City Council Direction
Potential Revenue Measures
for November 2022
1 City Council, May 3, 2022
Presentation Agenda
• Background and need
• February public opinion polling results
• Viable options for November 2022 ballot
• Pros and cons
• Next steps/schedule
• Discussion and questions
2 Revenue Measures: Background
3 2020 discussion about new measure tabled due to pandemic General Fund is healthy but significant and ongoing challenges remain
City has been considering these items since 2009 and in last three biennial budgets
Needs include deferred infrastructure maintenance, sea level rise, climate change, traffic safety, disaster preparedness and affordable housing
Alameda has had fewer revenue measures than our neighbors:
Berkeley (21), Oakland, (17), San Leandro (7), Alameda (6) Revenue Measures: Background
4 Late 2021, City Council authorized initial public opinion polling February 2022 polling assessed voter views on:
Overall City direction, departments and services
Priorities for community investment
Support for potential revenue measure mechanisms
Infrastructure bond, affordable housing bond/tax, real estate transfer tax, increase to business license, gas and transient occupancy tax, establishment of cannabis tax
Timing/Phasing: Some options might be better fit for 2022; potential to explore other options for future elections
Revenue Measures:
Polling Results - Survey Methodology
5 Revenue Measures:
Polling Results - Key Numbers
6 Revenue Measures:
Polling Results – Voter Mood and Perceptions of City
7 More voters are divided on the direction of the City than ever before, and just three in ten say things are headed in the right direction.
Majorities approve of Alameda’s city government, overall; half approve of the City’s management and elected officials. Broad shares give high marks to the City for the quality of its park facilities and fire services.
Ratings for police services, neighborhood safety, and library services have declined.
Housing costs are a top worry; broad majorities are
concerned about climate change and traffic safety.
Relatively few are concerned about City tax rates and waste in local government.
Revenue Measures:
Polling Results - Spending and Investment Priorities
8 A majority of Alameda voters see at least some need for additional funding for city services.
Their highest priorities for funding include response times, bridge upgrades and flood prevention.
Seven in ten or more also rate infrastructure repairs and response to violent crime highly.
Two-thirds or more value improving cyclist and
pedestrian safety and preparing for disaster.
Majorities value improving traffic flow and public transit and improving parks.
Revenue Measures:
Polling Results – Assessing Revenue Measure Mechanics
9 Revenue Measures:
Polling Results – Assessing Revenue Measure Mechanics
10 Revenue Measures: Viable Options
11 Revenue Measures: Viable Options
12 Revenue Measures:
Polling Results – Conclusions
13 While Alamedans hold increasingly mixed views about the direction of the city, they overall approve of City government and management. They are more mixed in their views of the Mayor and City Council.
Housing costs are a broadly shared concern. Notably, concern about traffic safety has increased over the last two years, as has concern about crime.
A majority believes in principle that the City has “a great” need or “some” need for additional funding, though most say “some” rather than “great” – an indication that voters are unaware of the investments the City requires.
Revenue Measures:
Polling Results – Conclusions
14 Voters most highly prioritize investments in maintaining emergency response times, infrastructure upgrades, and
preparation for and prevention of natural disasters
including flooding and earthquakes.
Specific to housing, voters highly value support for
victims of domestic violence, housing and services for
people who are homeless, and other key communities
Potential Revenue Measures: Pros and Cons
Option #1: Increase Business License Tax (Large and Medium Businesses) 15 Estimated Annual Revenue: $100,000-$200,000 annually Voter Threshold: Requires 50% plus 1 voter approval
Tax Rate: 5-10%
Use of funds: General Fund
Pros Cons
Limited direct impact on Alameda residents Limited revenue potential Survey suggests strong viability (70-64%
support)
May impact some Alameda businesses
Flexible use of funds, including operating
deficit
Brings Alameda closer in line with neighbors
Potential Revenue Measures: Pros and Cons
Option #2: Establish Cannabis Tax
16 Estimated Annual Revenue: $100,000-$500,000 annually Voter Threshold: Requires 50% plus 1 voter approval
Tax Rate: 4% on cannabis businesses’ gross receipts
Use of funds: General Fund
Pros Cons
Limited direct impact on Alameda residents Limited revenue potential Survey suggests strong viability (69-67%
support)
May impact cannabis business activity in
Alameda
Flexible use of funds, including operating
deficit
Potential Revenue Measures: Pros and Cons
Option #3: Increase Transient Occupancy Tax (TOT)
17 Estimated Annual Revenue: $200,000-$500,000 annually Voter Threshold: Requires 50% plus 1 voter approval
Tax Rate: 1-2% increase
Use of funds: General Fund
Pros Cons
Does not directly impact Alameda residents –
pass through cost to visitors
Limited revenue potential
Survey suggests strong viability (69-67%
support)
Flexible use of funds, including operating
deficit
Potential Revenue Measures: Pros and Cons
Option #4: $95 Million Infrastructure Bond (Potentially Viable) 18 Voter Threshold: Requires 66.7% voter support
Use of funds: Restricted to Capital Needs
Pros Cons
Addresses significant capital needs with
significant revenue
Difficult 2/3 voter threshold
Survey suggests viability (67-68% support) Significant capital needs would remain Strong voter support for infrastructure
investments: bridge/tube improvements, flood
prevention, street and storm drain repair
Does not address operating deficit
Next Steps/Schedule
19 May 3: City Council provides direction on which, if any, revenue measure to consider for November 2022.
May and June: Outreach, education, additional polling, develop ballot language, update infrastructure needs
July 5: Staff presents results of outreach and proposed ballot language July 5: Deadline to approve Infrastructure Bond (ordinance requires 2 readings)
July19 : Deadline to approve TOT, Cannabis and or Business License Tax August: Deadline to submit measures to Alameda County Registrar of Voters November 8: General election
Discussion/Questions
20 Gerry Beaudin, Interim City Manager, [email protected] Liz Acord, Public Works Coordinator, [email protected] Curt Below, FM3 Research, [email protected]
Miranda Everitt, FM3 Research, [email protected] Jeremy Hauser, TBWBH Props & Measures, [email protected]