HomeMy Public PortalAbout11) 10C Exploration of Community Needs and Fiscal ChallengesMANAGEMENT SERVICES DEPARTMENT
MEMORANDUM
DATE: April2, 2019
TO: The Honorable City Council
FROM: · Bryan Cook, City Manager
Susan Paragas, Administrative Services Director
AGENDA
ITEM 10.C.
SUBJECT: EXPLORATION OF COMMUNITY NEEDS AND FISCAL CHALLENGES
RECOMMENDATION:
The City Council is requested to:
1. Provide direction to the City Manager on whether to explore survey services
concerning community needs and measures to address fiscal challenges ; and
2. Authorize City Manager to provide a budget amendment at the next City Council
meeting for survey services and supplemental services.
BACKGROUND:
Over the past several months of City Council meetings, staff has brought forward
discussion items related to the challenges that the City faces related to City services
and the available resources to meet service and maintenance needs . These
discussions have included the operating deficit within the City's Landscape and Lighting
District (LLD); the condition of the City's road system and the cost to repair and replace
roads via the Pavement Management Program update; and, through the mid-year
budget update, the challenges in the City's operating (General Fund) budget. These
challenges have an impact on the level of services that the City can provide in a fiscally
sustainable manner. ·
ANALYSIS:
In an effort to begin to address the service challenges discussed, the City CoLJncil
directed staff to explore State legislation to address the use of funds within the
Landscape and Lighting District. Staff has already submitted legislation to be
introduced by our State Senator and that is expected to begin the legislative hearing
process this month . Additionally, earlier this year the City Council adjusted the majority
of Planning and Public Works fees to recover 100% of the cost of services. While
these steps are important to creating the path to continued fiscal sustainability and
City Council
April 2, 2019
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addressing community service needs, a survey to gain a sense of how the community
assesses service needs and any potential fiscal measure to address community service
needs will be valuable to the Council as it considers any next steps to implement going
forward. The cost of a survey and supplemental services is between $45,000 and
$50,000. The cost of an election to be run by Los Angeles County for any potential
ballot measure is estimated at $210,000. An assessment district mail-in ballot election
is estimated at $75,000.
There are four service areas where both operational and fiscal challenges exist today or
project to exist in the immediate future.
Landscape and Lighting District (LLD) -As discussed in prior Council meetings, the
City could consider increasing the single-family residential assessment rate to cover
the current deficit, and if the State legislation passes, to fund ongoing costs within the
district. The assessment rate adjustment from $25.03 to $53.23 could generate about
$381 ,000 in additional annual revenue. An assessment change would require a mail-in
ballot election by the property owners within the district (i.e., slightly over 1 0,000), with
approval by a majority of persons casting ballots.
Parks Maintenance District -The City could seek to establish a new Parks
Maintenance District separate from the LLD. An annual assessment of $68.61 per
single-family residential parcel and a scaled rate for multifamily residential and
commercial parcels would generate just over $1 million in annual revenue. Establishing
such a district would require a mail-in ballot election by property owners within the
district (i.e., slightly over 10,000), with approval by a majority of persons casting ballots.
Pavement Management-As discussed during the past agenda item concerning the
Pavement Management Program, the cost of simply maintaining City streets at their
current pavement condition is well above available City resources and would require a
parcel tax of $300 to $400 per parcel per year in order to adequately fund and maintain
the road system at a sustainable level. Each would produce $3 million and $4 million
respectively on an annual basis. A parcel tax would require a regular election by voters
with a supermajority 66.6% plus one voter approval to pass.
General City Services -The City General Fund operating budget is projected to be in
a slight deficit even if the General Fund is relieved of the current subsidy of the LLD
necessary to fund LLD ongoing costs. The City's main operating budget will likely be
out of balance (expenditures exceed revenue) for the next several years. A sales tax
measure of 0.75% would produce approximately $1.3 million in additional sales tax
revenue annually. Other cities in the San Gabriel Valley have considered or are
considering a sales tax measure in either June or November of this year. A general
sales tax measure would require a regular election by voters with a simple majority 50%
plus 1 voter approval to pass.
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April 2, 2019
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Conducting a community needs survey will provide the City with information about what
services are important to the community and gauge the community's understanding of
the issues surrounding City services. This will inform future discussions about the
feasibility of putting one or more of the above-mentioned measures to an election.
CITY STRATEGIC GOALS:
Providing direction on exploration of community needs is consistent with City Strategic
Goals of Public Health and Safety, Quality of Life, Sustainable Infrastructure, and Fiscal
Sustainability.
FISCAL IMPACT:
If directed by Council, staff would return at the next Council meeting with a budget
amendment from General Fund Reserves to fund the cost of a survey and supplemental
services estimated at $45,000 to $50,000 in the current fiscal year. The cost for a special
election in November is estimated at $210,000 and an appropriation can be included in
the budget process for Fiscal Year 2019-2020.
ATTACHMENT:
None