RECOMMENDATION

That Council takes the following actions to place: 1) an increase in the City’s Real Property Transfer Tax from $4.50 per $1,000 of property value to $8.50 per $1,000 of property value (Attachment II); and, 2) an increase in the City’s Transient Occupancy Tax from 8.5 percent to 12 percent (Attachment III), before the voters of Hayward at the November 6, 2018, election:

1. Adopts the attached resolutions approving the ballot questions as they will appear on the ballot, and the underlying ordinances to be enacted, and requesting the Alameda County Board of Supervisors to authorize the County Clerk and Registrar of Voters to provide election services and canvass the returns; and

2. Directs the City Attorney to develop an impartial analysis of each proposed measure

SUMMARY

The purpose of this item is for the Council take the necessary steps to place two revenue measures on the November 6, 2018, ballot to increase the tax rates related to the Real Property Transfer Tax (RPTT) and Transient Occupancy Tax (TOT), respectively. These steps include adopting two resolutions calling for elections on the respective measures and directing the City Attorney to prepare an impartial analysis of each proposed measure.

BACKGROUND

At the July 10, 2018, meeting, the City Council considered a report from staff regarding two possible ballot measures to be submitted to Hayward voters at the November 6, 2018, general municipal election. The July 10, 2018 report can be found in the Staff Report. After discussion, the Council, on a vote of 6-1, directed staff to prepare resolutions formally submitting said measures to Hayward voters. The resolutions are attached (Attachments II and III). The proposed measures are general tax measures requiring simple majorities for approval.

DISCUSSION

The attached resolutions set forth the questions that would be included on the ballots Hayward voters would approve or reject by voting ‘yes’ or ‘no.’ Following are the ballot questions:

Shall the measure increasing the existing real property transfer tax be adopted?

To support City of Hayward services, with revenue that cannot be taken by the State, including: repairing streets and sidewalks; 911 emergency and firefighter response times; neighborhood police patrols; disaster preparedness; extended library hours and after-school programs; and unrestricted general revenue purposes; shall Hayward increase the rate of its real property transfer tax, collected once upon purchase of real estate, from $4.50 to $8.50 per $1,000, providing $13,000,000 annually, until repealed by voters, all funds benefiting Hayward? 

YES   

NO   

 

 

Shall the measure increasing the existing transient occupancy tax be adopted?

To support City of Hayward services, with revenue that cannot be taken by the State, including: repairing streets and sidewalks; 911 emergency and firefighter response times; neighborhood police patrols; disaster preparedness; extended library hours and after-school programs; and unrestricted general revenue purposes; shall the City of Hayward increase the transient occupancy tax paid only by hotel and motel guests from 8.5% to 12%, providing $3,000,000 annually, until repealed by voters, all funds benefiting Hayward?

YES   

NO   

 

The resolutions, pursuant to direction by the City Clerk, also ask the Alameda County Board of Supervisors to authorize the County Clerk and Registrar of Voters to provide election services and to canvass the returns. Further, the resolutions direct the City Attorney to prepare impartial analyses of each measure, which would be printed in the voter information handbook.

ECONOMIC AND FISCAL IMPACT

Based on staff analysis, the increase in the RPTT would result in approximately $6,492,000 of additional revenues, that is, revenues would increase from approximately $7,303,000 annually to approximately $13,795,000 annually. Based on staff analysis, the increase in the TOT would result in approximately $986,000 of additional revenues, that is, revenues would increase from approximately $2,395,000 annually to approximately $3,381,000 annually. The City’s Finance Director updated the revenue estimates for the two measures so the figures above differ slightly from the numbers presented in the July 10, 2018 report to Council. The cost of the November 6, 2018 is estimated to be $277,000, which would include these two measures, two seats on the Council, and the mayor’s seat.

STRATEGIC INITIATIVES

This agenda item is a routine operational item and does not relate to one of the Council’s Strategic Initiatives.

PUBLIC CONTACT

This agenda item was published in compliance with the requirements of the Brown Act.

NEXT STEPS

The calendar below outlines key dates related to these measures.

July 31, 2018 | Semi-Annual Campaign Statement Deadline. FPPC Form 460 - Period covers 1/1/18 - 6/30/18

July 17, 2018 | Council approves resolution requesting the County Board of Supervisors consolidation of a municipal election. Resolution must include calling of the election, ballot measure question, and ballot measure full text.

July 20 – July 30, 2018 | Public review period for Impartial Analysis.July 31, 2018 | Last day to file Direct Arguments (EC 9286).

July 31 – August 10, 2018 | Public review period for Direct Arguments (EC 9295).

August 10, 2018 | Last day to file with the County Board of Supervisors a Council resolution requesting consolidation.

August 10, 2018 | Last day to file Rebuttal Arguments (EC 9285).

August 10 – August 20, 2018 | Public review period for Rebuttal Arguments (EC 9295).August 27, 2018 | Last day to submit direct and rebuttal argument materials to the Registrar of Voters office.

September 27, 2018 | First Pre-Election Campaign Statement Deadline

Prepared and Recommended by: Chuck Finnie, Communications and Marketing Manager John Stefanski, Management Analyst II