File #: RPT 16-077   
Section: Informational Report Status: Agenda Ready
Meeting Body: Council Budget and Finance Committee
Agenda Date: 7/6/2016 Final action:
Subject: Measure C (District Sales Tax) Annual Report FY 2016
DATE: July 6, 2016

TO: Council Budget and Finance Committee

FROM: Acting Director of Finance

SUBJECT
Title
Measure C (District Sales Tax) Annual Report FY 2016

End
RECOMMENDATION
Recommendation
That the Committee reviews and provides feedback on the City's Measure C (District Sales Tax) FY 2016 annual report.

Body
BACKGROUND

On June 3, 2014, the voters of the City of Hayward passed Measure C to create a District Sales Tax and increase the City's Sales and Use Tax by half a percent for twenty years. This "half-cent" increase ultimately brought the City's Sales and Use Tax rate to 10.0%. Based on actual revenues received to date, staff estimates that the District Sales Tax will initially generate approximately $13 million annually in locally controlled revenue that can be allocated by the City Council and will remain in place until October 1, 2034.

This District Sales Tax is a general tax and is considered discretionary in nature; however these funds are intended for use in capital projects including construction 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 allocate revenues not used for capital projects to fund additional police and maintenance services within the City.

On September 30, 2015, the City issued Certificates of Participation (COPs) for $67.5 million to fund the above mentioned capital projects. Debt Service for the COPs is secured by and will be paid using District Sales Tax revenue. Annual debt service payments for the COPs range from $2.9 to $5.4 million annually for twenty years.

DISCUSSION

The table below shows revenue and expenditure activity related to the District Sales Tax for FY 2015 and FY 2016.



FY 2016 District Tax related capital expenditures totaled $7.8 million, including design and constru...

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