TITLE
Recommendation to receive the supporting documentation into the record, conclude the hearing and adopt attached resolution, which would place the Long Beach Neighborhood Library Protection Measure on the April 11, 2006 Primary Nominating Election ballot, for the purpose of restoring and enhancing Library Services citywide; and
DISCUSSION
On June 21, 2005, the City Council directed City staff to research community support for
potential revenue-generating ballot initiatives. As a result, community surveys were
conducted in October and November 2005. The findings indicate that likely Long Beach
voters recognize the City needs additional resources to provide effective public safety
and library services and would support increased taxes for enhancements to these
areas.
The City's Financial Strategic Plan (Plan), which was endorsed by the City Council in
2003, outlined a strategy with options to balance what, at that time, was a projected
$102 million deficit in the City's General Fund. These options included both reductions
in expenditures for City services as well as proposed new revenue sources, such as
increases in fees to improve cost recovery for City services and higher investment
returns on City assets. Over the past three years, implementation of the Plan has
resulted in over 400 City employee positions being eliminated, efficiency gains in
several key service areas, extensive reductions in equipment and support costs, and
reduced City service levels. Consequently, the projected $1 02 million structural deficit
in the General Fund was reduced by $92 million, with the balance to be eliminated by
fiscal year 2007 (October 1,2006 - September 30,2007).
restore core community services that were impacted through the Plan, the City
Council's Budget Oversight Committee researched potential new revenue opportunities.
This included surveys by City staff of other communities that had been successful in
passing local ballot initiatives to fund core services. On June 21, 2005 the City Council
directed the City Manager to conduct further research of Long Beach voters' opinions
and to recommend potential revenue generating ballot initiatives as a means of
addressing critical funding needs.
To fulfill this recommendation, City staff conducted a competitive Request for Proposals
process and received six proposals for strategic advice and public opinion polling. The
City selected the team of the Lew Edwards Group (LEG) and Fairbank, Maslin, Maullin,
& Associates (FMMA) to provide these services. Both firms have worked in partnership
to pass a combined total of $30 billion in California finance measures with a 90 percent
overall success rate. Experts from both firms are regular trainers and speakers for
organizations such as the League of California Cities, the California Municipal
Treasurers Association, the Local Government Commission, and the Institute for Local
Governments. Examples of their clients includes the cities of San Luis Obispo,
Escondido, Visalia, and Lawndale.
LEG and FMMA worked with City staff to develop a statistically valid survey of likely
voters in Long Beach, as well as a follow-up survey. The surveys evaluated voters'
willingness to support potential revenue generating ballot initiatives to address critical
funding needs in the areas of public safety, infrastructure, library services and youth
programs.The results from the two surveys show strong support for both public safety and library
services revenue measures. Nearly two-thirds (64 percent) of likely voters agree with
the statement "the City of Long Beach needs additional funds to provide the level of City
services that residents need and want."
Public Safety Measure
Research from the initial survey showed that support exists for an increase in the sales
tax to fund public safety services, including additional police officers. Sixty-five percent
of respondents said that they would support a one-half cent sales tax increase to
enhance these services. This included 42 percent that would definitely support the
measure, 19 percent that would probably support the measure, and 4 percent that were
undecided, but would lean towards supporting the measure.
Of the total respondents, 26 percent voiced the opinion that they would not support the
measure. Nineteen percent of respondents were classified as definite non-supporters,
Library Services Measure
An additional survey was conducted to better understand the public's support of
potential revenue measures for library services. This survey showed very strong
support for a $35 parcel tax increase to restore and enhance library services.
Approximately 73 percent of respondents reported that they' would support an annual
property assessment on residential property in the amount of $35 to fund additional
library services. This included 55 percent that would definitely support the measure, 15
percent that would probably support the measure, and 3 percent that were undecided,
but would lean towards supporting the measure.
Of the total respondents, 16 percent voiced that they would not support the measure, 11
percent of respondents were classified as definite non-supporters, 4 percent as
probable non-supporters, and I percent undecided, but leaning towards not supporting
the measure. Eleven percent of the surveyed sample were completely undecided. The
margin of error for the relevant questions was plus or minus 5.6 percent.
According to the City's advisors (LEG and FMMA), this level of support is rarely seen
with potential revenue measures, and it suggests there is a strong likelihood that this
potential ballot measure, to increase funds for the Long Beach Public Library, would
obtain the two-thirds super-majority of votes needed for passage as early as April 2006.
If successful, a $35 annual parcel tax increase to parcels with single family residential
units and condominiums, a $70 annual parcel tax increase to parcels with two to four
residential units, and $100 annual parcel tax increase to parcels with five or more
residential units, would generate approximately $4 million annually. Qualifying houses
of worship or community service organizations that are exempt from ad valorem
taxation under California law will receive a rebate for this tax, as will residential parcel
owners whose gross household income is 80 percent or less of the Los Angeles County
median income.
The survey indicated that the public favors using these resources to provide the
following improvements to library services citywide:
0 Allow the Long Beach Main Library to return to being open and accessible seven
days a week
0 Allow all Long Beach neighborhood libraries to be open and accessible for a
minimum of six days per week
Restore and increase the Library materials budget
TIMING CONSIDERATIONS
To place a measure on the April 11, 2006 ballot, City Council action is needed by
January 13, 2006, which requires approval at the January I O , 2006 City Council
meeting. To place a measure on the November 7, 2006 ballot, City Council action is
needed by August 11, 2006, which requires approval on or before the August 8, 2006
City Council meeting.
FISCAL IMPACT
A $35 annual parcel tax increase to parcels with single-family residential units and
condominiums, with associated increases for multi-unit parcels, would generate
approximately $4 million annually. It will cost the City approximately $80,000 to place
the Neighborhood Library Protection Measure on the April I 1 , 2006 ballot. The City's
current election budget can support this cost.
A one-half cent increase to. the sales tax would produce approximately $23.75 million
annually to be used for public safety purposes. Based on historical costs, a proposed
public safety revenue measure in November 2006 would cost the City between
$300,000 and $325,000, and would need to be included in the City Clerk's FY 2007
Proposed Budget. The City would consolidate this election with the County of Los
Angeles' election, and this measure would appear, on the County's ballot for the
Statewide General Election. The cost reflects estimated charges from the County using
the County's existing voting system.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF LONG BEACH CALLING AN ELECTION TO BE
HELD IN THE CITY OF LONG BEACH ON THE 1 ITH DAY
OF APRIL, 2006, FOR THE PURPOSE OF AUTHORIZING
THE LEVY OF A NEW PARCEL TAX TO PROTECT AND
RESTORE THE LONG BEACH PUBLIC LIBRARY SYSTEM
(LONG BEACH NEIGHBORHOOD LIBRARY PROTECTION
ACT)
Respectfully Submitted,
NAME |
APPROVED: |
TITLE |
|
|
|
|
GERALD R. MILLER |
|
CITY MANGER |