55C - RESO SALES TAX MEASURE - Laserfiche WebLink

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Proposed Add on Sales and Use Tax Measure for Municipal Services for Public Consideration on the November 2018 Ballot July 17, 2018 Page 5 State law establishes regulations on add on sales and use tax measures and the increments that are allowed to be considered, in this case, the City Council may consider a ballot measure in increments of one quarter cent. The maximum sales tax rate allowed is 10.25% in the state. Staff recommends a penny and a half add on sales and use tax measure which provides the greatest opportunity to address community needs while addressing the City's long-term financial stability. The proposed measure, if approved, would be a full percent below the ceiling established by the State. Based on the majority approval of the add on sales and use tax measure by the Santa Ana voters in November of 2018, it is anticipated that the additional new revenue would commence in the spring of 2019. Programs and Services the New Revenue will Fund If the Santa Ana Neighborhood Safety and Essential City Services Protection Measure is approved by the voters, new revenues generated will go to providing public safety, addressing homelessness, providing deferred maintenance at parks and other City facilities, equipment replacement, capital improvements, youth programming, library services, code enforcement and general municipal services. Additionally, the new add on sales tax revenue will support city needs and priorities as identified in the May 1, 2018, City Council Meeting 2018-19 Trial Budget Presentation. This included funding for the Quality of Life Team (QOLT) to address homelessness, leveraging economic development, advancing police officer recruitments, furthering Enterprise Fund compliance, addressing service delivery challenges, and augmenting investments in technology to streamline local government. Transparency and Accountability There are additional considerations that the Mayor and City Council may add to the ballot measure to enhance transparency and accountability. These include annual independent audits, an oversight review committee, an online open checkbook, mid -year fiscal review, and delineating and tracking the new add on sales tax revenue and corresponding allocation to be evaluated as part of the annual budget. Annual independent audits are currently performed in accordance with the Governmental Account Standards Board guidelines and are available on the City's website for the public's review. If a requirement for an independent audit is added to the ballot measure, a separate audit would be performed specific to the add on sales tax to ensure that new revenues are properly collected and that expenditures are reviewed and consistent with governmental accounting practices. An oversight review committee typically reviews on an annual basis the revenue receipts and expenditures of local add on sales tax, status and performance of the programs and services that are funded from the proceeds of the new revenues, and prepare reports for City Council consideration. 55C-5