Benicia council places three measures on Nov. 3, 2026 ballot after tightening language and revenue estimate

The Benicia City Council voted to place three measures on the Nov. 3, 2026 ballot after debate over wording and revenue estimates.

Deputy City Manager Sarah Shockey told the council the packages are intended to let the city capture revenue from an expected wave of development and direct it to long-term city services. "Only charter cities are eligible to charge a real property transfer tax," Shockey said, explaining why the council must place a limited charter (Measure Y) on the ballot before a transfer tax (Measure Z) can take effect.

Why it matters: Council members said clear, concise ballot language is critical for voter understanding. Councilmember Scott proposed wording that emphasized the charter's "single purpose" to reduce voter concerns that a charter could be used to expand other powers. After consulting city staff and legal counsel, council approved revised language phrased as a "limited city charter that has a single purpose, [to] allow the real property transfer tax in Measure Z to take effect if voters approve both measures Y and Z, while everything else about how the city is governed stays the same." City attorney/staff recommended language changes be legally vetted; council directed staff to finalize the legally compliant text.

Measure X: business-license modernization

The council also approved a business-license modernization measure (Measure X) that would exempt businesses with $100,000 or less in annual receipts, set rates by business category ranging from $0.25 to $1.25 per $1,000 of receipts, cap annual taxes initially at $1,500 with 10% annual increases until the cap reaches $25,000, and set a separate marine-terminal rate of $3 per $100 in receipts. Staff originally estimated approximately $592,000 in first-year revenue. Council discussed whether that estimate should include potential marine-terminal revenue; staff clarified the $592,000 was the staff estimate for the citywide program in the first year excluding an as-yet-unbuilt marine terminal. Council directed staff to use a more transparent total estimate (discussed at roughly $1.6 million as a combined estimate including the marine-terminal scenario) for public materials and the impartial analysis.

Vote and next steps

The council took separate votes to place Measure Y and Measure Z on the ballot; Measure Y was placed on the ballot unanimously in the roll call recorded by the city clerk. The transfer-tax resolution (Measure Z) passed with the council majority required to place it on the ballot. The business-license modernization measure was also authorized for the ballot after council approved staff’s recommended language and the clarified revenue estimate. Staff said next steps include finalizing ballot text, submitting the ordinance to the county registrar, preparing the impartial analysis and accepting arguments and rebuttals on the calendar set by the Registrar of Voters.

What the measures would do (as described to the council)

- Measure Y (limited city charter): proposes a narrowly tailored charter change to enable Benicia to adopt a real property transfer tax, conditioned on voter approval of Measure Z.

- Measure Z (real property transfer tax): would allow a transfer tax to take effect only if voters approve both Measures Y and Z.

- Measure X (business-license modernization): would restructure business-license taxes by category, exempt small businesses under $100,000 in receipts and set a first-year revenue expectation that staff will clarify in final materials.

Council members stressed transparency for voters and the need for legally vetted wording. The resolutions authorize the city to proceed with placing the measures on the Nov. 3, 2026 ballot and instruct staff to complete required election materials and timelines. The county's review and ballot deadlines will govern the final text and schedule for arguments and rebuttals.