Council approves tax-rate steps, setting ad valorem rate at 0.577011 amid 4–3 split

Pleasanton council members voted in favor of two tax-related actions at their Sept. 10 workshop: (1) accepting a proposed increase of 0.078241 over the calculated no-new-revenue tax rate and (2) setting the ad valorem tax rate at 0.577011 per $100 of taxable valuation.

Brad Chambers presented the calculated no-new-revenue rate of 0.498770 and the proposed ad valorem rate. Chambers said the city has kept the same tax rate since 2021 and described broad cost pressures: "Since 2021, inflation across the country has increased by approximately 22 to 23%" and "the city has had to absorb those increases while operating with the same property tax rate since 2021." Chambers gave an example of homeowner impact, saying the proposed rate would result in an annual city property-tax bill of about $1,173.64 (about $97.80 per month) for the average home value cited.

Council discussion before the votes centered on alternatives to raising taxes, including selling portions of the city's 500-acre holding, pursuing voter-approved bond packages, and reallocating capital improvement funds. Opponents warned that a tax increase this year could limit options for a voter-backed bond in the next 2–3 years, while supporters said delaying action would risk service cuts.

Both tax motions carried by 4–3 votes. Councilmembers who opposed the tax moves said their "no" votes reflected preference for alternatives and further financial reconciliation rather than a lack of confidence in staff. Chambers and others said they will continue work on implementation details and communicate next steps and timelines to council and the public.