Benicia Local Tax Oversight Board Summary: February 26, 2026

The Benicia Local Tax Oversight Board (LTOB) convened on February 26, 2026, at 10:00 AM. Board members Chair Polk, Councilmember Scott, Board Member Wagner, and Board Member Lagrander were present. Board Member Bernico was absent. The board unanimously adopted its rules of procedure, approved meeting minutes, and reviewed a detailed presentation from HDL on the city’s local tax revenues for the quarter ending September 30, 2025.

Consent Calendar

• The board unanimously approved the meeting minutes from November 20, 2025.

Discussion Items

• Adoption of Rules and Procedures (9A): The board unanimously adopted the proposed 2026 LTOB Rules and Procedures.
• Review of Local Tax Revenue (9B): Wayne Padilla of HDL presented the quarterly tax revenue overview for the period ending September 30, 2025.
  • Measure C (1% sales tax): Adjusted economic data showed an 11% decline in the Business and Industry sector, attributed to the completion of large utility equipment projects in the prior year. The Food and Drug sector declined by 6%, linked to lower commodity prices. Councilmember Scott asked about the "transfers and unidentified" category, which Mr. Padilla explained represents allocations from unidentified or out-of-state taxpayers. Lower fuel prices and an estimated 8–10% reduction in statewide gasoline consumption due to electric vehicle adoption were cited as factors. Despite sector declines, total cash collections for Measure C increased by 7% compared to the same quarter in the prior year.
  • Measure B (0.75% sales tax): Approximately $1.285 million was collected during the quarter. An early DMV payment caused a minor timing variance. Comparative year-over-year data will be available in the next quarterly report.
  • Measure F (0.5% sales tax for roads): First-quarter collections totaled approximately $857,000. Board Member Wagner confirmed that this placed the city on track to meet its projected annual revenue of $3.3 to $3.5 million, which is dedicated to road construction projects.
  • Measure A (Transient Occupancy Tax): The revenue forecast was revised upward to $600,000 from an initial projection of $500,000 due to higher-than-anticipated collections.
• Future Reporting Enhancements: Board Member Lagrander recommended incorporating trend and forecast data (a "burn report") into future staff reports to improve tracking of collection performance against projections, noting the Measure A reforecast as an example. Staff agreed to explore adding this analysis. The board also discussed improving transparency on Measure F expenditures, agreeing to explore presenting spending information in future meeting materials.

Public Comments & Testimony

• A member of the public addressed the board regarding a proposal for a non-emergency community support team and corporate sponsorship program. Chair Polk acknowledged the comment, clarified that the board’s role is limited to tax oversight and not budget hearings, and stated the proposal would be directed to the appropriate city departments.

Key Outcomes

• Agenda and consent calendar approved unanimously.
• 2026 LTOB Rules and Procedures unanimously adopted.
• Staff directed to incorporate trend and forecast analysis in future quarterly revenue reports.
• Staff to coordinate with the Finance Director to determine a format for presenting Measure F expenditure data to the board for transparency.