City of Gonzales
CITY MANAGER DEPARTMENT
STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: August 15, 2022
FROM: Carmen Gil, Community Engagement & Strat. Partnership Dir.
THROUGH: Carmen Gil, Interim City Manager
SUBJECT: Resolution No. 2022-62 in Support of Measure D
RECOMMENDATION
It is recommended that the City Council approve Resolution No. 2022-62, A Resolution of the City Council of the City of Gonzales in Support of City of Gonzales’ Measure D, a Measure Increasing the City’s Transactions and Use Tax (Sales Tax) by One-Half Percent (0.5%), Subject to Annual Audits by An Independent Auditor and a Citizens’ Oversight Committee and Exclusively Dedicated to the Gonzales Community Center Complex.
BACKGROUND
Residents of Gonzales have for years advocated for a community center of their own, where they could gather, grow, learn and play together and engage in art and cultural events. In November of 2020, the community passed Measure X, a general tax that would increase the Transaction and Use Tax (or “Sales Tax”) by one-half percent (0.5%) on retail transactions. This general tax would bring in upwards of $750,000 dollars annually that could be used to fund aspects of the Gonzales Community Center.
However, the cost of the Community Center is projected to be between $34.8 and $42.8 million dollars and in order to cover the cost we need other reliable financial sources to finance the project. On May 31st, 2022, the City Council adopted Resolution No. 2022-31 placing a question on the ballot at a special allmail election to be held on August 30, 2022, for voters to consider supporting for Measure D. Measure D would amend the Gonzales City Code and the provisions of the City’s Transaction and Use Tax (TUT) and would adopt an additional one-half percent (0.5%) TUT on retail transactions involving tangible personal property in the City for a term of forty (40) years extending to 2064. All funding would initially be used exclusively as security for financing the outstanding balance of the cost of the Gonzales Community Center, with any funds generated after complete funding of the Project being dedicated to street maintenance and repair.
AGENDA
ITEM
18 REVIEW AND ANALYSIS
If Measure D is passed by two-thirds (2/3) of the voters at the August 30th election additional funds to support the Center would be generated and the community will be closer to materializing their dream of having a local Community Center.
Therefore, the Gonzales City Council supports, by the attached Resolution, Measure D, an exclusive onehalf percent (0.5%) increase to the City’s TUT that would generate approximately an additional $750,000 to support the Gonzales Community Center.
Duties and Commitments
Measure D funds, if passed, would be collected by the California Department of Tax and Fee Administration and remitted to the City. Revenue will be subject to independent annual audits, annual public expenditure reports and oversight by the Transaction and Use Tax Advisory Committee. The Tax Advisory Committee will establish a sub-committee to ensure that all monies coming in from Measure D are applied to the Gonzales Community Center Project until fully funded, then funds would go towards roads and street repairs.
Explain Recommendation and How it Supports the Vision
Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small town charm.
Explain: Funds from Measure D will allow staff and the City Council to continue moving the Community Center Project forward. It will provide additional funds to finance the project, making it more attainable for the community, and thus realizing a long-time Vision.
Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment, and resources necessary to provide excellent services that enhance the quality of life of our diverse community.
Explain: The attached Council Resolution in support of Measure D supports the City’s Mission and will contribute to improving the quality of life of local residents by providing them with additional learning opportunities, a place to gather safely, innovate, and explore art and culture.
City services will be delivered in a cost-effective, respectful, and friendly manner to insure the safety and well being of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner.
Explain: Please see explanation above.
Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety X Yes No N/A
• Housing X Yes No N/A
• Recreation X Yes No N/A
• Environment X Yes No N/A
• Education X Yes No N/A
Explain: Please see above for explanation.
ALTERNATIVES
The Council could refrain from supporting Resolution 2022-62 in support of Measure D. However, this will result in a shortfall of funding for the Community Center that will have to be covered through a different source, thus elongating the Project’s projected completion timeline until the additional funding for financing the project is secured.
BUDGET IMPACT
There is no impact to the budget by supporting Resolution 2022-62.
CONCLUSION
It is recommended that the City Council approve Resolution No. 2022-62, A Resolution of the City Council of the City of Gonzales in Support of City of Gonzales’ Measure D, a Measure Increasing the City’s Transactions and Use Tax (Sales Tax) by One-Half Percent (0.5%), Subject to Annual Audits by An Independent Auditor and a Citizens’ Oversight Committee and Exclusively Dedicated to the Gonzales Community Center Complex.
Attachments:
1. Resol 2022-62