DATE: July 10, 2018
TO: Mayor and City Council
FROM: City Manager
SUBJECT
Title
Review of Polling and Direction on Potential November 2018 Ballot Measures
End
RECOMMENDATION
Recommendation
That the Council reviews feasibility poll results for two potential revenue measures increasing the City’s Transient Occupancy Tax (TOT) and Real Property Transfer Tax (RPTT) and directs staff to prepare for the July 17 Council meeting the necessary resolutions to place TOT and RPTT increases on the November 2018 ballot.
End
SUMMARY
Over this past year, the City Council has discussed several strategies to close the City’s General Fund structural budget deficit. These strategies include revenue generating and expenditure reduction strategies, alternative service-delivery options, and cost shifting. This staff report focuses on two revenue generating strategies: increasing the Transient Occupancy Tax (TOT), also known as the Hotel Tax, and the Real Property Transfer Tax (RPTT), which is a transaction tax collected upon the sale or purchase of real estate when ownership transfers from one party to another.
Increasing the TOT and RPTT tax rates would require voter approval. Over the last several months, City staff have been undertaking a program of community engagement to discuss and gather input on the City’s fiscal position and potential deficit-closing strategies, including increasing the TOT and RPTT. Additionally, the City contracted with Godbe Research to conduct feasibility polls for these proposed measures to provide a quantitative assessment of voter support.
ATTACHMENTS
Attachment I Staff Report
Attachment II Fall 2017 Survey Topline Results
Attachment III Budget Strategies Recommendations
Attachment IV Qualitative Research Results
Attachment V June 2018 Survey Topline Results