8F Consent Calendar 2018 1203 - Laserfiche WebLink

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File Number: 18-603 BACKGROUND On November 4, 2014, Measure HH, a half-cent sales tax, was approved by 65% of voters. The ballot language assures voters that Measure HH must expire March 31, 2045, and tax receipts are subject to annual audits, and an annual review by a citizen’s oversight committee. On July 6, 2015, the City Council passed a resolution that created the Measure HH Citizens Oversight Committee. The City Council defines the scope of responsibility and duties of the Measure HH Oversight Committee to include developing an annual report on the following: ·Amounts of Transaction and Use Tax revenue generated by Measure HH ·Use of the tax revenue and the impact on the City operating budget including a statement on the impact of the revenue in reducing the amount of cuts resulting from addressing the budget shortfall. ·Statement of expenditures funded by Measure HH revenues ·Impacts of Measure HH on local business competitiveness and the collection of Sales Tax revenues ·Measure HH public information and transparency efforts ·Participation in developing a revenue sustainability plan and strategy During FY 2017-18, the City accrued three months of sales tax data related to Measure HH. The data was provided by the State Board of Equalization; the data is typically at least three months in arrears. The Measure HH Oversight Committee held its first meeting on September 29, 2015, where it made several recommendations and discussed its annual report. City staff supports the work of the Committee by producing financial information and community priorities supporting the need for Measure HH. Audits have produced unqualified opinions from the City’s independent auditor. These audits and budgets adopted by City Council have received awards from the Government Finance Officers Association. The audit for fiscal year 2017-18 is currently underway; it is not expected to conclude until January 2019. The City receives 1.5 cents of the 9.75 cents per dollar in sales tax. This figure includes the 0.25% statewide sales tax reduction that took place at the end of 2016 due to the expiration of Proposition 30. The current allocation of the 9.75 cents sales tax can be found in Table 2 on Attachment 1: In November 2016, San Leandro voters approved Measures OO, PP, and NN. The Measures passed and took effect January 1, 2017. A summary of these measures and revenue estimates through June 30, 2018 is set forth below. 1.A cannabis business tax of up to 10% of gross receipts; 2.A modified business license tax that reduces fees for small businesses, while charging up to 10% of gross receipts for parking lots, and also charging $100 per 1,000 square feet of real property that is used for warehouse businesses; and 3.An increased transient occupancy tax to 14%. Page 2 City of San Leandro Printed on 11/27/2018