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.
Over the past twenty years, Pleasanton has made significant investments in its infrastructure and amenities, including large city parks, new theater and art gallery openings, and an historic park. These multimillion-dollar projects, while impressive, come with substantial ongoing maintenance costs and are not self-sustaining. However, less visible but equally important is the aging underground water infrastructure, including pipes and pumps, which is in need of urgent attention. To ensure clean and safe water for future generations of Pleasanton residents, it is crucial to address these infrastructure needs. For more details on this initiative, visit the City of Pleasanton's revenue measure feasibility page and the official city website.
We are a 130-year-old city, proud of our heritage and place in California’s history. But with it comes an aging infrastructure that our younger neighbors, Dublin and San Ramon — both 40-year old cities — don’t have to worry about yet.
Our city leadership has explored all the options and this appears to be the best. For more information, please visit City of Pleasanton.gov