HomeMy WebLinkAboutAgenda Packet - CC - 2026.01.20 Study SessionCity of Burlingame
CITY COUNCIL
STUDY SESSION
TUESDAY, JANUARY 20, 2026 AT 6:15 PM
BURLINGAME CITY HALL
COUNCIL CHAMBERS
501 PRIMROSE ROAD
OR VIA ZOOM
CITY COUNCIL MEMBERS:
Michael Brownrigg, Mayor
Andrea Pappajohn, Vice Mayor
Donna Colson
Desiree Thayer
Peter Stevenson
AGENDA
To Attend the Meeting in Person:
Council Chambers, 501 Primrose Road, Burlingame, California 94010
To Attend the Meeting via Zoom:
Consistent with Government Code Section 54953, the meeting will also be held via Zoom.
To access the meeting by computer:
Go to www.zoom.us/join
Meeting ID: 851 2290 2120
Passcode: 913398
To access the meeting via phone:
Dial 1-669-900-6833
Meeting ID: 851 2290 2120
Passcode: 913398
To Provide Public Comment in Person:
Members of the public wishing to speak will be asked to fill out a "Request to Speak" card
located on the table by the door and then hand it to staff. The provision of a name, address, or
other identifying information is optional. Speakers are limited to three minutes each, but the
Mayor may adjust the time limit in light of the number of anticipated speakers.
To Provide Public Comment via Email:
Members of the public may provide written comments by email to
publiccomment@burlingame.org . Your email should include the specific agenda item on which
you are commenting. Please note if your comment concerns an item that is not on the agenda .
Emailed public comments that are received by 4:00 p.m. on Tuesday, January 20, 2026, will be
included in a supplemental packet that will be sent to the City Council prior to the meeting and
published here: https://www.burlingame.org/169/City-Council---Agendas-and-Minutes
Page 1 City of Burlingame Printed on 1/15/2026
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January 20, 2026City Council Meeting Agenda
LEVINE ACT
The Levine Act (California Government Code Section 84308) prohibits, in certain cases,
campaign contributions to members of the City Council by those who have proceedings (e.g.,
applications for land use and other entitlements, contracts, etc.) pending before the City Council
and by those who may have an interest in proceedings (including those acting as agents for
applicants or potential contractors). Moreover, the Levine Act may require disclosure of
contributions by such individuals. The law is complex, and this brief description is not legal
advice. If you or an agent have made any campaign contributions to a City Councilmember in the
12 months before a proceeding in which you have an interest or you are contemplating making a
contribution within the 12 months after such a proceeding, you are urged to review the Levine Act
and consider consulting an attorney. A 2023 version of the Levine Act and a Fair Political
Practices Commission summary of it can be found on the website here :
https://www.burlingame.org/1206/Levine-Act-Information
1. CALL TO ORDER - 6:15 p.m. - Council Chambers/Zoom
2. ROLL CALL
3. REQUEST FOR AB 2449 REMOTE PARTICIPATION
Announcements/consideration and approval of requests by City Councilmembers to participate
remotely pursuant to AB 2449 (Government Code Section 54943(f)).
4. PUBLIC COMMENTS, NON-AGENDA
Members of the public may speak on any item not on the agenda. Members of the public wishing
to suggest an item for a future Council agenda may do so during this public comment period .
The Ralph M. Brown Act (the State local agency open meeting law) prohibits the City Council
from acting on any matter that is not on the agenda.
5. STUDY SESSION
Discussion and Direction on Potential Transient Occupancy Tax Increasea.
Staff Report
Transient Occupancy Tax Rates
Five-Year Forecast
Attachments:
6. ADJOURNMENT
Page 2 City of Burlingame Printed on 1/15/2026
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January 20, 2026City Council Meeting Agenda
Notice: Any attendees who require assistance, a disability related modification, or language assistance
in order to participate in the meeting should contact Meaghan Hassel -Shearer, City Clerk, by 10:00 a.m.
on Tuesday, January 20, 2026 at (650) 558-7203 or at mhasselshearer@burlingame .org. Any
individual who wishes to request an alternate format for the agenda, meeting notice, or other writings
that are distributed at the meeting should contact Meaghan Hassel -Shearer, City Clerk, by 10:00 a.m.
on Tuesday, January 20, 2026 at (650) 558-7203 or at mhasselshearer@burlingame.org.
Notification in advance of the meeting will enable the City to make reasonable arrangements to ensure
accessibility to the meeting, the materials related to it, and your ability to comment.
NEXT CITY COUNCIL MEETING
Regular City Council Meeting on Tuesday, January 20 at 7:00 p.m.
City Council Annual Goal Setting Session on Wednesday, January 28 at 5:30 p.m.
Regular City Council Meeting on Monday, February 2 at 7:00 p.m.
VIEW REGULAR COUNCIL MEETING ONLINE
https://www.burlingame.org/169/City-Council---Agendas-and-Minutes
Any writings or documents provided to a majority of the City Council regarding any item on this agenda
will be made available for public inspection via www .burlingame.org or by emailing City Clerk Meaghan
Hassel-Shearer at mhasselshearer@burlingame .org. If you are unable to obtain information via the
City’s website or through email, contact City Clerk Meaghan Hassel-Shearer at (650) 558-7203.
Page 3 City of Burlingame Printed on 1/15/2026
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STAFF REPORT
AGENDA NO:
MEETING DATE: January 20, 2026
To: Honorable Mayor and City Council
Date: January 20, 2026
From: Lisa K. Goldman, City Manager – (650) 558-7243
Subject: Discussion and Direction on Potential Transient Occupancy Tax Increase
RECOMMENDATION
Staff recommends that the City Council discuss a potential transient occupancy tax (TOT) measure
and provide direction on whether to proceed with the preliminary steps necessary to place a tax on
a future ballot.
BACKGROUND
California cities do not have an inherent power to tax. The passage of Proposition 13 in 1978
created a distinction between “general” and “special” taxes.
A general tax is a tax imposed for general governmental purposes, the proceeds of which are
deposited into the General Fund. A majority vote of the electorate is required to impose, extend,
or increase any general tax. An election for a general tax must be consolidated with a regularly
scheduled general election of City Councilmembers.
A special tax is a tax that is collected and earmarked for a specific purpose and deposited into
a separate account of the General Fund. A two-thirds vote of the electorate is required to
impose, extend, or increase any special tax. Special taxes do not need to be consolidated with
a regularly scheduled general election of City Councilmembers.
DISCUSSION
A transient occupancy tax (TOT) is levied when a room in a hotel (or other temporary lodging) is
occupied for 30 or fewer days. These taxes are usually levied as general taxes, with revenues used
for general governmental services such as public safety and capital improvements.
TOT rates in San Mateo County range from 10% in County unincorporated areas to 15.5% in Menlo
Park. Burlingame’s voters last approved an increase, from 10% to 12%, in November 2009. The
measure passed by a vote of 79.9% to 20.1%.
The City’s 12% TOT is levied on approximately 3,500 hotel rooms in Burlingame. (That number will
drop by 146 when the Holiday Inn Express closes at some point to make way for the
DivcoWest/Peninsula Crossing project.) At its pre-pandemic height, the City’s TOT brought in $29.4
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TOT Increase Discussion and Direction January 20, 2026
2
million. In the first full year of the pandemic, FY 2020-21, TOT receipts dropped to $5.7 million.
Staff estimates that the tax will bring in $22.8 million in the current fiscal year.
During the City Council’s budget discussions last fiscal year, staff presented a five-year forecast
that shows revenues exceeding expenditures throughout the period. Once the City transfers funds
to capital projects and debt service, however, the City faces a net deficit, necessitating either a
reduction in spending on needed capital projects or a reduction in reserves, or both.
The City has a large number of capital projects on the horizon, including the Broadway grade
separation, undergrounding the power lines on El Camino Real, the purchase of the new City Hall
and its associated tenant improvements, and updates to the Parks Yard facilities. While the City
has set aside funding for some of these projects, the total costs are still unknown for many of the
projects. In addition, reducing capital spending for maintenance-type activities often requires more
expensive fixes later on, so reducing spending on capital projects is not a long-term solution.
For these reasons, staff recommends the City Council consider asking the voters to raise the TOT.
Using the current-year TOT estimate of $22.8 million, a 2% increase, from 12% to 14%, will raise
$3.6 million, while a 3% increase will raise $5.7 million. These numbers are subject to change
based on occupancy rates, room rates, and total number of hotel rooms in Burlingame.
Next Steps
Staff requests that the City Council provide direction on whether it wishes to pursue a TOT increase
for the November 2026 election. Should the Council choose to move forward, then staff will engage
the services of a professional polling firm and a public information consultant to assist with next
steps.
FISCAL IMPACT
There is no fiscal impact associated with tonight’s discussion. The cost to retain a professional
polling firm is likely to be less than $50,000, while the cost to retain a public information consultant
is estimated to be less than $100,000.
Exhibits:
Transient Occupancy Tax Rates
General Fund Five-Year Forecast
5
111 Anza Boulevard, Suite 410
Burlingame, CA 94010
650.348.7600
info@thesfp.com
TRANSIENT OCCUPANCY TAX
As of January 1, 2026
CITY TOT% SHORT TERM RENTAL TOT?
BELMONT 14% YES
BRISBANE 14% YES
* (plus $2.50 Business License Tax)
BURLINGAME 12% YES
COLMA 12% NO
DALY CITY 13% YES
EAST PALO ALTO 12% YES
FOSTER CITY 12% YES
HALF MOON BAY 15% YES
* (plus $1.00 HMB BID)
MENLO PARK 15.5% YES
MILLBRAE 14% YES
PACIFICA 15% YES
* (plus $1.00 Pacifica BID)
REDWOOD CITY 12% YES
SAN BRUNO 14% NO
SAN CARLOS 14% YES
SAN MATEO 14% YES
SOUTH SAN FRANCISCO 14% YES
* (plus $2.50 Conference Center Tax)
SAN MATEO COUNTY 10% YES
(properties in most unincorporated city areas)
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City of Burlingame
FY 2025-26 Proposed Budget
General Fund Five-Year Forecast
Revenue Categories
2024-25
Revised
2025-26
Proposed
2026-27
Forecast
2027-28
Forecast
2028-29
Forecast
2029-30
Forecast
Property Taxes 33,947,115 35,946,490 37,217,610 38,847,840 40,555,450 42,343,575
Sales Tax (including Measure I)17,973,660 17,062,890 17,578,830 18,140,660 18,751,100 19,384,380
Transient Occupancy Tax 21,666,000 22,821,000 23,962,000 25,160,000 26,418,000 27,739,000
Other Taxes - Franchise Tax 1,905,000 1,934,600 2,001,000 2,050,000 2,101,000 2,154,000
Other Taxes - Business Licenses 1,800,000 1,885,000 1,885,000 1,885,000 1,885,000 1,885,000
Other Taxes - Transfer Tax 400,000 400,000 408,000 416,000 424,000 432,000
Other Taxes - State HOPTR 64,000 64,000 65,000 66,000 67,000 68,000
Licenses & Permits 94,600 94,600 96,000 97,000 98,000 99,000
Fines, Forfeitures & Penalties 748,000 668,000 681,000 695,000 709,000 723,000
Use of Money & Property 245,000 1,507,000 1,770,000 1,784,000 1,798,000 1,813,000
Charges for Services 8,244,572 7,777,572 8,089,000 8,413,000 8,750,000 9,100,000
Other Revenue 387,000 137,000 137,000 137,000 137,000 137,000
State Subventions 215,000 215,000 217,150 219,322 221,515 223,730
Interest Income 2,550,000 2,000,000 2,040,000 2,081,000 2,123,000 2,165,000
Total Revenues 90,239,947 92,513,152 96,147,590 99,991,822 104,038,065 108,266,685
Expenditure Categories
Salaries & Wages (24,870,933) (24,927,867) (26,109,000) (27,017,000) (27,992,000) (29,006,000)
Benefits (16,316,622) (17,513,720) (18,493,209) (19,262,969) (20,250,969) (20,882,969)
Operating Costs (33,182,024) (32,756,433) (33,574,000) (34,786,000) (36,913,000) (38,950,000)
Internal Services (9,580,355) (10,304,692) (10,581,000) (10,866,000) (11,158,000) (11,587,000)
Capital Outlay (432,083) (335,140) (345,000) (355,000) (366,000) (377,000)
Total Expenditures (84,382,017) (85,837,852) (89,102,209) (92,286,969) (96,679,969) (100,802,969)
Revenues Over (Under) Expenditures 5,857,930 6,675,300 7,045,381 7,704,853 7,358,096 7,463,716
Transfer In (Out)
Transfer to CIP Project Funds (12,657,040) (9,961,920) (10,765,000) (9,305,000) (8,410,000) (7,810,000)
Transfer to Debt Service Fund (3,650,192) (3,121,839) (3,104,850) (3,104,150) (3,111,534) (3,120,450)
Transfers In (Out) - other funds 2,388,180 2,765,930 2,256,196 2,058,948 2,134,096 2,205,908
Net Surplus / (Deficit)(8,061,122)(3,642,529) (4,568,273) (2,645,349) (2,029,342) (1,260,826)
FUND BALANCE 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30
General Fund Beginning Bal.57,407,807 49,346,685 45,704,156 41,135,883 38,490,534 36,461,192
General Fund Ending Bal.49,346,685 45,704,156 41,135,883 38,490,534 36,461,192 35,200,365
Assigned Balance:24,158,000 24,703,000 25,575,000 26,498,000 27,469,000 28,484,000
Econ. Stability Reserve @ 24% of GF Rev.21,658,000 22,203,000 23,075,000 23,998,000 24,969,000 25,984,000
Catastrophic Reserve ($2 mil.)2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000
Contingency Reserve ($500,000)500,000 500,000 500,000 500,000 500,000 500,000
PARS restricted cash 20,300,835 20,300,835 20,300,835 20,300,835 20,300,835 20,300,835
Unassigned Fund Balance 4,887,850 700,321 (4,739,952)(8,308,301)(11,308,643)(13,584,470)
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