Staff recommends that the City Council adopt a resolution authorizing the Mayor to appoint two Councilmembers to an Ad Hoc Subcommittee to evaluate and provide recommendations on the placement of potential tax measures on the ballot, including a business license tax and extension of the one-half cent sales tax.

Goal A. Financial Stability and Sustainability

Strategy: Develop a comprehensive fiscal sustainability model to address the General Fund’s long-term structural deficit.

Strategy (2021): Study and prepare for placement of a revenue measure for the November 2022 election that addresses the expiration of the one-half cent sales tax; or prepare for $6 million in service cuts.

Strategy (2021): Study the benefits and opportunities to update the City's business license tax for voter consideration.

Goal C. Economic, Community Development and Public Safety

Strategy: Analyze the feasibility of transforming warehouses to attract high-value industrial land commercial uses for the benefit of community.

The City Council adopted Resolution 5879-22 on January 11, 2022, which authorized the City to enter into an agreement with Godbe Research and TBWBH Props and Measures to provide professional services and surveying regarding future tax measures, including a business license tax and extension of the existing one-half cent sales tax.

Click below on the link below to access the January 11, 2022, staff report:

  https://unioncity.novusagenda.com/agendapublic/CoverSheet.aspx?ItemID=3191&MeetingID=1538

Members of the Ad Hoc Subcommittee will work with the consultants and staff to understand the potential fiscal impacts regarding a business license tax increase and consideration of extending the one-half cent sales tax.  The Subcommittee would also assist in reviewing the proposed community survey that would help the City Council understand voter attitudes toward each of the tax measures and help the City Council determine the timing for placement of each type of tax measure.

The Ad Hoc Subcommittee is expected to report to the City Council on March 8, 2022, to brief the Council on its work and obtain any final direction, if needed, prior to the consultants conducting the community survey.  The community survey should begin by March 14, 2022, in order to provide time to complete the survey, analyze the results, and prepare recommendations for the City Council to provide direction on the type of measure or measures to place on the November 2022 ballot for voter consideration.   

Based on the survey results, the Ad Hoc Subcommittee and the consultants would prepare a recommendation for the City Council in April 2022 on the type of tax measure or measures to place on the ballot, the timing for placement of the measures, identification of stakeholders, and informational effort. 

After the City Council provides direction regarding the type of measure or measures to place on the ballot, staff would begin to provide outreach and education to the community.  The City Attorney would prepare Resolution to place any proposed measure or measures on the ballot and bring the Resolution back for consideration at either the Regular July 12, 2022 or July 26, 2022 City Council meeting.  The City Clerk is required by law to notify the Alameda County Registrar of Voters by August 12, 2022, of the City Council’s actions for a ballot measure on the November 2022 ballot. 

There is no fiscal impact related to creating an Ad Hoc Subcommittee.

Staff recommends that the City Council adopt a resolution authorizing the Mayor to appoint two Councilmembers to an Ad Hoc Subcommittee to evaluate and provide recommendations on the placement of potential tax measures on the ballot, including a business license tax and extension of the one-half cent sales tax.