Hotel Tax Showdown Delayed as Dublin Adopts $135M Budget

Dublin's City Council cleared a pair of major fiscal hurdles Tuesday night — adopting a biennial budget bolstered by a surprise $4 million-a-year sheriff contract windfall — but punted on the most consequential revenue decision facing the city: whether to ask voters to nearly double the hotel tax. A separate fight over council pay ended in a rare triple deadlock.

• Hotel tax ballot measure tabled until August after business opposition and a divided dais; staff directed to return with impact studies and military exemption details

• $135.9M general fund budget adopted unanimously, buoyed by $1.5M in Year 1 savings after Alameda County's 1990s sheriff pension bonds expired

• Council pay raise dies in three consecutive 2-2 ties with one member absent, exposing a philosophical split over compensation and fiscal messaging

• $78M five-year capital plan approved, with Tassajara Road construction starting in August and Village Parkway's $40M rebuild on the horizon

• Noise ordinance finalized over a resident's plea to delay morning leaf blowers for her disabled son

Dublin's Hotel Tax Decision: Delayed, Not Dead

Why it matters: Dublin's transient occupancy tax has been frozen at 8% since 1984 — the lowest in Alameda County, where most cities charge 13–14%. With a structural budget deficit now projected for fiscal year 2030-31, staff brought a resolution to place a phased increase (to 10% on July 1, 2027, then 12% on July 1, 2028) on the November 2026 ballot, projecting roughly $7 million in additional revenue over a decade.

Where things stand: Economic Development Manager Felicia Escobar laid out regional context, noting that neighboring Pleasanton is pursuing the same phased approach and that Dublin's current rate leaves it well below peer cities. A community survey showed 52% support, 35% opposition, and 13% undecided. The city recently created a $250,000 Economic Development Support Reserve to invest in hospitality marketing alongside any increase.

Vice Mayor Jean Josey was the strongest advocate for moving forward, framing the increase as barely noticeable to consumers. "The deficit in the budget projections we have in front of us is four years out. It is time for us to start doing things that will push that out further," she said.

Councilmember Michael McCorriston backed placing the measure on the ballot but floated the idea of tying increases to hotel occupancy thresholds. "Perhaps we can think about an indexing structure where your occupancy rates reach a certain amount, then something else kicks in," he said.

The other side: The hotel industry showed up in force. Ron Gap, representing La Quinta Inn Dublin, warned that hotels are still recovering from the pandemic and already pay a 4% tourism assessment on top of the TOT — meaning a 12% rate would push the total lodging burden to 16%. He said he had supported a modest 1% increase but called a 4-point jump excessive for price-sensitive travelers.

Inga Houston, speaking on behalf of the Dublin Chamber of Commerce board of directors, formally opposed the measure as premature and too large, asking the council to retain the current rate.

Councilmember John Morada sided with the business community, arguing Dublin should cut costs before seeking new taxes. He warned of a slippery slope and attempted to postpone the item for two years, but his motion died for lack of a second.

Mayor Sherry Hu expressed sympathy for struggling hoteliers and suggested a slower approach. "Maybe we slow down, like 1% 2027, another 1% 2028, and also at the same time see how our city can help," she said.

City Manager Colleen emphasized the tax is one piece of a broader strategy. "We are not going to look at just one thing that chips away at the deficit. There's no one single solution. So you're going to see a lot of this," she said. She also confirmed the city could carve out a TOT exemption for military families visiting service members stationed at nearby Camp Parks.

Decisions: Vice Mayor Josey moved to table the item until a meeting no later than Aug. 7 — when all five council members would be present — directing staff to bring back impact studies from cities that recently raised their TOT, details on military family exemptions, and broader comparative data. Councilmember McCorriston seconded. The motion passed 4-0 (Councilmember Kashef Qaadri absent, having left the meeting earlier).

What's next: The Aug. 7 deadline is critical. If the council does not act by then, the measure could miss the November 2026 ballot window, pushing any voter decision to a future election cycle and potentially deepening the projected deficit.

Triple Deadlock Kills Council Pay Raise

Why it matters: What was supposed to be a routine second reading of a compensation resolution — unanimously approved at the prior meeting — turned into a prolonged standoff that exposed a philosophical divide on the five-member council.

Where things stand: The proposal would have increased council member pay by roughly 8% (effective for the next seated council) while reducing the mayor's additional stipend from 50% above the council rate to a $400 differential. But Councilmember Morada, who was absent from the prior vote, returned to oppose the raise outright. "Public office was never meant to be measured by pay. It was meant to be measured by purpose," he said, suggesting the money could instead support SB42 election finance reform.

Vice Mayor Josey pushed back forcefully, arguing competitive pay ensures people without personal wealth can serve. "They shouldn't have to worry about their stipend not covering childcare on the evenings that they have to come to the dais," she said.

Mayor Hu zeroed in on the mayor's stipend reduction, calling it a double standard. "Raise the tax for the business, but at the same time double standard to raise council members but decrease mayor's salary. That's totally unacceptable," she said.

Councilmember McCorriston expressed frustration that the prior unanimous agreement was being relitigated. "What we're seeing, what we're hearing is you're coming back here with a new proposal that you've already agreed to. So I'm a little confused," he said.

Public commenter Jennani Krishna questioned the timing of the mayor's stipend reduction, asking why additional mayoral responsibilities weren't being accounted for.

Decisions: Three roll-call votes, three 2-2 failures:

1. Motion to approve — For: Josey, McCorriston; Against: Morada, Hu; Absent: Qaadri. Failed.

2. Substitute motion to defer until after the election — For: Morada, Hu; Against: Josey, McCorriston; Absent: Qaadri. Failed.

3. Motion to bring back at next meeting — For: McCorriston, Josey; Against: Morada, Hu; Absent: Qaadri. Failed.

No further action was taken. The item is effectively dead unless a member requests it be re-agendized at a future meeting.

$135M Budget Rides a Sheriff Contract Windfall

Why it matters: Dublin's biennial operating budget sets spending for the next two years. This cycle, an unexpected savings on the city's largest contract — policing through the Alameda County Sheriff's Office — changes the fiscal math in Dublin's favor for the first time since the structural deficit was projected.

Where things stand: Finance Director Jay Bax presented a general fund with $135.9 million in revenue and $124.8 million in expenditures, yielding an $11.1 million operating surplus in Year 1 and $9.3 million in Year 2. Two developments reshaped the preliminary numbers:

• Pension windfall: Alameda County's 1990s-era pension obligation bonds for sheriff's deputies finally came off the books, permanently reducing Dublin's policing contract. "Every dollar they spent on salary, it was like 70% in retirement. Now that the pension obligation bonds are off, it dropped, which results in $4 million in savings," Finance Director Bax explained. The Year 1 contract came in $1.5 million below projection, with cumulative savings of $3.5 million by Year 2.

• Property tax dip: A Prop 8 reassessment by the county assessor reduced assessed property values by $400 million, cutting projected property tax revenue by roughly $500,000.

Council added two small items to the adopted budget: one new crossing guard for Shamrock Hills Elementary ($23,100 per year) and a one-time $42,000 general fund contribution to offset lost Community Development Block Grant funding for human services.

Vice Mayor Josey supported one crossing guard but not two, noting a new school is opening and the district should share the cost.

Decisions: Budget adopted 4-0 (Qaadri absent). The structural deficit remains projected for fiscal year 2030-31, and no hotel tax revenue was included in projections.

$78M Capital Plan: Roads, Parks and a Long To-Do List

Why it matters: Dublin's five-year Capital Improvement Program locks in the city's physical infrastructure priorities — and reveals what it can't yet afford.

Where things stand: CIP Manager Michael Boitnott presented a plan totaling more than $78 million. The biggest items: Village Parkway reconstruction ($3.3 million this year, $40 million total future phases), annual street resurfacing ($4.5 million per year), Tassajara Road improvements (out to bid, construction starting in August), Emerald Glen ballfield renovation (under a reimbursement agreement with Dublin Unified School District), restroom replacements at three parks ($500,000), and Wave waterpark pool plastering design ($500,000).

Roughly 26% of the five-year plan carries unidentified funding sources. Resident Norm Lewandowski pressed the council on this point, noting that $16.6 million of the $38 million in Year 1 funding is unidentified. Resident Shirley Lewandowski argued the 1-acre downtown Dublin town square remains too small for a city of 73,000 and questioned the $126 million Dublin Boulevard extension cost estimate. A public commenter identified as VC praised staff transparency on street lighting but requested quarterly town halls for CIP updates and better online progress reporting.

Councilmember Morada asked about the $17.6 million Wave gym extension placeholder and $500,000 for city entrance signs. City Manager Colleen explained the gym line is funded by public facility fees collected from new development — not the general fund. "We don't have anything planned right now. We're just collecting to build the value, which at the time was $17 million and that's been increasing each year," she said.

Decisions: CIP adopted 4-0 (Qaadri absent), including authorization for the city manager to execute the DUSD reimbursement agreement for Emerald Glen.

What's next: Tassajara Road construction begins in August, marking the most visible infrastructure improvement for north Dublin residents. Village Parkway's $40 million future price tag will require difficult scoping decisions in coming budget cycles.

Minor Items

• Noise ordinance approved on second reading (4-0, Qaadri absent). Quiet hours set at 10 p.m.–7 a.m. weekdays and 10 p.m.–8 a.m. weekends. Resident Nor Ulhasan asked the council to push the weekday start to 8:30 a.m. because leaf blowers wake her disabled son; Vice Mayor Josey and Councilmember McCorriston acknowledged the concern but kept current hours to balance landscaper work schedules. McCorriston offered to follow up personally.

• Consent calendar (Items 5.1–5.3) approved 4-0 with Items 5.4 and 5.5 pulled for separate discussion.

• Dublin Climate Challenge volunteers recognized for registering 130 households and completing 700+ climate-friendly actions, saving an estimated 19 tons of CO2. Volunteers from the Tri-Valley Air Quality Climate Alliance, Dublin High School Climate Corps, and Emerald High School Eco Impact Club received certificates.

• Gun Violence Awareness Day and Month proclaimed in recognition of Hadiya Pendleton and Wear Orange weekend. Janie Dobbs of Moms Demand Action (2,000 local supporters) advocated for AB 2047 on 3D-printed guns and expanded firearm safety training. Mike Grant of Guns Unlimited Firearms Training praised the proclamation's Second Amendment language and urged hands-on safety education programs.

• New Principal Planner Radha Hargreave introduced by Community Development Director Amy Million.

• Public commenter Linda Wall reported roach infestations in her apartment building tied to once-weekly garbage collection and requested more frequent pickup.

• Public commenter Brent Sanji requested removal of a commemorative flag at City Hall, asking the city to adopt a three-flag-only policy.