City and County of San Francisco
Q2 2026 Quarterly Account Review
Review period: April 1 through June 30, 2026
Review status: Preliminary, pending USPS account data
1. Executive Account Summary
The City and County of San Francisco is a large, decentralized public-sector account comprising numerous departments, commissions, enterprise agencies, and elected offices. Its potential USPS activity may include election mail, official notices, permits, tax and assessment correspondence, benefits communications, public outreach, legal notices, invoices, employee mail, departmental correspondence, and parcels.
The most significant USPS-related development during Q2 2026 was the June 2 Consolidated Statewide Direct Primary Election. The Department of Elections mailed vote-by-mail ballot packets to locally registered voters beginning in early May and accepted mailed ballots postmarked by Election Day and received by June 9. The department also produced and distributed voter-information materials and managed returned ballot processing.
Additional Q2 developments included:
- The operation of 501 polling places and 37 official ballot drop boxes for the June 2 election.
- Seasonal hiring for election-related correspondence, outgoing mail, and automated mail-processing functions.
- Continued expansion of digital permitting and online service delivery, which may reduce some paper correspondence over time.
- Release of a proposed $16.9 billion city budget for fiscal years 2026–2027 and 2027–2028 amid federal funding reductions and financial constraints.
- Continued citywide business, community, and public-information campaigns that may generate printed outreach and fulfillment needs.
Preliminary USPS assessment: Election Mail was likely the dominant Q2 USPS activity requiring operational attention. The broader account may also offer opportunities involving First-Class Mail, Marketing Mail, Certified Mail, Priority Mail, Ground Advantage, address-quality services, Informed Visibility, and departmental consolidation. However, the City’s decentralized purchasing and mailing structure may make account ownership, postage payment, permit usage, and decision-making difficult to map.
2. Quarterly Performance Comparison
USPS account performance
| Metric | Q2 2026 | Q1 2026 | Q2 2025 | Change |
|---|---|---|---|---|
| USPS revenue | Unavailable | Unavailable | Unavailable | Not calculable |
| Total mail and package volume | Unavailable | Unavailable | Unavailable | Not calculable |
| Average revenue per piece | Unavailable | Unavailable | Unavailable | Not calculable |
| First-Class Mail volume | Unavailable | Unavailable | Unavailable | Not calculable |
| Marketing Mail volume | Unavailable | Unavailable | Unavailable | Not calculable |
| Election Mail volume | Unavailable | Unavailable | Unavailable | Not calculable |
| Certified Mail volume | Unavailable | Unavailable | Unavailable | Not calculable |
| Ground Advantage volume | Unavailable | Unavailable | Unavailable | Not calculable |
| Priority Mail volume | Unavailable | Unavailable | Unavailable | Not calculable |
| USPS product mix | Unavailable | Unavailable | Unavailable | Not calculable |
Average revenue per piece should be calculated as:
USPS revenue ÷ total USPS mail and package volume
The account spreadsheet is required to calculate:
- Q2 2026 versus Q1 2026 revenue and volume.
- Q2 2026 versus Q2 2025 revenue and volume.
- Election versus nonelection volume changes.
- Average revenue per piece.
- Department-level spending and volume.
- Product migration.
- Permit and postage-account usage.
- Origin ZIP Code activity.
- Account engagement and service trends.
Known Q2 election-mail operating profile
The Department of Elections mailed a ballot to every eligible local voter for the June 2 election. Ballot packets began arriving in early May, and returned mailed ballots had to be postmarked by June 2 and received by June 9.
The Department also operated:
- 501 Election Day polling places.
- 37 official drop boxes.
- A City Hall Voting Center.
- Accessible vote-by-mail options.
- Mailing and outreach programs for military and overseas voters.
These facts confirm a major seasonal mail operation but do not disclose USPS postage revenue, number of ballot packets mailed, number returned through USPS, or costs by mail product.
3. Important Changes and Trends
Major election-mail cycle
The June 2 election required the production, entry, delivery, return, and processing of vote-by-mail ballots and voter-information materials. San Francisco instructed voters that mailed ballots had to be postmarked on or before Election Day and received by June 9.
Potential USPS significance: Election Mail creates concentrated volume, high visibility, strict timing requirements, and reputational risk. USPS performance should be reviewed separately for outbound ballot delivery, inbound returns, postmarking, mailpiece visibility, undeliverable ballots, and late-arriving pieces.
Increased temporary mail-processing activity
The Department of Elections recruited seasonal employees for outgoing correspondence, incoming mail, poll-worker communications, and automated mail-sorting operations. One position specifically required monitoring mail volumes, processing times, routing accuracy, workflow, and equipment performance.
Potential USPS significance: These positions indicate a substantial internal mail-processing operation. USPS should coordinate with the Department on induction schedules, containerization, ballot identifiers, troubleshooting, return-mail handling, and peak-volume forecasts.
Continued digital-service migration
San Francisco continued implementing PermitSF, a phased digital permitting platform designed to make applications and workflows more transparent and efficient. Q2 legislation and reforms continued referencing the city’s move toward digital permitting.
Potential USPS significance: Digital permitting may reduce some mailed applications, checks, notices, and supporting documents. USPS should determine which communications remain legally required in paper form and whether other departments are also reducing physical mail.
Budget pressure
The mayor presented a proposed $16.9 billion budget on June 1 while citing significant federal funding cuts and emphasizing fiscal responsibility.
Potential USPS significance: Departments may face pressure to reduce postage, printing, and administrative costs. This creates both risk and opportunity. Mail volume may decline, but USPS can position address-quality, presort, permit consolidation, product optimization, and data visibility as cost-control tools.
Decentralized departmental activity
San Francisco departments continued publishing newsletters, grant notices, regulatory information, voter outreach, and public-service communications during Q2.
Potential USPS significance: The City may have multiple independent mail owners and vendors. A citywide account review should identify major departments, mail service providers, permits, mailing systems, and contracts rather than treating the City as a single mailing operation.
4. Relevant Company Developments
May 1, 2026: Vote-by-mail ballots mailed
The Department of Elections announced that vote-by-mail ballot packets were being mailed to locally registered voters for the June 2 election.
USPS analysis: This was likely the largest single Q2 mail event for the City. The QAR should compare ballot entry, delivery, return, and undeliverable performance against the election plan and prior comparable elections.
May 5, 2026: Returned ballot processing began
The Department began processing returned vote-by-mail ballots four weeks before Election Day.
USPS analysis: Early return processing provides an opportunity to examine daily inbound ballot flows, postmarks, acceptance patterns, and voter use of USPS versus drop boxes.
June 2, 2026: Consolidated statewide primary election
San Francisco operated 501 polling places and accepted ballots through USPS, official drop boxes, polling places, and the City Hall Voting Center. Mailed ballots remained eligible if postmarked by June 2 and received by June 9.
USPS analysis: The account team should conduct a post-election operational review covering service performance, voter complaints, late postmarks, returned mail, address quality, and communications between USPS and election officials.
June 11, 2026: Post-election manual-tally process announced
The Department scheduled the random selection of ballot batches for the legally required manual tally after the June 2 election.
USPS analysis: This confirms continued post-election processing but has limited direct postal impact. It may, however, generate official notices, reports, records, and correspondence.
June 1, 2026: Proposed city budget released
The mayor presented the proposed $16.9 billion two-year budget while addressing federal funding reductions and city service priorities.
USPS analysis: Budget constraints may affect mailing frequency, printing contracts, outreach programs, and departmental procurement. USPS should prepare cost-saving recommendations supported by account data.
Q2 2026: Continued permit digitization
The City continued legislative and operational reforms tied to the PermitSF digital portal.
USPS analysis: Paper permit correspondence may decline, but physical notices, legal mail, inspection documents, and public-hearing communications may remain necessary.
5. Potential USPS Impact
Election Mail
Potential areas of focus include:
- Outbound ballot packets.
- Voter-information pamphlets.
- Polling-place notices.
- Replacement ballots.
- Returned ballots.
- Military and overseas election mail.
- Undeliverable ballots.
- Address corrections.
- Postmark compliance.
- Mailpiece design and automation compatibility.
- Informed Visibility and operational reporting.
The Department’s election plan noted that military and overseas voters could receive ballots by mail, email, or fax and that the City encouraged email delivery in some cases because of possible international-mail delays.
First-Class Mail
First-Class Mail may support:
- Tax and assessment notices.
- Permit correspondence.
- Benefits and eligibility notices.
- Regulatory documents.
- Employee communications.
- Court or legal correspondence.
- Election materials.
- Public-health notices.
- Official department letters.
The specific departments and volumes using First-Class Mail were not available.
Marketing Mail
Potential uses include:
- Public-information campaigns.
- Community outreach.
- Program enrollment notices.
- Event communications.
- Public-health education.
- Emergency-preparedness materials.
- Voter outreach.
- Small-business and economic-development information.
USPS should determine whether the City or its print vendors currently use Marketing Mail and whether mailpiece design or presort changes could reduce expense.
Certified Mail and accountable services
Potential users may include:
- Tax Collector.
- Assessor-Recorder.
- Department of Building Inspection.
- Planning Department.
- City Attorney.
- Rent Board.
- Human Services Agency.
- Public Health.
- Public Works.
- Sheriff and court-related offices.
USPS should identify which departments use Certified Mail, Return Receipt, Signature Confirmation, or private-carrier alternatives.
Ground Advantage and Priority Mail
Potential parcel needs include:
- Departmental supplies.
- Public-record responses.
- Election materials.
- Evidence or administrative files.
- Employee equipment.
- Community-event materials.
- Program kits.
- Interagency shipments.
- Replacement equipment.
Current parcel products, vendors, and volumes were not verified.
Address quality
The City communicates with residents, property owners, employees, businesses, voters, benefit recipients, and permit applicants. Address-quality tools may reduce:
- Undeliverable mail.
- Duplicate mailings.
- Returned ballots.
- Delayed notices.
- Reprinting and remailing.
- Staff research time.
- Missed statutory deadlines.
Potential services include CASS-certified addressing, National Change of Address processing, Address Change Service, and undeliverable-mail analysis.
Digital substitution risk
As more services move online, some transactional mail may decline. PermitSF is one current example of the City replacing paper-heavy workflows with digital submission and tracking.
USPS should distinguish between:
- Mail that is disappearing because of digitization.
- Mail legally required in physical form.
- Mail that remains more effective in print.
- Hybrid communications that combine digital notifications with physical delivery.
6. Opportunities
1. Conduct a post-election operational review
Meet with the Department of Elections to assess:
- Outbound ballot delivery.
- Return-ballot flows.
- Postmark issues.
- Late-arriving ballots.
- Undeliverable ballots.
- Voter complaints.
- Mailpiece visibility.
- Operational communications.
- Lessons for the next election.
2. Build a citywide mailing map
Identify each major City department’s:
- Mailing permit.
- Postage account.
- Mail owner.
- Print and mail vendor.
- Annual volume.
- USPS products.
- Mailing origin.
- Contract expiration.
- Procurement contact.
3. Consolidate permits and reporting
Where legally and operationally appropriate, evaluate whether fragmented permits, postage accounts, and departmental reports can be consolidated for improved visibility and spending control.
4. Address-quality initiative
Analyze returned and undeliverable mail across high-volume departments. Election Mail, tax notices, benefits correspondence, and permit communications are strong candidates.
5. Optimize accountable mail
Review Certified Mail and private-carrier usage to determine whether departments are using the correct service and whether electronic return receipts or alternative USPS products could reduce cost.
6. Parcel conversion
Obtain shipment data for departmental UPS, FedEx, courier, and messenger activity. Compare Ground Advantage and Priority Mail for eligible parcels.
7. Public-outreach mail testing
Evaluate whether selected digital-only public campaigns would benefit from targeted physical mail, particularly where response, language access, legal notice, or digital exclusion is a concern.
8. Election-cycle planning
Establish an election-mail calendar with:
- Design reviews.
- testing and certification.
- Entry plans.
- daily volume forecasts.
- escalation contacts.
- collection-box guidance.
- postmark communications.
- after-action meetings.
9. Budget-based savings proposal
Use the City’s current budget constraints as a reason to present measurable postage and mailing-process savings rather than a general sales proposal.
7. Risks and Concerns
- USPS account data were unavailable.
- The City is highly decentralized.
- Mailing decisions may be controlled by individual departments or third-party vendors.
- Election Mail has strict deadlines and high public visibility.
- Postmark or collection timing can affect whether a ballot is counted.
- Digital migration may reduce paper-mail volume.
- Budget pressure may lead departments to reduce mailing frequency or pursue lower-cost alternatives.
- The City may use multiple USPS permits and customer registration identifiers that are not linked to one Salesforce account.
- Print and mail vendors may control postage payment and entry.
- Current parcel-carrier relationships are unknown.
- Procurement rules may limit the timing and structure of new agreements.
- Legal requirements differ by department and mail type.
- Service failures involving elections, public benefits, taxes, or legal notices could create reputational and compliance risk.
- Agreement expiration dates, service issues, and prior commitments were unavailable.
8. Customer Questions
- Which City departments generate the most USPS revenue and volume?
- How much Q2 volume was related to the June 2 election?
- How did election-mail performance compare with the prior election cycle?
- How many ballot packets were mailed?
- How many ballots were returned through USPS versus drop boxes or voting locations?
- How many ballots were undeliverable or returned to sender?
- Were there any late-postmark, delayed-delivery, collection-box, or acceptance issues?
- What voter complaints involved USPS delivery or ballot returns?
- Which mailing vendors and permit holders supported the election?
- Which departments have separate USPS permits, CAPS accounts, or payment arrangements?
- Who manages the City’s central mailroom and departmental mail centers?
- Which departments use Certified Mail most heavily?
- What private carriers are used for parcels and accountable documents?
- Which mailing functions are being replaced by digital services?
- Which physical notices remain legally required?
- What are the City’s largest sources of undeliverable mail?
- Does the City use National Change of Address or Address Change Service consistently?
- Are departments receiving usable Informed Visibility or delivery-performance reports?
- Which print, presort, and mail-service contracts expire during the next 12 months?
- Are budget reductions affecting postage, printing, or public outreach?
- What USPS service issues or previous commitments remain open?
9. Recommended Actions
USPS actions
- Retrieve the City and County of San Francisco account data for Q2 2026, Q1 2026, and Q2 2025.
- Calculate quarter-over-quarter and year-over-year revenue and volume changes.
- Calculate average revenue per piece.
- Separate election-related and routine departmental volume.
- Conduct a formal June 2 election after-action review.
- Identify all City permits, payment accounts, mailing vendors, and entry locations.
- Map departmental mail owners and procurement contacts.
- Obtain undeliverable-mail data from Elections and other high-volume departments.
- Review address-quality practices and propose a citywide improvement plan.
- Analyze Certified Mail and accountable-mail usage.
- Obtain parcel shipment data for competitive carrier analysis.
- Review PermitSF and other digitization initiatives for potential mail-volume effects.
- Identify print and mail contracts approaching expiration.
- Prepare a documented cost-reduction proposal aligned with the City’s budget constraints.
- Record all open service issues, commitments, and responsible parties.
Recommended customer follow-up
Schedule separate reviews with:
- Department of Elections.
- City Administrator or central mail services.
- Office of Contract Administration.
- Treasurer and Tax Collector.
- Assessor-Recorder.
- Human Services Agency.
- Department of Public Health.
- Building Inspection and Planning.
- City Attorney or legal-mail users.
- Major print and presort vendors.
The first meeting should focus on the June 2 election and USPS operational performance. A broader citywide mailing review should follow.
10. Salesforce-Ready Account Update
Q2 2026 QAR: The City and County of San Francisco’s most significant USPS-related Q2 activity was the June 2 Consolidated Statewide Direct Primary Election. The Department of Elections mailed vote-by-mail ballot packets beginning in early May, processed returned ballots throughout the month, operated 501 polling places and 37 ballot drop boxes, and accepted mailed ballots postmarked by June 2 and received by June 9.
Potential USPS opportunities include election-mail planning, address-quality improvements, undeliverable-ballot reduction, Informed Visibility, First-Class Mail optimization, Certified Mail review, Marketing Mail for public outreach, permit and account consolidation, and Ground Advantage or Priority Mail conversion for departmental parcels.
Risks: USPS account performance was unavailable. The City is decentralized, may use multiple mailing vendors and permits, and is expanding digital services such as online permitting. Budget constraints may increase pressure to reduce printing and postage. Election Mail also carries strict service, postmark, and reputational requirements.
Next steps: Retrieve quarterly account data, complete a June 2 election after-action review, map departmental permits and vendors, analyze undeliverable mail and accountable-mail usage, identify expiring contracts, and develop a citywide cost-reduction and service plan.
Follow-up date: Not provided.
11. Information Required to Finalize the QAR
- Q2 2026 USPS revenue and volume.
- Q1 2026 USPS revenue and volume.
- Q2 2025 USPS revenue and volume.
- Election Mail revenue and volume.
- Product-level mail volume.
- Average revenue per piece.
- Department-level revenue.
- Permit and postage-account information.
- Mailing-vendor information.
- Current pricing agreements.
- Agreement expiration dates.
- Central and departmental mail contacts.
- Parcel-carrier usage.
- Certified Mail volume.
- Returned and undeliverable-mail data.
- Election delivery-performance data.
- Voter complaints or service issues.
- Previous commitments.
- Open opportunities.
- Last meetings and QAR dates.
- Next actions and follow-up dates.
12. Sources
- San Francisco Department of Elections, May 1, 2026: Mailing of vote-by-mail ballot packets for the June 2 election.
- San Francisco Department of Elections, May 5, 2026: Start of returned vote-by-mail ballot processing.
- San Francisco Department of Elections, June 2, 2026 election information: Voting methods, ballot mailing timeline, and return requirements.
- San Francisco Voter Information Pamphlet, June 2, 2026: USPS ballot-return options, security procedures, and voter guidance.
- San Francisco Election Plan, June 2026: Accessible, military, overseas, and vote-by-mail election procedures.
- City and County of San Francisco careers, February and March 2026: Election mail, correspondence, and automated mail-processing responsibilities.
- Mayor’s Office, June 1, 2026: Proposed $16.9 billion city budget and fiscal context.
- Mayor’s Office, Q2 2026: Digital permitting and PermitSF-related reforms.
- San Francisco Department of Elections, June 11, 2026: Post-election manual-tally process.
