CITY COUNCIL SPECIAL MEETING AGENDA PACKET 2

3 various options for supplemental revenues since 2023, and supported placing a ½ percent sales tax revenue measure (Measure PP) on the November 2024 ballot. With Measure PP not passing, the City began working on developing the next two-year budget with significant cost-containment measures included. Specifically, all City departments were directed by the City Manager to provide options for cost savings, revenue enhancements, and service reductions. City Council Budget Development Priorities The City Council identified fiscal priorities at its January 9, 2025, budget workshop to guide the City's budget development process: 1. Community Engagement & Equity: Actively engage the community and seek input to promote a collaborative and transparent budgeting process. 2. Long-Term Fiscal Stability: Prioritize placing Pleasanton on a strong financial foundation for long-term fiscal sustainability over short-term outcomes. 3. Protect Core & Essential Services: Ensure the preservation of essential programs and services before considering funding for non-essential initiatives. 4. Prioritize Infrastructure: Maintain and enhance Pleasanton's infrastructure. Identify capital improvement projects and maintenance costs early in the planning process to ensure appropriate funding allocation. Budget Advisory Committee and Community Engagement In conjunction with comprehensive evaluation of City’s services and programs to identify potential areas of reductions, staff developed a public engagement plan to seek community input during the first three months of 2025. As part of the City’s engagement strategy, an 11-member Budget Advisory Committee (BAC) was appointed in December and has met three times, starting in January, with the fourth BAC meeting planned for April 2. The BAC's near-term responsibility is to provide input on community priorities related to program and service reductions to guide the City toward a balanced budget for the next two years. The City also hosted a Budget Town Hall, launched an online budget engagement tool, and hosted a pop-up at the farmer’s market to share information about the budget and programs and services provided by the City. These sessions included exercises to weigh in on potential service reductions. In addition, each City Council meeting since November has included at least one significant budget-related agenda item for discussion, and monthly special workshops were added to the City Council calendar to facilitate further City Council and public discussion of budget-related items. A summary of the Budget Town Hall engagement results was shared with the City Council at its March 18, 2025, meeting and is available at: https://pleasantonca.portal.civicclerk.com/event/308/files/report/1955. A complete summary of all budget engagement, including the BAC’s final recommendation and the results from the online budget engagement tool and farmer’s market event, is included as Attachment 2 to this report. Page 5 of 40