Item 8.1 - Proposal for a Sales Tax Increase for Benefit of Libraries
AGENt REPORT SUMMARy
TO:
DATE:
Honorable Mayor and Members of the City Council
James L. Bowersox, City Han~
June 4, 1996
FROM:
SUBJEct:
Proposal for a Sales Tax Increase for the Benefit of Libraries:
Support for Implementing Legislation
ABSTRAct
On Hay 7, 1996, the City Council briefly discussed a proposal of the City of San Diego
and County of San Diego to place a v. cent increase in the sales tax on the November
General Election Ballot. This sales tax increase which would require a two-thirds
voter approval would remain in place for five years. In order for the proposed sales
tax initiative to be placed on the ballot, the legislature must first approve
implementing legislation and have it signed by the Governor by the third week of July.
Senate Bi 11 1958 has been introduced by Senator Mello and is now in the Assembly.
ENVIRONMENTAL REVIEW
This report is exempt from CEQA review.
FISCAL IMPAct
None at this time.
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE
None.
RECOMMENDATION
It is recommended that the City Council approve a resolution in "Support for Urgency
Legislation to Penait Local Voter Approval For a One-Quarter Cent Sales Tax for
Libraries."
AcnON
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JUN 4 1996 ITEM 8.1 .
CITY OF POWAY
AGENDA REPORT
TO:
FROM:
DATE:
SUBJECT:
Honorable Mayor and Members of the City Council
James L. Bowersox, City Man~
June 4, 1996
Proposal for a Sales Tax Increase for the Benefit of
Libraries: Support for Implementing Legislation
BACKGROUND
On May 7, 1996, the City Council briefly discussed a proposal of the City of San
Diego and County of San Diego to place a V. cent increase in the sales tax on the
November General Election Ballot. This sales tax increase which would require a
two-thirds voter approval would remain in place for five years. In order for the
proposed sales tax initiative to be placed on the ballot, the legislature must
first approve implementing legislation and have it signed by the Governor by the
third week of July. Senate Bill 1958 has been introduced by Senator Mello and is
now in the Assembly.
FINDINGS
Attached is a letter (Exhibit A) signed by all members of the Board of Supervisors
requesting a resolution of "Support for Urgency Legislation to Permit Local Voter
Approval for a One-Quarter Cent Sales Tax for Libraries." As noted in the
Supervisor's letter, there is a need "to work out details of the ballot language,
the distribution of revenues, and the sharing of costs in preparation for the
passage of the legislation."
On May 28, 1996, there was a meeting held at the office of the County librarian
that included the County and all cities. At this meeting, an estimated revenue
table was distributed (Exhibit B) which noted that Poway would receive $914,427
per year based upon Fiscal Year 1994-95 taxable sales. This would probably mean
that Poway would accrue $5.0 million over the five-year collection period. Issues
discussed during the meeting included the following:
1. The need to include a maintenance of effort provision and establishment of a
base year.
2. Are there Countywide needs that should be addressed before those of individual
cities?
3. How should the funds be divided between capital and endowment funds?
4. Should the cities share the cost with the County for the ballot measure?
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JUN 4 1996 ITEM 8.1
Agenda Report
June 4, 1996
Page 2
5.
Is the Board of Supervisors willing to allow funds raised within
the cities to be returned to the cities?
In order to address the above issues as well as formulate recommendations with
respect to specific projects and ballot language, a "follow up" meeting has been
set for June 10, 1996. At this time it is premature to recommend support for the
proposed sales tax increase. However, in order to preserve options, it is
appropriate to support SB 1958 (Mello).
Attached for City Council consideration is a resolution (Exhibit C) supporting
legislation that would enable voters to decide whether they would enact a sales
tax for the benefit of libraries.
ENVIRONMENTAL REVIEW
This report is exempt fro~ CEQA review.
FISCAL IMPACT
None at this time.
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE
None.
RECOMMENDATION
It is recommended that the City Council approve a resolution in "Support for
Urgency Legislation to PerMit Local Voter Approval for a One-Quarter Cent Sales
Tax for Libraries."
Exhibits: Exhibit A -
Exhibit B -
Exhibit C -
County of San Diego letter
EstiMated Revenue Table
Resolution
C:\OATA\WP'lLES\AIENDA\OI04TAX.CMD
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JUN 4 1996 ITEM 8.1
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rlECEIVED
ClIoUttt~ of ~ntt ~i~go
A
.
MAY 24 1996
BOARD OF SUPERVISORS CITY OF POWAY
'800 ~ACI"C HIGHWAY. ~OOM 331. aAN OliGO. CAU.O....... .2'O"2~!);Y MANAGERS OFFICE
May 20, 1996
The Honorable Don Higginson
Mayor, City of Poway
13325 Civic Center Drive
Poway, CA 92074
Dear Mayor Higginson:
The Board of Supervisors has endorsed placing an initiative on the November 1996
ballot seeking 2/3 voter approval of a 1/4-cent sales tax increase for five years to be
used exclusively for library purposes. In order to proceed with this initiative, special
State urgency legislation is required to permit the County to place the measure on the
ballot. Therefore, we request that your Council adopt a resolution of support. A
draft is enclosed. We would appreciate receiving the Council's resolution by June
14. A copy must be faxed to Deputy Chief Administrative Officer Lari Sheehan at
531-6439 as soon as possible, but no later than June 14.
The initiative envisioned by the Board of Supervisors would provide that each of the
cities which have their own library, and the County of San Diego libraries would
receive the 1/4-cent sales tax revenue generated within their service area boundaries
for purposes of funding new library services and projects. The monies could not be
used to supplant existing services and projects.
EXHIBIT A
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JUN 4 1996 ITEM 8.1
-2-
County staff will be contacting your staff to work out the details of the ballot
language, the distribution of revenues, and the sharing of costs, in preparation for
passage of the legislation. If you have questions or would like more information,
please contact Ms. Sheehan at 531-5274 or County Librarian Marilyn Crouch at 694-
2389.
Supervisor Bill Horn
Vice Chairman
Respectfully,
Supervisor Ron Roberts
Chairman
~~
Supervisor ~reg Cox
First District
~~
Third District
Supe isor Dianne
Second District
Attachment
cc: Councilmembers
City Managers
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~UN 4 1996 ITEM 8.1
~
ESTIMATED REVENUE FROM 1/4 CENT SALES TAX BY AREA
INCORPORATED AND UNINCORPORATED AREAS OF SAN DIEGO COUNTY
BASED ON 1994 CALENDAR YEAR PERCENTAGES AND FISCAL YEAR 1994-95
TAX ALLOCATIONS
Annual Taxable Total Taxable Value 1/4 cent
Sales Sales ( .0025)
Allocatable Allocated (94-
(1994) -Broken 95) Based on Le. .5 of
Out to Derive 1/2 Cent SD previous
Most Recent Regional column B
Geogrphic Transportation
Percentage Commission
Allocations Allocations
(Actuals after
2\"
Administrative
Charges
Subtracted by
State Board of
Equalization
Del Mar $ 80,409,000 $ 457,213 $ 228,606
( .004)
El Cajon $1,104,210,000 $6,172,383 $3,086,191
( .054)
Encinitas $ 382,772,000 $2,171,764 $1,085,882
(.019)
Imperial Beach $ 43,26.8,000 $ 228,606 $ 114,303
(.002)
La Mesa $ 608,603,000 $3,429,101 $1,714,550
(.030)
Lemon Grove $ 199,069,000 $1,143,033 $ 571,516
( .010)
poway $ 321,747,000 $1,828,854 $ 914,427
(.016)
San Marcos $ 507,815,000 $2,857,584 $1,428,792
(.025)
Santee $ 369,909,000 $2,057,460 $1,028,730
( .018)
Solana Beach $ 116,946,000 $ 685,820 $ 342,910
(.006)
A
B
C
EXHIBIT B
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Vista $ 414,023,000 $2,286,067 $1,143,033
(.020)
Unincorporated $ 874,883,000 $4,915,043 $2,457,520
(.043)
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JUN 4 1996 ITEM 8.1
Taxable $19,389,750,000 $109,388,341 $ 54,694.171
AIlocat (.957)
able
Transac-
tioDS
lncorporat
ed CITIES
Taxable $ 888,258,000 $ 4,572,135 $ 2,286,068
AIlocat (.04)
able
Transac-
tioDS
Unincorp .
Ateas
Total $20,264,633,000
AIlocat
able
Sales
TOTAL $ 5,242,838
UNALLO
CATED
TAXABL
E
TRANSA
CTlONS
SAN $22,375,143,000 $ 55,937,857
DIEGO
CO.
TOTAL
Allocated
and
Unallocate
d
Revenue $ 5,023,654,000 $ 12,559,135
raised
in all
areas
served
by Co.
Ubnuy
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..
SAN $20,264.633.000 $ 50,661,583
DIEGO
CO.
TOTAL
Excluding
Unallocate
d
Taxable
Transactio
os
Ellen Zyroff 4123/96
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JUN 4 1996 ITEM 8.1
RESOLUTION NO. 96-
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF POWAY, CALIFORNIA
REGARDING SUPPORT FOR URGENCY LEGISLATION
TO PERMIT LOCAL VOTER APPROVAL
FOR A ONE-QUARTER CENT SALES TAX
FOR UBRARIES
WHEREAS, citizens throughout the San Diego County region rely on their community
libraries for a variety of services; and
WHEREAS, current funding levels are insufficient to provide for essential library
programs and operations; and
WHEREAS, a number of library facilities are in desperate need of repair, remodeling,
or expansion to properly serve library patrons; and
WHEREAS, hours of operation have been reduced for many libraries due to funding
constraints; and
WHEREAS, current funding levels are insufficient to pay for an information-age
library system; and
WHEREAS, libraries serve youngsters from preschool to college, parents, and seniors,
as well as businesses; and
WHEREAS, libraries are a vital part of each community; and
WHEREAS, a sales tax rate increase of one-quarter cent for a period of five years
would generate approximately $50 million annually for the entire region; and
WHEREAS, legislation is needed to authorize the voters of San Diego County to vote
to impose a sales tax to be used exclusively for library purposes; and
WHEREAS, urgency legislation is needed before August 9, 1996 to permit the Board
of Supervisors to place the ballot measure on the November 5, 1996 ballot.
EXHIBIT C
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JUN 4 1996 ITEM 8.1
Resolution No. 96 -
Page 2
NOW TIffiREFORE BE IT RESOLVED by the City Council of the City of Poway
that it hereby supports adoption of urgency legislation to permit the voters of San Diego
County to consider a one-quarter cent sales tax rate increase for five years to be used
exclusively for library improvements and that it urges all members of the San Diego
Legislative Delegation and the Governor to support such legislation.
PASSED, ADOP1ED, AND APPROVED by the City Council of the City of Poway at
a regular meeting this 4th day of June, 1996.
Don Higginson, Mayor
STATE OF CAUFORNlA )
) ss.
COUNTY OF SAN DIEGO )
I, Marjorie K. WahIsten, City Oerk of the City of Poway, do hereby certify under
penalty of perjury that the foregoing Resolution No. 96 - was duly adopted by the
City Council at a meeting of said City Council held on the 4th day of June 1996 and that it
was so adopted by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Marjorie K. Wahlsten, City Oerk
City of Poway
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