Item 4.2 Resolution Placing Ballot Measure
for Utility Users Tax Renewal on November
2026 Ballot
2 • 1% cap on property tax
rates
• Assessed values cannot be
increased more than 2% per
year
• It took California cities
20 years to recover
• Cities now rely on multiple
tax and revenue sources
20 years to recover
Proposition 13 Changed Municipal Finance
3 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-Measure AA
UUT-Measure WW
Business License TaxMeasure QQ
Franchise Tax
Other Taxes
Charges for Services
Licenses & Permits
Interest Earnings
Other
General Fund Revenues – FY 2025-2026
$85.2M
4 61% Public Safety Expenses
• 44% - Police Services
• 17% - Fire Services
16% Administration
• City Council, City Clerk,
City Attorney, City Manager
& Environmental Services,
Finance, Human Resources
& Information Technology
City Council, City Clerk & City
Attorney
City Manager &
Environmental Services Finance, HR & IT
Police
$38.0M
Fire
$14.7M
Public Works Economic & Community
Development
Community & Recreation
Services
Other/Citywide Expenses
Capital Projects
General Fund Expenses – FY 2025-2026
$86.0M
5 Item 4.2:
Resolution Placing Utility Users Tax Renewal on November 2026 Ballot Background
• Fall 2025:
• The City Council formed a Revenue Review Ad Hoc Subcommittee (the “Subcommittee”).
• The Subcommittee reviewed 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 Utility Users Tax (the “UUT”), among others.
• The Subcommittee recommended to the Council to proceed with evaluating renewal of the expiring UUT.
6 Item 4.2:
Resolution Placing Utility Users Tax Renewal on November 2026 Ballot Background
• March 10, 2026:
• City Council received community survey results regarding a potential UUT renewal and directed staff to return following community outreach.
7 Item 4.2:
Resolution Placing Utility Users Tax Renewal on November 2026 Ballot Background
• June 23, 2026:
• City Council received report from staff regarding potential options for UUT renewal.
• City Council directed staff to prepare the documents necessary to place a UUT renewal measure on the ballot for voter consideration in November 2026.
• No rate increase.
• Nine year extension to December 31, 2037.
8 Item 4.2:
Resolution Placing Utility Users Tax Renewal on November 2026 Ballot Proposed Ordinance
• Extends expiration date of the UUT from December 31, 2028 to December 31, 2037.
• Includes a minor revision that reflects existing law, changing term utilized for purposes of the video users tax.
• Maintains existing 5% rate.
• Maintains exemptions for low-income residents and senior citizens over the age of 70.
9 Item 4.2:
Resolution Placing Utility Users Tax Renewal on November 2026 Ballot Proposed Resolution – Ballot Question
“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?”
10 Item 4.2:
Resolution Placing Utility Users Tax Renewal on November 2026 Ballot Proposed Resolution – Timeline
• July 14, 2026: City Council adopts the proposed resolution calling an election and placing the BLT Ballot Measure for voter consideration. • July 28, 2026: Direct arguments for or against the BLT Ballot Measure due by 5:00 p.m. (Elections Code Sections 9282, 9286.) City Attorney Impartial Analysis due by 5:00 p.m. (Elections Code Section 9280.) • August 7, 2026: Rebuttal arguments due by 5:00 p.m. (Elections Code Section 9285.)
• November 3, 2026: Election.
11 Item 4.2:
Resolution Placing Utility Users Tax Renewal on November 2026 Ballot Proposed Resolution – Argument
• The City Council may designate up to two Council members to draft and submit the ballot argument in favor of the measure and the rebuttal to any argument against the measure.
12 Item 4.2:
Resolution Placing Utility Users Tax Renewal on November 2026 Ballot Fiscal Impact
• If the voters approve the proposed ballot measure, it would secure approximately $7 million annually in general fund revenue. 13 Recommendation - UUT
• Designate the person(s) responsible for preparing and submitting the ballot argument and rebuttal in favor of the proposed ballot measure and adopt the proposed resolution placing the proposed ballot measure on the ballot for the November 2026 election.
Item 4.2:
Resolution Placing Utility Users Tax Renewal on November 2026 Ballot