Title
Staff Report for City Council Consideration and Possible Action to Place a Measure on the November 2020 Ballot Requesting Voter Authorization to Increase the Real Property Transfer Tax by $5 per $1,000 in valuation
Staffreport
SUMMARY AND RECOMMENDATIONS
It is recommended that the City Council:
1) By motion, adopt by majority vote the attached resolution placing a measure on the November 3, 2020 ballot asking San Leandro voters to increase the City's existing, voter-approved real property transfer tax ("RPTT") measure from its current rate of $6 per $1,000 of property value to a new rate of $11 per $1,000 of property value, and direct staff to execute the related ballot filing procedures.
2) By motion, adopt the attached ordinance codifying the proposed measure at the proposed $11 rate, contingent upon authorization by the voters of the measure described in item 1) above.
BACKGROUND
Over the past several years, the City Council has discussed numerous strategies to close the City's General Fund structural budget deficit. These strategies have included efforts to reduce the City's expenditures, alternative service-delivery options, as well as ways of generating new revenues. As of the date of the writing of this staff report, the City has already executed a number of long-term cost-saving measures, including:
* Adoption of labor contracts that require employees to contribute their maximum share towards employee pension costs;
* Implementing new pension tiers that provide reduced pension benefits to more recently-hired employees;
* Holding the line on the addition of new City staffing (the City presently maintains approximately 15% less staff than it had in place over a decade ago);
* Creation of a new program (Prioritization of Unfunded Liability Liquidation, or "PULL") to set aside funds towards the costs of the City's long-term unfunded liabilities.
Nevertheless, in order to address the City's long-term budgetary challenges, the City Council al...
Click here for full text