City of Fullerton, CAJune 4, 2024
Budget Enhancement Opportunities
City Manager Recommendation
Due to Timing the City Manager recommends City Council Consideration:
Approve moving forward to prepare Resolution to increase TOT by 2%.
City Manager also recommends that the City Council consider the Billboard lease on City land concept. 2 Potential Option - TOT
Increasing Transient Occupancy Tax (TOT) Rate
Increase from 10% to 12%: estimated additional $400,000 to $600,000 in annual revenue Less impact on residents
Requires 50% +1 Voter Approval
3 Potential Option - Other
Lease Agreements
Use of available City owned land for Electronic Billboard Revenue Evaluate feasibility of negotiating in lieu-fees with tax exempt entities 4 Potential Option - Street Financing
Issue Debt
$35 million Issue ~ $14 million over 4 Years for Streets Meet MOE FY 2025-26 through FY 2027-28
Risk
Without increased General Fund revenue, potential loss of Measure M2 Funds beginning FY 2028-29 5 Recommendation
Identify items for staff to bring back for further consideration. 6