Download Most Recent Item Staff Report April 15, 2013

DRAFT
San Anselmo Financial Advisory Committee
Community Survey Priorities
&
Recommendations
April 15, 2013
Members
Matt Brown
Liz Dahlgren
Gage Houser
Christopher Livermore
Roberta Robinson
John Wright
Financial Advisory Committee - Background & Summary
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Background
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DRAFT
Town Council appointed the Financial Advisory Committee in October in response to the Strategic
Planning Community Survey1
The charge of the FAC was to review and become familiar with the Town’s financial position, budget,
resource allocations and expenditures, and to make recommendations to the Town Council
Summary
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The FAC held six full committee meetings from November through April, and formed two
subcommittees, one to look more closely at Town revenues and the other at expenses
Town representatives were present at all Committee and subcommittee meetings
The Strategic Planning Community Survey1, conducted in 2012, was used by the FAC as the
framework for its recommendations regarding Town needs
Based on its work, the Committee concluded that the Town has done a good job managing its
expenses and that it has already made significant accomplishments in reducing expenses as a result
of the police services consolidation (together with the much earlier fire services consolidation) and
the two-tiered Town pension system
The Committee does not believe that there are further significant savings to be found in the Town
budget
The Committee concluded that making further significant progress on meeting the Town’s identified
needs will require going to voters for a supplemental tax measure, and that the Council should
consider putting a sales tax measure on the November 2013 ballot
The Committee concluded that infrastructure enhancements, specifically roads, should be of the
highest priority. Recreation improvements are being addressed in a detailed site plan due for
consideration in early 2014
1
Link to survey:
http://www.townofsananselmo.org/archives/89/Survey%20results%20prioritized.pdf
2
DRAFT
Community Survey Priorities
The following opportunities were identified by survey respondents during a Town-wide survey in 2012
Category
Goal
Number
Description
1
Roads and Drainage
8
Medians
4
Share staff with other agencies
5, 7, 10
Town policies and procedures
Benefit
Complexity2
Initial
Cost
On-Going
Cost3
Infrastructure1
Shared Services
Policies
3
Community Facilities Master Plan
9
Isabel Cook Community Center Remodel
Recreation
1Flood
Legend
High degree of benefit/complexity/cost
Low degree of benefit/complexity/cost
Control (goal 2) is not in scope and is being addressed as a separate initiative
in terms of ease of implementation
3
3Assumes improvements are adequately funded
2Complexity
DRAFT
Funding Mechanisms
The following funding mechanisms were identified by the Financial Advisory Committee
Category
Sales tax
Utility Users Tax
Parcel Tax
Description
Recommendation
Benefit
Complexity2
Estimated
Revenue
Recommendation: Pursue
•Currently San Anselmo is 1/2 cent lower than
all of our surrounding communities (Fairfax,
A viable choice for bolstering San Anselmo’s general fund would be Novato, San Rafael)
the imposition of a sales (transaction and use) tax in addition to the •Instituting a 1/2 or 1 cent increase requires a
regular sales tax now paid. Revenue is variable
simple majority and must be enacted during a
regular municipal election (e.g. 11/2013)
•A special tax designated for a specific purpose
could be done at any time but would require a
2/3 vote
$500,000$1,000,000
Recommendation: Pursue as an alternative to
sales tax
•Instituting a utility user tax requires a simple
majority and must be enacted during a regular
municipal election (11/2013)
•A special tax designated for a specific purpose
could be done at any time but would require a
2/3 vote
•New UUTs are difficult to pass vote
~$600,000
Both rates and the types of utilities to be included can be
determined by the Town. Fairfax has a 4% UUT on gas, electric and
phone bills and raises $355,000 annually. Revenue is variable.
These taxes are a form of property tax, however unlike standard
property taxes, a parcel tax is an assessment based on the
characteristics of the parcel, typically at a flat-rate. Revenue is
predictable. San Anselmo has ~5,000 parcels
Recommendation: Do not pursue
•The two-thirds majority vote requirement
makes passage too difficult
Legend
High degree of benefit/complexity/cost
2Complexity
Low degree of benefit/complexity/cost
in terms of ease of implementation
$440,000
4
DRAFT
Funding Mechanisms - Continued
Category
Description
Recommendation
Benefit
Complexity2
Estimated
Revenue
Certificates of Participation (COPs)
•Recommendation: Discuss options with an
expert in debt financing
•Interest rates are at historic lows
•The market is ripe for this type of financing
as these bonds are typically tax-free
•Requires a vote of Town Council
•Requires a repayment mechanism but
could be ties to a new sales or utility tax
$5,000,000 $10,000,000
General Obligation bonds (GOs)
•Recommendation: Discuss options with an
expert in debt financing
•Interest rates are at historic lows
•The market is ripe for this type of financing
as these bonds are typically tax-free
•Requires 2/3 vote
$5,000,000 $20,000,000
Sale of Town real property assets
Recommendation: Request staff to study
feasibility
•Sale would result in a one-time gain and
on-going property tax revenue
Issuing debt
Expansion of the
Town tax base
Inclusion of exempt properties in the paying roll
Legend
High degree of benefit/complexity
Recommendation:
•Encourage, if not facilitate exempt
property to become non-exempt by all
reasonable means.
•Work with the county assessor to be sure
that current exemptions are legitimate and
that properties are property assessed and
that taxes are being paid.
2Complexity
Low degree of benefit/complexity
in terms of ease of implementation
~$50,000
$50,000 $80,000
5
DRAFT
Recommendation Summary
Category
Recommendation
Funding Recommendation
Benefit
Complexity2
Estimated
Cost
Infrastructure
•At minimum, increase level of road maintenance to raise the level of
road conditions as well as associated drainage
•Next level would be to provide more significant improvements within the 1.
Town’s working capacity
2.
•Median work should be considered with input from private funds for
initial work. Some work could be coordinated with road work. Town
would need to be responsible for on-going maintenance.
Shared Services
Adopt policy statement such that town staff periodically report to council
opportunities to share services with other towns/municipalities
N/A
Policies
Not in scope. Policies should be handled within the policies
recommended and governed by the town
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Recreation
Not in scope . The Town Council approved engaging a third party to
develop a master plan. The plan is due in February 2014
General purpose Sales Tax1 or Utility
Users Tax
Certificates of Participation
TBD
1Recommend
Legend
High degree of benefit/complexity/cost
Low degree of benefit/complexity/cost
a general purpose tax to qualify for majority vote on 11/13 ballot. The Town
Council would not be obligated to spend increased revenue on these purposes but would
make it clear that these are the Town’s priorities.
2Complexity
6
in terms of ease of implementation