TO: CLAREMONT CITY COUNCIL
FROM: ADAM PIRRIE, CITY MANAGER
DATE: MARCH 10, 2026
Reviewed by:
City Manager: AP
SUBJECT:
Title
CONSIDER PLACING A LOCAL SALES AND USE TAX MEASURE ON THE NOVEMBER 2026 BALLOT (FUNDING SOURCE: GENERAL FUND)
Body
SUMMARY
The purpose of this staff report is to inform the City Council on the process and cost to place a local sales and use tax measure on the November 3, 2026 ballot, and provide an analysis of the potential impacts of other public agencies considering sales tax measures.
RECOMMENDATION
Recommended Action
Staff recommends the City Council:
A. Discuss a potential local sales and use tax measure; and
B. If the direction is for the City to pursue a local sales and use tax measure, authorize the City Manager to enter into an agreement with Fairbank, Maslin, Maullin, Metz & Associates (FM3) in an amount not-to-exceed $37,750 to conduct research and polling consulting services; and
C. Direct staff to bring back the necessary documents to place a local sales and use tax measure on the November 2026 ballot for City Council consideration at a future meeting.
Body
ALTERNATIVES TO RECOMMENDATION
In addition to the recommendation, there are the following alternatives:
A. The City Council may direct staff to pursue a local sales and use tax measure without the benefit of hiring a Research and Polling consultant.
B. The City Council may direct staff to not pursue a local sales and use tax measure at this time.
FINANCIAL REVIEW
The City’s current sales and use tax rate is 9.75 percent and is estimated to yield approximately $10.4 million in General Fund revenue in 2026-27. A one cent sales tax measure is estimated to yield an additional $6.7 million in annual General Fund revenue. This additional revenue could be used to enhance several of the priorities and objectives that have been identified by the community and the City Council, including park and facility improvements, enhanced maintenance of City infrastructure, and new/expanded programming. If approved by Claremont voters in November 2026, the effective date of the proposed sales and use tax would be April 1, 2027, with the first monthly advances received in June 2027.
Using the estimation tool on the County’s website, the projected County elections costs for three City Council seats (Districts 2, 3 and 4) and one local ballot measure for all five districts is $198,036.67, broken down as follows:
At-large Ballot Measure - $110,988.57
District 2 Seat- $28,063.82
District 3 Seat - $25,277.93
District 4 Seat - $32,496.35
Election Preparation Cost (Flat Rate) - $1,210
Additionally, staff time would be required for public education and outreach, as well as associated administrative and coordination efforts.
The City Council may also consider hiring a Strategy and Communications consultant to support these efforts. This consultant would provide specific recommendations on tax rate, tax structure, ballot measure features, and messaging. The consultant would also design educational material tailored to Claremont’s diverse stakeholders and would be available to present information and updates at City Council meetings.
It is recommended that the City Council authorize polling and receive the results prior to discussing the need for a Strategy and Communications consultant. Staff estimates the cost of engaging a consultant for five months (April through August) is $37,500 with an additional cost of $25,000 - $40,000 for printing and mailing informational materials. As election costs and staff/consultant time associated with a sales tax measure are not currently budgeted, a funding appropriation would need to be approved by the City Council should it move forward with placing a measure on the ballot.
ANALYSIS
Background
At the City Council Priorities and Objectives Workshop held on January 31, 2026, the City Council expressed interest in receiving additional information on placing a local sales and use tax measure on the ballot for the November 2026 election. The purpose of this staff report is to inform the City Council on the process and cost to move forward, and to provide an analysis of the potential impacts of other jurisdictions’ potential sales tax measures.
The City’s current sales and use tax rate is 9.75 percent. From this 9.75 percent, the City receives 1 percent in General Fund revenue, which is used towards general City services (i.e., public safety, recreation/special events, administration, community development, etc.). The City also receives a portion of funding from County tax measures, which are detailed below (Propositions A and C; and Measures A, M, and R). These allocations, however, are not General Fund and are each deposited into a Special Revenue Fund to be used for specific purposes as designated by each proposition/measure. Since the local return amounts for the County propositions and measures are based on population and other factors, only a relatively small portion of what is generated in Claremont is allocated to the City to benefit non-General Fund purposes. Staff estimates that the City receives between 20 and 25 cents for every dollar collected in County transportation taxes (Propositions A and C, Measures M and R) within the City. There is no local return allocation for Measure A, which is intended to fund affordable housing and homeless services, therefore the City receives an even smaller annual allocation compared the amount collected in Claremont.
The total rate in Claremont of 9.75 percent is allocated as follows:
|
|
Rate |
|
State General Fund |
6.25% |
|
City of Claremont |
1.00% |
|
Proposition A (Transportation) |
0.50% |
|
Proposition C (Transportation) |
0.50% |
|
Measure R (Transportation) |
0.50% |
|
Measure M (Transportation) |
0.50% |
|
Measure A (Homelessness) |
0.50% |
|
Total |
9.75% |
The State maximum for total sales and use tax is 10.75 percent. As noted above, Claremont’s sales and use tax is currently 9.75 percent, leaving room for up to a one percent (or 1 cent) increase within the State cap. Should the City Council direct staff to bring back the necessary documents to place a local sales and use tax measure on the November 2026 ballot, it would be a general purpose tax, requiring the approval of a simple majority of Claremont voters. If approved by voters, a one cent local sales tax measure would provide approximately $6.7 million annually in direct revenue to the City of Claremont. This locally-controlled funding could be used to enhance several of the priorities and objectives that have been identified by the community and the City Council, including park and facility improvements, enhanced maintenance of City infrastructure, wildfire mitigation and emergency preparedness, and new/expanded programming.
The last time the City of Claremont had a transactions and use tax measure on the ballot was in 2019 (Measure CR). Measure CR was proposed as a ¾ cent sales tax measure that would have increased Claremont’s tax rate from 9.5% to 10.25%. Measure CR failed to pass by a slim margin with 50.89% of votes against the measure and 49.11% supporting the measure. Since 2019, voters in several local cities have approved new local transaction and use tax measures, including the cities of Alhambra (2022), Monrovia (2022), and San Gabriel (2020). Below is a chart of local cities’ current sales tax rates. The San Bernardino County cities appear lower primarily because the San Bernardino County has adopted far fewer countywide “district” sales taxes than Los Angeles County. Claremont currently has the lowest sales tax rate of the Los Angeles County cities surveyed.
|
Jurisdiction |
County |
Current Local Sales Tax Rate |
|
Alhambra |
Los Angeles |
10.25% |
|
Azusa |
Los Angeles |
10.75% |
|
Chino |
San Bernardino |
8.75% |
|
Chino Hills |
San Bernardino |
7.75% |
|
Claremont |
Los Angeles |
9.75% |
|
Covina |
Los Angeles |
10.25% |
|
La Verne |
Los Angeles |
10.25% |
|
Monrovia |
Los Angeles |
10.25% |
|
Montclair |
San Bernardino |
9.00% |
|
Ontario |
San Bernardino |
8.75% |
|
Pomona |
Los Angeles |
10.50% |
|
San Dimas |
Los Angeles |
10.25% |
|
San Gabriel |
Los Angeles |
10.50% |
|
Upland |
Los Angeles |
8.75% |
|
West Covina |
Los Angeles |
10.25% |
Estimated Costs and Other Considerations
Staff is aware of other local public agencies that are exploring increasing sales and use tax rates or placing bond measures on upcoming ballots, including Los Angeles County and the Claremont Unified School District (CUSD). Given the current fiscal environment, it is possible that Claremont voters may be hesitant to support an additional tax measure. As such, staff feels it is prudent that the City hire a consultant to collect data and conduct an analysis to determine the likelihood that a local sales and use tax measure would be approved by voters in November. If the direction from City Council is to pursue a local sales and use tax measure, staff recommends that the City Council also authorize the City Manager to enter into an agreement with Fairbank, Maslin, Maullin, Metz & Associates (FM3) in an amount not-to-exceed $37,750 for research and polling consultant services. More information is provided in the sections below.
Los Angeles County Measure (Anticipated June 2026 Election)
On February 10, 2026, the Los Angeles County Board of Supervisors (BOS) voted to place a temporary one-half cent (0.5%) general sales tax measure on the June 2, 2026 primary election ballot. The measure is intended to offset anticipated federal funding reductions under H.R. 1 that would significantly impact County health care and safety-net services. The proposed tax is structured as a general tax, meaning revenues would be deposited into the County’s general fund and would require a simple majority vote of County voters for approval.
Although the motion expresses the intent to prioritize funding for health services, hospitals, public health programs, and other safety-net services, as a general tax the revenues would not be legally restricted to a specific program. The measure proposes a five-year period, anticipated to run from October 1, 2026 through October 1, 2031, if approved by voters. The additional 0.5% would generate approximately $1 billion in County funding and apply to all taxable retail transactions Countywide. Importantly, the proposed increase is designed to bring the County’s combined sales tax rate up to a statutory cap of 11.25%. The Board has formally adopted the ordinance language necessary to place the measure on the ballot. Implementation of the tax would occur only if the measure receives majority voter approval.
Claremont Unified School District Measure (Anticipated November 2026 Election)
During the Special Workshop meeting of the Board of Education on January 15, 2026, the Board directed CUSD staff to begin investigating the feasibility of placing a facilities bond initiative on the ballot for November 2026, citing aging campuses and the 2029 sunset of the district’s Measure Y bond. As a first step in exploring a possible facilities bond initiative, a Facilities Focus Group was established and subsequently convened on February 12, 2026. The group was comprised of community members and various representatives from CUSD. During this initial meeting, the group discussed: facilities needs assessment; additional revenue for facilities; timing; potential projects; and community engagement meetings. During the February 19, 2026 Board of Education meeting, CUSD Superintendent Dr. James Elsasser shared that the group discussed that there should be no increase to what taxpayers are currently paying under Measure Y, which is $31.96 per $100,000 of assessed property value. The Board directed CUSD staff to continue with analysis and outreach efforts, and to present further findings at the June 4, 2026 Board of Education meeting, so that the Board can make a decision at that time regarding the placement of a bond measure on the November ballot.
Research and Polling Consultant Agreement
Fairbank, Maslin, Maullin, Metz & Associates (FM3) is a reputable research firm that helps California cities, counties, and special districts objectively evaluate the viability of passing local ballot measures to secure additional revenue. If the City Council directs staff to pursue a local sales and use tax measure, prior to calling the November election, staff recommends authorizing the City Manager to enter into an agreement with FM3 in an amount not-to-exceed $37,750 to conduct a voter survey to determine ballot measure feasibility. If authorized by the City Council, FM3 would conduct a dual-mode voter survey, with interviews conducted online and via telephone (landline and wireless). FM3 would contact 350-400 likely Claremont voters by email, text message, and phone call, with options available in English and Spanish. Following completion of the survey, FM3 would provide a key findings analysis of survey results and would present this information during a regular City Council meeting. These findings would be presented to the City Council prior to June, so that the Council could consider the results before making a decision to place a measure on the November ballot.
The City Council may also consider hiring a Strategy and Communications consultant to support these efforts. This consultant would work with FM3 to provide specific recommendations on tax rate, tax structure, ballot measure features, and messaging. The consultant would also design educational material tailored to Claremont’s diverse stakeholders and would be available to present information and updates at City Council meetings. It is recommended that the City Council authorize polling and receive the results prior to discussing the need for a Strategy and Communications consultant. Staff estimates the cost of engaging a consultant for five months (April through August) is $37,500 with an additional cost of $25,000 - $40,000 for printing and mailing informational materials. Staff received these estimates from TeamCivX, a reputable firm that has worked with other local cities to pass bond and tax measures, including the cities of La Verne, Diamond Bar, Pomona, and South Pasadena.
Next Steps
Should the City Council direct staff to bring back the necessary documents to place a local sales and use tax measure on the November 2026 ballot for City Council consideration at a future meeting, staff recommends the following as next steps:
• Optional, but recommended: Authorize the City Manager to enter into an agreement with Fairbank, Maslin, Maullin, Metz & Associates (FM3) in an amount not-to-exceed $37,750 to conduct research and polling consulting services. FM3 would present its findings to City Council before its June 9, 2026 meeting so that the City Council has more comprehensive data related to the feasibility of a successful November ballot measure. At that time, the City Council may also consider hiring a Strategy and Communications consultant to support education and outreach efforts.
The City Council would be required to take the following actions on or before its June 9, 2026 meeting to place a local sales and use tax measure on the November 3, 2026 ballot:
1. Call the election as described below, by Resolution (including 75-word Ballot Measure Text).
2. Provide direction on developing arguments and impartial analyses, by Resolution - if two members of the City Council are designated as drafters for full City Council review, another item for City Council consideration would be required. Alternatively, two members can be delegated to author and file the argument on behalf of the City Council, or per Elections Code Section (9282(b)): For measures placed on the ballot by the legislative body, the legislative body, or a member or members of the legislative body authorized by that body, or an individual voter who is eligible to vote on the measure, or bona fide association of citizens, or a combination of voter and associations, may file a written argument for or against any city measure (300 words). No more than five signers.
3. Direct the deadline for filing arguments and impartial analyses, by Resolution at meeting calling election. The City Clerk shall fix a date 14 days from the calling of the election as a deadline for arguments. The City Clerk will transmit a copy of the measure to the City Attorney to prepare an impartial analysis (500 words) due on the date set for the filing of primary arguments.
4. Following the deadline for filing direct arguments, rebuttal arguments (250 words) will be due not more than 10 days after the final filing date for arguments. The City Clerk shall fix a date 14 days from the calling of the election as a deadline for arguments.
RELATIONSHIP TO CITY PLANNING DOCUMENTS
Staff has evaluated the agenda item in relationship to the City’s strategic and visioning documents and finds that it applies to the following City Planning Documents: Council Priorities, Sustainable City Plan, Economic Sustainability Plan, and the 2024-26 Budget.
CEQA REVIEW
This item is not subject to environmental review under the California Environmental Quality Act (CEQA).
PUBLIC NOTICE PROCESS
The agenda and staff report for this item have been posted on the City website and distributed to interested parties. If you desire a copy, please contact the City Clerk’s Office.
Submitted by: Prepared by:
Adam Pirrie Katie Wand
City Manager Deputy City Manager