Civic Issues
Topics getting the most attention in Costa Mesa public meetings, ranked by how frequently they are discussed.
7 issues in taxes budget
Measure Q Cannabis Tax Revenue Allocation for Housing
The council debated a proposed first-time homebuyer grant program funded by Measure Q cannabis tax revenues before voting to defer the plan to a study session to explore broader housing trust fund priorities.
Business License Tax Reform
Costa Mesa hasn't updated its business license tax since 1985, meaning large corporations pay the same flat $200 fee as small shops. The city is considering switching to a sliding scale based on gross receipts to fund essential public safety and infrastructure without hurting small local businesses.
Parks and Recreation User Fee Adjustments
The city is evaluating its recreation and park rental fees for the first time since 2017/2019 to improve cost recovery, which currently sits at about 17%. While some commissioners want to keep fee increases modest to protect low-income residents, others favor more aggressive adjustments for commercial users and non-residents to fund future park maintenance.
Transient Occupancy Tax (TOT) Adjustment
The city's hotel tax sits at 8%, lower than many neighboring cities. Officials explored raising it by up to 3% to generate revenue, but local hoteliers warned it could harm competitiveness against nearby Irvine.
Fiscal Year 2026-27 Proposed Budget
The city adopted a $245.9 million overall budget that balances revenues and expenditures without raising taxes or tapping reserves, though council members raised concerns about police overtime assumptions and vacancy savings.
Federal Grant Funding & Nonprofit Allocation (CDBG/HOME)
The council approved significant financial support for local affordable housing projects, directing federal HOME funds and local Housing Trust Fund monies to help build senior and supportive housing.
Fiscal Year 2025-26 Mid-Year Budget Update
The city is projecting a balanced budget with a slight surplus, driven by strong sales tax revenues that covered higher-than-expected personnel and overtime costs. Council members debated the accuracy of budget forecasting and the need for stricter spending controls.