Goal A. Financial Stability and Sustainability

New Strategy 1: Study and prepare for placement of a revenue measure for November 2022 election that addresses the expiration of the half-cent sales tax; or prepare for a $6 million in service cuts.

The City Council adopted Resolution 5879-22 on January 11, 2022, which authorized a contract with Godbe Research and TBWBH Props and Measures to assess the electoral feasibility of a revenue measure or revenue measures.  The scope of work in the agreement included Godbe Research designing, conducting, and analyzing an opinion survey of voters within Union City; and TBWBH evaluation of the polling data and recommending a final tax type, tax rate, duration, and tax structure.  TBWBH would prepare public information materials including fact sheets and talking points related to a potential revenue measure, and work with legal counsel to develop a resolution and ordinance calling for the ballot measure to be placed before the voters. The City Council staff report can be found here:

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

The City Council adopted Resolution 5888-22, January 25, 2022, authorizing the Mayor to appoint a two member Ad Hoc Subcommittee to evaluate and provide recommendations to the City Council on the placement of potential tax measures including a business license tax update and extension of the one-half cent sales tax.  The Mayor appointed Council Members Emily Duncan and Gary Singh to the Ad Hoc Subcommittee.  The City Council staff report can be found here: 

https://unioncity.novusagenda.com/agendapublic/CoverSheet.aspx?ItemID=3207&MeetingID=1548

The City Council accepted recommendations from the Ad Hoc Subcommittee on February 22, 2022, to proceed with a community survey for extension of the one-half cent sales tax, and to continue the analysis of a proposed update and increase to the business license tax for consideration at a future election cycle.  Based on the initial analysis of the business license tax data, the Council agreed that additional information and study was required to update the business license tax formula prior to bringing a proposed measure to the voters.  The City Council staff report can be found here:

https://unioncity.novusagenda.com/agendapublic/CoverSheet.aspx?ItemID=3251&MeetingID=1549

Godbe Research conducted a community survey March 8 through March 22, 2022, of likely Union City November 2022 voters. The purpose of the survey was to assess voter attitudes about the one-half cent sales tax and consider its extension in the November 2022 election.  The sample size of 435 respondents had a margin of error of plus or minus 4.65 percent. Details of the survey results are included in this staff report as Attachment 1.

Highlights of the survey include:

• 68.3 percent had a favorable rating of how the City is addressing the COVID crisis.
• 65.1 percent had a favorable rating of the City’s provision of services.
• 46.9 percent had a favorable rating of the City’s management or public funds, 30.5 percent had an unfavorable rating of the City’s management of public funds, and 22.6 percent had no opinion of did not know.
•  60.8 percent expressed initial support for extending the one-half cent sales tax until ended by voters, 29.6 expressed opposition to extension of the one-half cent sales tax, and 9.6 percent declined to state or did not know.
• The most popular attributes for extending the one-half cent sales tax included:
                o   Keep fire stations opened and fully staffed

o   Maintain street and pothole repair

o   Maintain paramedic services

o   Maintain fire protection services

o   Maintain neighborhood police patrols

o   Maintain emergency and disaster preparedness programs, including for a public health crisis

o   Maintain senior and youth programs

o  Maintain recreation programs, including the Sports Center, Kids Camps, and after- school recreation

• Support for the sales tax measure increased to 70.4 percent with 23.6 percent opposed and 5.9 percent undecided or declined to state after informational statements were read describing programs that would be funded by the tax.
• After various arguments against extending the tax until were read, voter support for extending the tax dropped to 57.8 percent, 33.1 percent opposed, and 9.2 percent decline to state or did not know.
• Voters responded most favorably to extending the one-half cent sales tax until ended by voters.  When surveyed for a 12-year term, the support dropped to 57.5 percent support.

The community survey indicates that there is public support for extending the one-half cent sales tax until ended by voters, especially for funding public safety, public works maintenance, programs for youth and seniors, and recreational programs. 

Next Steps

The next steps are to implement a communications and outreach plan to educate the community (see Attachment 2). In May and June staff will hold stakeholder meetings.  On June 28, staff will return to Council seeking authorization to draft an election resolution and sales tax ordinance and receive any feedback.  On July 12, staff will seek the final authority to place the one-half cent sales tax extension on the November 2022 ballot.  This action will require a four-fifths vote of approval by the City Council.  Should the Council proceed with placing the sales tax extension on the ballot, an independent advocacy group would need to be responsible for all communications thereafter.

The Alameda County Registrar of Voters deadline to receive the City Council Resolution and Ordinance for placement on the November 2022 ballot is Friday, August 12, 2022.  

There is no fiscal impact to the General Fund for the City Council to hear the polling results and the planned outreach program.  The City Council authorized funding the survey and community outreach program through the adoption of Resolution 5879-22 at the January 11, 2022, meeting.

Staff recommends that the City Council hear a report from Godbe Research and TBWBH Props and Measures on the March 2022 Survey of Union City voter attitudes on extension of the one-half cent sales tax, planned public information program, and ask clarifying questions.