Pleasanton nixes charter city tax plan

Pleasanton City Council shelves potential 2026 ballot measure to boost real estate tax revenue amid continued budget uncertainty; Citizens-led bond measure is ramping up in San Leandro

An idea for Pleasanton to become a charter city, first backed by Pleasanton Councilmember Julie Testa, was dismissed by the city council on Tuesday night.

☕️MORNING BUZZ

—Pleasanton tentatively planned a novel way to greatly increase revenues for flagging city budget: Become a charter city for the purpose of significantly increasing its Real Estate Transfer Tax (RETT) revenues.

But on Tuesday night, the Pleasanton City Council rejected a proposal to begin work on a 2026 ballot measure that would ask voters to approve the switch from a general law city to a charter city.

Under California law, general law cities must follow the state’s Government Code, while charter cities, approved by local voters, have more autonomy over municipal affairs—including taxation.

A council majority—Mayor Jack Balch, Councilmembers Craig Eicher and Matt Gaidos—also declined to direct staff to study the feasibility of a ballot measure to raise the city’s real estate transfer tax, which is paid by both the buyer and seller during a property transaction.

Raising Pleasanton’s RETT would only be possible if voters first approved the charter city transition.

“The primary purpose, at this time, would be to address our financial situation in a meaningful way,” said City Manager Gerry Beaudin, referencing the city's ongoing budget pressures.

But councilmembers expressed doubts about voter support for a tax increase, especially after Measure PP, a proposed half-cent sales tax, was resoundingly defeated in November.

A charter measure might pass, said Gaidos, but a transfer tax measure likely won’t—not in the current political environment. “We’d be setting ourselves up to win the battle but lose the war.”…

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—More inside:

• CITY NEWS: More on Pleasanton’s charter measure and RETT increase falling flat.

• San Leandro citizens group is eyeing a $150 million bond measure as the city continues to grapple with aging infrastructure.

• A Livermore councilmember urged for balance in Bay Area growth; pushed for a legislative policy to prevent job-heavy cities like San Francisco from shifting housing burdens onto suburbs.

• (Video clip) Livermore councilmember’s “community report” morphed into a story about returning expensive tomahawk steaks to Costco, and other food-related comments.

• COUNTY NEWS: Alameda County awaits fallout from House-approved Medi-Cal work requirements.

• Alameda County already has the highest cumulative sales tax rate in the state, which might dissuade support for a prospective regional sales tax measure in 2026.

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