DATE: July 6, 2016
TO:
Coun
cil Budget and Finan
ce
Committee
FROM: A
cting Dire
ctor of Finan
ce
SUBJE
CT
Title
Measure C (Distri
ct Sales Tax) Annual Report FY 2016
End
RE
COMMENDATION
Re
commendation
That the
Committee reviews and provides feedba
ck on the
City's
Measure C (Distri
ct Sales Tax) FY 2016 annual report.
Body
BA
CKGROUND
On June 3, 2014, the voters of the
City of Hayward passed
Measure C to
create a Distri
ct Sales Tax and in
crease the
City's Sales and Use Tax by half a per
cent for twenty years. This "half-
cent" in
crease ultimately brought the
City's Sales and Use Tax rate to 10.0%. Based on a
ctual revenues re
ceived to date, staff estimates that the Distri
ct Sales Tax will initially generate approximately $13 million annually in lo
cally
controlled revenue that
can be allo
cated by the
City
Coun
cil and will remain in pla
ce until O
ctober 1, 2034.
This Distri
ct Sales Tax is a general tax and is
considered dis
cretionary in nature; however these funds are intended for use in
capital proje
cts in
cluding
constru
ction of the
City's new 21st
Century Library and
Community Learning
Center,
completion of fire station retrofits and improvements, rehabilitation and expansion of the existing fire training
center, as well as extensive street improvements. The
City intends to allo
cate revenues not used for
capital proje
cts to fund additional poli
ce and maintenan
ce servi
ces within the
City.
On September 30, 2015, the
City issued
Certifi
cates of Parti
cipation (
COPs) for $67.5 million to fund the above mentioned
capital proje
cts. Debt Servi
ce for the
COPs is se
cured by and will be paid using Distri
ct Sales Tax revenue. Annual debt servi
ce payments for the
COPs range from $2.9 to $5.4 million annually for twenty years.
DIS
CUSSION
The table below shows revenue and expenditure a
ctivity related to the Distri
ct Sales Tax for FY 2015 and FY 2016.
FY 2016 Distri
ct Tax related
capital expenditures totaled $7.8 million, in
cluding design and
constru...
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