CITY COUNCIL REGULAR MEETING AGENDA PACKET

Page 12 of 14 Conclusion The City of Pleasanton is not unique when it comes to municipal organizations facing financial challenges. The City Council and staff have been proactively addressing this issue for years, and with very specific actions in the last 18 months; however, more impactful decision-making about the programs and services the City can support will continue as the next two-year budget process commences. The City has already taken significant steps to reduce the current fiscal year budget by $2.5 million and will continue to evaluate and implement all feasible cost-containment methods available, while also pursuing new sources of revenue. The City has advanced Measure PP to the ballot for voters to consider. Significant new revenue would help to stabilize the City’s General Fund budget. It would also provide the necessary time to ensure that as a full-service city that provides essential services and facilities, the City works in a fiscally responsible manner to sustain the services that residents say they value most: rapid 911 emergency response services, safe neighborhoods, quality streets and roads, maintaining and preserving our parks and open spaces, supporting local businesses, and programs for youth and seniors. Without significant additional revenue, serious cuts will need to be made to City services as part of the upcoming two-year budget. Even with new revenue, ongoing cost-cutting will be needed to address the ongoing structural deficit and ensure the City maintains a balanced budget. These recommendations will be presented for consideration by the City Council beginning in early 2025, once more is known about the outcome of Measure PP and the City’s year-end revenues and forecast. Next Steps The City will start developing its biennial budget for fiscal years 2025/26 and 2026/27 in the fall. Public engagement will be conducted to seek input from the community. After consulting with the community, additional cost reductions are expected to be incorporated into the upcoming two-year budget to address the City’s financial challenges. The proposed budget will be presented to the City Council in May 2025, and budget adoption is anticipated in June 2025. EQUITY AND SUSTAINABILITY Ensuring the City’s fiscal sustainability allows the City to continue providing services and programs to the community that benefit all residents – while not all residents use all City services at any given time in their life, as a full-service City, Pleasanton provides services that benefit residents throughout their lives, including services they may rely on in emergency situations. These services include programs to advance environmental sustainability by continuing to implement actions from the City’s Climate Action Plan 2.0 as well as public safety, recreation, community and economic development and other services that create a vibrant, livable community. OUTREACH The following is a timeline of actions that the City took to identify budget solutions, including reducing costs and exploring revenue options, to inform and engage the community: • Spring 2023: Due to insufficient funding in the City’s Capital Improvement Program, the Page 44 of 114