on potential sales tax increase February 17, 2026 9
VACANCY TAX
• Oakland is the only U.S. municipality staff could identify with such a tax fully implemented
• Administration of the tax is complex; requires appeals process + additional staff • Revenue estimates not presently available
• Requires 50%+1 for approval
• 2020 informal polling suggested approx. 61.1% support
PREVIOUS & UPDATED TIMELINE
February 17, 2026 10
Updated Timeline for Revenue Measure on November 2026 Ballot
PROJECT NAMES
+ TASK TITLES
Updated Estimated
Timeline as of
December 2025 as
communicated to
Council
Updated Estimated
Timeline as of
January 2026
Project Launch December 2025 January 2026
Public communications/polling survey January 2026 3/2/26-3/12/26 Survey results presentation to Council, Council decision whether to advance measure
March 2026 April 6, 2026
Conduct tracking poll May 2026 May 2026
Council vote to place question on ballot June 2026 June, 15 2026 Prepare and mail ballots October 2026 October 5, 2026
Election Day November 2026 November 3,
2026
February 17, 2026
11 STAFF RECOMMENDS
Council direct staff to work with consultant to conduct a poll surveying:
1. Business License Tax Modernization;
2. Parcel Tax; and
3. Questions to test viability of vacancy tax
QUESTIONS &FEEDBACK
February 17, 2026 12