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Tensions were high during last Tuesday’s Pleasanton City Council meeting where the newly elected council majority tabled staff’s Budget Engagement Plan until their next meeting — a move that two council members did not agree with.
There were several points of contention during the Dec. 17 meeting about how the city should survey its residents and what kind of committees should take the time to dive deeper into the budget before staff ultimately bring a final two-year budget for approval in June.
However, one thing City Manager Gerry Beaudin made abundantly clear was that the city was already running thin on time and the way the meeting played out did not seem to help that fact.
“Every week that we wait compresses the time that we have to build the budget at the backend,” Beaudin said. “The more we slow our roll on this, the harder it is to build that budget.”
Staff originally came to the council on Dec. 17 with the goal of approving their “Budget Engagement Plan”, which aims to outline how the city will gather input from its residents regarding its upcoming financial challenges before developing its two-year budget for fiscal years 2025-26 and 2026-27.
The city has been warning its residents about how it’s facing a long-term general fund structural deficit of about $13 million every year for the next 10 years — that number could be as high as $22 million, if a recession hits, deputy city manager Alexa Jeffress said.
She also recapped how Measure PP failed in the polls this past election, which means the city will not have additional revenues coming in from a half-cent sales tax measure.
“Without that new revenue, we are facing tough decisions as costs continue to rise and revenues have not kept up,” Jeffress said.
Now, as staff begin the process of developing its next two-year budget, they want to create a plan that not only keeps the public involved in the process, but also allows them to provide input.
Staff want to develop the two-year budget based on council and community goals and priorities, which is why the conversation Dec. 17 centered on how the city will engage with its residents.
Staff proposed hosting a town hall where they can talk to residents about the city’s financial challenges and any new updates on the budget development process, which is one of the things Beaudin needs to happen because it is the best way to get raw input from the community.
The city also proposed using online tools to help get more data, surveying residents and hosting pop-up events at the farmers market for staff to engage with residents.
Councilmember Julie Testa was completely opposed to the idea of staff attempting to explain complex budget information to people rushing through the market and she also did not think the last community survey regarding Measure PP was a huge success, which is why she was concerned about the city putting out another survey.
Jeffress said staff have learned thanks to feedback from the past Measure PP survey and that they will plan to ask specific questions, but others like councilmembers Craig Eicher and Matt Gaidos still had their concerns.
“If we do a survey, it would be nice to have an open-ended survey to see what the community really has to say instead of steering them down where we think they might go,” Eicher said.
But even greater point of contention was surrounding one part of the engagement plan, which was to create a first-ever Budget Advisory Committee (BAC), made up of 11 representatives — one from each council district, representatives from local unions and representatives from other city stakeholders.
Jeffress said the BAC would provide a diverse and transparent forum for budget recommendations to the city manager and would help provide the city input on community priorities and strategies for program delivery in order to ensure a long-term balanced budget.
The idea was to approve the engagement plan and then right after, approve the establishment of the BAC along with the appointment of all 11 members, and then have the BAC kick off its first meeting on Jan. 15 in order to stay on schedule — ultimately, the BAC would collaborate with Beaudin to formulate budget recommendations for City Council approval in June.
However, instead of approving the staff recommendation to set up a Budget Advisory Committee and agree on the various community engagement plans, Gaidos and Eicher supported new Mayor Jack Balch’s substitute motion to have staff bring back alternate proposals during the next meeting.
Balch initially continued the BAC establishment saying he wanted to get more information and later on in the meeting, he proposed a council-driven ad hoc committee to replace the BAC.
“My purpose of continuing the Budget Advisory Committee is not (out of) malice,” Balch said. “My intention is so that this council has a heartbeat of a moment to strongly think about, and discuss … how it wants to put together its budget to serve the community and address the challenges we have in the most efficient, transparent and forthright way.”
Balch said the ad hoc committee could give advice on how the budget is formed, it could look at city’s fiscal policies in detail and it could look at how the 10-year budget forecast has been vetted so that they have a scope of the city’s challenges and problems in order to look for other viable solutions.
“My intent is that there are policy decisions that we need to make,” Balch said. “I believe that one of the reasons (Measure) PP did not prevail was a lack of trust … in the forecast.”
“I do propose that we consider a council-directed ad hoc committee to be formed immediately, that it meets regularly and the No. 1 task it must do … is to build faith and confidence, through transparency and legitimacy, of the forecast that we will use to direct how our city budget is compiled,” he added.
Balch volunteered himself and Gaidos to join the ad hoc committee and said he wants it to meet as much as possible, in a transparent manner.
“How do we form our city budget under constrained resources, that is our primary question being asked by us tonight,” Balch said. “A citizens group might have a very significant place in it, but at three meetings it is difficult to believe that 11 members, meeting three times, will be able to give me confidence that they have the detailed knowledge of the budget.”
But Testa did not agree with the idea of an ad hoc in the slightest, saying the BAC should have been approved that night.
“We want community engagement, but this is a topic that I think is better served by that committee,” Testa said
She also didn’t agree with Balch’s idea that the recent election served as almost a survey in and of itself, showing how the community felt.
“I disagree that the election … replaces community engagement,” Testa said. “I would want a process where I know that information is accurate and biased and I don’t believe the election provided that.”
She finally said she was uncomfortable with how Balch and Gaidos spoke outside of the council room beforehand on proposing an ad hoc committee — Gaidos confirmed this during the meeting — and asked the two if they would have felt comfortable if the ad hoc was made up of her and Nibert.
Nibert also said he thought the community expressed the desire for such an advisory committee during the past election cycle and was confused why the council majority was supporting the ad hoc committee instead.
“It’s a method for the council to try to do more precise work on the budget, gain knowledge and then, obviously, all council members would need to be updated … informed,” Balch said about the ad hoc proposal. “It is not intended to (not inform) certain council members in any way, shape or form.”
Gaidos also added that he suggested to Balch that other council members should join the ad hoc but that as a person who supported Measure PP, he saw himself as a consensus builder who wanted to be as informed about these future budget decisions as possible.
“If we’re ultimately going to be the body that is being asked to vote on a budget that could potentially change the way the city services its residents, I want as much information going into that process as absolutely possible,” Gaidos said.
Nibert also criticized the formation of an ad hoc committee and said the only fair motion the council could have made that night was to approve the original staff recommendation.
“It just seems to me that delay is denial,” Nibert said. “(The) Budget Advisory Committee, to me, is meant to do all the things that have been proposed in the ad hoc committee.”
Eicher, however, also agreed with Balch and Gaidos in that he thought the nimbleness of the ad hoc being able to meet more often would benefit the community more than the BAC, which is why he also sided with Balch’s substitute motion.
In the end, staff will bring back different alternatives for its engagement plan, including Balch’s alternate plan of forming the ad hoc committee and hosting a town hall along with other council workshops. Balch also said another alternative would be having the entire council more involved in the ad hoc committee and more vigorous council workshops.
While Beaudin said staff will be able to bring the recommendations back on Jan. 9, in doing so it will change staff’s original timeline. He said even if the council scratches the ad hoc committee and decides to go with the BAC, the advisory committee will have one less meeting day either way.
Draeger’s Market closing store in Blackhawk, cites ‘declining condition’ at plazaJanuary 9, 2026 4:37 pm
I remember when I had the freedom to write an email to a department manager and ask how many people were fined for wasting water, and what the fines were. My email received a response almost immediately, with questions answered.
Today, when I write an email to a department manager, I receive a reply to fill out a form, to submit the form. I accept this as someone in the administration controls information, and does not want to be transparent with me.
City staff along with the council have a responsibility to facilitate open and honest dialog, encourage transparency, and ensure everyone has a chance to voice their opinions and concerns.
Shared goals and interests can serve as a foundation for collaboration. Diverse viewpoints can be an advantage, leading to more innovative solutions and robust decision-making. Skilled negotiation can turn a contentious issue into a win-win solution.
Thank goodness the people of Pleasanton spoke up as dramatically as they did in this last election. It’s not hard to imagine the entire Council would have turned over, not just a majority, had Testa and Nibert also been on the ballot. And Testa suggests they form a Council subcommittee on the budget! The people of Pleasanton are simply asking whether the past Council took enough responsibility for fully understanding the budgets they approved. The fact that Measure PP was put onto the ballot because staff represents (then and now) that we face a $13 million annual deficit — without explaining how this squares with surpluses of $14 million and $11 million at the end of the past two years. Mayor Balch and seemingly a majority of the new Council are willing to do the job asked of them. Don’t simply tell the community the same things as before and then ask what should be cut. Instead, ask the more important questions as Council Members. How is the budget constructed? What are the revenue assumptions and why are those used? Why aren’t all available funds projected to be used going forward? How are historical revenue and expenditure numbers actually used to predict the future? Has the input of outside consultants actually been applied to building the budget or instead ignored? The only way these critical details can be discussed and applied is not through three public meetings with staff presenting the same old “facts” but instead by having our City Council take ownership of building a budget and then take full responsibility for it. Let’s let them get on with their jobs.
Concerned Reader: Spot on!
Did anyone else find it uncomfortable and inappropriate when Councilwoman Testa accused Councilman Gaidos of discrimination? If you missed it, Gaidos mentioned a strategy created by John Wooden, a former basketball coach and motivational speaker, and gave Wooden credit for his thinking. At that time, Testa asked him not to do that because she doesn’t follow sports. When Gaidos explained and apologized for any unintended offense, Testa said “I’m the only woman on the council.” Suggesting that she was discriminated against because women don’t follow sports….I guess? Her reaction and accusation came across as unprofessional and weird. The scenario would be different if Gaidos assumed because Testa is a woman she’d know nothing about sports. To be clear, John Wooden is a legend in sports, but many people are more familiar with his books on business and leadership. I do not believe Gaidos was assuming everyone on the Council is a UCLA basketball fan. It was a disappointing moment for Testa.
Concerned Reader, I couldn’t agree more with your comments.
PF, I had the same thought with the way Testa handled Gaidos comments. There didn’t appear to be malice in his comments. My impression was that she was realizing that she was no longer part of a super majority. Since compromise and finese aren’t her strengths, it could be a long 2 years for her!
The other item that was odd was Nibert voting NO on committee assignments as he felt shorted. Yet he was named as Vice Mayor as part of the assignments. Why would he vote against himself being Vice Mayor?
Hopefully there’s some ability to work together as they haven’t gotten to the tough decisions yet!
If in fact a structural deficit exists, then it would seem to me the time has come to take a hard look at factors contributing to the growth in operating expenses. One area to examine is the growth in the number of highly compensated managerial positions including Deputies and Assistant Directors, in addition to department heads. It appears many of the departments have these.
https://www.cityofpleasantonca.gov/assets/our-government/human-resources/salaries-benefits/Management%20and%20Confidential%20Control%20Points%20-%20September%202023.pdf
What I’m wondering are:
– Has the growth of well-compensated positions simply outpaced revenue streams?
– Are all of these positions truly needed to run the City’s administration? Assuming the positions were justified at one time, are they still?
– Could it be time to consider a headcount reduction in the managerial ranks? (Most residents in private industry are familiar with periodic headcount reductions to bring hiring into line with the enterprise’s ability to pay.)
– Who in the City has the ability to ask such questions and take on such a task?
Concerned reader hit the nail on the head!
Seems like Testa and Nibert are going to have a tough couple of years if they don’t begin to listen and understand compromise, something they have not had to do in the last several years.
Pleasanton Female I couldn’t agree more. What exactly was her point? There was nothing wrong with what Gaidos said. Maybe Testa should read one of Wooden’s books on business and leadership.
Of the 12 City open positions currently posted, with the EXCEPTION of Public Safety and Utilities, what happens if the remaining 5 positions are simply not filled?
Can others in those departments take over the duties?
It would seem to me that when the City is operating under a structural deficit, these are the types of questions that need to be asked.
Shouldn’t that be done before going to the public for a revenue increase?
https://www.governmentjobs.com/careers/pleasanton?page=2
Over the previous four years, the city of Pleasanton administration has suffered information inadequacy. This refers to situations where the information available is insufficient, incomplete, or lacking in quality to make well-informed decisions or understand a topic fully. This is for various reasons.
Lack of data, There might not be enough data available on a particular subject.
Inaccurate information, The data that is available could be incorrect or unreliable.
Biased information, The data might be presented in a way that favors a particular viewpoint, leading to a skewed understanding.
Complexity, Information might be too complex or technical for the intended audience to understand without proper explanation.
Outdated information, The data might be old and no longer relevant or accurate due to change over time.
Information inadequacy can lead to poor decision-making, misunderstandings, and ineffective problem-solving. That’s why it’s important to ensure that the information we rely on is accurate, comprehensive, and up-to-date.
Mayor Balch is choosing to sink a citizens’ Budget Advisory Committee and instead opt for a two member Ad Hoc committee because he isn’t interested in a process that has robust public engagement or space for disagreement. Rather than choose to fold community members’ opinions into the budget making process, the Mayor is choosing to hijack the process for himself because he rather not be burdened with consensus building. This is very concerning to all Pleasanton residents! The December 17th City Council meeting was a shocking first-impression of our new Mayor. I do not think he will strive to be a community builder. Mayor Balch will only be a community breaker who chooses to silence community input because he is a CPA and knows better.