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 7 In order to provide the City with additional Economic Development options, Staff is in the process of finalizing a property disposition policy that will allow the sale of City owned property for revenue enhancement opportunities from the proceeds of the sale, development, and community benefits. In an effort to demonstrate the positive impacts of new development, the Planning & Building Agency has begun including a section titled Economic Development Benefits on the Planning Commission staff reports. The objective is to identify the economic benefits for each new proposed development. The economic benefits of each development project will vary depending on the type of use, but generally the reports will capture estimates of: new jobs, projected sales tax revenue, and the increases in property evaluations, infrastructure impacts, and core service impacts. This is an evolving process and other information may be collected for informational analysis and to contribute towards the formation of future public policy. The Public Works Agency is the lead department on a study that is currently underway to evaluate the City's Development Impact Fees (DIF). The primary objective of a DIF program is to ensure that new development pays the capital costs associated with growth. Currently, there are DIFs to mitigate general impacts to infrastructure such as parks, library, transportation, sewer, and storm drainage systems.. Other 2018 Initiatives and Impacts to Santa Ana Rate Pavers In addition to the proposed ballot measure, there are other City of Santa Ana related initiatives on the November 6, 2018 ballot. This includes potential ballot measures for charter modernization, conversion to district elections, and an adult use & commercial cannabis tax. The Santa Ana Unified School District is also considering a school bond measure in November 2018. Additionally, there are other potential considerations such as the Poseidon Desalination Plant that would impact water rates locally, possible gas tax repeal on the November 2018 ballot, potential rate increases for utility service, and the reduction of local sanitation rates. Staff Recommendation Staff recommends that the City Council provide direction to staff and adopt the resolutions necessary to place the Santa Ana Neighborhood Safety and Essential City Services Protection Measure before the voters of Santa Ana. By placing the measure on the ballot the City Council is not endorsing or taking a position, but rather asking the voters of Santa Ana to lend their voice to the future of the City and the type of service levels they would like to receive moving forward. If adopted, the City would have an add on sales and use tax of one and half percent, of which 100% of the revenue generated would remain locally for Santa Ana to provide programs and services for the community. In order to provide for transparency and accountability to the Santa Ana community, staff is recommending that the ballot measure include annual independent audits, an oversight review committee, an online open checkbook, and to include revenues into the annual budget. 55C-7