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Ballot Measure Overview DISCUSSION July 21, 2008 This report is provided as an overview of the three potential ballot measures for discussion by the Council. There are several considerations that should also be included in the discussion prior to making a decision on the measures. Current Deficit -the current budget was adopted with an existing revenue shortfall. There is concern over the future of the existing 911 Fee and the UUT; the 911 fee currently produces $2.5 million in "at risk" revenue, while the UUT produces $3 million in "at risk" revenue. The City's deficit will worsen should these two resources be eliminated or reduced. Should they be approved by the voters, there would be some assurance that these revenues would remain in tact. Parcel Tax Limitations -the proposed parcel tax for police services would produce an estimated $2.6 million, which may only maintain the recent (2008-09 adopted) enhancements in staffing. There is concern over the need for increased police services and the ballot measure, even if it were to be approved, would not produce enough revenue to meet those future needs and desires by the community. There will be challenges in the City's budget over the next couple of years. Will this parcel tax provide enough revenue needed for future budgets? Preservation vs. Enhancements - a key factor in the Council's decision is preservation of existing significant revenue resources ($5.5 million) versus providing moderate enhancements ($2.6 million). Again, this poses the question of how much is needed and how much to ask for; and finally what we can do with the moderate amount that may be produced -will it provide enough for enhancements. Simple Majority vs. Two-Thirds -another factor to consider is the voting requirements. Will there be enough time to provide public outreach on the measure(s) to ensure success. Parcel taxes can be very challenging to obtain 2/3 voter approval; public education and a campaign play a very important role to the success. Voter Fatigue -there is concern over the potential number of measures and issues facing voters at the November 2008 election, including those from other agencies (e.g. school districts and special districts). Council should weigh the impact of the measures and the timing with the November election, or any future elections. Current City Council Policy Not applicable. Previous City Council Action(s) Council directed staff to pursue this option at the July 7, 2008 Council meeting and to bring the issues back for further consideration at the July 21, 2008 meeting. City Council Committee Review and Action At the June 30, 2008 meeting, the City Council Revenue Ad Hoc Committee agreed to forward the three proposed measures to the full City Council for consideration.