Finance Highlights 2008 0917 - Laserfiche WebLink

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costs currently borne by the General Fund could be paid for with assessments on the property owners of the district. The amount of relief that might be provided to the General Fund depends on several factors including how many districts might be formed and which costs can be allocated. For example, in the 2007-08 budget, costs that could be considered for allocation to a district(s) are approximately $4.5 million, which includes park maintenance. Voting on the formation of an assessment district does not have to be consolidated with a general election, as noted for taxes above. However, there are several steps which must be completed including the preparation of an engineer's report, a public meeting, and a public hearing. Depending on how quickly these steps are completed, it could take three to six months to form a district. Revenue Option 6: Library Benefit Assessment District (Citywide) A citywide district could be formed to provide for a variety of Library needs. This could include maintenance or expansion of existing service levels. For example, the City of San Jose established a Library Benefit Assessment District in 1995 to pay for the acquisition of materials and computers, programming and essential facilities maintenance. The district had a limited life of ten years and assessments ceased in 2005. The annual assessment was $25 per residential parcel with proportional amounts for all other properties. In San Leandro there are approximately 22,500 residential and 1,600 commercial/industrial parcels, totaling 24,100. Assuming a $25 average for all parcels, approximately $600,000 could be, raised. If the average parcel assessment were $50 then the revenue raised would be $1.2 million. As a reference, the Library's 2007-08 General Fund budget was $5.7 million. A Library Benefit Assessment District would be subject to the same formation requirements as discussed above. Other City Revenues San Leandro has other revenue sources which are significant and could provide additional revenue to the city. Specifically, the city has a Real Property Transfer Tax (RPTT) and a 911 Communications System Access Fee (911 Fee) which provide revenue to the General Fund. Staff has exempted these two revenues from review. Concerning the RPTT, staff is aware of the condition of the real estate market which is at an all time low both for activity and sales prices. Consequently, until the market returns to a more normal level, burdening this segment of the market with increased taxes appears untimely.