DATE: JUNE 25, 2024
FROM: Rene mendez, CITY MANAGER
BY: JIM PIA, ASSISTANT CITY MANAGER
TITLE: POTENTIAL MEASURE G RENEWAL AND BALLOT MEASURE SURVEY RECOMMENDATION:
It is recommended that the City Council receive the informational report on the recently completed Measure G Ballot Measure Survey and provide direction to staff whether or not to place a Measure G renewal on the November 2024 General Election ballot. Should the City Council direct staff to place a Measure G renewal on the November 2024 General Election ballot, the item would be presented to the City Council at its August 6, 2024, City Council meeting for consideration.
EXECUTIVE SUMMARY:
The City Council placed a one-cent transactions and use tax measure on the 2014 November ballot, and Salinas residents approved the measure establishing the tax for a period of fifteen (15) years. Since its inception, Measure G funding has provided for ongoing capital project needs and staffing, including 107 City staff positions within the City’s operation budget. In the ninth year of Measure G, the City continues to allocate its resources to citywide operational and capital project needs while sustaining staffing levels and services.
The City’s structural budget deficit as identified in the Salinas Plan, assumes the sunset of Measure G in FY 2029. The Salinas Plan document also recommended in early 2023 that the City request that the voters renew Measure G, as soon as possible, possibly in 2024. Although there is still the possibility for future election year ballot placement, both in 2026 and 2028, the Measure G survey results are being brought forward for consideration of placing the extension before the voters in 2024 because it provides an important general election year opportunity (Presidential election year) for the City to act in extending this measure.
Based on the current budget and assumptions for future growth, the City should expect positive net revenue through 2029. However, in FY 2030, there would be a significant drop in net revenue based on the current expiration of Measure G. If Measure G is not extended, the City will have significant issues funding operations at current levels.
The below chart illustrates the impacts of Measure G on the general government budget forecast.
BACKGROUND:
On April 9, 2024, City staff recommended that the City Council review and provide feedback and authorize the initial step of a Measure G Ballot Measure survey. This phase examines ballot measure feasibility, including a scientific survey of likely November 2024 voters. In an initial discussion with the City’s Finance Committee on February 6, staff discussed the possibility of placing an extension of Measure G on the ballot in November 2024, and the Committee recommended the item be brought to the full City Council for consideration. Since the April 9 date, the ballot measure survey has now been completed and survey information is attached to this report. Additionally, a PowerPoint presentation of the results will be made at the Council meeting of June 25, 2024.
CEQA CONSIDERATION:
Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.
STRATEGIC PLAN INITIATIVE:
This memorandum aligns with City Council’s Strategic Goal of striving for Economic Development - Sustain, encourage, and develop a diverse and thriving economy that benefits all Salinas residents and businesses and that contributes to the community’s economic health.
DEPARTMENTAL COORDINATION:
The Departments of Finance, Administration and the City Attorney’s office have coordinated on this item.
FISCAL AND SUSTAINABILITY IMPACT:
There is no cost associated with this action. Should the Measure G renewal be placed on the November 2024 General Election ballot, there will be a cost to the City associated with the Monterey County Registrar of Voters’ placing the item on the ballot.
ATTACHMENTS:
Measure G survey information from TeamCivX
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