REPORT TO COUNCIL
SUBJECT
Title
Discussion of, and Possible Direction On, Review of Potential General Fund Revenue Opportunities for the November 2020 Ballot; Authorize the City Manager to Negotiate and Execute Contracts for Community Research and Outreach
Report
EXECUTIVE SUMMARY
The purpose of this presentation is to inform the City Council (Council) of staff's efforts to advance the City's priorities to stabilize our fiscal outlook in order to preserve service and staffing levels, generate more revenue to meet expenditure growth demands, and develop strategies for unfunded needs/projects.
During the January/February 2019 Council Goal Setting Session, the City Manager presented the City's Ten-Year Financial Forecast which showed ongoing deficits in years three and four. At the priority setting session, the Council gave direction for staff to return with an analysis of revenue options for Transient Occupancy and Utility Users Tax revenues.
Per Council direction, staff has worked on revenue options for Council consideration. While Council gave staff direction to also explore the establishment of a Utility User Tax (UUT), staff does not recommend creation of a UUT at this time, as discussed further in this report. This report considers the following revenue opportunities:
1. Increase in the Transient Occupancy Tax (TOT) rate,
2. Issue a General Obligation Bond, and
3. Establish an Infrastructure Parcel Tax.
Consistent with past discussions, revenue generating measures need to be evaluated with respect to what voters will likely support and it is generally recommended that measures be limited to two per ballot. City Council input regarding these three revenue opportunities will help staff determine which measures should move forward for further analysis and research for the November 2020 General Election ballot. While these items are viable, it is understood that each requires significant community and stakeholder engagement which, for some, may ta...
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