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Newark staff say city is fiscally healthy; Measure LL would raise hotel tax from 10% to 14% if voters approve
Summary
City Manager David Benoon told council candidates Newark projects near‑term fiscal balance, outlined revenue sources and said Measure LL (a proposed increase in the city’s transient occupancy tax from 10% to 14%) is expected to bring roughly $2.1 million if approved; staff noted $15–$20 million in excess Measure GG revenues are available for general fund uses.
City Manager David Benoon told council candidates at a candidates’ briefing that Newark is projecting to break even for the current fiscal year and is financially healthy, citing conservative budgeting and a high credit rating. “The city is projecting, essentially breaking even for this fiscal year,” Benoon said, adding the city’s long‑standing approach is to maintain a balanced budget.
Benoon outlined the city’s general fund revenue mix: about 40% from property taxes (projected near $33 million), about 20% from sales taxes and smaller shares from a hotel tax (transient occupancy tax, or TOT), a utility users tax and fees. He said personnel costs account for about half of expenditures and that the Alameda County Fire Department contract represents roughly 17% of the city’s budget.
On ballot measures, Benoon reviewed existing and proposed tax measures. Measure GG is a voter‑approved one‑half cent sales tax enacted in 2016 and used for civic center debt service; staff estimate the city has accumulated about $15–$20 million in excess Measure GG receipts. Measure PP is the city’s utility users tax re‑authorized by voters in 2020. Benoon described Measure LL, a council‑placed ballot question that would increase the hotel tax (TOT) from 10% to 14% if approved. “This would, if approved by Newark voters, would increase the hotel tax, the TOT, from the rate of 10% to 14%,” he said. Benoon said polling conducted for the city showed about 64% support in internal testing and staff estimate Measure LL would generate about $2.1 million in additional revenue.
Benoon and Finance Director Kristen Lee said the city is planning to use existing and potential new revenue sources—Measure GG excess receipts combined with any Measure LL proceeds—for priorities identified in the city’s facilities master plan, including costly needs such as replacement of aging fire stations and potential cultural facilities, though final spending decisions would be made by the City Council. “It ultimately be a council decision,” Benoon said of how proceeds would be used.
Next steps: Measure LL will be decided by voters on Nov. 5; staff emphasized that the use of revenues would be subject to future council policy decisions and any required debt or project approvals.
