Measure A Extension Second Public HearingDecember 5, 2023Agenda Item 16.2 • ¾ Percent Sales and Use Tax• $36 million average in General Revenue• 17% of General Fund Revenues• Tax will sunset after 10 Years• Extension requires two Public Hearings and adoption of findings2 Measure A Overview• ¾ Percent Sales and Use Tax• $36 million average in General Revenue• 17% of General Fund Revenues• Tax will sunset after 10 Years• Extension requires two Public Hearings and adoption of findings • ¾ Percent Sales and Use Tax• $36 million average in General Revenue• 17% of General Fund Revenues• Tax will sunset after 10 Years• Extension requires two Public Hearings and adoption of findings3 Extension Timeline1. November 13 – Measure A Committee Reviewed Findings2. November 14 – First Public Hearing3. November 20 – Measure A Committee Second Review of Findings4. December 5 – Second Public Hearing and vote to extend APPROVED BY VOTERSMeasures A and B were approved by voters as a General Tax.MEASURE B•Nonbinding advisory measure •Created 120 new police positions •Advised 65% prioritized for Law Enforcement & Crime PreventionAUDITSSubject to the General Fund (ACFR) Audit, Agreed Upon Procedures Attestation, and Most recently an internal performance audit4 Approved by VotersMeasures A and B were approved by voters as a General Tax Measure BAdvised 65% Prioritized for Law Enforcement & Crime PreventionHealthy CityInstrumental to a fiscally healthy City that can perform basic services BackgroundBackground
Sunset Provision
Section 17 of the ordinanceSunset of Tax. The taxes imposed by this Ordinance shall remain effective until: (i) the City Council or the voters repeal it(ii) The City has experienced economic recovery(iii)Ten years from the date the tax is first collected.
Extension and Findings
Revenues continue to be necessaryThe revenues continue to be necessary to accomplish the purposes* of this Ordinance*SECTION 21 The proceeds of the taxes imposed by this Ordinance may be used for any lawful purpose of the City.
Employee compensation is not excessiveThe total compensation paid to City Employees is not excessive when compared to similarly situated public employees Section 17 (b) In order to extend the sunset, Council needs two publicly noticed hearings to adopt findings based on evidence that:
Employee Salaries are NOTexcessive Compared to Similarly Situated AgenciesEmployee Salaries are NOTexcessive Compared to Similarly Situated Agencies MOUS ARE REGULARLYNEGOTIATEDThe City uses an external consultant who compares City employee compensation to other agencies THE MIDDLE OF THE MARKET RATEThe City targets the labor market median (middle) MARKET ADJUSTMENTSMarket adjustments based on the study are negotiated and included in labor agreements Without Measure A, the City will expend its reserves by the end of FY 2027-28 and become insolvent unless significant cuts to vital city services are made.
Impact on Long-Range Financial PlanImpact on Long-Range Financial Plan Fund Balance withoutMeasure AFund Balance with Measure A •17% of General Fund •Loss = Massive cuts to nearly every service area•Reduced police force and response times•Effective Elimination of Violence Prevention•Closure of three fire stations doubling response times•Reduction of Library Open Hours•Closure of Oak Park Ice Rink•Severe reductions in park maintenance and watering•Reduced cleanups of homeless encampments10 Measure A is NECESSARYMeasure A is NECESSARY
Marshall Plan Recommendations
95%96%92%92%97%96%95%91%82%75%3654054454856/30/2014 6/30/2017 6/30/2019 6/30/2021 6/30/2023Authorized Police Officer Positions% HiredAuthorized Sworn Postions 4958713249 49 495533345639422010 2012 2014 2016 2018 2020 2022HomicidesMeasure A Effective 4/1/141. Operation Ceasefire Strategically partner with high-risk individuals2. OVP/Outreach Workers Leverage targeted resources and services that alleviate violent crime factors3. Neighborhood Betterment Team Improve the areas where crime happens4. Add 120 Police Officer PositionsBudgeted positions increased to 485. Filled to 97% in FY 2017-18 Authorized Number of Positions
Updating the Measure B Spending Plan with the Extension 13 •The Measure A Performance Audit released in October 2023 recommended:•Leverage Salary Savings for greater retention •Create expenditure Guidelines to help identify Measure B eligible costs•To address these recommendations, the City will:•Reimagine Key Performance Indicators (KPIs) and publish successes•Develop Measure B Expenditure Guidelines •Reallocate salary savings for better retention •The Measure A Performance Audit released in October 2023 recommended:•Leverage Salary Savings for greater retention •Create expenditure Guidelines to help identify Measure B eligible costs•To address these recommendations, the City will:•Reimagine Key Performance Indicators (KPIs) and publish successes•Develop Measure B Expenditure Guidelines •Reallocate salary savings for better retention14 Better StrategiesBetter Strategies
A historic breakthrough in Police retention:•Reprogram 60 unfilled positions towards retention and recruitment•Existing budgeted funds will be reprogrammed •Subject to the extension of Measure A and economic feasibility•Assessed annually for opportunity to restore sworn positionsWill make the City more competitivein the Law Enforcement recruitment marketplace.
A historic breakthrough in Police retention:•Reprogram 60 unfilled positions towards retention and recruitment•Existing budgeted funds will be reprogrammed •Subject to the extension of Measure A and economic feasibility•Assessed annually for opportunity to restore sworn positionsWill make the City more competitivein the Law Enforcement recruitment marketplace.
A New Retention PlanA New Retention Plan
RecommendationsAt the conclusion of the Public Hearing:1. Approve an ordinancewhich adopts requisite findings and extends the sunset of the tax measure, and2. Approve a resolutionamending the authorized positions in the FY 2023-24 Annual Budget.