Title
City Council Consideration and Possible Future Action to Place a Measure on the November 2026 Ballot and Resolution to Authorize an Amendment to the Existing Consulting Services Agreement with Clifford Moss and an Additional Appropriation of up to $185,000 using Undesignated Reserves for a Total Not to Exceed Amount of $283,000
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommend the City Council:
• Receive the attached presentation that summarizes the results from the March 2026 scientific survey related to potential revenue measure options that could appear on the upcoming November 6, 2026 ballot, and
• Direct staff to proceed forward with community outreach and engagement efforts associated with exploring the viability of a business license tax modernization, and
• Adopt the attached Resolution appropriating up to $185,000 to conduct community outreach associated with the above efforts
BACKGROUND
The City Council has discussed numerous strategies to close the City’s General Fund structural budget deficit while also exploring new revenues to maintain and improve infrastructure. Budget balancing strategies have included efforts to reduce the City’s expenditures, explore alternative service delivery options, as well as identify ways of generating new revenue. The biennial budget for Fiscal Years 2026 and 2027 and the upcoming mid-cycle update process include numerous long-term cost-saving measures.
As noted above and in alignment with direction provided by the City Council at the December 15, 2025 City Council meeting, the City entered into a consulting services agreement with a third-party vendor to conduct a scientific feasibility survey to gauge potential voter support for a variety of revenue measure options and to provide a quantitative assessment of the survey results. Then at the February 17, 2026 City Council meeting, the City Council directed staff to work with the engaged consultant to conduct a poll of the following potential revenue measures:
• Business License Tax Modernization;
• Parcel Tax; and
• Questions to test viability of a vacant property tax.
Analysis
As noted in the attached presentation, public opinion survey results indicate the greatest level of likely voter support exists for modernizing the City’s Business License Tax, with future proceeds of such a tax to be prioritized towards protecting and maintaining local services such as:
• Repairing potholes and rehabilitating City streets;
• Maintaining neighborhood police patrols; and
• Repairing/maintaining critical public safety infrastructure to ensure rapid emergency medical/ fire response.
As a result of the above, staff recommend that the City Council direct staff to proceed forward with community outreach and engagement efforts that could lead to the potential placement of a revenue measure on the November 2026 ballot that would modernize the City’s Business License Tax. Since no funds for this work were included in the adopted FY 2025-26 citywide budget, also included in the agenda packet for this item is a City Council Resolution authorizing an appropriation not to exceed $185,000. Examples of the type of work these funds would pay for include: development and distribution of community outreach informational mailers and related postage costs, non-scientific survey work, and online informational messaging. If such appropriations are authorized, city staff will actively seek to constrain costs as much as feasible, with unspent funds restored to fund balance.
Fiscal Impacts
Council approved funds for the consulting leading up to and including the survey that is being presented as part of this agenda item. Should the City Council desire for staff to conduct additional outreach to the community, including to local business owners and other community stakeholders, additional funding will be necessary. Consistent with the information presented to City Council at the December 1, 2025 City Council meeting, staff estimates such costs could fall within the order of approximately $185,000, as outlined above. Accordingly, a resolution has been included in this agenda item that would appropriate up to $185,000 from undesignated fund balance that would be used to fund an amendment to the existing consulting services agreement with Clifford Moss, in a total amount not to exceed $283,000.
If a business license tax were ultimately placed on the ballot by the City Council via a future action prior to August 2026, and that measure were adopted by voters, staff estimates it could generate approximately $4.3 million in additional General Fund revenue per year.
ATTACHMENTS
A: Presentation
B: Resolution Authorizing an Appropriation Not to Exceed $185,000
PREPARED BY:
Eric Engelbart, Deputy City Manager, City Manager’s Office; and
Dustin Claussen, Deputy City Manager, City Manager’s Office