TITLE:
title
PROVIDE DIRECTION TO STAFF TO EXPLORE TWO CITY BALLOT INITIATIVES PERTAINING TO BUSINESS LICENSE REFORM AND TRANSIENT OCCUPANCY TAX
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DEPARTMENT: FINANCE DEPARTMENT
PRESENTED BY: ANNA ACOSTA-REYES, FINANCE MANAGER
CONTACT INFORMATION: (714) 754-5219
RECOMMENDATION:
recommendation
Staff requests that the City Council provide direction during the Study Session on the placement of the measure(s) on November 3, 2026, ballot.
1. Provide direction to staff regarding the placement of potential Business License Reform measure on the November 3, 2026, ballot.
2. Provide direction to staff regarding the placement of potential Transient Occupancy Tax (TOT) measure on the November 3, 2026, ballot.
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BACKGROUND:
At the December 2, 2025, City Council Meeting, the City Council voted to explore placement of two potential ballot measures, a Business License Reform and/or a Transient Occupancy Tax (Hotel Tax) increase on the November 3, 2026, ballot. The City Council's direction came after the Finance and Pension Advisory Committee (FiPAC) formally requested that the City Council authorize a comprehensive review and analysis of both the Business License Tax and Transient Occupancy Tax as sources of potential revenue for the City.
The City Council has identified long-term fiscal sustainability as a strategic priority and has discussed opportunities to diversify and stabilize municipal revenue sources to maintain essential public services and infrastructure. Rising costs associated with public safety, street and facility maintenance, parks and recreation programs, technology investments, and general municipal operations continue to place pressure on the City's General Fund (Fund 101).
The City's General Fund is comprised of various revenue sources: taxes, fees and charges for service, licenses and permits, use of money and property, and other sources. Among the taxes collected, the categories include property taxes, sales tax, transient occupancy tax...
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