PREPARED BY: MATT RODRIGUEZ DATE OF MEETING: 02/05/2024
SUBJECT:
TITLE
CONSIDER RESOLUTION AUTHORIZING THE CITY MANAGER TO CONDUCT POLICY EVALUATION, FEASIBILITY, PRIORITIZATION AND COMMUNITY EDUCATION/OUTREACH EFFORTS FOR FUTURE CITY-INITIATED FUNDING MECHANISMS FOR THE 2024-2026 PERIOD
CEQA: This proposed action is not a project as defined by CEQA.
Label
CITY MANAGER RECOMMENDATION
Recommendation
Adopt Resolution
Body
Compliance statements
Annual Year-end City Survey; and under Major Policy Goal: Focus on Economic Development and Fiscal Diversification, Policy No. 414 - New Strategic Budget Initiatives to Address new Structural Deficits forecasted for FY 2025-2027 Period are current adopted policy items in the FY 2023-25 Council Priority Workplan, effective May 1, 2023.
BACKGROUND
Annual Year-end City Survey Process
To support civic engagement and community outreach, the City of San Pablo commissions an Annual Year-end City Survey to assess the community at-large, and to identify desired core priorities, needs and values to assist the City Council in formulating public policy decisions.
Strategy Research Institute, Inc. (SRI) administers the City’s annual year-end city survey process, conducts data analysis using appropriate scientific tools, and then provides summary findings and survey results to the City Council and City Manager’s Office. Information gathered from annual year-end city surveys assists the City Council in overall policy decision-making and aligns current policy issues with adopted policies contained in the adopted City Council Priority Workplan.
Previous City Council Action
On March 14, 2016, following presentation of 2016 Annual City Survey results by SRI, the City Council adopted Resolution No. 2016-139 which authorized further policy consideration, evaluation, feasibility and prioritization of the following previously considered City funding mechanisms (See Table A below), which included the following:
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TABLE A: PREVIOUS CITY FUNDING MECHANISM/PROGRAMS (2016-2020) |
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City Funding Mechanism/Program (2016-2020) |
Result |
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(1) Municipal Broadband Fiber Optic Project Funding Mechanism |
No ballot measure; City GFDR Budget Allocation (Phase I - $1M Completed in 2021); Phase II - $3M Federal Earmark for 2023-24 (Pending) |
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(2) Measure Q/S Sales Tax Measure Funding Mechanism (Extension beyond 2022) |
Measure S Adopted by Local Voters on 11/05/20 (79.19% Support); Sunsets in September 30, 2032 |
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(3) Childhood Obesity Prevention Funding Mechanism |
No ballot measure; Funded under existing Measure Q/S Allocation since July 1, 2028; Up to $200K from Annual City Digital Billboard Revenue |
2023 Annual City Survey Results
SRI conducted an in-field survey of the community at-large during December 2023 - January 2024. All survey results have been collected, evaluated and interpreted into summary findings for formal presentation to the City Council this evening under an earlier agenda item (See Council Presentations).
Future Funding Mechanisms (Under Policy Consideration)
A component of the 2023 Annual City Survey was to examine the potential local support from survey respondents (i.e., community at-large) on a number of possible future funding mechanisms to be considered by the City Council to support current or future policies or programs in the upcoming future election cycles beginning in 2024 through 2026. Specifically, the following future funding mechanisms were solicited for feedback from the community at-large in the 2023 Annual City Survey, as follows:
1. Commercial Cannabis Business License Tax Ordinance Amendment (i.e. New 5% Business License Tax)
2. City-wide Landscape and Lighting District Property Assessment Increase (i.e. Property-Protest Ballot Measure Only - TBD)
3. College/Trade Youth Scholarship Funding Mechanism (i.e. 1/4 cent Sales Tax Measure)
Individual results for each potential funding mechanism from the SRI 2023 Annual City Survey Results are attached to this staff report and are reflective of initial community at-large support as presented earlier this evening to the City Council (See Attachments No. 2-4)
Future Policy and Planning Outlook
On December 13, 2023, a new City financial condition was established (i.e. -$8.7M cumulative deficit for FY 2025-2027 period forecasted) following formal presentation of the City’s new Long-Range Financial Forecast Plan. As a result, future funding mechanisms must be explored to meet Strategic Budget Initiatives/Measures adopted by the City Council via Resolution No. 2023-167 to determine their feasibility in eliminating said forecasted deficits in addition to other critical cost measures under consideration. Therefore, the City Manager seeks formal support from the City Council to proceed with further policy evaluation, feasibility, prioritization and community education/outreach efforts for all potential future funding mechanisms (in sequential order) to coincide with future upcoming election cycles or timeframes during the 2024-2026 period (See Table B below), as follows:
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TABLE B: NEW FUTURE FUNDING MECHANISMS UNDER POLICY CONSIDERATION (IN SEQUENTIAL RANK-ORDER FOR 2024 - 2026) |
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Future Funding Mechanism (Rank-Order) |
City Council Workplan/Strategic Budget Initiative Goal |
Target Election Cycle or Timeframe |
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1. Commercial Cannabis Retail Business License Tax |
New GF revenue on Special Business Tax Uses (i.e. Max: 3 Commercial Retail Cannabis Retailers); Amount: $2.0 - $2.4M Annually |
Potential November 2024 Ballot Measure (Add 5% City Business Tax to City Business License Tax Ordinance) |
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2. City-wide Landscape and Lighting District Property Assessment Increase (TBD - parcel tax assessment) |
Eliminate or Reduce Annual GF Subsidy to LLAD; Eliminates or Reduces (-$1.5M annual GF Subsidy) |
Potential Spring 2025 Property Protest Ballot Measure to consider increase in Annual Property Assessment (TBD) |
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3. College & Trade Youth Scholarship Funding Mechanism** |
Extends existing GF-funded program beyond 06/30/26 for a period of 10 years until September 2036; Amount: $1M annually |
Potential March or November 2026 Ballot Measure (i.e. 1/4 cent sales tax measure; sunsets in 10 years) |
**Note: Funding Mechanism No.3: (College/Trade Youth Scholarship Funding Mechanism) is a potential extension of an existing General Fund funded program with current funding source (i.e. GF Fund 120/ARPA Funds) set to be depleted by June 30, 2026.
The City Council further understands that future ordinances or actions required to formally establish a new funding mechanism, or to extend an existing City funding mechanism (i.e. sales tax, parcel tax, property assessment, etc.), will require formal and separate City Council action for placement on a future local municipal ballot in accordance with State law. All funding mechanisms considered by local voters must meet all applicable State law and election statute requirements.
City Manager Recommendation
Following City Council action tonight, the City Manager will formally conduct policy evaluation, feasibility, prioritization, and community education/outreach efforts for all three (3) designated future funding mechanisms (in sequential order) under Table B to coincide with future upcoming election cycles or timeframes during 2024-2026 period.
FISCAL IMPACT
None associated with this report.
ATTACHMENTS:
Att A - Resolution
Att B - Figure 5: Increase of City-wide LLAD (SRI 2023 Annual City Survey Results)
Att C - Figure 6A: Keep College & Trade Scholarships Sustainable (SRI 2023 Annual City Survey Results)
Att D - Figure 7: Allow Sale of Commercial Cannabis in San Pablo (SRI 2023 Annual City Survey Results)