City Council Staff Report Page 1 of 5 July 14, 2026
Staff Report
Agenda Item No. 4.2
DATE: July 14, 2026
TO: Honorable Mayor and Members of the City Council
FROM: Kris Kokotaylo, City Attorney
SUBJECT: Adopt a Resolution Calling an Election to Be Held on November 3, 2026, for Voter Consideration of a Ballot Measure Seeking Voter Authorization to Amend Municipal Code Chapter 3.28 to Extend the Term of the City’s Existing Utility Users Tax Without a Tax Increase; Establishing Related Election Policies and Procedures; Requesting Consolidation of the Election and Certain Services of the Alameda County Registrar of Voters; Providing for the Submittal of Ballot Arguments and Rebuttals; and Authorizing the Filing of an Impartial Analysis
EXECUTIVE SUMMARY
The City has an existing Utility Users Tax (“UUT”) that was approved by Union City voters in 2020. Revenues generated by the UUT enabled the City to maintain many important services and programs. The tax is set to expire on December 31, 2028.
In September 2025, the City Council formed a Revenue Review Ad Hoc Subcommittee consisting of Mayor Singh and Councilmember Nishihira (the “Subcommittee”). The purpose of the Subcommittee was to review multiple revenue options, including a potential increase to the Landscape and Lighting District, a potential increase to the cannabis tax, and potential renewal of the expiring UUT, among others.
The Subcommittee returned to the City Council in October 2025 and recommended that the City Council prioritize renewal of the UUT and that the Subcommittee work with staff and the City’s consultants to continue exploring placement of the UUT on the November 2026 ballot, including preparing and implementing a community survey to determine voter interest in a UUT measure in early 2026, with results being reported to the City Council by March 2026.
Subsequently, the City commissioned an independent public outreach firm to conduct public opinion research to gauge community interest in a ballot measure to continue funding City services and programs. Staff presented the results of the opinion research to the City Council on March 10, 2026, which indicated community interest in a potential UUT extension. The City Council accepted the results and directed City staff to return to Agenda Item No. 4.2
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a future City Council meeting for further direction following community engagement and outreach.
Most recently, the City Council considered options related to the UUT on June 23, 2026, and directed staff to prepare the documents necessary to place a UUT renewal measure on the ballot for voter consideration in November 2026, with no rate increase for an additional 9 years, to December 31, 2037.
Staff recommends that the Council adopt a resolution that: (1) calls an election placing the UUT extension on the November ballot and consolidating the election; (2) requests certain election services from the Alameda County Registrar of Voters; (3) provides a procedure for the submittal of ballot arguments and rebuttals; and (4) directs the City Attorney to author an impartial analysis.
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
UUT
In November 2020, Union City voters approved Measure WW, a 5% Utility Users Tax (“UUT”) within the City of Union City. The tax was applied to electricity, natural gas, telecommunications, and video services, and included exemptions for low-income residents and senior citizens over the age of 70. The UUT is set to 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 on 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.
Ad Hoc Subcommittee and Council Direction
The City Council has been considering options for a possible UUT renewal since Agenda Item No. 4.2
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September 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 the Subcommittee, comprised of Mayor Singh and Councilmember Nishihira. In October 2025, the Subcommittee recommended that the City Council prioritize renewing the UUT, and the City Council concurred.
Godbe Research subsequently 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 the 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.
At its June 23, 2026 meeting, the City Council heard an additional presentation regarding a potential ballot measure and directed staff to prepare a resolution placing a UUT extension of nine (9) years on the November 2026 ballot.
DISCUSSION
Despite the City’s continued conservative budget-balancing measures, revenue growth is not projected to keep up with projected expenditures.
The UUT generates approximately $7 million per year in locally controlled funding, which represents 8.5% of the City’s general fund revenue. Further, the UUT supports a number of critical programs and services in the City, including adequate public safety staffing, park landscaping and maintenance, street repairs, and community preservation. If the UUT extension is not authorized, the Council will need to revisit the adopted budget to consider adjustments. In addition to the proposed 9-year extension, the UUT Extension Ordinance would include a minor revision that reflects existing law, changing the term "video provider" to "video service supplier" for purposes of the video users tax.
Summary of Election Actions
In order to place the proposed UUT Extension Ordinance on the ballot for the November 3, 2026 election, staff have prepared a resolution that generally does the following:
(1) Calls an election placing the UUT extension on the November ballot and consolidating the election;
(2) Requests certain election services from the Alameda County Registrar of Voters; (3) provides a procedure for the submittal of ballot arguments and rebuttals; and (4) directs the City Attorney to author an impartial analysis.
Ballot Question
The State Elections Code requires the ballot measure to be printed in the ballot pamphlet Agenda Item No. 4.2
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in the form of a “yes or no” ballot question of no more than 75 words. The ballot question must include a true and impartial statement of the nature of the ballot measure. The ballot question for City Council consideration, which has been reviewed by the City Attorney, is as follows:
“Union City Essential Services Extension Measure. To maintain critical city services, including 9-1-1 emergency response/paramedics/fire protection; street/pothole repair; neighborhood police patrols; crime/gun violence prevention programs; youth/senior programs; and other city services, shall the measure extending the City of Union City’s existing voter-approved utility users tax for 9 years at the current 5% rate (no increase), providing $7,000,000 annually, with senior/ low-income exemptions, annual audits, and all funds locally controlled, be adopted?”
Resolution and Impartial Analysis
State law also requires the Council to adopt a resolution identifying the language of the ballot question and requesting the County Board of Supervisors authorize the Registrar of Voters to place the ordinance on the ballot. Attached to this staff report is a resolution that satisfies the requirements of state law and has been prepared for Council consideration.
The State Elections Code also provides that the City Council may direct the City Attorney to prepare an impartial analysis of no more than 500 words showing the effect of the measure on existing law. Pursuant to the proposed resolution, this must be submitted to the City Clerk by 5:00 p.m. on July 28, 2026.
Ballot Arguments & Rebuttal Arguments
The State Elections Code allows the City Council to determine its interest in authoring an argument in favor of the ballot measure. Arguments of no more than 300 words each for and against the ballot measure can then be included in the voter information guide. The arguments must be submitted to the City Clerk by 5:00 p.m. on July 28, 2026.
The State Elections Code also allows the City Council to determine whether to allow rebuttals. Any rebuttals, of no more than 250 words, must be submitted to the City Clerk, as the Elections Official, no later than ten days after arguments are due. The rebuttals must be submitted to the City Clerk by August 7, 2026, at 5:00 p.m. If there is no argument put forward in opposition to the ballot measure, then there will be no rebuttal.
State law provides the orderly process by which the City Clerk selects the arguments for and against a ballot measure. Importantly, the City Council, or its members, are given priority when submitting an argument related to a ballot measure, with varying levels of priority for other individuals, groups, and organizations.
The City Council has several options for preparing ballot arguments and rebuttals. Staff recommends that the City Council identify one or two Councilmembers, along with other community members, to prepare and submit the argument and any rebuttal. The proposed resolution also authorizes the City Council to sign the argument and rebuttal.
Agenda Item No. 4.2
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FISCAL IMPACT
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.
RECOMMENDATION
Staff recommends that the City Council adopt a resolution submitting a proposed ordinance on the November 3, 2026 ballot extending the existing UUT for a period of nine (9) years. The UUT would continue to include exemptions for low-income residents and for seniors age 70 and older. The City Attorney will be directed to prepare an impartial analysis of the measure.
Prepared by: Kristopher Kokotaylo, City Attorney
Submitted by: Kristopher Kokotaylo, City Attorney
Attachments
1. Draft Resolution
2. Exhibit A - Proposed Measure