Costa Mesa · issues
Civic issues
Topics getting the most attention in Costa Mesa public meetings, ranked by how frequently they come up.
Parks and Recreation User Fee Adjustments
A comprehensive review of city user fees to ensure cost recovery for municipal services provided to residents and businesses.
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.
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.