Hotel Tax Ballot Measure Dies on Abstention as Dublin Council Divisions Deepen

Dublin's proposed increase to its 42-year-old hotel tax fell one vote short of reaching the ballot Tuesday night, exposing a sharp ideological split on fiscal planning that also surfaced in a contentious salary fight and a failed streetlight assessment — all against the backdrop of a structural deficit projected by 2030-31.

• Hotel tax ballot measure dies on a technicality — a 3-1-1 vote fell short of the four affirmative votes required to place a general tax on the November 2026 ballot, leaving Dublin's 8% rate unchanged since 1984
• Council salary increase clears 3-2 vote on its third attempt, with opponents calling the repeated re-agendizing a political maneuver timed to favorable attendance
• Voters reject new streetlight assessment district 56-44%, with only 19% participation; the existing district's reserves will run dry by 2027-28, forcing general fund subsidies
• Resident's account of a July 4th garage fire from illegal fireworks prompts council to request a comprehensive fire-damage and cost report at the next meeting
• Two-year strategic plan closes with 60 of 87 items completed; Vice Mayor delivers pointed warning to colleagues about wasting staff effort

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$700K Hotel Tax Increase Blocked by One Vote

Dublin's attempt to let voters decide whether to raise the city's transient occupancy tax from 8% to 12% collapsed Tuesday night in a procedural knot: a 3-1-1 vote that passed as a motion but failed to meet the four affirmative votes state law demands to place a general tax on the ballot.

The basics: The proposed measure would have phased the TOT from 8% to 10% in July 2027 and to 12% in July 2028, generating roughly $700,000 annually at full implementation. It included an exemption for military families visiting Camp Parks. Dublin's rate has been frozen at 8% since 1984 — the lowest in Alameda County.

Why it matters: Staff has identified a structural deficit arriving as early as 2030-31, and the TOT increase was the primary revenue tool vetted through multiple strategic planning sessions. Four academic studies presented by staff found moderate TOT increases have minimal impact on hotel occupancy. Dublin's hotels run at 70% occupancy — above the Tri-Valley average — but at lower average room rates ($115 vs. $135 Tri-Valley).

Where Things Stand

The nearly 90-minute discussion revealed a council divided not just on the merits, but on the very premise of acting proactively on revenue.

Councilmember McCorriston forcefully backed the measure, challenging colleagues who demanded mathematical certainty before letting voters weigh in. "To sit there and say, I want a probability factor — that of something which is not defined here tonight — to force the issue into a certain direction. I've never heard that before," said Councilmember Michael McCorriston.

He argued the dollar impact was modest: "We're talking about a $2 to $4 increase. This is a very modest increase."

Councilmember Kashef Qaadri agreed. "Given our projected structural deficit, 2030 or so, I believe it's appropriate to consider all reasonable revenue options to prevent that or at least push that out as best as possible," he said.

Vice Mayor Jean Josey delivered the most impassioned case, framing the refusal to place the measure on the ballot as a betrayal of democratic process: "For us not to even ask our residents if they want us to be proactive in this measure and ask them if this is something they want."

She went further, accusing opposition members of being swayed by a narrow set of interests: "I believe that a very small handful of politically connected people to some of your campaigns are having an outside influence."

The Other Side

Councilmember John Morada challenged the deficit projections themselves, demanding a higher threshold of proof. "Until somebody can prove to me that this is in fact a high probability of occurrence and the impact is as described, I'm just like, okay, great, thanks for the data. Let's move on to something else," he said — then cast the pivotal abstention.

Mayor Sherry Hu voted no, arguing the city should focus on cutting expenses rather than raising taxes, and pointed to the current surplus as evidence that urgency was misplaced. She said the city has more than $30 million in surplus and should support hotel businesses and explore AI-driven cost savings.

Hotel industry representatives and the Dublin Chamber of Commerce also opposed the measure. Ron Goole, a hotel industry representative, warned that with the event center's $4/night tourism tax, the total lodging burden could reach 16%. Inga Houston, representing the Dublin Chamber of Commerce board, said hotels are still operating below pre-COVID levels and insurance costs have doubled.

Longtime resident Mike Grant pushed back, noting the tax hadn't budged since 1984 and that hotels benefit from city services paid by taxpayers. He argued the five council members should let 72,000 residents decide.

Decisions

The vote was 3-1-1: Councilmember Qaadri, Councilmember McCorriston, and Vice Mayor Josey voted yes; Mayor Hu voted no; Councilmember Morada abstained.

City Attorney Bacher then delivered the legal finding that ended the matter: "An abstention like that is acquiescence with the majority, but it does not count as a concurrence. It does not count as an affirmative vote. And in this particular case, you need a 2/3 vote."

The ruling relies on a 2011 Attorney General opinion requiring four affirmative votes from a five-member body to place a general tax on the ballot.

What's next: The measure will not appear on the November 2026 ballot. Dublin's 8% rate — unchanged since 1984 — remains the lowest in the region as the projected structural deficit approaches. No timeline was set for revisiting the question.

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Council Salary Ordinance Passes 3-2 on Third Try

A first reading of the ordinance increasing council member salaries and narrowing the pay gap between council members and the mayor passed 3-2 — but not before a bruising exchange over why the item kept returning to the dais.

Why it matters: The ordinance had been brought before the council at two previous meetings. Opponents argued the repeated re-agendizing amounted to waiting for the right combination of members to be present.

Councilmember Morada opened with a prepared statement, noting the staff report was unchanged. "The only significant change appears to be the composition of the council chamber this evening. And this is precisely why this action raises concerns," he said.

Vice Mayor Josey countered sharply, clarifying the procedural history: "You seem to be presenting this item as if action was taken to not move forward with it, when in fact no action was taken because no motion was passed." She explained that the original 4-0 direction to staff to prepare the ordinance remained operative.

Councilmember Qaadri framed the increase as making public service more accessible. Councilmember McCorriston called the drawn-out debate excessive and urged colleagues to move forward.

Mayor Hu proposed keeping salaries the same but was outvoted.

Decisions: Passed 3-2 (Councilmember McCorriston, Councilmember Qaadri, and Vice Mayor Josey yes; Councilmember Morada and Mayor Hu no). A second reading and final adoption will follow at a future meeting.

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Streetlight District Fails at the Ballot; General Fund on the Hook

Dublin's Proposition 218 effort to form a new consolidated street lighting assessment district was rejected by property owners, 56% to 44%, with only a 19.27% ballot return rate — setting up an unavoidable drain on the general fund within two years.

The basics: Proposition 218 requires property owners to approve new or increased assessments by weighted ballot. The city proposed merging two aging districts into a single district (2026-1) with updated rates.

Why it matters: The existing 1983-1 district, which covers most of the city, has been capped at $19.34 per single-family parcel since FY 2007-08. Its $165,000 reserve is projected to be exhausted by 2027-28, after which the general fund must cover maintenance — including LED replacement and pole painting — at a growing annual cost. The 1999-1 district (Dublin Ranch) has an escalation clause and proposed a 19.25% increase to fund pole painting and rising maintenance costs.

City Manager Colleen Tribby attributed the failure partly to bad timing: "Unfortunately, people's mailboxes became just packed with other election material. And I think had we had a lot more time and space with people to explain what was going on, perhaps the level of understanding would have improved."

Council members urged a thorough review before any second attempt. Councilmember McCorriston said residents were confused by the complexity. Councilmember Qaadri encouraged staff to understand "what exactly went wrong." Vice Mayor Josey cautioned against rushing another try.

Decisions: The resolution levying existing assessments for FY 2026-27 passed unanimously (For: 5, Against: 0, Absent: 0). The failed 2026-1 formation means no new district will be created, and the general fund gap will begin growing by 2027-28.

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Strategic Plan Wraps With Praise — and a Warning

Staff reported that 60 of 87 work plan items across five strategic priorities were completed over the FY 2024-26 cycle. Highlights included the city branding initiative, 559 business concierge requests (up from 323), fire station alerting system upgrades, Planning Commission approval of the Sunflower Hill affordable housing project with a $2 million HUD grant, two new parks, $330,000 in human service grants, and adoption of an EV infrastructure plan. The Western Dublin TIF was noted as stalled pending downtown site plan finalization.

Where things stand: Council praised staff across the board. Councilmember McCorriston said the city had done "a heck of a job."

But Vice Mayor Josey used the moment to deliver a closing message aimed squarely at her colleagues — and clearly referencing the TOT outcome from earlier in the evening: "I would hope that each of us are reviewing our new strategic plan — the one that the five of us passed — more often than the quarterly reports that we get from staff, so that we remind ourselves what we have asked staff to bring to us."

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Minor Items

• ICS Doubling Project (Item 5.4): Approved 4-0 with Mayor Hu recused due to residing within 500 feet of the project.
• Commission appointments (Item 5.11): Approved as part of the balance of the consent calendar. Councilmember Morada asked about the selection process.
• Balance of consent calendar: Passed unanimously, 5-0.
• Pacific Catch economic development subsidy (Item 6.2): AB 562 final report accepted unanimously. The 2014 sewer capacity subsidy of $140,535 (8.44 dwelling unit equivalents) has yielded $35,000–$55,000 in annual net tax revenue and retained roughly 51 jobs. The sewer capacity assistance program remains active with 21 DUEs available for future business attraction.
• Camp Parks new command team: Lt. Col. Tony Ibrahim and Sgt. Maj. David Odoura Buafo were introduced as the new garrison commander and sergeant major at Parks Reserve Forces Training Area.
• Parks Make Life Better Month: Parks and Community Services Director Jackie Dwyer used the proclamation to spotlight the 500+ staff hours behind each major event, from 4 a.m. setup crews to 16-year-old lifeguards trained for emergencies.
• New employees: Seven new city hires were introduced across multiple departments, including summer interns, a maintenance manager, management analysts, and a recreation coordinator.
• Fireworks report requested: Following Pierre Joseph's account of a July 4th garage fire on Rolling Hills caused by illegal fireworks, Vice Mayor Josey directed staff to bring a comprehensive fireworks activity report — including costs, calls for service, and fire damage — to the next meeting.
• Meeting adjournment: The meeting was adjourned in honor of former County Supervisor Scott Haggerty; council also requested an update on the D1 surplus housing site transfer he championed.