Workshop agenda packet - Laserfiche WebLink

Page 5 of 16 training budget is assigned to public safety to meet required training and certifications. This budget also includes emergency operations training that ensures staff is prepared to respond during emergencies. The remaining travel and training budget ensures that City staff is trained and abreast of changing regulations and best practices to ensure compliance and high-quality service delivery to the community, as the City has a strong interest in maintaining a well-prepared and trained workforce. Pleasanton consistently pays salaries at the middle of the range for comparable cities (not at the high end of the range), and the City needs to be able to attract and retain high-quality employees to meet the needs and expectations of City leadership and the community. 6. Developing a Contingency (Reduction) Menu for Service Reductions In early 2024, staff presented a contingency menu to the City Council. The menu was developed to evaluate spending reductions across the organization. While no decisions were made, the menu provides an opportunity to see the kinds of reductions that will need to be considered to achieve a balanced budget. The menu was developed to include proposed reductions from every City department, leaving room for policy makers (elected officials) to guide and direct priorities as reductions are made (see the City Council Agenda Packet from May 21, 2024, at the link https://pleasantonca.portal.civicclerk.com/event/214/files/agenda/338). New Revenue Strategies and Sales Tax Measure PP In addition to reductions, the City has taken proactive steps to explore new revenue options heading into the next two-year budget, including: 1. Analyzing and Updating Fee Models (Development Impact Fees, User Fees, Credit Card Fees) The City studied potential adjustments to development impact fees (fees imposed on new developments), user fees for City facilities and services, and credit card processing fees. The City Council approved the revised fees in December (see the City Council Agenda Packet from December 17, 2024, at the link https://pleasantonca.portal.civicclerk.com/event/305/files/agenda/717). While development impact fees, which are restricted revenue sources, are used to fund housing and capital related projects that may indirectly reduce General Fund expenses, they will not come close to addressing the structural fiscal deficit. 2. Economic Development and Growth The City is continuing to support economic development efforts to bring new businesses and jobs to Pleasanton and expand the city’s tax base. Highlights such as the new Costco will bring much-needed new tax revenue; it should be noted that the revenue from the store is already reflected in the long-term financial projection. However, the City cannot rely on growth alone to solve the ongoing structural fiscal deficit. For example, recent changes in the real estate market, including a notable slowing in office building occupancy and development and the potential for commercial building property tax reassessments, will be another setback for the City’s budget. Also, development timelines can be lengthy and often unpredictable with environmental and procedural legal challenges, as illustrated by the Costco opening and development delays. The City’s Page 7 of 109