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Proposed Police Services Parcel Tax 2 July 28, 2008 would be placed on the November 4, 2008 election ballot; they include modernization and updating both the Utility Users Tax and 911 Emergency Communication System Access Fee Ordinance, and consideration of a Police Services Parcel Tax. This report will focus on the proposed Police Services Parcel Tax. At the July 7, 2008 meeting the City Council directed staff to return with a report on the proposed parcel tax at the July 21, 2008 Council meeting. At that meeting, the Council directed staff to prepare ballot language for discussion at the July 28, 2008 meeting. The City is receiving substantially lower revenue than was expected, largely due to the housing market, increases in gas prices, and lower sales tax. The Council recently adopted the Fiscal Year 2008- 09 Budget, which included several strategies to reduce the original $9 million deficit to $4.4 million. The Council has acknowledged that a long term revenue strategy must be addressed and created for future fiscal years. The proposed PSPT is one mechanism which, if approved, may generate $2.6 million annually and will ensure the current level of service to continue over the next several years. A proposed parcel tax requires atwo-thirds (2/3) affirmative vote. A public safety parcel tax measure was placed before the voters in 2004 and failed. Placing a police services measure on the November 2008 ballot may garner more support due to recent discussions by the community related to crime, as well as several community-based neighborhood safety groups having formed in the past six months. The community has on several occasions requested more emphasis on crime prevention, officers, and programs in the schools. Term The proposed PSPT contains a four year sunset clause. The duration of tax would be from January 1, 2009 through June 30, 2014. Extension of the tax into fiscal year 2014/15 and beyond would require a future vote of the electorate. Proposed Parcel Tax Rates The proposed PSPT rates were developed to assess residential and commerciaUindustrial properties generally proportionate to their use of police services. Users of residential property typically generate more calls for service from the police; therefore, residential property owners' rates were developed to generate $1.6 million, or 60% of the total revenue. Residential properties with more than one unit are proposed to be taxed at a rate per unit equal to 67% of the tax on single family units. Proposed residential annual tax rates • $40.00 (or $3.34 per month) mobile homes and parcels with two or more units such as duplexes, triplexes and apartment complexes. • $60.00 (or $5.00 per month) for single-family homes, condominiums and townhouses.