Laserfiche WebLink
Page 6 of 14 <br />c. The City did adopt a new Economic Development Strategic Plan in 2023. There are <br />goals around updating rules and regulations to further streamline the process. These <br />changes will require significant staff time and financial resources, which unfortunately <br />are not fully available at this time. <br /> <br />3. Revenue Measure – A ½ Cent Sales Tax (Measure PP) <br />a. In July 2024, the City Council voted to place Measure PP: Pleasanton Essential <br />Services Protection Measure on the November ballot. The proposed measure, if <br />passed by voters, would increase the sales tax in Pleasanton by a ½ cent. <br />b. The City’s current sales tax rate is 10.25%, but only 1% comes to the City directly to <br />support services and programs. The remainder goes to the State, County, and other <br />taxing agencies such as BART. Prescription medicine and devices and groceries are <br />exempt from sales tax; rent, mortgage payments, utilities, and other items such as <br />goods transmitted electronically (music, books, movies, computer software, etc.) are <br />also exempt from sales tax. The proposed measure would raise approximately $10 <br />million per year in General Fund revenue, all of which would stay in Pleasanton and be <br />locally controlled. <br /> <br />Cities are required to have a balanced annual budget, with recurring revenues equal to <br />recurring expenditures in the adopted budget. While it may be appropriate to use one-time <br />money, such as pension trust funds or the sale of a property, to temporarily bridge the budget <br />gap, the City needs to identify ongoing revenues to sustain services and programs and <br />maintain a high quality of life for all residents. <br /> <br />Capital Improvement Program <br />Money in the General Fund does more than fund the operation of the City; it also supports <br />certain City infrastructure and facilities. The City’s Capital Improvement Program (CIP) is a <br />four-year program that plans for the costs to pay for the design, construction, and <br />maintenance of City projects and infrastructure. Capital investments are critical in building and <br />maintaining infrastructure to support a livable, vibrant community. <br /> <br />Infrastructure Funding Gap <br />Due to limited resources, the maintenance and upkeep of community assets are severely <br />underfunded. Pleasanton is not alone; cities around the state and country face similar <br />challenges related to insufficient funding for capital improvements and to deferred <br />maintenance. Infrastructure and facilities are aging because Pleasanton realized rapid growth <br />in the 1980s and 1990s when buildings, parks, streets, and many other community assets <br />were constructed. While the City has contributed significant resources to maintain these <br />assets over time and continued to add community assets since then, many are reaching the <br />end of their useful life, and funds have not been fully set aside to replace or rebuild <br />infrastructure and facilities. <br /> <br />In recent years, the City has aimed to contribute $5 million annually from the General Fund to <br />the CIP to support infrastructure, even though this goal cannot meet all the funding needs. <br />Due to financial constraints, the City has been unable to increase the $5 million target despite <br />inflation over time. And, it is important to note that this goal was only met in the last five years <br />Page 38 of 114