REPORT TO COUNCIL
SUBJECT
Title
Adopt Positions on State and Local Ballot Measures for the November 3, 2026 Election
Report
BACKGROUND
This report provides the City Council an opportunity to consider positions on state and local measures appearing on the November 3, 2026 General Election ballot. The statewide ballot includes 14 measures: five legislative measures (Propositions 1-5) and nine citizen initiatives (Propositions 37-45). This report provides a summary of each measure, identifies applicable existing City policy, if any, and includes a staff recommended City position when appropriate.
Staff provides analysis and a position recommendation only for ballot measures that directly impact City business, defined as matters directly related to City service delivery or otherwise contributing to the City’s operational success.
State law prohibits the use of public funds to campaign for or against a ballot measure. However, the City Council may consider and adopt a position on a ballot measure at an open and public meeting where members of the public have an opportunity to express their views. Staff recommendations are based on applicable adopted City policies, and potential impacts to City services, operations, or finances.
EXISTING POLICY
Council Policy 7.4.16, Ballot Measure Positions: As soon as possible following the release of the Secretary of State’s Official Voter Information Guide or the Santa Clara County Registrar of Voters’ Voter Information Pamphlet, staff will present to Council a report reviewing proposed ballot measures. Staff provides analysis and a position recommendation for ballot measures that directly impact City business.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378 (a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
DISCUSSION
The table below summarizes staff recommendations on ballot measures determined to impact City business. Propositions 3, 4, 5, 38, 39, 40, 41, 42, and 44 were determined not to relate to City business and therefore are not included in the table. Detailed analysis and applicable City policy references for each measure are provided in Attachment 1.
State and Local Ballot Measures Deemed City Business
|
Measure |
Title |
Staff Recommended Position |
Rationale |
|
Proposition 1 |
Authorizes Bonds for Housing Affordability Programs. Legislative Statute |
Support |
Authorizes $11.25B in state bonds for housing affordability programs, including $10B for affordable rental housing construction, preservation, and rehabilitation; consistent with the City’s 2026 Priority Advocacy Issue 5(A) and Housing Element Program H8 and Policy H-2.1. |
|
Proposition 2 |
Increases State's Rainy Day Fund. Legislative Constitutional Amendment |
Support |
Doubles the state Budget Stabilization Account cap from 10% to 20% of General Fund revenues, improving state budget stability and protecting predictability of state funding for local governments per Council Policy 7.0, B(5). |
|
Proposition 37 |
Creates Loan Program for Middle-Income Buyers of Qualified New Homes. Initiative Statute. |
Support |
Creates a State-administered home loan program for qualifying middle-income buyers up to 200% Area Median Income (AMI), consistent with Housing Element Policy H-2.8 and Program H9; bonds are repaid through mortgage payments, with no direct state or local costs. |
|
Proposition 43 |
Limits Voters' Ability to Raise Revenues for Local Government Services. Legislative Constitutional Amendment |
Oppose |
Raises the voter-approval threshold for citizen-initiated local special taxes from a simple majority to two-thirds, which could reduce local fiscal flexibility and future local revenues; inconsistent with Council Policy 7.0, B(3), which opposes legislation that reduces or erodes local revenues or local control. |
|
Proposition 45 |
Modifies Environmental Review for Certain Projects. Initiative Statute |
Oppose |
Imposes shortened CEQA review timelines that would create implementation challenges, reduce public participation opportunities, increase City workload, and expose the City to legal risk; inconsistent with General Plan Goal LT-1 and Council Policy 7.0, F(4) protecting home-rule authority. |
|
Measure RTM |
Public Transit Revenue Measure District Connect Bay Area Transit Initiative. Majority Vote Required. |
Support |
Establishes a 14-year, 0.5% regional sales tax in Santa Clara County to fund regional transit services and certain roadway improvements; supports transit serving Sunnyvale and establishes a limited-term regional funding source consistent with Council Policy 1.1(3) and 1.1(15). |
|
Measure G |
City of Sunnyvale City Charter Amendment - Public Works Contracting. Majority Vote Required. |
Support |
Amends Charter Section 1309 to allow alternative contracting methods (e.g., design-build, construction manager-at-risk) beyond the current design-bid-build approach, improving project delivery flexibility while retaining City Council oversight. |
|
Measure H |
City of Sunnyvale City Charter Amendment - City Manager's Authority to Settle Claims. Majority Vote Required. |
Support |
Allows Council to establish and subsequently adjust the City Manager’s claims settlement authority, providing greater administrative flexibility and more efficient resolution of certain claims while retaining Council oversight of settlements above the established limit. |
|
Measure I |
City of Sunnyvale City Charter Amendment - City Council Vacancies. Majority Vote Required. |
Support |
Amends Charter Section 606 to align appointed vacancy elections with the City's regular General Municipal Election cycle (November of even-numbered years), reducing potential for multiple elections for the same seat and lowering costs. |
FISCAL IMPACT
As required by state law, no public funds have been or will be used to campaign for or against any of these measures and therefore there is no fiscal impact to this report.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the City Hall reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
RECOMMENDATION
Recommendation
Approve the following staff-recommended positions on the ballot measures deemed City business:
• SUPPORT - Proposition 1 - Authorizes Bonds for Housing Affordability Programs. Legislative Statute.
• SUPPORT - Proposition 2 - Increases State’s Rain Day Fund. Legislative Constitutional Amendment.
• SUPPORT - Proposition 37 - Creates Loan Program for Middle-Income Buyers Of Qualified New Homes. Initiative Statute.
• OPPOSE - Proposition 43 - Limits Voters’ Ability To Raise Revenues For Local Government Services. Legislative Constitutional Amendment.
• OPPOSE - Proposition 45 - Modifies Environmental Review For Certain Projects. Initiative Statute.
• SUPPORT - Measure RTM - Public Transit Revenue Measure District Connect Bay Area Transit Initiative. Majority Vote Required.
• SUPPORT - Measure G - City of Sunnyvale City Charter Amendment - Public Works Contracting. Majority Vote Required.
• SUPPORT - Measure H - City of Sunnyvale City Charter Amendment - City Manager's Authority to Settle Claims. Majority Vote Required.
• SUPPORT - Measure I - City of Sunnyvale City Charter Amendment - City Council Vacancies. Majority Vote Required.
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $500 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
An “X” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
___ Contract or franchise
EXEMPT FROM THE LEVINE ACT
___ Competitively bid contract*
___ Labor or personal employment contract
___ Contract under $50,000 or non-fiscal
___ Contract between public agencies
_X_ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: Michelle Zahraie, Senior Management Analyst
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Detailed Ballot Measure Analysis and City Policy References