To: Board of Directors
From: Lewis Broschard, Fire Chief, Contra Costa Fire Protection District
Report Title: HEARING TO CONSIDER ADOPTION OF ANNUAL CPI INCREASE TO THE MEASURE “O” PARCEL TAX
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
1. OPEN hearing to consider Resolution 2026-05 declaring the continuance of the Measure O Special Tax for Fiscal Year 2026-27 and adjust said funding measure by the allowable annual CPI of 3.0%, CONSIDER oral and written comments received; and CLOSE the public hearing.
2. ADOPT Resolution 2026-05, attached hereto
3. DIRECT the Fire Chief or Designee to prepare and file the required documents with the Tax Collector.
FISCAL IMPACT:
The proposed Measure O Special Tax rate for Fiscal Year 2026-27 is $266 per parcel, with estimated total revenue of around $2,883,440. This represents an increase of approximately $86,000 from Fiscal Year 2025-26. This revenue is necessary to maintain the same level of services for the area formerly covered by the Rodeo Hercules Fire District.
BACKGROUND:
In 2016, following voter approval, the Fire Protection and Emergency Response Services Special Tax (Measure O) was established to fund fire protection and emergency response services within the Rodeo-Hercules Fire Protection District. Subsequently, the Rodeo-Hercules Fire Protection District was annexed into the Contra Costa County Fire Protection District, which is legally authorized to continue levying the special tax. Measure O includes a Senior Exemption provision for qualifying property owners. Annually, upon approval by the Board of Supervisors, the maximum allowable assessment increase is calculated based on the January Consumer Price Index (CPI) for the San Francisco-Oakland-San Jose area. Pursuant to Measure O, the annual adjustment may not exceed three percent (3%). The CPI applicable for 2025 is 3.0%; therefore, the maximum allowable increase for the upcoming fiscal year is 3.0%.
CONSEQUENCE OF NEGATIVE ACTION:
If the proposed CPI adjustment is not approved, the Measure O special tax will not increase as authorized by voters, resulting in foregone revenue. The Measure O special tax will remain at the Fiscal Year 2025-26 rate, resulting in reduced projected revenue for Fiscal Year 2026-27.
THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
and for Special Districts, Agencies and Authorities Governed by the Board
body
IN THE MATTER OF the adoption of the annual CPI increase to the Measure O parcel tax;
WHEREAS, at the November 8, 2016 general election, voters in the town of Rodeo and the city of Hercules adopted Ordinance No. 2016-1 ("Measure O"), authorizing the levy of a special tax measure to finance fire protection and emergency services; and
WHEREAS, effective July 1, 2025, the Rodeo-Hercules Fire Protection District was annexed into the Contra Costa County Fire Protection District, and the Contra Costa County Fire Protection District has assumed all service responsibilities and is authorized to continue the levy and collection of the voter-approved Measure O special tax; and
WHEREAS, the tax imposed by Measure O for the 2025-26 fiscal year was two hundred fifty-eight dollars ($258) per parcel of real property within the District (the "Tax"); and
WHEREAS, based on the Consumer Price Index for All Urban Consumers (CPI-U), San Francisco-Oakland-Hayward area, published by the U.S. Bureau of Labor Statistics, showing a 3.0% increase for the 12-month period ending December 2025, the Measure O adjustment for FY 2026-27 shall be 3.0%, consistent with the ordinance cap; and
WHEREAS, the Board of Directors considered the proposed annual increase in the Tax at a duly noticed public hearing, at which time all interested persons had the opportunity to be heard; and
WHEREAS, the Board of Directors desires to increase the amount of the Tax by three percent (3.0%) to two hundred sixty six dollars ($266) per parcel.
NOW, THEREFORE, BE IT RESOLVED, that the Board of Directors of the Contra Costa County Fire Protection District does hereby resolve as follows:
1. The amount of the special tax levied by the District pursuant to Ordinance No. 2016- 1, also known as Measure O, shall be two hundred sixty six dollars ($266) per parcel for the fiscal year beginning July 1, 2026 and ending June 30, 2027.
2. In accordance with the requirements of Measure O, this special tax shall be collected in the same manner, on the same dates, and shall be subject to the same penalties and interest as other charges and taxes fixed and collected by the County of Contra Costa on behalf of the Contra Costa County Fire Protection District.
3. The Fire Chief is authorized and directed to take such action as necessary to carry out this Resolution.