Item Number: 7
City Council / Board of Directors
Written Communications
Meeting of: May 19, 2026
Submitted By:
Keith C. Metzler, City Manager
Subject:
General Transaction and Use Tax - Infrastructure and Public Services Recommendation:
That your Honorable City Council direct staff to proceed with the next steps that will place a 1% sales tax measure on the November 2026 ballot.
Fiscal Impact:
No fiscal impact associated with this item at this time.
Strategic Plan Goal:
This item aligns with Goal A, Financial Sustainability, which focuses on fostering fiscal health through disciplined long-term planning, cost control and increased revenues.
Background:
At the regularly scheduled meeting of November 18, 2025, staff were directed to begin the steps necessary to place a general transaction and use tax measure on the November ballot. It also directed staff to develop a plan that evaluates the need for a new tax measure and retain outside help with communications.
Discussion:
Since that time, staff retained Tripepi Smith and FM 3 to both help develop a communication program and to conduct voter surveys to determine voter sentiment about a new tax measure. Staff also assembled an internal team from the executive and leadership teams, along with members of our aspiring leader’s talent development team to evaluate public infrastructure deficiencies throughout the city and then determine if sufficient funding exists to adequately solve our public infrastructure deficiencies. The enclosed infrastructure analysis evaluated the necessary infrastructure to expand public safety services (police, fire and paramedics) to improve and preserve ground water 4 7
1 0
quality and supply, repair streets, potholes, and improve roadway safety, increase parks, recreation and children’s play spaces.
In summary, the infrastructure needs analysis calculated an estimated $865 million in infrastructure needs and a plan that could fund up to an estimated $404 million within the first 10 years of the measure. Broken down, that plan could include:
1. Police and Fire Stations $108.1 million
2. Roadway and Safety Improvements $169.6 million
3. Stormwater / Water Quality $36.6 million
4. Parks, Recreation and Children Play Space $40.7 million
5. Reliable Groundwater Supply $48.9 million
All infrastructure improvements were analyzed to include only those improvements that are necessary before we can further enhance our public services. As an example, police, fire and paramedic response times, due in large part to our population growth, can’t be further improved until facility space is constructed to be able to house the public safety responders. In closing, this report concludes that there is a need for additional funding if the public wants to experience an enhancement to our public services. Accordingly, staff believe it is appropriate that currently the Council consider placement of a ballot measure and include our registered voters in the decision-making process. Staff will remain available for any questions or comments you may have.
Prepared By:
Melissa Williams, Administrative Analyst
Attachments: A. Infrastructure & Service Expansion Needs Analysis