Critical City Budget Information March 30, 2025

Our City's Future is in Your Hands!

The Budget Advisory Committee is contemplating $14.7 million in general fund service reductions. The preliminary budget will include significant cuts to community services such as the closure of Dolores Bengtson Aquatic Center, one fire station and a reduction in service days at the library and senior center, among other unpopular service reductions under consideration. Accuracy of City Staff's forecast has been verified by the public accounting firm, Eide Bailly.

On March 4 the City Council majority voted to withdraw $4 million over the next two years from the City's Section 115 Supplemental Pension Trust to minimize necessary budget reductions. Council Member Testa was the lone opposition saying, "It goes against all expert advice and is the essence of kicking the can down he road." The move by the Council has been controversial given this one-time measure was not recommended by the City's actuary and will only temporarily provide some immediate

financial relief.

Pleasanton's widely recognized public safety and recreational serices are among the reasons our community is one of the more desirable cities to live in and raise a family. Many of Pleasanton's city services and parks help provide a high quality of living in our community and support higher home values! Don't let Pleasanton backslide! Act now to learn more about the budget process at the City of Pleasanton Budget Development Website.

Severe City Budget Cuts Looming March 1, 2025

Engage Now to Voice Your Opinion!

Pleasanton leaders are reviewing a slate of proposed budget cuts designed to close a deficit of at least $10 million in the next two-year budget term. An appointed Budget Advisory Committee and a series of special meetings are scheduled in the coming weeks and months to prioritize a list of 28 proposed reductions that include:

Reduced police services that could extend response times for emergency and non-emergency calls

Closing one city fire station, reducing response time for emergencies

Closing the Dolores Bengston Aquatic Center, sites of the city's only public pools for recreation, swim lessons, and Pleasanton Seahawks practices and meets

Closing the library 2 days a week and reducing desk services

Reduced programming and hours at the Pleasanton Senior Center

Longer turnaround times for building plans, permits, and processing

Reduced youth camps at the library and Firehouse Arts Center as part of the reduction in overall programming.

Preserve our Critical Community Services

In November, Pleasanton residents will be asked to approve a 1/2-cent sales tax increase for ten years that will secure city services for the next decade. Without this increase, an annual $13 million deficit will seriously curtail the quality of life we've come to enjoy in Pleasanton.

This budget shortfall is not exclusive to Pleasanton. California is facing a $68 billion dollar budget hole. Cities up and down the state are facing the same issues that we are: the City of Orange, Benicia, Novato, San Francisco, and Oakland—which has the largest general fund deficit in its history at $345 million. Meanwhile, neighboring San Ramon residents will be voting for a full 1% sales tax increase in November.

Here in Pleasanton, massive cuts have already been implemented to the tune of $2.5 million. Departments have merged and positions have been frozen. Programs and capital improvement projects have been suspended. This is all in an effort to refrain from making cuts to the police and fire departments, critical to public safety.

There are numerous reasons contributing to this shortfall. Federal aid from the American Rescue Plan Act passed during COVID is now gone. Thankfully, Pleasanton didn’t rely on it as other cities did, but it was helpful. Along with inflation and increased salary contracts for public safety, we’ve also seen an $11 million drop in hotel tax revenue since the pandemic, and the decline of Stoneridge Mall over the years and the exit of major anchors and stores. That has resulted in less sales tax revenue for the city.

Meanwhile, COVID spurred the trend to remote work, which has impacted Pleasanton’s other economic engine, Hacienda Business Park, where property taxes are also down. Some 59% of our revenues come from these two sources — sales tax and property taxes. In short, we have a structural budget deficit where expenses are outpacing revenues.