REPORT TO COUNCIL
SUBJECT
Title
Approve Budget Modification No. 24 in the Amount of $150,000 for Advisory Services Including Polling, and Public Education Outreach Related to the Evaluation of New Revenue Strategies to Fund New and Increasing Service Demands and/or Unfunded Capital Investments, and Find that the Action is Exempt from CEQA
Report
BACKGROUND
Like many cities across the country, the City of Sunnyvale faces increasing costs to deliver projects as well as increased costs and demands for service. As these costs are projected to outpace revenue growth, and to find capacity to invest in projects and deliver the high-quality services expected from the community, new and existing revenue sources should be evaluated.
As part of a Council Study Issue (FIN 17-01), on October 3, 2017, staff presented revenue strategies at a City Council study session that identified ways to secure stable revenue sources to fund new and increasing service demands and/or unfunded capital investments. A wide variety of revenue sources were reviewed including Development Impact Fees, Franchise Fees, Transient Occupancy Tax (TOT), Utility Users Tax (UUT), Sales Tax, Business License Tax, and Real Property Transfer Tax. The discussion evaluated potential revenue increases, the sustainability of the different funding sources, the probability for success, and the varying level of approval for each revenue source (e.g., staff, City Council, voter). In consideration of the upcoming 2018 General Election, Council focused on several of the revenue sources that would require voter approval.
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 an increase in an existing tax or revenue source, the following criteria s...
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