Title
Adopt a Motion Directing Staff to Either: A) Continue to Explore Potential Revenue Measures That Could Appear on the November 2026 Ballot including a Consulting Services Agreement With Clifford Moss for Outreach and Survey Work to Consider Feasibility; or B) to Cease All Efforts Associated With Placing a Revenue Measure on the November 2026 Ballot
Staff report
SUMMARY AND RECOMMENDATIONS
This report provides information on a potential survey and to study community support and feasibility of potential revenue measures on the November 3, 2026 ballot. Staff recommend Council decide whether to direct staff to proceed in the effort to explore potential revenue measures that could appear on the November 2026 ballot including a consulting services agreement with Clifford Moss for outreach and survey work to consider feasibility, or to cease staff efforts and the use of additional resources.
BACKGROUND
At the February 1, 2025 Special Meeting and Annual City Council Planning Session, there was support from the Council to explore a potential City sponsored revenue measure to assist in creating a sustainable fiscal future for the City and potentially fund vital infrastructure projects.
During the FY 2026-2027 Biennial Budget process a proposal was made by staff to the City Council to appropriate approximately $500,000 in the General Fund to support expenditures related to engaging consultants to conduct feasibility survey(s), and outreach and research work surrounding the viability of placing potential revenue measures on the November 2026 ballot. At that time, Council expressed concern about adding additional expenditures to a General Fund budget that was projecting a use of reserves to balance and asked staff to return when a clearer picture of the General Fund balance at the close of FY 2025.
DISCUSSION
Preliminary unaudited numbers indicate that the City did not end the year with a surplus in the General Fund, but rather a use of General Fund reserves. The City estimates finishing FY 2025 with a projected use of approximately $15 million of General Fund reserves, which includes carryovers totaling just over $9.1 million. While this is significantly less than the budgeted use of nearly $21 million in reserves when the FY 2025 budget was adopted, it is still expending more funds than projected revenues received, thereby tapping into General Fund reserves during a time when the City projects a multi-year budget deficit. Additional summarized information can be seen in Attachment A.
Prior to having these year-end estimates, staff sought and received a proposal for the work described above to poll the San Leandro community to gather input and gauge support for a potential revenue measure on the November 2026 ballot. This work would include a survey similar to those completed by the City when assessing feasibility of ballot measures in previous years.
Staff seeks direction from Council as to whether it should continue efforts to identify potential options for Council to consider and if Council would like to direct staff to engage Clifford Moss to complete the survey to inform the Council on feasibility relating to a potential revenue measure on the November 2026 ballot.
Fiscal Impacts
Should Council direct staff to proceed with the efforts to explore placement of potential revenue measures on the November 2026 ballot, there are sufficient funds available under an existing purchase order and contract with Clifford Moss to fund the $92,000 request.
ATTACHMENTS
Attachment A - Preliminary General Fund Unaudited Year End Results
Attachment B - Presentation
PREPARED BY Dustin Claussen, Deputy City Manager
Nicole Gonzales, Finance Director