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It’s been less than a year but the Pleasanton City Council and senior staff already is discussing another tax increase.
The council, with its three new members, could not reach consensus last Tuesday on whether to spend money polling the community on its appetite for another tax increase (sales tax, parcel tax, hotel tax, or property tax) to close its multi-million structural budget gap. The prior council spent a hundreds of thousands on polling and related services and then ignored the key recommendations and moved ahead with an unsuccessful sales tax increase.
The council ended up deciding to consider a hotel tax. This is an easy one. For the most part, it’s paid by visitors and most people do not even consider the tax when making a reservation. Some savvy folks, when it comes to airport franchise tax on rental cars (members of my family among them) often price renting from in-town outlets as opposed to the airport when the tax is routinely double digits and often kisses 20%.
Putting this forth should be easy, but the council must rebuild trust with the community—54% rejected the sales tax increase—a sharp contrast with San Ramon where a similar tax increase easily won voter support.
A key portion of that credibility will be concrete steps to drive economic development in the city. The Stoneridge mall, as we’ve known it for most of its 40-plus years is dead. Smart redevelopment that meets community needs and goals as well as landowners’ will be critical for an incredibly valuable land at the intersection of two interstate freeways. That location was cited by investors who bought the land beneath the Nordstrom store two years ago.
Some progress there would be welcomed by residents, particularly since Workday, one of the city’s largest employers, has put part of its adjacent campus for sale.
I’ve been seeing a lot and reading about Cracker Barrel’s rebranding disaster. I can’t say I’ve ever eaten at the establishment—the nearest one is in Rocklin east of Sacramento. We also missed out our trips to Memphis to visit our daughter when she was living there—she said she limited her visits to one.
I was struck by CEO Marcus Lemonis, who, among others, said it isn’t a logo issue—it’s a quality/quantity of food issue.
That struck a chord with me. I went by the Stanley Boulevard McDonalds to grab a quick breakfast sandwich last week and took advantage of the “value menu” for a sausage biscuit. I didn’t look carefully enough to realize there was no egg on the sandwich, but what struck me more is how tiny they were.
Food companies have been shrinking packaging or quantity for years to maintain margins while not jacking up prices—remember a true 32-oz half gallon of ice cream vs. the 1 ½-quart that is standard today or the 16-oz package vs. today’s 13-ounce. The tiny McDonald biscuits would have finished a poor second when laid against a three-pack of sliders that are popular these days. Two bites did it.
I remember feeling the same when I had another breakfast sandwich from the non-value menu at Big Macs.




Hotel taxes—also known as lodging levies, or transient occupancy taxes can influence where travelers stay.
Pleasanton hotel taxes are 10.25 percent. Pleasanton keeps 8 percent, and the balance goes to the county, ET EL.
Dublin hotel taxes are 10.25 percent. Dublin keeps 8 percent, Livermore is 10 percent, Livermore keeps 8 percent, San Ramon is 9.75 percent, keeps 7.25 percent, and Danville is 8.75 percent, keeps 6.50 percent.
Peasanton takes in $5 million a year with hotel tax, Dublin $1.53 million, Livermore $3.78 million, San Ramon $2.13 million, and Danville $146,000.
If Pleasanton is successful in getting voters to approve a one or two percent increase, it may deter families that would spend a weekend in Pleasanton during the fair or other events. Pleasanton would also become the tax capital of the world.