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The Pleasanton City Council will be reviewing the draft ballot language and related materials for a transient occupancy tax increase that could be placed on the November general election ballot.
City staff is seeking a green light from the council to finish drafting the ballot measure before bringing it back to the dais for approval.
This discussion comes nearly four months after the council expressed initial support for placing the hotel tax measure on this fall’s ballot.
“If the City Council chooses to direct staff to continue preparing the proposed ballot measure, staff will return at a subsequent meeting with a final resolution placing the measure on the Nov. 3, 2026 ballot,” according to the June 2 staff report. “That resolution will order submission of the measure to the voters, approve the ordinance in final form, and direct the City Attorney to prepare an impartial analysis.”
Last year the city began exploring the possibility of increasing its transient occupancy tax (TOT), or hotel tax, as a way to “secure new revenue for the City.” According to the city, a TOT tax is not paid by Pleasanton residents but by hotel and motel guests who are visiting.Â
These discussions came after a contentious budget development cycle that resulted in several cuts to a number of city departments.
“Approval of a TOT increase, combined with ongoing efforts to reduce spending, would help reduce the structural operating budget deficit and offset impacts on City services and programs that residents and business owners expect and rely on,” staff noted in Tuesday’s report.
The proposed measure would increase the city’s TOT rate from 8% to 10% starting July 2027. The measure also stipulates an additional increase from 10% to 12%, which would take effect the following year.
“The measure is expected to generate approximately $1.4 million per year in additional revenue once the 10 percent rate takes effect, and approximately $2.8 million per year once the 12 percent rate takes effect, all of which would remain in Pleasanton,” the report stated.
If placed on the ballot, the measure would need a simple majority (50% + 1) in order to pass.
The City Council meeting is scheduled to begin at 7 p.m. Tuesday (June 2). The full agenda can be accessed here.
In other business:
* The City Council will be voting on approving a new sewer rate structure, rate increases and updated sewer connection fees which are all part of the city’s newest financial planning framework designed to “develop cost-based, equitable rates that recover the cost of service across customer classes.”
According to the staff report, if approved by the council, single-family homes will see a nearly $30 increase to their bimonthly sewer bill. Ruby Hill residents will see a $46 increase in their bills.
Under the proposed 2027 rates, a “typical office or retail customer, categorized as ‘All-Other,’ ” will see a combined sewer bill increase of just over $270. Restaurants that use 154 units of water would also see a roughly $460 increase as well, according to staff.
The proposed rate changes will also affect Pleasanton schools, depending on whether they are submetered versus non-submetered. According to staff, schools with an average usage of 172 units per bimonthly billing cycle would see their bimonthly sewer bill increase from $849.68 to $1,002.76, a difference of $153.08 per billing cycle.
“Non-submetered schools with average usage of 1,394 units per billing cycle would see their bimonthly sewer bill increase from $6,175.42 to $6,523.92, a difference of $348.50 per billing cycle,” staff noted.
* During the consent calendar portion of Tuesday’s meeting, the council is poised to approve the employment contract between the city and Joseph Calabrigo, incoming interim city manager.
With Tuesday being outgoing City Manager Gerry Beaudin’s last meeting — his last day on the job is this Friday (June 5) — Calabrigo is set to take over starting next Monday following the approval of his contract.
According to the contract details, Calabrigo will be receiving a $25,000 monthly salary from the city. The city will not be providing the former Danville town manager with any benefits apart from workers’ compensation and a share of his Medicare tax.
* Staff will be seeking the council’s approval of the city’s 2025 Urban Water Management Plan and Water Shortage Contingency Plan.
According to staff, these plans are “required to be updated every five years and adopted by the City Council. They describe the City’s water deliveries and use, water supply sources, projected water demands through 2045, water supply reliability, and planned response actions during water shortages.”
