REPORT TO COUNCIL
SUBJECT
Title
Adopt a Resolution Calling for a General Municipal Election to be Held in the City of Sunnyvale on Tuesday, November 6, 2018 for the Purpose of Submitting to City Voters a Measure to Increase the Transient Occupancy Tax Rate; Requesting Consolidation with the Statewide General Election and Election Services from Santa Clara County; Directing the City Attorney to Prepare an Impartial Analysis; and Setting Priorities for Ballot Arguments.
Report
BACKGROUND
In October 2017, City Council sponsored a study issue to identify and evaluate new revenue strategies (FIN 17-01). These strategies are intended to help address rising costs and demands for service, balance volatile, declining, and difficult to forecast revenue sources and allow the City to continue delivering the high-quality services expected by the community. As part of the study issue staff held a study session. Council established a preference to focus on two potential general tax increase ballot measures, Transient Occupancy Tax and Real Property Transfer Tax.
Staff contracted with Fairbank, Maslin, Maullin, Metz & Associates (FM3) to conduct voter opinion polling. FM3 conducted polling via landline, cell phone and online survey methods on a sample of 552 registered voters. Results showed high support (74% approval) within the community for a ballot measure to increase the City's Transient Occupancy Tax (TOT) rate from 10.5% to 12.5%. In May 2018, Council reviewed the polling results and directed staff to return with actions needed to place a ballot measure on the November 2018 ballot to increase the TOT rate from 10.5% to 12.5% (RTC No. 18-0425).
EXISTING POLICY
Council Policy, Chapter 7, Planning and Management, Policy B.1.1 - The City will maintain a diversified and stable revenue base, not overly dependent on any land use or external funding source.
Council Policy, Chapter 7, Planning and Management, Policy B.1.4 - When considering a new tax or revenue source or a...
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