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HomeMy WebLinkAboutAGENDA REPORT 2015 1118 CCSA REG ITEM 09A ITEM 9.A. CI?Y OF%Mr?ARK,CALIFORNIA City Councii Meeting MOORPARK CITY COUNCIL of L/'i8 a0/5 • ACTION: AGENDA REPORT , , c , TO: Honorable City Council `��,� FROM: Steven Kueny, City Manager fit DATE: November 10, 2015 (CC Meeting of 11/18/15) SUBJECT: Consider Potential New Parks Maintenance Assessment District BACKGROUND For several years, the City Council and staff have been evaluating and reviewing potential options to increase the City's available revenue for operations. During the economic downturn commencing in 2008, potential revenue enhancements were discussed, but no proposals were approved for voter consideration. The City Council has balanced the last several General Fund Operating Budgets with expenditure reductions including the elimination of ten (10) full-time positions. One full- time competitive service maintenance position was added in Public Works. This position was created from two part-time positions and is not funded from the General Fund. The City also added funding for one-half the cost of a deputy position to serve as the School Resource Officer. This was initially funded from the General Fund Reserve but is now funded from the General Fund Operating Budget as a result of other expenditure reductions. In 2013/14 Fiscal Year (FY), the City contracted for a statistically reliable survey of Moorpark voters. A primary purpose of the survey was to determine voters' willingness to support a local revenue measure. Those surveyed were asked an initial ballot test question about a potential City measure to enact a one-half (Y) cent sales tax. They were then asked a follow-up question about a potential one-quarter (%) cent sales tax. Of those surveyed, only about 49 percent (20.8% definitely yes, and 28.1% probably yes) supported the one-half (' ) cent sales tax. The support for the one-quarter (%) cent sales tax included an additional 5.3 percent above the 49 percent in support of the one-half (12) cent sales tax. However, with a 4.4 percent margin of error, this is marginal support for even the one-quarter (1/4) cent sales tax. 1 Honorable City Council Re: Consider Potential New Parks Maintenance Assessment District November 10, 2015 (CC Meeting of 11/18/15) Page 2 On March 19, 2014, the City Council took action not to proceed with a sales tax measure at that time. In March and April 2015, the Finance, Administration and Public Safety (FAPS) Committee (Mayor Parvin and Mayor Pro Tern Millhouse) considered potential revenue enhancement measures including a parcel tax. It was a consensus of the Committee to proceed with evaluation of a new citywide Parks Assessment and a Business License Tax. The City Council considered this matter on May 6, 2015, and by vote of 4-0 (Mayor Pro Tem Millhouse absent) directed staff to hire a consultant and pursue establishing a citywide Parks Assessment prior to July 2016 via a citywide mail ballot and to assess the possible inclusion of a Business License Tax measure on the November 8, 2016 ballot. The City Council discussed this matter again during the May 27, 2015 Budget Workshop. Concern was expressed about the effect of potential tax measures from the State and Ventura County Transportation Commission that might be placed on the November 2016 ballot. The Council also discussed the importance of informing the public about the need for additional revenue and the need to secure public support for any revenue measure placed before the voters. DISCUSSION On November 4, 2015, the FAPS Committee discussed a potential new Parks Assessment District. A copy of the staff report including estimated costs and schedule is attached. Discussion included cost and timing of an opinion survey; schedule including proximity to June and November 2016 elections as well as holidays; income and property tax payment dates; the critical need to build general community support and to have an organized group willing to promote a potential measure; and the possible impacts on parks maintenance and improvements (even with reduced water use) without additional funding. The City Manager recommended and the Committee concurred to wait until early 2017 (pre-2017/18 FY Budget) to formally proceed with a Parks Assessment Measure process. This would allow the City Council, as part of the 2016/17 FY Budget process, to identify potential reductions in parks maintenance of approximately $300,000 (likely approximate amount that would be recommended for parks assessment revenue based on $25 per single family equivalent [SFE]). The full closure of one of the City's smaller parks of about three to four acres would save about $60,000 per year. With the current staff vacancies, workload, and priorities, the postponement will allow time to complete other priorities and to fill vacancies. It will also allow time to assess 2 Honorable City Council Re: Consider Potential New Parks Maintenance Assessment District November 10, 2015 (CC Meeting of 11/18/15) Page 3 need for a survey (at an estimated cost of $34,000) and to identify likely groups and individuals who would form the nucleus of public support and promotion for a parks assessment. STAFF RECOMMENDATION Consider potential Parks Maintenance Assessment as part of the 2016/17 FY Budget. SK:db Attachments: 1) November 4, 2015, Finance, Administration and Public Safety Committee Agenda Report regarding Consider Potential New Parks Maintenance Assessment District 2) New Parks Assessment Ballot - Moorpark Survey and Ballot Timeline 3) March 4, 2015, Finance, Administration and Public Safety Committee Agenda Report regarding Consider Revenue Enhancement Measures S:\\ccagenda\Potential New Parks Maintenance Assessment District 2015 1118.doc 3 Attachment 1 FINANCE, ADMINISTRATION AND PUBLIC SAFETY COMMITTEE AGENDA REPORT TO: Finance, Administration and Public Safety Committee Mayor Parvin and Mayor Pro Tern Millhouse FROM: Ron Ahlers, Finance Director 6-91-- DATE: October 30, 2015 (FAPS Meeting November 4, 2015) SUBJECT: Consider Potential New Parks Maintenance Assessment District BACKGROUND The current Parks Maintenance Assessment District was established in 1999. The special benefit portion was determined to be 75%, The current annual assessment for a single family equivalent is $57.38. A new annual assessment of $25.00 per single family equivalent would generate about $330,000. Though the parks maintenance assessment was not specifically queried as part of the 2013 opinion poll, the $25.00 amount is within the likely range of support indicated at that time. DISCUSSION The method of voting is by a mail-ballot and can occur at any time during the year. The consultants, SCI, have recommended a May ballot. This would allow enough time to put the new assessments on the tax roll for the upcoming year, FY 2016-17. The timing of the mail ballot is a main concern regarding these assessment district votes. The ideal time for the mail ballot is May 2016. This is after April 15, 2016, known as income tax day and before the 2016 elections. The California primary election is scheduled for June 7, 2016 and the United States national election is scheduled for November 8, 2016. The City has contact SCI to provide preliminary estimated cost figures for a May 2016 vote on the Parks assessment district. 4 Finance, Administration and Public Safety Committee November 4, 2015 Page 2 Mailed Survey and Feasibility Analysis $ 33,750 Assessment Engineering, Engineer's Report $68,200 and Ballot Proceeding Education Outreach $ 14,500 1st Year Levy Administration $ 15,000 Estimated Cost $ 131,450 STAFF RECOMMENDATION Review and discuss the report. Attachment: Moorpark City Council report, "Consider Recommendation to Conduct a Communication and Outreach Effort for a Potential Sales Tax Measure", dated March 19, 2014. 5 I - MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Hugh Riley, Assistant City Maria BY: Jennifer Mellon, Administrative Services ageF DATE: March 6, 2014(CC Meeting of 3/19/14) SUBJECT: Consider Recommendation to Conduct a Communication and Outreach Effort for a Potential Sales Tax Measure BACKGROUND When the City Council considers the Annual Operating Budget for the Fiscal Year beginning July 1, 2014, you will be confronted with a number of significant challenges to achieving a balanced General Fund Operating Budget. These include the loss of sales tax revenue to intemet sales, the continuation of a sluggish economy as evidenced by minor increases in sales and property taxes, expected increases in law enforcement expenses and the loss of Redevelopment funding for certain special projects. More than ever them is a need to generate additional revenues for the General Fund. Over the past few years, cuts to the budget included a 12% reduction in staffing through attrition and unfilled vacancies, and funding of certain items using the General Fund reserve, which have not had a tangible impact on the public. Now, without additional revenue, budget reductions if enacted,would have a noticeable impact on the public. On July 12, 2013, the City entered into an Agreement with True North Research, Inc. (True North) to design and conduct a statistically reliable survey of Moorpark voters to profile community priorities as they relate to the services, programs, and facilities provided by the city; as well as gauge voters' willingness to fund said services and facilities through a local revenue measure. On October 2, 2013, staff presented a report to City Council to consider a recommended survey approach. Councilmembers had numerous questions and requested the item be continued to the meeting of October 16, 2013, and that the consultant be present to answer questions and explain in further detail his recommendations. An Ad Hoc Committee (Mayor Parvin and Councilmember Van Dam) was appointed to work with staff on matters related to this work. 6 Honorable City Council March 19, 2014 Regular Meeting Page 2 On October 16, 2013 staff returned to the City Council with the item and the consultant was present to answer questions and explain the survey methodology in further detail. The recommended survey approach was developed and True North conducted the voter opinion survey during November 2013. DISCUSSION At the City Council Meeting of February 5, 2014, True North President Timothy McLamey returned to discuss the Revenue Measure Feasibility Study. Survey results indicated that 90% of Moorpark respondents believe the overall quality of life in the City is excellent or good and 86.4% responded they were somewhat satisfied or very satisfied with the job the City of Moorpark is doing to provide city services. Respondents were then asked an initial ballot test question regarding a potential local measure to enact a % cent sales tax for a period not to exceed five years. The question was, if the election were held today would you vote yes or no? In the consultant's conclusions, Moorpark Voters have a high opinion of the quality of life and the City's performance which create natural support for a sales tax increase but only 49% of likely voters would support a '/2 cent sales tax and 54% the % cent option that was also presented in a follow-up question. Broken down, the 49% included 20.8% "Definitely Yes" and 28.1% "Probably Yes". When considering the '4 cent tax, the 54% included an additional 5.3% stating "Probably Yes." Considering a margin of error of 4.4%, the poll result presents a marginal majority supporting the '4 cent tax. The Council approved the staff recommendation directing staff to hire a consulting firm to assist with public communications and stakeholder outreach program for a potential sales tax measure at the February 5, 2014 meeting. Staff then released an informal Request for Qualifications (RFQ) for the public education and outreach program to recommended consultants. All three (3) of the firms submitted proposals that met the requirements of submission and were evaluated based on numerous criteria including qualifications, past projects, methodology, timeline, and overall fit for the Moorpark project. Each firm proposed a unique approach to the project and all are very well qualified and highly recommended firms in their field. Staff conducted initial phone interviews and reference checks on the firms and requested they do second interviews with staff and the Ad Hoc Committee (Mayor Parvin and Councilmember Van Dam). Two of the firms, CliffordMoss and TBWB Strategies were interviewed by the Committee and staff. Copies of their proposals are attached. The proposals call for a City funded public information campaign from mid-March through placement of measure on the ballot (approximately June 30). The purpose is to explain the City's reasons for the measure and to gain public support. This effort would cost approximately $50,000 and would include material mailed to the City's voters as well as direct contact with individuals and groups. The primary message of the 7 Honorable City Council March 19, 2014 Regular Meeting Page 3 information campaign would emphasize the importance of having sufficient revenue to avoid drastic cuts and maintenance deferrals that could cost the City even more in the long term. Beginning in July it is anticipated that a citizen action committee would come together to raise private funding to support the measure. Such an effort is considered critical since the City cannot spend public funds to promote the ballot measure. It is estimated that that the cost of an effective campaign would be between $50,000 and $90,000. After July the City could continue to provide information about the need for the measure but as a public agency, cannot officially take a position on the measure. Individual Councilmembers may espouse their personal position on the measure. Both firms provide a comprehensive approach to community outreach and either firm is qualified for the project. After much deliberation, the Ad Hoc Committee and staff concluded that due to the lack of time necessary to proceed with a potential measure on the November 2014 ballot, together with the relatively low impact of prior reductions on principal services, the fact that the City has actually increased police services by funding the School Resource Officer from reserves, and the marginal support for a new 'A% tax, it was not considered to be an optimal time to go forward. The Committee and staff do believe that a communication and outreach effort should be undertaken but done so in a reasonable time frame of no less than one year so that a revenue measure might be presented to the voters in 2016. In the interim the City can look for other revenue options including fee increases. FISCAL IMPACT The Communication and Outreach Effort, as originally proposed by the consultants for a potential measure in November 2014, would cost approximately $55,000. If the Council approves the staff recommendation and determines to include a Communication and Outreach Effort as part of the normal budget process for FY 2014/15 a new scope of work and request for proposal process would be undertaken. STAFF RECOMMENDATION Do not proceed with a sales tax measure at this time. Attachment 1: Proposal from CliffordMoss Attachment 2: Proposal from TBWB Strategies 8 ATTACHMENT 1 ClIfford February 13,2014 Hugh Riley and Jennifer Mellon Via email: jmellon@moorparkca.gov,hriley@moorparkca.gov RE: Proposal for Ballot Measure Communication & Consulting Services Dear Ms. Mellon and Mr_ Riley: Thank you for the opportunity to provide this proposal for communications and strategic services as your prepare for a potential sales tax measure on the November, 2014 ballot. Our firm is eager to join forces with you to help you achieve your strategic, operational and electoral goals for to benefit the entire Moorpark community. This letter briefly outlines our background, approach, services and proposed fees. As you review this letter and proposal you will notice that we do not employ fancy graphics or slick marketing elements. This is intentional. We believe that revenue measures require simple communications — the danger is always in the 'oversell.' Our mail and communications products are designed to be simple, honest and effective. We are happy to provide samples upon request. About CliffordMoss CliffordMoss is an experienced, California-based strategic communications firm, specializing in the communications consulting services that the City of Moorpark needs. Our mission is to help our clients achieve their political and electoral goals at the local community level. This work is a passion and a business priority for all of us at the firm. How We Work—Why We Believe We're the Right Fit for You Our style is focused on making every client a raving fan. We strive to be alert to the uniqueness of each client and project. We make the effort to LISTEN in all directions. We work hard to get things right the first time. These are important commitments we bring to the job in a different way than others. Many of our clients tell us they previously worked with others in the industry without leaving satisfied. They tended to see two kinds of problems. In some cases, the firm was so large that some clients were assigned junior, less experienced staff that simply applied "cookie cutter" strategies from off the shelf. Elsewhere, the firm had a long history, in fact, so CI!ffordMoss. 1 9 long that its approach had become stale, applying formulas that had worked in other areas at other times without sufficient consideration for the unique characteristics of the ballot measure and/or community in question. In contrast,we stay focused on your uniqueness. Our process will focus your team on developing a successful communications strategy adapted to your specific circumstances and needs. Because we believe "people support what they help create", we want to partner with you in this process. We want your input and involvement. We work with you on communications strategies that we develop together, using local tactics that you have seen succeed in your community in the past, rather than applying a "one size fits all" approach. Together we will establish (or strengthen) relationships of trust with your key stakeholders and voter groups. Working together we will develop and implement a plan that has wide community support—and helps you achieve your desired win. Our full service commitment is reflected in many ways starting with EARLY efforts to begin building the elements to ensure that your measure is positioned for future success, including: 1. Helping you identify and leverage the important lessons learned from recent elections in your community and surrounding areas. 2. Helping you fully understand the data side of the diversity of your Moorpark voting community—a unique terrain of political"micro-climates"embedded throughout the city. 3. Helping to identify individuals who may wish to play a role in a 2014 Independent Citizen's Campaign should the measure be deemed feasible and your Council vote to proceed. 4. Assuring that individuals tasked to carry out assignments are both sufficiently trained for their roles and informed of how their roles fit into the broader picture. Our team is positioned to help you WIN. Tom Clifford, is a seasoned revenue communications strategist and an expert on using new media and technology to help communicate with the public. Bonnie Moss is one of California's leading revenue measure consultants who has had scores of successes over the past 15 years. Together, we have decades of experience in all aspects of helping communities successfully prepare for and pass local revenue measures that win widespread voter support (even where competition on the local ballot, organized opposition and/or conservative anti-tax politics resonate). We are eager to help you. It all starts with a story— YOUR story. Our job at CliffordMoss is to help you bring that story to life. It would be an honor to have the privilege of serving you. Sincerely, Bonnie Moss Tom Clifford Principal, CliffordMoss Principal,CliffordMoss 510-757-9023/bonnie@cliffordmoss.com 510-847-7155/tom @cliffordmoss.com C!!ffordMoss. 2 1o Qualifications of the Firm About CliffordMoss www.cliffordmoss.com CliffordMoss is an experienced, California-based strategic communications firm. Our principals and on-the-ground professionals bring over 30 years of directly relevant experience to the City of Moorpark. We've built our firm on three core principles: 1. YOUR community is unique. 2_ Listening is a lost art. 3. People support what they help create. We take the time to understand YOUR community. We are committed to operating by the highest professional and ethical standards. Our community engagement work employs the best time-tested strategies and tactics: precise targeting, because different sets of voters respond to messages differently;grassroots organizing; disciplined field work and smart direct mail. As we work with you, look for us to bring an extra creative edge, enhancing proven techniques with cutting edge technology,creative approaches to new media and robust online campaigns. We are based in Oakland, California and led by principals Tom Clifford and Bonnie Moss. Our firm is one of California's fresh, winning tax election consulting firms. To stay nimble and responsive to clients throughout the state, we have three employees as well as a network of highly qualified associates located throughout the state that join us on projects when needed. individually we have worked in large, small, urban, rural, mountain, liberal and conservative communities under some of the most challenging political conditions. Collectively, we have delivered winning results in communities throughout California. Since CliffordMoss was founded several years ago, we have a 100% win rate on revenue measure elections across the state. We've worked in communities in the Bay Area to San Diego,the Central Coast to the Inland Empire. Our experience has brought us to a simple conclusion: the capabilities and value we bring to help you win a sales tax measure is related to our experience...but dependent on our honed ability to understand the uniqueness of your Moorpark community and translate that into a compelling vision that your community can support. CI!ffordMoss. 3 11 Members of our CliffordMoss Team who will be working with you include: Bonnie Moss,Principal,CliffordMoss Role: Principal/Co-Project Manager Bonnie is a 25-year veteran of successful local public initiatives, political campaigns, and marketing and communications strategies that have created impact and winning results across hundreds of communities in California and the nation. A native of California, she attended MIT and Wellesley College, graduating from Wellesley with a BA in Urban Studies. Bonnie's consulting career was built on a foundation of seventeen years in private sector community relations leadership positions and eight years as a local elected official in Northern California. In 1999 Bonnie moved directly into political and communications consulting with a leading California firm where she found enormous success combining her personal and professional passions; later she left to form CliffordMoss with partner Tom Clifford. Bonnie has guided hundreds of local revenue measures to political success over the past 15 years, securing billions of dollars for worthy community causes. When she is not on the road teaching, coaching, serving and celebrating her clients, Bonnie lives in Hayward, California. As a CliffordMoss principal, Bonnie will co-lead your project,providing executive level communications strategy. Tom Clifford, Principal,CliffordMoss Role: Principal/Co-Project Manager Tom Clifford is an attorney and political strategist with over a decade of experience working with clients seeking success in the public sector. Tom graduated from UC Berkeley, worked in the State Capitol and served as a CORO fellow before completing a joint degree in law at UC Berkeley (Boalt Hall) and public policy at Princeton University. Tom practiced public law and litigation at Bingham McCutchen in San Francisco for several years before moving into political consulting with a leading California firm and later forming CliffordMoss with partner Bonnie Moss. Tom enjoys working on thorny political issues that tap his political strategy and legal expertise as a seasoned attorney who served as outside counsel to state and local governments. He has worked with public agencies across the state to gain voter approval of very difficult measures, including measures that have lost before with a different consulting team. Tom lived in Latin America for several years, speaks Spanish and Marathi (in addition to English)and has extensive experience with campaigns that have multi-cultural and multi-lingual components. Tom grew up in Chico,California and now lives in Oakland with his wife and three children. 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Many firms will come in and tell you exactly what you should do, without getting to know who you are, what makes your city unique. We won't do that. We believe that "fit" matters--we will sit with the City Administration, Councilmembers and others in a series of meeting to get to know your needs, numbers and plans. What does listening look like? Candor and honesty will be virtues in this process. We will enroll proven methods to help us navigate the way forward. In addition to polling during the Feasibility Phase, we often conduct a round of meetings with the City — individually and collectively.We typically conduct a battery of political diagnostics to uncover the essentials that drive electoral success. These tests (a review of what is winning in your city, voter trends, etc.) will tell us whether and where there is receptivity to your desired measure. You've polled with Tim McLamey, of True North Research. Great. Tim is fantastic and his results demonstrate that you are right on the bubble. This effort is not a lost cause, but at 49% on the first ballot and 54% after the dutch auction to test a % sales tax (instead of %2) Tim's recommendations are spot on. You need a robust public effort (described below) and a campaign to pull off a win with these numbers. In the first month, after one-on-one meetings with your council, a deeper review of Tim's polling, a careful analysis of your unique voter file and a review of the general political diagnostics, we would want to check in on the question of "should you go to the ballot in November." Assuming the collective answer to that question is"Yes,"we move to Phase 2. PHASE 2: Public Education&Ballot Measure Preparation Timeline: 3—6 months Your poll results indicate that should you move towards the ballot with even a %< cent sales tax, you face some risk. Winning is not certain. We also don't have a good sense of support and opposition in the Moorpark community. In the face of truly organized opposition, it will be difficult to pass this measure. To be successful, you will need "all hands on deck" AND an experienced tax election team. In Phase 2 our goal will be to get you "election ready"for November 2014. There is a particular science to the work we do. Once we complete Phase 1 with you, the CliffordMoss Team will be in a strong position to use data we have access to to help you PLAN for an efficient and effective Phase 2 communications effort, build the crescendo you need better prepare for and, finally, win when you move to the ballot. CI!FfordMoss. 6 14 Armed with proper DATA,we will employ a messaging strategy to ENGAGE strategically. We will take the time to listen and learn from those most likely to influence the outcome of your sales tax measure. We have many proven tools in our communications"tool kit" including strategies to hold down costs while communicating effectively. Such tools include but are not limited to: • FACE-TO-FACE VOTER COMMUNICATION. There is nothing more powerful — or cost effective—than face-to face communication. Walking carefully targeted neighborhoods to engage voters who vote (or occasional voters who are big Moorpark supporters) in personal conversations can also save campaign funds while delivering huge impact. Our CliffordMoss team invests heavily in tools and client training here to maximize impact. • OPINION LEADER WORK. We recommend this methodology to engage community leaders early—in the pre-electoral phase of the project. As part of this effort we may guide you in the process of "network-mapping" your community and engaging those who lie on the power map in opinion leader interviews and other strategic meetings to get their sense of the community, your needs and goals_ Costs are minimal. Our CliffordMoss team invests heavily in tools and client training here to maximize impact. • STAKEHOLDER MEETINGS. We recommend this methodology at the park and recreation and other site levels and with selected neighborhood and community groups to engage, educate and seek input in the pre-electoral phase. There are several possible uses. Costs are minimal. Our CliffordMoss team invests heavily in tools and client traininghere to maximize impact. • CITY-SPONSORED ADVISORY GROUP. We customize this approach when it makes sense for the client. Some investment by executive level leaders is required in order to ensure value_ Our CliffordMoss team invests heavily in working with you to develop the strategy, recruitment targets,tools and client training here to maximize impact. • CITY-SPONSORED INFORMATIONAL OUTREACH. Even during the election season, cities are permitted to provide information on the ballot measure to community members provided that the material is indeed informational and does not advocate a specific vote on the measure. This is often a one-page flyer printed on both sides if needed that is produced in large quantity at very modest cost. (In fact, it is a disadvantage for it to look at all expensive.) Informational presentations can also take place at city and community events- places where activities that are already planned take place at very little extra cost to the City. Clifford Moss. 15 • DIRECT MAIL. Whether you like direct mail or not, this vehicle is still the most effective way to communicate with voters — at all levels. Pre-electorally, we have created a number of winning City-sponsored direct mail programs. These programs build interest and awareness of Moorpark's NEEDS. (We are eager to convince you of the merits of that approach.) Once in campaign, intelligently targeting helps us avoid those who are not persuadable (and save money!) while investing more of our precious resources on those who may be "on the fence" or who are supporters but need encouragement to come to the polls. • WEB / ON-LINE /SOCIAL MEDIA. Early in the Feasibility and pre-electoral communication it is easy and important to plug into the existing infrastructure of the City to INFORM AND ENGAGE stakeholders as tax measure is underway. On a parallel track-- before "campaign season"-- we recommend developing early the infrastructure that will eventually (at the right time) create a dynamic online presence during campaign. Your online platform should include: a "campaign" website, Facebook page, email marketing platform and other online tools, plus, a key contact database of all key supporters and provide you with the ability to tag contacts by geography, connection and any other filter we choose to implement. Using this platform we will also have the ability to advertise to key community targets through social media channels so that we can combine on-the-ground efforts with online efforts for maximum impact. • EARLY PHONE OUTREACH. Again, the key to a powerful and successful pre-electoral engagement strategy is listening and getting out into the community to solicit feedback, not just relying on who comes to you. For this project, we suggest an effort to reach a certain number of Moorpark residents directly on the phone, using volunteers,to share the plans for the measure and get input. People support what they help create and the more proactive we are to gather input and act on the basis of that input, the more successful this measure will be. Across each of these channels, CliffordMoss believes "message discipline" is key. Working with True North Research we will invest strategically in identifying the messages that will resonate best with your community. When you commit to message discipline, you reduce the likelihood of message problems when it matters most. Finally, We Work With You to Effectively Package Your Measure. We will work with you to complete the following Ballot Measure Preparation essentials: • Provide specific recommendations for sales tax structuring and election date • Finalize your core messaging(we know the words and format that work with best) • Prepare your ballot language including the all-important 75-word Ballot Statement, 300- word Ballot Argument and 250-word Rebuttal (if needed) • Work with you, legal counsel and the County Registrar of Voters(ROV)to ensure that your ballot measure package filed is the right package for electoral success. • Provide guidance on media efforts to help position the City effectively • Provide ongoing strategic counsel to help you navigate the political terrain. CI!fford Moss. 8 16 PHASE 3: The 88-Day ACTIVE Advocacy Campaign Phase The Campaign Phase for a city revenue measure is a different exercise all together. State law requires a complete separation between the City and an advocacy campaign established for the purpose of passing a local revenue measure. CliffordMoss will be happy to discuss this critically important 88-day window in greater detail, including "Do's and Don'ts" that the City must follow, how the independent campaign piece moves forward and other related issues at your convenience. Please note,CliffordMoss employs full service campaign capabilities, including: • CAMPAIGN STRATEGY—a detailed Campaign Plan,voter targets and messaging that forms the blueprint for guiding your campaign to election success — informed by your Phase 1 Feasibility research and Phase 2 stakeholder input • Campaign Organizational Development capabilities(Every community is unique!) • FUNDRAISING& BUDGET Planning/Management Tools/Systems • A full spectrum of Mail/Print services—e.g. concept development, copywriting, design, and full production/delivery coordination • Community Coalition Building/Endorsement Strategy/Systems • Scripts and messaging for phone-banking and other VOTER CONTACT efforts • Grassroots FIELD strategies for intensive voter mobilization services • VOLUNTEER recruitment,training, management, and recognition services • VOTER DATA and tracking systems/capabilities including Get Out the Vote services • MEDIA RELATIONS—including crisis management, if needed • Daily strategic guidance to keep your campaign on track to WINNING. Proposed Innovations While we believe that honest person-to-person conversations and group meetings are very effective in this work, we are also proud to have earned the distinction as a public communications firm that"gets" technology and innovation. We try new techniques when we know they can work. In this effort, we will push an email survey (one current client is using this technique and soliciting thousands of great responses). We will also recommend an online predictive dialer component to help push a phone bank effort targeted to a robust sector of your community. Finally, we do believe in the importance of developing information on the web and facebook so that folks can find a "home" for your ballot measure in cyberspace. Project Staff The City of Moorpark, including staff and council, will be our client for this project. Tom or Bonnie will lead this project from the CliffordMoss side. We will tap one of our senior advisors, Amanda Clifford, to assist the project and drive forward much of the day-to-day outreach and tracking work. CliffordMoss. 9 17 Proposed Fees Our fee structure is specifically designed to reflect the questions in your RFP. You asked for a flat fee that includes all program, professional fee, travel and other expenses. We propose a flat fee of 49,500 that covers all fees, program costs and expenses. We suggest that our contract run from March 1, 2014 to August 1, 2014. Our proposed Scope of Services will include the following actions and deliverables: Item Description Voter Data Analysis and Full analysis of your voter file and predictive modeling to Report create and analyze a Likely November 2014 election. Collateral and Mail At least two pieces discussing City needs to be mailed to all likely voters. Also include walk pieces and other limited messaging pieces. Technology Online predictive dialing software to make phoning efficient. Email survey to residents. Professional Services Full access to the CliffordMoss team, including monthly in person meetings and weekly (and often more frequent) conference calls. CliffordMoss will also interview stakeholders, train your outreach team and track their results,calibrating the program every step of the way. Travel Client travel Miscellaneous Unaccounted for minor expenses Campaign: California.state law requires advocacy campaigns to be funded by independent (private) campaign committees. Thus, we must contract separately with an Independent Campaign Committee for purposes of assisting a City of Moorpark sales tax campaign effort. We would be happy to discuss our campaign fee structure with you or others at any time. Thank you! Thank you for this opportunity. CliffordMoss is committed to teamwork and partnership with our clients. We are excited about getting started with Moorpark to help YOU achieve your strategic and electoral goals in 2014.. Please contact us with any questions you may have. Contact: Tom at 510.847.7155 or via email at tom@cliffordmoss.com. We are eager to get to work-and make a difference telling your story. CI!ffordMoss. 10 18 TBW B , T F 4 T ° , IF ' Public Consensus•.Inning Proposulonc ���jjj ATTACHMENT 2 February 10,2014 Jennifer Mellon Administrative Services Manager City of Moorpark 799 Moorpark Ave. Moorpark,CA 93021 CC:Hugh Riley,Assistant City Manager Dear Ms.Mellon: Thank you for the opportunity to present this proposal to assist the City of Moorpark with developing a strong sales tax measure for the ballot and implementing a public information and outreach program to raise awareness of the City's funding needs. While there are many firms that run political campaigns,TBWB specializes in helping cities, counties, school districts and other public agencies develop winning tax measures for the ballot and implement public information efforts to educate residents about funding needs and the details of a proposed ballot measure. The partners at our firm have worked with many cities and other public agencies in your region on similar efforts, including:the City of Port Hueneme,City of Thousand Oaks,Conejo Valley Unified School District,Las Virgenes Unified School District,Oak Park Unified School District and many others. Over the past two years we have worked with six cities on sales tax measures and all six were successful at the ballot. In addition to our recent and local experience, TBWB works closely with Dr. Tim McLarney of True North Research and we have collaborated on dozens of successful projects. Following this letter is detailed information about TBWB,the services we would provide and the cost of our services. We are confident that you will find our qualifications, experience, attention to client service and interest in the project are unmatched. I will serve as your primary point of contact for this project. Should you have any questions, please do not hesitate to contact me by email at cheath@tbwb.com or at any time on my cell phone at 415-810- 8053. Sincerely, afgfA Charles Heath Partner 400 Montgomery Street,7rh Floor I San Francisco,CA 94104 I Phone:(415)291-1894 I Fax_(415)291-1172 I TBWB.com 19 Tg W g ; T R : T = , . E • Public Consensus-.Winning Proposirions About TBWB Public Finance Strategies LLC(D.B.A.TBWB Strategies) is a strategy and communications consulting firm that specializes in helping public agencies develop revenue measures and implement communication strategies to raise public awareness of funding needs. TBWB was formed in 2005 as a non-partisan public finance specialty firm and spin-off of our parent firm, Terris/Barnes/Walters (TBW) Political Media, which has been in business for more than 25 years. We have one office in San Francisco's Financial District, from which all 20 of TBWB's partners and employees work in close collaboration. Since our founding, TBWB has consistently met all of its financial obligations and maintained good standing with all relevant taxing and regulatory agencies. TBWB is not, and never has been, subject to litigation of any nature. Our firm was created because passing revenue measures is different from winning candidate races and other types of political endeavors.Candidates aim to differ from their opponents and stand out from the crowd. But when taxes are involved, the winning strategy must build consensus by uniting people around shared values and priorities. The partners at TBWB have passed over 100 public finance ballot measures and raised billions in stable revenue for public programs, services and facilities. These include bonds, parcel taxes, sales taxes, Transient Occupancy Taxes(TOTs), Utility User Taxes (UUTs),assessments and fees. We maintain a 90% win rate on tax measures and have passed six city sales tax measures as well as three countywide sales tax measures in just the last two years. A full listing of our clients is viewable at: http://www.tbwb.com/clients/our-clients When you hire us you work directly with our firm's partners. Unlike consulting firms with just one or two principal consultants, we have six experienced partners with the time and capacity to give your effort the devoted senior-level attention that it deserves. Your project will not be handed off to inexperienced staff once the contract is signed,as is the practice in other firms. We pride ourselves in developing unique communication plans for every client,as opposed to applying a "cookie-cutter" model that may have worked in other places or at other times. This involves careful research to understand unique issues in your community and creative strategy that specifically addresses the unique challenges we will confront. TBWB is one of the only firms in our industry that maintains an in-house art department. Our full time Art Director and team of graphic designers produce award winning creative concepts while our Production Manager ensures efficient and timely delivery of materials. This in-house capacity allows us to meet the rapid-response demands of our clients 24 hours a day and 7 days a week. We understand that a smart strategy and creative messaging will be required to be successful, but we also understand that any strategy is only as good as the careful implementation and follow through. That is why our team will be at your side throughout the effort. We will personally attend strategy and planning meetings and be in regular communication to help you manage the process and deal with unanticipated events as they arise. Our clients tell us that what sets us apart from the competition is our hands on approach and attention to every detail in the process. 400 Montgomery Street,7th Floor I San Francisco,CA 94104 I Phone:(415)2914894 I Fax:(41S)291-1172 I TBWB.coin 20 TB W B T = Con,encus-.W onnng Propouuons Consultant Biography Charles Heath Partner Over nearly 15 years as a strategy and communications consultant, Charles has guided more than 100 ballot measures to victory. With a background in various political projects, Charles has spent the better part of the last decade with a strict focus on working with public agencies to design winning revenue measures for the ballot and execute strategic public information efforts to position his clients for success at the ballot box. Once a measure is on the ballot, Charles works with advocacy campaign committees to run efficient and effective campaigns to achieve voter approval for ballot measures. Charles has led campaigns in all parts of California — from large urban environments like Oakland, San Jose and Los Angeles to suburban environments like Marin, Riverside, and Orange County to rural and agricultural communities like Plumas County,Truckee and Stanislaus County. Charles has worked with a diverse range of public agencies across the western United States, ranging from school and community college districts to healthcare districts, transportation agencies, cities and counties,park and recreation districts,libraries,and fire districts. Charles became a Partner at TBWB in November 2009. Prior to joining TBWB, Charles worked at Tramutola LLC for ten years,most recently as Vice President and Senior Consultant. Before his career in public finance campaigns,Charles worked as a policy analyst for a public policy think tank,as an aide in the California Legislature and as a reporter for a local newspaper. Charles is a graduate of the University of California at Davis with degrees in Political Science and English, and he earned a Master's Degree from the London School of Economics. Charles grew up in Southern California and now lives in Oakland with his wife Eva, his son Alexander and his daughter Lillian. 400 Montgomery Street,7th Fluor I San Francesco,CA 94104 Phone.(4151 291-1994 I Fax.(415)291-1172 I TEWS.com 21 TBWB - — Pubo(Contcnsus.Wmnrv�P ppo aUons Ballot Measure Development Scope of Services Once we have had a chance to study your polling and gain a better understanding of your needs, TBWB will work with you and your City Attorney to develop your measure and qualify for the ballot. Specifically,TBWB will: • Work with you to finalize the tax rate,duration,expenditure plans and related details • Develop any taxpayer accountability protections, including an independent citizens' oversight committee and public reporting process • Work with you and your legal counsel to develop a resolution calling for the election • Write the critical 75-word ballot question that will appear on ballots • Develop and refine the Full Text of the measure and other materials that will appear in the ballot pamphlet mailed to all voters • Present recommendations,documents and resolutions to the Council for approval • Work with the City Clerk and Ventura County Registrar of Voters Office to qualify for the ballot While the ballot measure is being developed, we also work with you to implement a public information and outreach program to educate the community about your needs and build broad consensus in the community around your proposal.This effort may be funded by the City,but all communication must be unbiased and not advocate for the passage of the ballot measure.This step is important for building the foundation of knowledge in the community about your needs that an independent advocacy campaign can later build upon. Public Information Program Scope of Services To educate and inform your public about your funding needs and proposed ballot measure,TBWB will: • Review and analyze polling and voter demographics • Develop and refine a set of messages to be used consistently throughout the public information effort to ensure message discipline • Develop a list of frequently asked questions with "on-message"answers to prepare city officials and staff with the information they need to answer tough questions and stay on message • Develop information-only fact sheets for distribution at city facilities and other public venues • Provide information to be added to your website,included in emails and added to newsletters • Prepare informational PowerPoint presentations to deliver to key groups and organizations • Write,design,and produce mailings to educate,inform and engage voters • Develop and implement strategies to inform, engage and build consensus among key stakeholder groups, including boards and commissions, public employee associations, local businesses, realtors, seniors, taxpayer groups,faith groups, homeowners associations, parent groups, newspaper editors and others When communicating with the public, we're lucky to have a few precious seconds of their attention. Often, the attention we get is the few seconds between the mailbox and the recycling bin. We package our materials to grab the voter's attention so that our materials, messaging and information stand out amidst all the other information that the public is bombarded with every single day. 400 Montgomery Street.7th Floor I San Francesco.CA 94104 I Phone:(415)291-1594 I Fax:(415)291-11'2 I 189V.com 22 TBWB T P,OshcCan sens<,<-.44.n-IngPropoutions We are adept at integrating different media — including direct mail, targeted advertising, earned free media, web and email, social networking, and grassroots communication —to reach different segments of the public in ways that will impact them the most. Having worked on hundreds of public information campaigns,we are well versed in the legal and ethical boundaries. We will work closely with your City Attorney to ensure that our efforts are consistent with the law while maximizing your ability to educate and inform your residents. References • City of Camarillo Dave Norman,Director of Community Development Former City Manager,City of Port Hueneme (805)388-5360 dnorman@cityofcamariilo.org Conejo Valley Unified School District Jeff Baarstad,Superintendent (805)497-9511,x201 jbaarstad@conejousd.org City of Palmdale Jim Ledford,City Manager Saynne Redifer Assistant to the City Manager 661-267-5114 sredifer@cityofpalmdale.org City of San Marcos Lydia Romero Deputy City Manager 760-744-1050 ext.3114 Iromero@san-marcos.net City of Salinas Matt Pressey Finance Director 831-758-7420 mattp@ci.salinas.ca.us City of San Rafael Nancy Mackie City Manager 415-485-3070 nancy.mackle@cityofsanrafael.org 400 Montgomery Street,7th Floor San Francesco,CA 94104 I Phone:(415)291.1894 I Fax.(415)251-1172 I TSW8.com 23 TB W B Y a a r ° s Public Cameo sWinrnngPropositions City of Fairfield Sean Quinn City Manager 707428-7749 cmo@fairfield.ca City of Vacaville Laura Kuhn City Manager 707-449-5335 Ikuhn@cityofvacaville.com Timeline and Fees Understanding that the Ventura County Registrar of Voters requires public agencies to submit adopted resolutions calling for elections by a deadline earlier than that 88-day statutory requirement, we propose a timeline to complete the scope of work outlined in this proposal by the end of July. Accordingly, we would seek to develop a draft ballot measure and messaging/materials for public outreach prior to the end of March, implement the outreach program during April, May, and June and finish with Council adoption of the resolution calling for the election in late June or early July. All publicly funded communication would be complete by the end of July to ensure compliance with the law. Any outreach activities after July should be coordinated and funded by an independent advocacy campaign committee. TBWB's standard fee for the consulting services outlined in this proposal is$7,500 per month. This fee includes all of the services described in this proposal aside from hard costs such as printing of informational brochures or postage costs related to an informational direct mail effort. We will work with you to develop and refine an appropriate budget for these costs and any other reimbursable expenses. 400 Montgomery Street,7th Floor I San Francisco,Ca 94104 I Phone:(415)291-1891 I fax:(415)291-1172 I TBWB.corn 24 TB W B s , A " T = C I € Palk Comenxu<+,ARnmmrkgPropoaitiona • Appendix A TBWB 3-year Client History with Election Outcomes and Client Contacts 400 Montgomery Street,7th Floor I San Francisco,CA 94104 I ('hone:(415)291-1894 I Fax:(415)291-1172 T6WB,com 25 fi ,fc c c e � c g.£ c 5 c c .4 fi S S £ = 5 5 c 5 .5 �s c g c c c c c c c e g £ £ < c c 11111 ; 3 ; ; s" i ; 33 ; 3 ; 333 333s3331i # ; 3 § 333 ; 3133 ; ; ; # ; 33333 c lati: f ". g f4egt�pi ftlI r:f. VIx ZAy�[. Ws ^ xxOV x xx xxxxgqx4 * xxxxx x s V n n ... � b b N w � b w . f b .° N b M w b N r V f I� N V .p w .�i .° 1-r 2 i " 88:444.4 .1.44 : :: , . ,, ,, z6 ` - rr c 4 ; ' r : 2 a . a rrVg . . _ 2 2 t t 2 v g2 g g t22 t: Q77 ='- ':: 1• 2. C ./ ! � . 1 • iX � mCI ! 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Op O N - O Oc9 g ! fluiHD ugNory _ p + .-' cu z c3 iF g a c> 7c�, ccE ; cc00 ,� J( ov �' r = >u C 7 .% w7 '. : ¢ cooj � gegG _ a • 'E 7 . a > > =ve V 0 6 .c c c c ; i = L C i o , o lJ S ; 7, 5 i c E , 2 E E -. a E E z• > u o E 2 7. c` o 0 o Jo q' 2 _.9. r c c E A A N .^ .n .7; ''n 3 r' 2 5 u o i7 2, 2 S i a n ¢ ..' d d` a m m m .1 3 ., u O 3 .O. .= 3 2 2 2 2 2 2 2 a a .n .n V' Attachment 2 Deborah Traffenstedt To: Steve Kueny Subject: FW: New parks assessment ballot Attachments: Moorpark survey and ballot timeline DRAFT FY 16-17 Levy.pdf; Moorpark survey and ballot timeline DRAFT FY 17-18 Levy.pdf From: Jennifer Mellon Sent: Monday, November 02, 2015 4:14 PM To: Deborah Traffenstedt(DTraffenstedtCa MoorparkCA.gov) Subject: FW: New parks assessment ballot Here you are. They did a timeline for the next 6 months and one for next year. Thanks, Jen 805-517-6247 From: Ron Ahlers Sent: Monday, November 02, 2015 3:51 PM To: Jennifer Mellon Subject: RN: New parks assessment ballot Passing it along RON MILERS Finance Director/ City Treasurer City of Moorpark 799 Moorpark Avenue Moorpark, CA 93021 805.517.6249 phone 805.532.2542 fax RAIILERS@MOORPARKCA.GOV From: Jeanette Hynson [mailto:jeanette.hynson(asci-cg.com] Sent: Monday, November 02, 2015 2:37 PM To: Ron Ahlers Subject: RE: New parks assessment ballot Hi Ron— 28 1 I just realized I forgot to send you the timeline for a survey and ballot measure, hopefully this reaches you in time. Note there are two proposed timelines attached, as you will note we will have to start work in December to make a very aggressive FY 2016-17 levy timeline. This would also require approval from Ventura County to submit formation documents(due Dec 1 prior year i.e. December 1 2015 for FY 2016-17 levy) and the assessment roll (typically due first week of June) late, which may be difficult to receive. Please review the attached and contact me with any questions or concerns. Thank you, Jeanette Hynson SCIConsultingGroup 1707.430.4300 x105 From:Jeanette Hynson Sent: Friday, October 30, 2015 11:23 AM To: Ron Ahlers<rahlers@MoorparkCA.gov> Subject: New parks assessment ballot Hi Ron— As we discussed earlier this week following is an estimate for a City-wide Prop 218 ballot measure: Mailed Survey and Feasibility Analysis: $33,750 Assessment Engineering, Engineer's Report, and Ballot Proceeding: $68,200 Education Outreach: $14,500 1st Year Levy Administration: $15,000 Please feel free to contact me with any questions or concerns. Thank you, Jeanette Hynson SCIConsultingGroup 4745 Mangels Boulevard Fairfield, CA 94534 707.430.4300 x105 Phone 707.430.4319 Fax ieanette.hynson@sci-cg.com YEARS 1985-2015 SCIConsultingGroup Serving Public Agencies 29 2 City of Moorpark Survey and Ballot for Local Funding Measure for City-wide Parks Assessment DRAFT Timeline Fiscal Year 2016-17 Levy' Date Task December City determines funding need and the resulting rate to test in the survey December Preliminary Assessment Engineering and design of survey December 18 Survey instrument to City for review. December 30 City approves survey instrument January 2- 15 Print survey, information item, outgoing envelope and return envelope January 15 Address and customize survey for each property owner to be surveyed January 15 Mail surveys January 15—February 26 Survey return period February 26—March 1 Analysis of Survey Results March 2 Discussion and review of topline survey results March 2 Survey findings finalized and to City March 16 Presentation of survey results. City Council decision whether to go forward with a funding measure. SCI Consulting Group 30 Local Funding Measure Balloting (if the City decides to proceed with a funding measure) Date Task April-July Community Outreach April 1 Draft of Engineer's Report to City for review April 6 Final Engineer's Report to City April 20 City Council considers 2 Resolutions: 1st—to preliminarily approve budget, assessment rate, Engineer's Report&to call for the mailing of ballots 2nd—Adopting Proposition 218 assessment balloting proceedings April 27 Draft of ballot and legal notice to City for review May 4 Ballot and legal notice finalized May 5- 19 Print&address ballots &legal notices May 19 Mail ballots May 19—July 6 Balloting period (ballots must be out for at least 45 days) July 6 Public Hearing &close of balloting period (no resolution needed) July 7- 15 Tabulation of ballots July 20 Announcement of ballot results. City Council considers resolution ordering levying of assessments for FY 2016-17(assuming weighted majority ballot support) July 22 Submit formation documents and assessment levies to County Auditor for FY 2016-17 levies January 2017 First installment of assessment proceeds from County The City of Moorpark City Council meets on the 1°and 3'd Wednesday of each month. 'Requires approval from Ventura County Auditor to submit formation documents and assessment roll past due date. SCI Consulting Group 31 City of Moorpark Survey and Ballot for Local Funding Measure for City-wide Parks Assessment DRAFT Timeline Fiscal Year 2017-18 Levy Date Task January City determines funding need and the resulting rate to test in the survey January Preliminary Assessment Engineering and design of survey January Survey instrument to City for review. January 29 City approves survey instrument February 1- 11 Print survey, information item, outgoing envelope and return envelope February 11 Address and customize survey for each property owner to be surveyed February 12 Mail surveys February 13—Mar 25 Survey return period Mar 28—April 1 Analysis of Survey Results April 4 Discussion and review of topline survey results April 5 Survey findings finalized and to City April 20 Presentation of survey results. City Council decision whether to go forward with a funding measure. SCI Consulting Group 32 Local Funding Measure Balloting (if the City decides to proceed with a funding measure) Date Task April -July Community Outreach May 11 Draft of Engineer's Report to City for review May 18 Final Engineer's Report to City June 1 City Council considers 2 Resolutions: 1St—to preliminarily approve budget, assessment rate, Engineer's Report&to call for the mailing of ballots 2nd—Adopting Proposition 218 assessment balloting proceedings June 10 Draft of ballot and legal notice to City for review June 17 Ballot and legal notice finalized June 20—July 1 Print&address ballots & legal notices July 5 Mail ballots July 5—August 17 Balloting period (ballots must be out for at least 45 days) August 17 Public Hearing &close of balloting period (no resolution needed) August 18 - 31 Tabulation of ballots September 21 Announcement of ballot results. City Council considers resolution ordering levying of assessments for FY 2017-18 (assuming weighted majority ballot support) November Submit formation documents to County Auditor for FY 2017-18 levies July 1, 2017 Submit FY 2017-18 levies to County Auditor for collection January 2018 First installment of assessment proceeds from County The City of Moorpark City Council meets on the 1,and 3rd Wednesday of each month. SCI Consutting Group 33 Attachment 3 FINANCE, ADMINISTRATION AND PUBLIC SAFETY COMMITTEE AGENDA REPORT TO: Finance, Administration and Public Safety Committee Mayor Parvin and Mayor Pro TeemMillhouse FROM: Ron Ahlers, Finance Director G n DATE: February 24, 2015 (FAPS Meeting March 4, 2015) SUBJECT: Consider Revenue Enhancement Measures BACKGROUND The City's General Fund revenues come from a variety of sources, most notably: property taxes (22%); sales taxes (21%); property taxes in lieu of motor vehicle license fees (19%); cost plan revenues from other funds (18%); franchise fees (7%); investments and use of property (4%); all other revenues (9%). The top two sources of revenue the City relies on, property taxes and sales/use taxes are economy driven. Property taxes, while currently showing "no-growth" in the 2014- 15 budget, in reality have increased by 2.9% from the high reached in 2008-09. That is just 2.9% growth cumulatively in six years. In order to generate an additional $1 million in property tax revenue the assessed value would have to increase approximately $1.1 billion. For example: 2,000 new homes constructed with an initial AV of$550,000 each. A new commercial or multi-family development, valued at $40 million, would generate an additional $36,000 in property tax revenue for the City. Sales tax revenues have shown an increase over the past few years. Even the build- out of current approved commercial development will not produce adequate increases in this source. The last few months have seen a few larger businesses leave: Albertsons, Do-it-Center and Staples. The remaining revenue sources are largely dependent upon a prosperous economy. Given the volatility of almost all of the City's revenue sources, the Committee is being asked to discuss and identify different ways in which the City can diversify and enhance its revenue stream. Interest income has declined dramatically since the "Great Recession" began in 2008. In FY 2007-08 the General Fund earned interest revenue of $784,124. The city's portfolio earns about 1.2%, which is estimated to earn about $425,000 in FY 2014-15 for the General Fund. The General Fund Interest revenue history is listed below: 34 Finance, Administration and Public Safety Committee March 4, 2015 Page 2 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 784,124 719,611 304,989 299,920 381,145 80,574 338,740 425,000 The City has long-term needs for additional General Fund revenue to address the following: • The ongoing utilities and maintenance costs of the Police Services Center, Moorpark Public Services Facility and within three to five years a new city hall and possibly a new library. • Long-term street maintenance needs since the Gas Tax and Transportation Development Act (TDA) provide only for staff and basic maintenance. The City currently spends about $800,000 of TDA funds per year for street purposes. The City's street projects are beginning to require support from the General Fund. In addition, there are a number of potential capital projects that could individually or collectively, require the use of a significant portion of the General Fund reserve. For example, maintenance of a splash pad costs about $60,000. In addition, the annual operating costs of a city pool is estimated to be $250,000 or greater. • If the City spends the reserves on capital projects then there is a reduction in interest revenue for the General Fund. Current reserves in the General Fund and Special Projects Fund equal about $24 million. • The cost allocation plan, while appropriate, does transfer dollars from other funds. The goal should be to have enough General Fund to fund this cost ($2 million in 2014/15). • Assessment district subsidies are projected to be approximately $335,000 for FY 2014/15. The Gas Tax Fund and General Fund split these deficits however additional General Fund support has been required since the Gas Tax Fund has little reserves. • Continuing cost increases for law enforcement services that exceed the Consumer Price Index (CPI) and growth in General Fund Revenues. • Evaluate the Community Development Fund to stabilize revenues and expenditures and determine an appropriate amount of General Fund revenue to be available for City Planning and Engineering programs. This fund is expected to receive a $778,000 transfer from the General Fund in 2014/15. 35 Finance, Administration and Public Safety Committee March 4, 2015 Page 3 • Staff has developed strategies to balance the General Fund budget for each of the past five years. The strategies include: 1. Reduction in services; 2. Operational efficiencies; 3. Fee adjustments; 4. Deferred maintenance and capital projects; and 5. New and enhanced revenues such as Business License Tax, Sales/Use Tax, Utility Users Tax, General Property Tax, and updated assessments for park maintenance, street lighting and landscaping. These measures would require a public vote. There are different ways the City can enhance its revenue streams. The most common methods are through increasing taxes and special assessments. In order to increase these revenue sources, State law requires that certain steps be taken before the increase can occur. Taxes Voting on Taxes Staff has gathered information regarding voting. State law requires that if a tax measure is consolidated with a regularly scheduled election of members of the City Council, it would require a two-thirds vote by the Council. Therefore, four out of five Council members would need to vote for the tax measure proposal to be placed on the ballot. If not consolidated with a Council election, unanimous declaration of "emergency" is required by the City Council. Therefore, the City can really only have a tax measure on a November ballot in the even numbered years. The November 2016 election is the next ballot to place a tax measure before the voters. General and Special: General tax revenues may be used for any purpose. General tax revenues include sales tax, property tax, utility users tax and business license tax. Special tax revenues are levied for a specific purpose. In order to adopt a new or increase an existing general tax, a majority of those voting in the City must approve the tax in the same election in which City Council members are elected. For a special tax, a two-thirds affirmative vote of those voting in the City must approve the tax. The earliest the City might place a tax increase measure on an election ballot would be November 2015. Several of these tax measures are summarized below: Sales Tax: Municipalities may adopt additional increments of local sales tax with the approval of two-thirds of voters for revenue for specified services such as police and fire. A simple majority vote would be required for general purpose revenues. An additional 1/4% tax would produce approximately $925,000 per year. 36 Finance, Administration and Public Safety Committee March 4, 2015 Page 4 For Sales Tax, staff has gathered the following information. In 2003, Governor Gray Davis signed SB566 (Scott) which gave every county and every city the ability to seek voter approval of local transactions and use tax increase under the following conditions: 1. the transactions and use tax may be imposed at a rate of 0.25% or a multiple thereof, 2. the ordinance proposing the tax must be approved by a two-thirds vote of all members of the governing body, 3. if for general purposes, the tax must be approved by a majority vote of the voters in the city or county, 4. if for specific purposes, the tax must be approved by a two-thirds vote of the voters in the city or county, and 5. Maximum combined rate of transactions and use taxes in any location may not exceed 2%. Of the 99 cities that currently impose a transactions and use tax, only eight do so under special legislation from prior to 2003. Altogether, there are currently 80 cities with general purpose rates and 22 with special purpose transactions and use taxes. The table below shows the frequency of rates and the uses of the 22 special taxes. Number of currently approved taxes; effective as of April 1, 2013 0.250 % 0.375 % 0.500 % 0.750 % 1.000 % General 14 1 59 6 20 Special 6 17 2 Special Tax Uses Police and/or Fire 4 9 2 Streets/Roads/Transit 5 Hospital/Medical 1 Parks/Rec/Open Space 2 Libraries 1 Wastewater 1 Some cities have two rates: Capitola, El Cajon, El Cerrito, Eureka, Ft Bragg, Nevada City, Placerville, Santa Rosa, Sebastopol, Woodland. Ventura County cities with add-on sales taxes: City County Rate Effective End Purpose Authority in State Law Oxnard Ventura 0.50% 4/1/2009 3/31/2029 General Rev & Tax Code §7285.9 Port Hueneme Ventura 0.50% 4/1/2009 None General Rev & Tax Code § 7285.9 37 Finance, Administration and Public Safety Committee March 4, 2015 Page 5 Business License Tax: This tax is imposed on businesses for the privilege of doing business in the City. It is most commonly based on gross receipts or levied as a flat rate. The adoption of a business license tax also requires voter approval with a simple majority. The City currently collects a Business Registration Fee that is limited to the recovery of administrative costs for its collection and generates about $125,000 annually. A Business License Tax enacted with a typical formula could generate approximately$500,000 annually. Property Tax: There are 9,627 single family homes with a total assessed value of $4 billion. This includes condominiums and excludes mobile homes and multi-family dwellings. In October 2007, a Voter Opinion Poll revealed varying levels of support for a property tax increase levied at between $9 and $32 per $100,000 of assessed valuation. Revenues from such tax increases on residential parcels would be as follows: RESIDENTIAL PARCELS ONLY $/ 100,000 of Revenue % of Voters Polled Assessed Value Generated that would vote YES* $ 9.00 $ 360,000 64 15.00 600,000 60 21.00 840,000 52 27.00 1,080,000 48 32.00 1,280,000 42 *2/3 or 66.6% vote required for adoption Parcel Tax: A parcel tax is a special tax on a parcel or unit of real property. Unlike the property tax, a parcel tax is not based on the value of the property. Instead parcel taxes are generally based on a flat per-parcel rate. Parcel taxes always require a two-thirds majority voter approval and are imposed for any number of purposes including funding police services, neighborhood improvement and revitalization and open space protection. The Voter Opinion Poll did not test this measure. Based on the number of parcels included in the City's General Taxing District (approximately 11,000) a flat rate of $10.00 per parcel would only generate an additional $110,000 annually. An increase to $20 would generate $220,000. Utility User Tax: Utility user taxes can be imposed with simple majority voter approval (for general purposes) on the residential and commercial consumers of any combination of electric, natural gas, cable television, water, cell phone, landline telephone and trash services. Such taxes are imposed by ordinance as a percentage of sales and typically collected by the utility provider. Staff has no current calculation for this tax. 38 Finance, Administration and Public Safety Committee March 4, 2015 Page 6 Transient Occupancy Tax: Municipalities may impose the transient occupancy tax on persons staying 30 days or less in a room(s) in a hotel, inn, motel, tourist home, non-membership campground or other lodging facility. The City has enacted a transient occupancy tax that could generate an estimated $200,000 to $250,000 with the approved 112-room hotel project. However this project has been delayed and is not anticipated to open any time in the near future. Assessments Assessments are charges levied against properties to pay for public improvements or services within a predetermined district or area according to the benefit the property owner receives from the improvement or service. For example, Community Facilities District (CFD) 2004-1, established for the Moorpark Highlands residential project by Pardee Homes includes an assessment of about $500 per home for law enforcement services that, at build-out would generate approximately $250,000 annually with adjustments based on the greater of 3% or the percentage change in the CPI. The City received $213,000 from this assessment in FY 2013-14. The City has enacted benefit assessments for park maintenance and a lighting and landscaping district (L&L) assessment for the maintenance of street and parkway landscaping and for street lighting costs. In recent years these assessments have not been enough to cover expenses and have been supplemented by the City's General Fund and Gas Tax Fund. The City's 2014-15 Operating Budget includes a General Fund appropriation of$1,522,000 to supplement the Park Maintenance Fund. The L&Ls required actual transfers of $62,000 from Gas Tax and $67,000 from the General Fund during FY 2014-15 to cover actual deficits for FY 2013-14. Staffs current projections for these amounts for FY 2014-15 are $334,000 from the General Fund and ZERO from the Gas Tax Fund. The Gas Tax Fund does not have the capacity to transfer money into these districts anymore. A staff report was presented and approved by the City Council on January 21, 2015. In order to increase assessments or add a new district a City must follow a number of steps. First, the City must determine if the property owners will receive a "special benefit" from the project or service proposed to be financed by the assessment. The special benefit must be a benefit to land and buildings or else it cannot be financed with the assessment. Once it has been determined that the property owners will receive a special benefit, then the City is required to use a professional engineer's report to estimate the amount of special benefit landowners would receive from the project or service, as well as the general benefit. If the split of special benefit to general benefit is 50/50 then the assessment can only pay for 50% of the total project cost. Once the amount is set, the City must set individual assessment charges so that no property owner pays more than their fair share of the total cost. This may require setting assessment rates on a parcel by parcel basis. 39 Finance, Administration and Public Safety Committee March 4, 2015 Page 7 Once all of this information has been calculated and completed, the City must mail information regarding the assessments to all property owners. Each notice must contain a mail-in ballot for the property owner to indicate approval or disapproval of the assessment. After the notices are mailed, the City must hold a public hearing, at the conclusion of which, the ballots will be tabulated and weighted based on the amount of the assessment that each property owner would pay. An affirmative majority of property owners is needed in order to impose the assessment. Revenue Diversification Diversification of the City's revenue sources will improve the City's ability to handle fluctuations in revenues and help distribute the cost of providing services. Unfortunately, as previously discussed, State law does not allow for random levying of taxes and assessments and imposes many requirements, including majority or two-thirds approval by voters. In addition, the Voter Opinion Survey conducted in late 2013, showed that there would be some support for a sales tax increase either at the ''A% or '/%% level; however, none of the tested tax rates reached the fifty percent plus one majority support level. Summary Based on the increased transfers from the General Fund to the landscaping and lighting districts along with the continued low level of development activity which affects Community Development Fund and General Fund revenues, preliminary projections indicate the City will need to address an approximate $500,000 gap between operating revenue and expenses for FY 2015-16. This can be in the form of enhanced revenue, use of general fund reserve, or reductions in services and staffing or any combination of such. STAFF RECOMMENDATION Review and discuss various revenue enhancement ideas. 40