Workshop agenda packet - Laserfiche WebLink

Page 6 of 16 recently adopted 2023 Economic Development Strategic Plan (see link at https://www.cityofpleasantonca.gov/assets/our-government/economic- development/2023-economic-development-plan.pdf) includes goals around updating rules and regulations to further streamline the process. These changes will require significant staff time and financial resources, which unfortunately are not fully available at this time. 3. Revenue Measure –½ Cent Sales Tax (Measure PP) The City’s current sales tax rate is 10.25%, but only 1% comes to the City directly to support services and programs. The remainder goes to the State, County, and other taxing agencies such as BART. After extensive community engagement and a comprehensive evaluation of other revenue options (hotel tax, property transfer tax, general obligation bonds, utility users tax, assessment districts, etc.), in July 2024, the City Council voted to place Measure PP: Pleasanton Essential Services Protection Measure on the November 2024 ballot; the measure did not pass. If the measure had been successful, the City would have raised approximately $10 million per year in General Fund revenue, all of which would have stayed in Pleasanton and been locally controlled (see the City Council Agenda Packet from July 16, 2024, at the link https://pleasantonca.portal.civicclerk.com/event/139/files/agenda/469). Prior Budget Update Presentation to City Council On September 17, 2024, the City Council received an update on the state of the City’s budget in preparation for the development of the next two-year budget (see the City Council Agenda Packet from September 17, 2024, at the link https://pleasantonca.portal.civicclerk.com/event/302/files/report/613). This report expands upon and updates that report, with additional information to help the new councilmembers and the public understand the City’s financial challenges and the decisions that lie ahead. DISCUSSION Budget Overview Budgets and Budget Process A budget is a financial plan that projects revenues and expenditures for a set period of time. The City’s budget reflects the following: • The strategic goals and values of the City Council and community • Community priorities • Operational needs • Long-range financial plan. The guidelines and standards issued by the Government Finance Officers Association (GFOA) and Governmental Accounting Standards Board (GASB) guide the development of the City’s budget. The City operates on a two-year budget cycle with each fiscal year beginning on July 1 and ending on June 30. In the second year of a two-year budget cycle, the City starts developing Page 8 of 109