Benicia Local Tax Oversight Board Meeting - May 21, 2026

At its regular meeting on May 21, 2026, the Benicia Local Tax Oversight Board reviewed local tax revenues through the fourth quarter of 2025, including sales tax data for Measures C, B, and F, and transient occupancy tax. The board also received an update on Measure F spending plans and provided direction to staff on future reporting.

Consent Calendar

• Approval of Minutes: The board unanimously approved the minutes of the February 26, 2026 regular meeting.

Public Comments & Testimony

• No members of the public spoke, either in person or via Zoom.

Discussion Items

• Local Tax Revenue Review: Budget Manager Roxana Morati presented the transient occupancy tax (Measure A) update, noting a revised budget of $500,000, second-quarter actuals of nearly $400,000, and a forecast of $730,000, indicating performance above budget. Bobby Young of HDL Companies then presented sales tax revenue for Measures C, B, and F.
  • Measure C (1-cent transactions and use tax): Down 1.9% year-over-year in the fourth quarter of 2025 ($1,907,000 vs. $1,949,000). Declines were driven by business/industry and building/construction categories, attributed to a high base of one-time revenues in the prior year. General consumer goods grew nearly 5%, driven by online shopping and holiday spending. Restaurants and hotels grew 4.7%.
  • Measure B (3/4-cent tax): Down 1.1% year-over-year, with similar category trends and a smaller comparison history.
  • Measure F (1/2-cent tax): Too new for year-over-year comparison; first full quarter of collections began in April 2025.
  • Question from Councilmember Largaspada: Asked about the split between online and brick-and-mortar sales in the consumer goods category. Staff noted such data is difficult to isolate because many retailers report combined sales; they agreed to follow up with additional research.
  • Question from Councilmember Scott: Asked for clarification on “one-time revenue.” Bobby Young explained that transactions and use taxes capture large, non-recurring purchases (e.g., equipment deliveries, construction materials shipped into the city) that are not expected to repeat regularly.
  • Chair Polk: Asked whether the 4.7% restaurant/hotel growth was due to higher prices or increased foot traffic. Young responded that both factors were at play, with cost increases driving statewide growth of about 1.5%, but Benicia’s stronger growth also reflected stable consumer behavior.
• Communications from Staff: Finance Director Jeff updated the board on the status of Measure F spending. The first pavement project to receive Measure F funds is the 2026 pavement project, which will go out for bid on June 2 and is expected to be awarded at the June 16 council meeting. Most project expenses will fall in fiscal year 2027.
  • Councilmember Largaspada: Suggested that future agendas include a presentation from Public Works summarizing Measure F expenditures alongside revenue, to help the public see where funds are being spent.
  • Councilmember Scott: Supported the idea but cautioned against overcomplicating the board’s role; a simple commentary on spending would suffice.
  • Chair Polk: Proposed adding a reference section to future consent calendars that lists relevant budget and financial reports produced between meetings, along with links, rather than requiring full presentations. Board members agreed.

Key Outcomes

• Direction to Staff: The board directed staff to include, in future meeting packets, a reference section listing recent financial and budget reports (e.g., annual comprehensive financial report, city manager’s tax summary mailer) that have been published since the last meeting, providing links for the public. This is intended to increase transparency without expanding the board’s scope.
• Next Meeting: Scheduled for August 2026 (specific date not stated).