Item 6.3: Policy Direction on Potential Ballot
Measure on November 2026 Election
June 24, 2026 City Council Regular Meeting
2 Background
July, August,
September
2025
• Engaged
TeamCivX/Godbe
Research to Evaluate
Community Support
• Reviewed Long-Term
Financial Forecast
• Formed Revenue Review
Ad Hoc Subcommittee
October,
November,
December 2025
• Convened Meetings with
Revenue Review Ad Hoc
Subcommittee
• City Council Received
Report on
Recommendations and
Provided Initial Policy
Direction
January,
February,
March 2026
• Conducted Community
Survey from January 20-
February 7, 2026
• City Council Reviewed
Community Survey
Results and Provided
Further Policy Direction
May & June
2026
• Conducted
Informational Outreach
(Webpage, Newsletter,
Handouts, and
Presentations)
• Seeking Final Policy
Direction on Potential
Ballot Measure
July 2026
• Develop Ballot Measure
Language
• Adopt Resolution and
Ordinance Placing Ballot
Measure on November
2026 Election Before
August 7 Deadline
Given the City’s long-term financial forecast, the City Council expressed an interest in exploring possible voter-approved revenue measures to address anticipated future gaps in funding City services.
3 Locally Approved Utility Users’ Tax
(Measure WW, 2020)
• Utility Users’ Tax (UUT) is a key
local funding source
• Applies 5% to electricity, gas, video,
and telecommunications services
• Set to expire December 31, 2028
unless renewed by local voters
• If not renewed:
• Loss of approximately $7
million annually
• Potential cuts to City services
Item 6.3:
Policy Direction on Potential Revenue Measure on November 2026 Election 4 Fiscal Accountability and Local Control
Fiscal accountability safeguards:
• Public disclosure spending and
annual public reports to the
community
• An independent oversight
committee and annual independent
financial audits
• All funds must be used locally for
services in Union City and cannot be
taken away by the state or federal
governments
• Seniors and low-income residents
remain eligible for an exemption
Item 6.3:
Policy Direction on Potential Revenue Measure on November 2026 Election 5 Two Primary Sources
• 39% - Property Tax
• 21% - Sales Tax
22% Taxes Locally Approved
85% Revenues from Taxes
15% Remaining Sources
• Charges for Services
• Licenses & Permits
• Interest Earnings
• Other
Property Tax
Sales Tax
Sales Tax-Meas
AA (2010)
UUT-Meas WW
(2020)
Business TaxMeas QQ (2024)
Franchise Tax
Other Taxes
Charges for
Licenses & Services
Permits
Interest
Earnings
Other
General Fund Revenues – FY 2025-2026
$85.2M
6 Albany
Alameda
Berkeley
Oakland
Piedmont
Alameda County
San Leandro
Emeryville
Hayward
Union City
Newark
Dublin
Fremont
Livermore
Pleasanton
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
7.5% 7.5% 7.5% 7.5%
6.5%
5.5% 5.5% 5%
6.5%
to
9.5%
5.7%
to
6%
2.5%
to
3.5%
Piedmont – Also $1/month for water
Revenue – Utility Users’ Tax Rates
7 Item 6.3:
Policy Direction on Potential Revenue Measure on November 2026 Election Community Survey/Polling Results
• Support is on the lower end of required threshold, but still above 50% • City Council last 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
A B C D E F G
Initial
(Uninformed,
5%+2.5%)
Interim
(Informationa
l 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%
8 Item 6.3:
Policy Direction on Potential Revenue Measure on November 2026 Election Future Election Cycles
• Timing of any future potential ballot measures would need to take into consideration locally approved measures and its expiration dates (namely the UUT and ½ Cent Sales Tax)
General
Elections 2026 2028 2030 2032 2034 2036
Suggested
Renewal UUT ½ Cent Sales Tax
UUT*
Expiration
UUT
Expires
December
2028
½ Cent Sales
Tax Expires
March 2034
UUT Expires
December
2036*
* Assuming 8-year renewal of UUT
9 Community and Stakeholder Outreach
Presentations
and Meetings
Handouts and
Publications
Dedicated City
Webpage
www.unioncityca.gov/uut
10 Recommendation
Staff recommends that the City Council receive this report and provide policy direction on whether or not to proceed with renewing the Utility Users’ Tax in the November 2026 General Municipal Election. And if so:
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.
Item 6.3:
Policy Direction on Potential Revenue Measure on November 2026 Election