REPORT TO COUNCIL
SUBJECT
Title
Receive Transient Occupancy Tax and Real Property Transfer Tax Polling Results and Provide Direction to Staff on Next Steps
Report
BACKGROUND
City Council sponsored a study issue to identify and evaluate the potential of new revenue strategies for the City (FIN 17-01). Staff presented a variety of revenue sources to Council in October 2017. In consideration of the upcoming 2018 General Election, Council focused on revenue sources requiring voter approval.
On November 28, 2017, Council approved a Budget Modification (No. 24) for Advisory Services, including public opinion polling and education outreach. Council directed staff to explore moving forward with a general tax ballot measure focusing on Real Property Transfer Tax, Transient Occupancy Tax or Business License Tax.
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 should be considered:
? Community/Voter Acceptance
? Competitiveness with surrounding communities
? Efficiency of revenue collection and enforcement
? Effectiveness in generating sufficient revenues in the short and long-term to justify its establishment
? Enhancement of revenue diversity to promote stability and provide protection from downturns in business cycles
? Equity/Fairness in distribution of the revenue burden on various segments of the community
ENVIRONMENTAL REVIEW
This action is exempt from review under the California Environmental Act (CEQA) in that it involves fiscal and administrative activities that will not result in direct or indirect changes to the environment, and which do not commit the City to any specific project that may result in a potentia...
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