HomeMy WebLinkAboutStudy Session - Sales Tax Initiative PPTSales Tax Ballot
Measure
Consideration
Discussion
•Identified Need
•Best Option
•Next Steps
•Timeline
Why are we considering a Sales Tax Measure?
8/05/20XX
SOURCES 2022/23 REV 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29
Structural Fire Tax (includes PT from County)$ 7,000,000 $ 7,000,000 $ 7,140,000 $ 7,282,800 $ 7,428,456 $ 7,577,025 $ 7,728,566 $ 7,883,137
Reimbursement for Ladder Truck $ 1,100,000 $ 1,100,000 $ 1,100,000 $ 1,100,000 $ 1,100,000 $ 1,100,000 $ 1,100,000 $ 1,100,000
Prop A Fire Tax $ 2,200,000 $ 2,200,000 $ 2,200,000 $ 2,244,000 $ 2,288,880 $ 2,334,658 $ 2,381,351 $ 2,428,978
EMS Cost Recovery $ 2,400,000 $ 2,400,000 $ 2,400,000 $ 2,424,000 $ 2,448,240 $ 2,472,722 $ 2,497,450 $ 2,522,424
Misc Fees (Permits,Fireworks,etc.)/Interest $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000
Vehicles Paid by General Fund $ 504,000 $ 504,000 $ 208,000 $ 235,000 $ 225,000
Total Revenue:$ 13,224,000 $ 13,224,000 $ 13,068,000 $ 13,070,800 $ 13,520,576 $ 13,504,405 $ 13,727,366 $ 14,179,539
USES 2022/23 REV 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29
Fire/EMS Cooperative Services Agreement $ 16,145,375 $ 17,198,285 $ 19,267,535 $ 20,852,398 $ 25,293,143 $ 26,535,791 $ 27,840,570 $ 29,216,299
Wittman Billing Services $ 385,000 $ 385,000 $ 385,000 $ 385,000 $ 473,550 $ 497,228 $ 522,089 $ 548,193
Federal Quality Assurance Fee $ 235,000 $ 235,000 $ 235,000 $ 235,000 $ 289,050 $ 303,503 $ 318,678 $ 334,612
Contingency Fund $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 61,500 $ 64,575 $ 67,804 $ 71,194
Other (admin fees,utilities,R/M bldgs,etc.)$ 242,500 $ 242,500 $ 249,775 $ 262,264 $ 322,584 $ 338,714 $ 355,649 $ 373,432
Capital Projects $ 530,000 $ 530,000 $ 293,000 $ 125,000 $ 179,000 $ 125,000 $ 125,001 $ 125,002
Capital Office Equipment $ 108,400 $ 108,400
Capital Vehicles $ 504,000 $ 504,000 $ 208,000 $ 235,000 $ 225,000
Total Expenditures:$ 18,200,275 $ 19,253,185 $ 20,688,310 $ 21,909,662 $ 26,853,828 $ 27,864,809 $ 29,229,791 $ 30,893,731
Surplus/(Deficit)-Transfer Needed $ (4,976,275)$ (6,029,185)$ (7,620,310)$ (8,838,862)$ (13,333,252)$ (14,360,404)$ (15,502,425)$ (16,714,192)
Transfer in from the General Fund $ 4,600,000 $ 4,600,000 $ 5,300,000 $ 8,900,000 $ 13,500,000 $ 14,500,000 $ 15,500,000 $ 16,500,000
Fire Fund Balance @ FY End (Fund 230)$ 3,759,199 $ 2,706,289 $ 385,979 $ 447,117 $ 613,865 $ 753,461 $ 751,036 $ 536,844
*Adds Ops for 102 (keeping 71 operational)and excludes operation costs for Arena truck anticipated at $3.5M/year.
23% increase in ops costs for 102 applied to Wittman, FQAF, other and contingency
Projected Impact to
Forecast/Reserve
Future Costs Approved from Reserve:
-NS Park -$15M
-Fire Station 33 Renovation $1.3M
-Lupine Plaza $3.5M
-Portola Community Center $700k
-Traffic Op’s and Capacity $8M
-El Paseo Mid-Block Crossing $450k
-PD Link $4.95M
Options Discussed to Cover Anticipated Shortfall
8/05/20XX
OPTIONS/POTENTIAL
FUNDING SOURCES ASSOCIATED INITIAL CHALLENGS
ESTIMATED 1ST YEAR
REVENUE GENERATION ADDITIONAL CHALLENGES
MEETS CURRENT
REVENUE NEEDS
IDENTIFIED
Increase to Prop A
Fire Tax (Special)
Requires 2/3rds approval of votes
–ours does not sunset based on
how it was approved.
70% failure rating in CA in 2022
If the current $60 rate was
doubled, an increase would
generate approximately
$2.2M
The burden is carried by
property owners and revenue
restricted to fire related
services.
NO
Increase to Transient
Occupancy Tax (General)
Requires majority (50% +1) of
registered voters.
88% approval rating in CA in 2022
If the current 11% rate was
increased 1%, an increase
would generate
approximately $2.1M
At 11% the City is currently in
the middle of the rates
charged throughout the Valley
(9%-13.5%).
NO
Increase to Sales Tax
(District Tax) General
Requires majority (50% + 1) of
registered voters.
88% approval rating in CA in 2022
A sales tax increase of 1%
would generate $26.1M
Sales tax ballot may be
proposed by City Council,
subject to County/City limit
of 2% max.
YES
Create a Community
Facilities District
(CFD for City Services)*
Typically involves new
development owners to opt in
prior to entitlement
Could deter desired development
A Services CFD with the
remaining undeveloped
properties may generate
an additional $5M
District typically formed when
entitlements are issued. Funds
are limited to project listed in
district documents.
NO
Impose a Utility Users Tax
(General)*
Requires majority (50% + 1) of
registered voters
68% failure rating in CA in 2022
UUT of 15% would
generate approximately
$10M
Residents carry the burden at
an est cost of $30/month.NO
Next Steps
•Conduct Public Opinion Research to gauge resident sentiment
•Finalize Timetable for potential measure on November 5, 2024
•Initiate Stakeholder Outreach and Public Education
•Conduct Surveys prior to final decision
•Final round of Outreach and Public Education
•Finalize Measure Language/Refer to Ballot
•CDTFA Review of Resolution/Ordinance
•Adopt Resolution at least 88 days prior to election
•Conclude Public Education
•Vote Conducted
•November approval results:
•County provides results December 5, 2024
•City Certifies Election December, 2024 (Potential Special Meeting)
•Tax Collection in April, 2025
•First remittance received by July, 2025