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 6 The City has had an open checkbook on its' City website since 2015. This provides a mechanism for any interested party to review the City's expenditures at any time through a convenient online system at no cost. As an enhancement, staff could place a specific portion of the open checkbook system to be made available for the new sales tax revenue and expenditures. Staff is recommending that the above referenced transparency and accountability elements be included for consideration by the voters. It is the goal of the City to promote transparency and accountability in all efforts and will continue to enact best practices to ensure fiscal stability moving forward. Sunset Options A sunset clause is a provision that can be added to a ballot measure to end the effect of a tax. Typically, sunset options are exercised in cases where the revenue is utilized to help address temporary or term specific needs, or finance capital investments. When revenue from a ballot measure, such as the initiative being proposed, funds operating costs, a sunset provision can have unintended consequences. This is most evident when providing enhanced services that must later be eliminated or drastically cut. However, often times sunset clauses can help increase public support for a tax by limiting the duration of the proposed increase. In Orange County, three cities have a sunset clause in their add on sales tax. The cities of Fountain Valley and La Habra both have a 20 -year sunset, while the city of Westminster has a 5 year sunset. Staff is recommending an option with a provision to sunset 0.5% from the 1.5% proposed increase after about eleven years, for the City Council's consideration. Staff anticipates that the new revenue will be utilized to meet current and future public safety needs, addressing homelessness, youth programing, infrastructure needs, such as improving parks, streets, and sidewalks along with other essential city services. Other Revenue Considerations and Mitigating Development Costs In addition to the revenue measure, the City is looking for opportunities to spur economic growth and enhance its future revenue base. The City's Economic Development Division is focusing on an array of initiatives that promote investment opportunities, business retention and attraction, revenue generating projects, and workforce services. This includes developing a community branding strategy, scheduled to be completed by the end of summer 2018 that promotes and markets Santa Ana as an ideal place to do business, live and play. The Economic Development Divisions' efforts of business attraction and retention are designed to ensure that new and existing businesses continue to thrive in Santa Ana. With the adoption of the City ordinance to allow new cannabis related businesses, Staff has identified several industrial buildings for inquiring cannabis companies looking to grow their footprint. Support for these new cannabis related businesses will help increase revenues related to the Cannabis industry for the City. 55C-6