Consideration of
Placing a ¼-Cent Sales
Tax Measure on the
November Ballot
Zack Reda, Sr Management Analyst, City Manager’s
Office
Rochelle Lewis, Sr Client Services Manager
TeamCivX
July 20, 2026
Agenda
• Fiscal Outlook
• Key Milestones
• ¼-Cent Sales Tax Information & Comparison
• Community Outreach
• Review of ballot measure development process
• Council Action
General Fund - Structural Deficit
3 (shown in millions)
Financial Sustainability Plan
Expenditure
Controls
• Freeze
positions
• Non-General
Fund Charges
• Operating
Budget Savings
Revenue
Enhancements
• Sales Tax
Measure
• Revenue
Agreements
Cost Recovery &
Cost Allocation
• Cost Recovery
• Citywide
Updated Cost
Allocation
Grant
Opportunities
• Grants
Coordination
& Acquisition
Economic
Development
• Adopted Work
Plan Activities
Key Milestones
Budget adopted with $12-14 million
deficit
General Fund 10-year forecast points to
structural deficit
Summer 2025
Council directed staff to explore revenue
measure
August 2025
First survey results presented showing
majority support
Council directed staff to continue
exploring potential sales tax measure
January 2026
Follow-up survey results presented
again showing majority support
Council expressed support for placing
measure on ballot
June 2026
Community Engagement and Outreach
February - July 2026
Tax Rates Across Local Cities
9.875%9.625%
Burlingame
San Mateo
Belmont
Brisbane
Colma
Daly City
East Palo Alto
Half Moon Bay
Pacifica
Redwood City
San Bruno
S. San Francisco
6 9.375%
Atherton
Foster City
Hillsborough
Menlo Park
Millbrae
Portola Valley
San Carlos
Woodside
Proposed Updated Tax Rate
9.625% 9.875%
• What ¼ cent means in terms of dollars:
• 25 cents on $100, or $100.25
• Does not apply to groceries or prescription medications • ¼ cent increase = $7 million in estimated revenue annually • Funds would remain in San Mateo and can only be used for San Mateo services
• If approved by voters there would be:
• Independent annual audits and public reporting
• Independent resident oversight committee 7
Community Engagement Efforts to Date
8 • Two statistically reliable surveys Conducted via phone, text message and web
• Three informational mailers Sent to over 31,000
households
• Stakeholder and Community Groups More than 50
contacted, more than 30 presentations/Q&A sessions
• Dedicated bilingual informational webpage at
cityofsanmateo.org/ballotmeasure
• Overall, thousands of residents contacted and
engaged
Voter Survey
Election Timing
Tax Rate
Political Landscape
Non-Advocacy
Communication
Existing Communications
Internal and External
Audiences
Seek Feedback
Refine Proposal
Community Readiness
Ballot Resolution
75-word question
Ballot Argument & Signers
Official Council Vote
(>88 days before Nov. 3
Election)
2026 Sales Tax Measure
Planning
Council action July 20, 2026,
for Nov 2026 election
We are Here
Post-Council Action
ØContinue webpage
ØRespond to public inquiries with neutral information
* City resources cannot be used to advocate for the measure Proposed Ballot Question
To provide funding for San Mateo city services, such as keeping local streets, sidewalks, parks, infrastructure, and community facilities safe, clean, and well-maintained, fixing potholes, providing fire protection, paramedic, crime prevention, and 9-1-1 emergency response, and improvements to traffic safety/traffic management, shall the City of San Mateo’s ordinance establishing a one-quarter cent sales tax be adopted, providing 7 million dollars annually for general government use until ended by voters, with independent audits and all funds locally-controlled?
Staff Recommendation
12 1. Adopt a resolution:
a) ordering and calling for an election to be consolidated with the General Municipal Election to be held on November 3, 2026
b) submitting to the voters a measure to increase the Transactions and Use (sales) tax by an additional ¼-cent
2. Appropriate $158,000 for related election costs
3. Authorize two members of the City Council to submit ballot arguments in favor of the measure
4. Introduce an ordinance establishing San Mateo Municipal Code Chapter 3.51.