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HomeMy WebLinkAboutStaff Report 3.B 11/07/2016DATE: November 7, 2016 TO: Honorable Mayor and Members of the City Council FROM: John C. Brown, City Manager Agenda Item #3.B SUBJECT: Consideration and Possible Approval of Resolution Supporting Measure Y, a Countywide Quarter Cent Sales Tax Measure for the Sonoma County Library RECOMMENDATION It is recommended the City Council consider the attached Resolution Supporting Measure Y, a Countywide Quarter Cent Sales Tax Measure for the Sonoma County Library and take action as appropriate. BACKGROUND The Sonoma County Library was formed in 1975 through a Joint Powers Agreement (JPA) between the cities of Healdsburg, Petaluma, Santa Rosa, Sonoma and the County of Sonoma. The JPA has since been amended to include each city in Sonoma County. The Library is governed by the Library Commission and eleven - person body with members appointed by the County Board of Supervisors and member City Councils. Library service is provided through the Central Santa Rosa Library, 10 regional libraries, and two rural stations, with assistance from Mendocino County's Bookmobile service. Much of the Library's funding comes from its share of the property tax collected by Sonoma County, based on a set formula. During the recession, Library services, including hours of operation, were cut to address revenue declines. Although property taxes are rebounding with the recovery, Library costs have continued to exceed the ability to restore and enhance services. To address its revenue needs, the Library Commission placed a special purpose tax measure on the November 2014 ballot, which would have increased the sales and use tax by I/4 cent. The measure needed a 2/3 majority to pass, but only 62 percent of voters supported the tax. On July 18, 2016 the Library Commission adopted an ordinance to place a special purpose tax measure on the November 8, 2016 ballot. If approved, the measure would impose a one - eighth of a cent (0.125 %) transaction and use tax on retail sales in the County of Sonoma, beginning April 1, 2017, for a term of ten years. The tax is expected to generate approximately $12 million per year in new revenue, and would be subject to annual audit, regular community reporting, and review by a citizen's oversight committee to provide accountability. The Library Commission has indicated it would use the additional tax proceeds to address Library priorities such as restoring library hours that have been reduced by 25% since 2011; maintain the Library's children's book collection; construct dedicated computer labs; attract and retain qualified librarians; provide educational services for students including homework help; and expand services for seniors and the disabled. The measure contains accountability provisions to ensure that tax proceeds are spent for the purposes intended. These include citizen oversight, community reporting, and annual audit. DISCUSSION The Mayor and Councilmember Barrett have both indicated an interest in placing a resolution supporting Measure Y before the City Council for consideration. The attached resolution was prepared for your consideration and action as appropriate. ATTACHMENTS 1. Resolution 1) ATTACHMENT 1 RESOLUTION SUPPORTING MEASURE Y, A COUNTYWIDE 1/8 CENT SALES TAX MEASURE FOR THE SONOMA COUNTY LIBRARY WHEREAS, the Sonoma County Library was formed in 1975 pursuant to a Joint Powers Agreement between member agencies, which has been amended over time to include the County of Sonoma and each city in Sonoma County; and WHEREAS, much of the Sonoma County Library's funding for services derives from its share of property taxes, which was set by formula in 1978 with the implementation of Proposition 13; and WHEREAS, during the recession, library funding declined and library services were cut, while the costs of books, materials and other services continued to increase, with the result that the library needs of Sonoma County residents are not being met; and WHEREAS, on July 18, 2016 the Library Commission adopted an ordinance to place a special purpose tax measure on the ballot at the November 8, 2016, election, and the ordinance will become effective if approved by two - thirds of the voters voting on the measure (Measure Y); and WHEREAS, the special tax proposed in the ordinance would be a one - eighth of one percent (0.125 %) transactions and use tax imposed for ten (10) years on retail sales in the County of Sonoma, beginning April 1, 2017; and WHEREAS, increased tax proceeds will provide locally controlled funding that will be used to address Library priorities such as restoring library hours that have been reduced by 25% since 2011; maintain the Library's children's book collection; construct dedicated computer labs; attract and retain qualified librarians; provide educational services for students including homework help; and expand services for seniors and the disabled; and WHEREAS, Measure Y provides financial accountability through a citizen's oversight commission, annual reporting to the community and annual audits. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Petaluma expresses its support for a Measure Y, the proposed countywide 1/8 cent sales tax measure to support the Sonoma County Library, and encourages voters in Petaluma and Sonoma County to vote "yes" on the measure.