City Council Staff Report Page 1 of 4 June 23, 2026
Staff Report
Agenda Item No. 6.3
DATE: June 23, 2026
TO: Honorable Mayor and Members of the City Council
FROM: Joan Malloy, City Manager
SUBJECT: Receive Report and Provide Policy Direction on Potential Ballot Measure for Voter Consideration at the November 2026 General Municipal Election
EXECUTIVE SUMMARY
Staff recommends that the City Council receive this report and provide policy direction regarding the placement of a potential ballot measure for voter consideration in the November 2026 General Municipal Election. Specifically, staff is seeking direction on whether to proceed with renewing Union City's Measure WW – a 5% Utility Users’ Tax.
If so, City Council direction is needed on:
1. Whether to retain it at the current 5% tax rate applied to electricity, gas, video, and telecommunications, or to make any adjustments; and
2. The duration of the renewal at a specified term beyond December 31, 2028.
STRATEGIC PLAN ALIGNMENT
This item is in alignment with Goal A. Financial Stability and Sustainability of the City Council Strategic Plan. Under Goal A, it is related to the following strategies:
• Strategy 1. Develop a comprehensive fiscal sustainability model to address the General Fund’s long-term structural deficit.
• Strategy 8. Determine the feasibility of a revenue ballot measure for November 2024 and/or November 2026 to address critical facilities and infrastructure needs. • Strategy 9. Pursue the placement of a voter-approved revenue measure on a ballot to address the funding gap between revenues and expenditures for fundamental public safety and other city services.
BACKGROUND
In November 2020, Measure WW was placed before Union City voters and approved by
56.9% of voters. This established a 5% Utility Users’ Tax (UUT) that applied to electricity, gas, video, and telecommunications. However, the existing UUT, without further voter Agenda Item No. 6.3
City Council Staff Report Page 2 of 4 June 23, 2026
authorization, will expire on December 31, 2028.
The UUT generates approximately $7 million annually in City general fund revenue, which is allocated to critical City services, including public safety (police and fire), road maintenance, youth activities, and senior programming. The UUT is set to expire December 31, 2028, prompting forward planning to prevent discontinuity in essential service funding. Because this revenue stream represents a significant portion of the City’s general fund, the City Council has recognized the importance of maintaining this locally controlled voter-approved revenue source to provide the City with long-term financial stability and to protect vital City services.
The City Council has been considering potential options related to a possible UUT renewal and potential increase since late summer and early fall of 2025. The City engaged TeamCivX and Godbe Research to provide professional services and to conduct a community survey to evaluate potential options for the UUT. To aid in this analysis, the City Council also formed a Revenue Review Ad Hoc Subcommittee comprised of Mayor Gary Singh and Councilmember Lance Nishihira.
Godbe Research conducted a community survey of likely voters in November 2026 to gauge community attitudes toward a potential UUT extension and rate adjustment. The survey results provided insight into voter perspectives regarding possible rate increases, duration options, and continued support for the existing tax. Based on the results, which were presented to City Council at its meeting on March 10, 2026, the City Council provided initial direction to prioritize an extension of the existing UUT without an increase in the tax rate, and to return for discussion of the duration.
DISCUSSION
Community Survey/Polling
Between January 20 and February 7, 2026, Godbe Research conducted a community survey of likely voters in Union City for the November 2026 election via both phone and online platforms. The survey yielded a sample size of 468 respondents, with a margin of error of ±4.48 %. Several renewal scenarios were proposed, including maintaining the current 5% tax rate, increasing it to varying rates up to 7.5%, setting a fixed term of 8 to 16 years, or maintaining the UUT until voters end it. Table 1 summarizes the survey results; however, the full report is also available in the March 10, 2026 presentation.
Table 1. Summary of 2026 Community Survey/Polling Results on the Utility Users’ Tax
A B C D E F G
Initial
(Uninformed,
5%+2.5%)
Interim
(Informational
Statements,
7.5%)
Final
(Critical
Statements,
7.5%)
Alt. 1
(6.5%)
Alt. 2
(16-
year)
Alt. 3
(8-year)
Alt. 4
(5% at
8-year)
Support 44.5% 50.9% 43.5% 48.8% 43.4% 46.4% 55.4%
Oppose 36.7% 37.0% 46.8% 41.0% 45.0% 43.6% 35.8%
Don’t
Know 18.8% 12.1% 9.7% 10.2% 11.6% 10.0% 8.8%
Agenda Item No. 6.3
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Community and Stakeholder Outreach
Staff conducted community and stakeholder outreach over the past few months to better inform the public about the City’s budget and financials. Presentations were made to, among others, City Commissions, Boards, and Committees, and delivered to external organizations, including the Union City Chamber of Commerce and the Lions Club.
Additionally, in June 2026, the City provided a financial update and discussed the expiring UUT at its four District Dialogue Meetings, providing further opportunity for community feedback and understanding.
To ensure residents remain well informed, the City has developed a webpage (https://www.unioncityca.gov/uut) on the expiring UUT and distributed informational handouts including a Factsheet and Frequently Asked Questions (FAQs). The City’s semi-annual community newsletter (Spring/Summer 2026 Edition) also included information on the City’s budget, expiring UUT, and renewal under consideration. These materials are available both in print at all City facilities and online on the City’s website.
Next Steps
Given the Alameda County Registrar of Voters deadline of August 7, 2026, for ballot measure placement on the November 2026 General Municipal Election, this report seeks City Council’s policy guidance on two parameters should the City proceed with a renewal of the UUT: the tax rate and duration/term. With City Council direction, City staff will begin drafting the necessary resolution and ordinance to define the specifics of the ballot measure. Formal approval and a final decision from the City Council for placement of a ballot measure would then be sought in July 2026.
FISCAL IMPACT
There is no immediate impact associated with the consideration of this item. The fiscal impact on the General Fund would depend on the direction received by the City Council and the outcome of any potential ballot measure.
Maintaining the existing UUT at the current rate of 5%, if approved by voters, secures approximately $7 million annually for Union City’s essential services. Any adjustment to the rate will have a corresponding impact on revenue generation.
Alternatively, the City Council may choose not to proceed with the placement of a measure on the November 2026 General Municipal Election ballot. However, failure to act before the December 2028 expiration risks a sudden loss of approximately $7 million annually, which will likely necessitate mid-fiscal-year service cuts or alternative revenue strategies. Delaying the renewal effort until a future election cycle, such as the November 2028 General Municipal Election, would create significant uncertainty for the City’s upcoming budget cycle.
Agenda Item No. 6.3
City Council Staff Report Page 4 of 4 June 23, 2026
RECOMMENDATION
Staff recommends that the City Council receive this report and provide policy direction regarding the placement of a potential ballot measure for voter consideration in the November 2026 General Municipal Election. Specifically, staff is seeking direction on whether to proceed with renewing Union City's Measure WW – a 5% Utility Users’ Tax.
If so, City Council direction is needed on:
1. Whether to retain it at the current 5% tax rate applied to electricity, gas, video, and telecommunications, or to make any adjustments; and
2. The duration of the renewal at a specified term beyond December 31, 2028.
Prepared by: Jennifer Phan, Deputy City Manager
Submitted by: Jennifer Phan, Deputy City Manager