Mare Island CFDsPresentation by MISTEAMare Island Special Tax Elimination AllianceMay 30, 2023 1 What we agree on…•On April 25, Ms. Hayes, Ms. Goodwin and Mr. Nagy said Mare Island CFDs should be rewritten, restructured, or eliminated completely when the new Specific Plan is approved. (Estimated time: 24-36 months).•When the CFDs are changed in the future, the “three-legged stool” approach is best--City + Mare Island Company + Mare Island Taxpayers, working together.•CFD Police and Fire charges are unfair.2 On April 25, City Staff and Goodwin Consulting Group Said:The Facts:1. Mare island homeowners are asking the City to restructure the CFDs.We are not asking for restructuring--only to not be charged “extra” for fire and police services.2. CFD 2002-1 cannot be modified without modifying other 2005 CFDs. Any CFD 2002-1 assessment (including those for fire and police services) can be modified by the City Council through the budget.3. Homeowners got a discount from when they purchased.MISTEA members who were “original purchasers” from Lennar received NO DISCOUNT. Only Lennar employees were offered discounts. (Sources: Susan Nichols, Wendell Quigley)4. Homeowners were provided “full disclosure” of CFD fees when they purchased. No. To the extent CFDs were disclosed at all, there was no disclosure that CFDs charged an “extra” tax for fire and police services that no other Vallejo taxpayer pays.5. Changing Mare Island CFDs could set a precedent so that other areas would make similar requests.We are not asking to “change” the CFDs. Taking the fire and police assessment out of the budget will not set a precedent--no other CFD payer (or any other Vallejo taxpayer) is charged “extra” for fire and police service.
What we disagree on…
On April 25, City Staff and Goodwin Consulting Group Said:The Facts:6. Mare Island CFD payers had no expectation of “sunsetting.”The fact that CFD-2002-1 “shall terminate” when Island revenues exceed budgeted expenditures is clearly stated on page 11 of the Rate and Method of Apportionment (RMA), and in the City’s own FAQs. 7. Homeowners received a $300-$600 annual reduction when the City “froze” collection for CFD 2005-1B starting in FY 20-21, so City “met them halfway.” CFD 2005-1B was a “slush fund” accumulating money for years with no expenditures. That fund still has a $700,000 balance going nowhere. The $300-$600 annual reduction is not “meeting halfway”–CFD taxes on Mare island are still over $4000 annually.
What we disagree on…
On April 25, City Staff and Goodwin Consulting Group Said:The Facts:8. Changing the budget will not give homeowners any relief –Homeowners are charged the Maximum Special Tax according to CFD Rate and Method of Apportionment (RMA) formulas (i.e. Goodwin’s “Step 1 and Step 2”) Eliminating unfair charges for Fire and Police will provide relief for all Mare Island CFD ratepayers. RMA says: Step 1 is to charge the 322 homeowners their maximum rate, total the amount, and then subtract that sum from the budgeted expenditures.Step 2 explains how the maximum rate can be reduced, as explained in the RMA. Charges for Fire and Police are over 73% of the CFD 2002-1 budgeted expenditures! By eliminating them, CFD fees are reduced for all ratepayers! What we disagree on…
On April 25, City Staff and Goodwin Consulting Group Said:The Facts:
9. At the April 25 Council meeting Ms. Goodwin stated: [begins 3:24:38] “The CFDs are tied together, in the simplest explanation, if we reduced just 2002-1 on the homeowners, there’s an automatic, um incr--, that decrease would be absorbed by 2005-1A, and it would just, the total would just go back up, the two are connected that way, so all three CFDs would need to be changed at one time to affect any reduction in the taxes.” MISTEA reviewed the referenced CFD language and found:1.There is no “automatic” decrease that would be “absorbed”. 2.There is some language in CFD 2005-1A (Facilities) about subtracting CFD 2002-1 taxes --but (Facilities) addresses BOND expenses, NOT services. 3. There is no language that precludes the City Council from reducing CFD 2002-1 expenditures for Fire and Police through the budget, or reducing CFD 2005-1A through the budget if necessary, so the total does not “just go back up.” What we disagree on…
On April 25, City Staff and Goodwin Consulting Group Said:The Facts:
9. (continued) At the April 25 Council meeting Ms. Goodwin stated: [begins 3:24:38] “The CFDs are tied together, in the simplest explanation, if we reduced just 2002-1 on the homeowners, there’s an automatic, um incr--, that decrease would be absorbed by 2005-1A, and it would just, the total would just go back up, the two are connected that way, so all three CFDs would need to be changed at one time to affect any reduction in the taxes.” •Ms. Goodwin never explained where or how a decrease in the CFD 2002-1 police and fire budget would be “absorbed by 2005-1A” or how “the total would just go back up.”•The City Council controls the budget for all three CFDs, not Goodwin Consulting Group. and that includes the budget for CFD 2005-1A.•The City Council can stop the continued unfair assessment for police and fire services through the budget process, whether it is CFD 2002-1, or CFD 2005-1A, or both.
What we disagree on…
April 25, 2023 City Council Meeting, Transcribed From VideoMs. Goodwin [begins 4:33:25] Well the police and fire costs are provided to us as part of the budget, so every year, we consult with the City to find out what the budget for all the services for Mare Island is. And so, it’s not, we don’t, we’re not involved in determining that budget, or understanding you know which costs, um, how the costs are allocated, there’s a list of authorized services for the island, and the budget for those services is put together by the City and provided to us.
Ms. Goodwin reminded you that City Council controls the budget, NOT Goodwin Consulting Group.
What we are asking you to do…•NOT to rewrite, restructure or eliminate any CFD.•SIMPLY , remove the amount of the unfair EXTRA tax for basic fire and police services, which no other Vallejo taxpayer pays, FROM THE BUDGET.9
10 The Mare Island CFDsAn Overview
Mare Island CFD Designation(FY 2022-23collected revenues)Charged for:2002-1($4,535,791)1.Police/Fire Services ($3.3 Million/year)2.Bridge/Causeway Operations and Maintenance3.Alden and Chapel Parks (future parks)4.Road maintenance, lighting 5.Predator Management6.Building 535 (used by Cityfor Mare Island maintenance work) and AldenPark Gazebo7.City of Vallejo Administrative Costs2005-1A –Services($281,569) Landscaping services, water, gas & electricity 2005-1A –Facilities (Slush Fund)($100,002)Approx Fund Balance= $1,500,000 Contingency fund for possible capital repairs or improvements to various infrastructure elements; (e.g.sewers, water facilities, streets, bridge, landscaping/slope planting). 2005-1B –Services (Slush Fund)($0 –collections discontinued in FY 2020-21 –City has never contributed anything )Approx Fund Balance= $700,000 Contingency fund for possible servicesimprovements to landscaping and parks, lighting facilities, streets/water/sewer facilities, flood control and storm drain facilities, riparian habitat and waterfront features, security & safety features and vehicle parking facilities.
Why we say police and fire charges are unfair, and should be removed from the budget. 12 13
2774
6174
2143
65 2382
6951
2061
65 2603
6322
2578
65 2822
5790 5309
650
1000
2000
3000
4000
5000
6000
7000
8000
94589 94590 94591 94592
Vallejo Fire Department Calls by Zip Code
2016201720182021
NOTE: % OF VPD calls was similar.
Average annual number used for 94592--There were only a total of 650 VFD calls for a 12-year period vs 147,000 calls for other zip codes. (=0.4%) 14 Though Mare Island has less crime, we want to pay for police services the same as all other Vallejo taxpayers, not “extra.” From:West Lieutenant<[email protected]>Date: Mon, Oct 24,2022 at 2:34AMSubject: RE: Police presence on Mare IslandTo: Miguel Buchwald<[email protected]> Mr. BuchwaldThank you for reaching out. I have asked the other watch commanders and patrol supervisorsto do the exact thing you are asking; a drive through the area before or after officers use the gym on Nimitz. I do think what you are paying is exorbitant as we have not been able to regularly staff your service area for quite some time due to limited manpower. Patrol officers respond to calls for service based upon the priority level of the call. The lack of staffing leaves very little time for officers to drive through many areas including Mare Island as they catch up on the many calls which hold for extended periods of time (hours and sometimes days).All that being said I will happily issue an email to patrol officers to provide presence to the island either before or after their time in the gym.Regards,Sanjay RamrakhaWatch CommanderPatrol Division CFD 2002-1 CUMULATIVE “EXTRA” FIRE AND POLICE CHARGES2002-2023FISCAL YEAR ENDING
TOTAL POLICE
BUDGET
CHARGED TO CFD
2002-1 (est)
TOTAL FIRE
BUDGET
CHARGED TO CFD
2002-1 (est)
TOTAL CFD
CHARGES
TOTAL
CUMULATIVE
CHARGES
2003 31,780,000$ 587,930$ 18,398,800$ 1,576,777$ 2,164,707$ 2,164,707$ Estimated from CFD staff & reports 2004 31,661,800$ 585,743$ 20,316,400$ 1,741,115$ 2,326,859$ 4,491,566$ 2005 31,780,000$ 587,930$ 20,861,000$ 1,787,788$ 2,375,718$ 6,867,284$ 2006 30,774,000$ 569,319$ 22,059,500$ 1,890,499$ 2,459,818$ 9,327,102$ 2007 40,245,687$ 744,545$ 25,451,885$ 2,181,227$ 2,925,772$ 12,252,874$ 2008 43,000,944$ 795,517$ 26,542,825$ 2,274,720$ 3,070,238$ 15,323,111$ 2009 36,690,126$ 678,767$ 23,821,235$ 2,041,480$ 2,720,247$ 18,043,358$ 2010 28,781,427$ 532,456$ 19,827,320$ 1,699,201$ 2,231,658$ 20,275,016$ Estimated from 2016 Allocation Formulas 2011 28,872,198$ 534,136$ 17,100,807$ 1,465,539$ 1,999,675$ 22,274,691$ 2012 31,668,649$ 585,870$ 19,513,740$ 1,672,328$ 2,258,198$ 24,532,888$ 2013 38,130,490$ 705,414$ 21,087,573$ 1,807,205$ 2,512,619$ 27,045,507$ 2014 39,524,535$ 731,204$ 24,822,856$ 2,127,319$ 2,858,523$ 29,904,030$ 2015 36,268,748$ 670,972$ 24,830,166$ 2,127,945$ 2,798,917$ 32,702,947$ 2016 39,969,230$ 739,431$ 24,387,558$ 2,090,014$ 2,829,444$ 35,532,392$ 2017 44,323,680$ 819,988$ 26,205,262$ 2,245,791$ 3,065,779$ 38,598,171$ 2018 44,337,217$ 596,000$ 26,797,408$ 1,822,200$ 2,418,200$ 41,016,371$ Actuals from City Data 2019 47,406,791$ 716,000$ 28,170,606$ 2,162,000$ 2,878,000$ 43,894,371$ 2020 46,323,975$ 716,000$ 28,054,675$ 2,162,000$ 2,878,000$ 46,772,371$ 2021 52,049,945$ 731,000$ 31,452,445$ 2,162,000$ 2,893,000$ 49,665,371$ 2022 55,296,120$ 769,000$ 33,527,511$ 2,320,000$ 3,089,000$ 52,754,371$ 2023 59,535,707$ 833,000$ 35,854,429$ 2,498,000$ 3,331,000$ 56,085,371$ TOTALS 14,230,223 41,855,148 56,085,371$
MARE ISLAND TAXPAYERS HAVE ALREADY PAID MORE THAN OUR FAIR SHARE! 17 CFD 2002-1 CUMULATIVE “EXTRA” FIRE AND POLICE CHARGES2002-2023$56 MILLION ! $56 MILLION !
YET VFD AND VPD DATA INDICATE THAT <1% OF THEIR RESPONSES CALLS ARE TO MARE ISLAND ! Comparison of Amounts Paid for Police and Fire Services $500K Home on Mare Island vs $500K Home in "Mainland" Vallejo Premises:
1. Both homes pay basic ≈ 1% "Proposition 13" based Property Taxes
2. 1% of $500K = $5,000
3. 18.78% of those property taxes paid return to the City of Vallejo
4. 18.78% x $5000 = $939
5. 19% of City budget is budgeted paid for police services and 12% is for fire services.
6. There is no difference in property taxes for Police and Fire Services paid by Mainland and Mare Island homeowners.
7. CFD 2002-1 fees paid by typical Mare Island home = $3213.
8. 55.4% of CFD 2002-1 expenditures are charged for fire services and 18.1% for police services
9. All other city revenue tax contributions (e.g. sales taxes) for both homeowners would be similar.
FY 2023-24 Budget Numbers
Paid by $500K
Home on
Mare Island
Paid by $500K
Home on
Mainland
12% of City Budget for Fire = .12 x $939 112.68$ 112.68$ 19% of City Budget for Police = .19 x $939 178.41$ 178.41$
54.5% CFD 2002-1 Fees paid for Fire= 0.551x $3213 = 1,770.36$ -
18.1% CFD 2002-1 Fees for Police= 0.18x $3213= 591.19$ - Totals 2,652.65$ 291.09$
The Navy had full-time Police & Fire Departments on Mare Island.When the City asked the Navy the cost to run Mare Island, the Navy said about $5 million a year. Which included full-time Police & Fire. The City used that $5 million as the starting point for the “Services” budget for Mare Island CFDs in 2002.That Services budget, drastically inflated from the start, has over-charged Mare Island taxpayers for 20 years.
The City’s first proposed “Services” tax on Mare Island was based on the Navy’s $5 million cost to provide a Police Department and Fire Department ON MARE ISLAND, FOR MARE ISLAND–which the City has never done.
April 25, 2023City Council Meeting, Transcribed From VideoHon. Mayor [begins 4:30:45] There is one thing I want to try to clarify tonight, it is not a question, okay, Mr. Glaze has argued that the members of Mare Island are being charged too much for police and fire services, it’s not part of the CFD formula, he maintains. Maybe that’s true and maybe that’s not, I don’t know. But,are we, realistically determining how much service for fire and police only, should be passed on to the residents of Mare Island, forgetting all the services that go with development and everything else. That seems to be the crux, because if Mr. Glaze is correct in that argument, we don’t need to change the CFDs.If he’s not correct, then we do, and each change has repercussions elsewhere. SoI don’t know how we get accurate information on that.
Mare Island Taxpayers are Quadruple-Charged for Police and Fire Services•Regular property taxes•“Extra” CFD taxes•Measures B and V•Measure PMeasure B (2011):To enhance funding for 9-1-1 response, police patrols, firefighter and paramedic services, youth and senior programs, street and pothole repair, graffiti removal, economic development, and general city services, shall the sales tax be raised one cent, expiring after ten years, with all revenue legally required to stay in Vallejo?Measure V (2016):Shall an “Ordinance Amending Vallejo Municipal Code to Maintain Enhanced Funding for 911 Response, Police Patrols, Firefighter and Emergency Medical Services, Youth Programs, Street and Pothole Repair, Graffiti Removal, Economic Development, and Other General City Services, Renewing the Existing, Voter-Approved, One Percent Transactions and Use (Sales) Tax (Measure B) to Provide Approximately $14 Million Yearly with All Revenues Independently Audited and Expenditures Publicly Reviewed and Locally Controlled” be adopted?Measure P (2022): City of Vallejo Safe Streets and Essential Services Measure. To maintain critical city services, such as keeping public spaces healthy/safe/clean; maintaining fire protection/emergency medical response/crime prevention; addressing homelessness/blight/dumping; repairing deteriorating neighborhood streets/roads/sidewalks; and for general government use; shall the City of Vallejo adopt a measure establishing a 0.875% sales tax, providing $18,000,000 annually until ended by voters,requiring audits, independent citizen oversight, and all funds legally required to be spent locally? ARPA MONEY RE-OPENED THE GLEN COVE FIRE STATION. THAT IS GOOD.GLEN COVE DOES NOT PAY “EXTRA” FOR BASIC FIRE SERVICE.THAT IS GOOD, FOR GLEN COVE.MARE ISLAND’S FIRE STATION REMAINS CLOSED, SINCE 2009.YET, MARE ISLAND PAYS “EXTRA”.($2,498,000 in CFD 2002-1 FY 2022-23 budget for fire service) Yes, you have the power to do this NOW.
24 25
The State says you can do it….City Council Does Have the Power to Eliminate Unreasonable CFD Charges for Fire and Police ServiceThe Mello-Roos statutes which govern CFDs include California Government Code section 53330.7 which states, in pertinent part: “Except as otherwise provided in this article, the legislative body may, at any time, after conducting a public hearing, eliminate one or more of the types of facilities and servicesspecified in the resolution of formation of the district but may not finance any types of facilities and services that were not specified in the resolution of formation.” 26 Goodwin Consulting Group says you can do it….e State says you can do it….
27 The City’s own FAQs say you can do it…
Actually, City staff proposes, but CITY COUNCIL decides, with your votes, what to spend on CFD services through the budgetary process. https://www.cityofvallejo.net/cms/one.aspx?portalId=16925451&pageId=17954349 28 PRECEDENTS FOR ADJUSTING BUDGET WITHOUT RESTRUCTURING CFDs•For FY 2020-21 the City Council approved a CFD budget that included a new $250,000 City General Fund contribution to the Operation & Maintenance of the Bridge/Causeway. •The contribution was justified by unfairness to CFD homeowners and ratepayers. •As it was just a budget adjustment, no “restructuring of the CFD” was done or even considered.•Similar adjustments were made when the City closed the Mare Island Fire Station in 2009 –again with no CFD restructuring . •CFD charges for Fire and Police services could clearly be eliminated without CFD restructuring.
History says you can do it…
Yes, you have the money to do this NOW.•Budget surplus–unfilled, budgeted police positions.•Over $56 million collected from Mare Island, JUSTfor police and fire, over 20 years.•Sales Tax Revenues, which Mare Islanders ALSOpay. 29 VALLEJO CITY COUNCILREGULAR MEETING –7:00 PM COUNCIL CHAMBERS555 Santa Clara Street, Vallejo, CaliforniaDECEMBER 20, 2022ACTION CALENDAR ITEM 9.B.ADOPT A RESOLUTION AUTHORIZING THE CHIEF OF POLICE TO ENTER INTO A NO-COST, "BETA TEST" CONTRACT WITH FLOCK AUDITORY GUNSHOT DETECTION (RAVEN) TECHNOLOGY DEPLOYMENTVideo Time: 1:55:00 -1:55:30Chief Ta stated: 89 sworn officers, 132 authorizedVideo Time: 2:19:11 -2:19:18Chief Ta stated: “I do agree, we do need more officers, that is not on the near horizon.” CITY OF VALLEJO VPOA Salary Ranges Effective July 4, 2020 Range Entry Maximum Number Classification Title Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 POLICE OFFICER P00 BASE Hourly 42.2783 44.3922 46.6118 48.9424 51.3895 53.9590 Bi-weekly 3,382.26 3,551.38 3,728.94 3,915.39 4,111.16 4,316.72 Monthly 7,328.23 7,694.65 8,079.38 8,483.35 8,907.52 9,352.89 Annual 87,938.81 92,335.75 96,952.54 101,800.17 106,890.20 112,234.71 https://ci.vallejo.ca.us/our_city/departments_divisions/human_resources_department/salary_information
CITY BUDGET SURPLUS --UNPAID POLICE SALARIES
132 Authorized Positions –89 sworn = 43 unfilled positionsRecent Recruiting Salary Range = $87,938.81 to $112,234.71 annually43 unfilled positions x $87,938.81* = $ 3,781,368.83*43 unfilled positions x $112,234.71 = $ 4,826,092.53**Calculation considers salaries only, does not include benefits, so surplus from unused police budget is much higher. 32 Projected Budget Revenue for FY 23-24: Measure P: $18,216,238.00Measures B and V: $20,759,022.00Total: $38,975,260.00 33 Eliminating Police and Fire From the BudgetWILLGive Tax Relief To Mare Island Homeowners.We Explain How, Step By Step. 34 Where our information comes from…
35 Definitions from that GCG Report…(Appendix D, pp. 3 and 4) 36 Information from that GCG Report…(Main Report, p. 7) 37 Step 1 –Step 2 Calculations…(Appendix D, p. 8)(All numbers in calculations are from current proposed FY 2023-24 Budget released by City)Paragraph 1, Special Tax Requirement calculation:Services Budget minus Revenues = Special Tax Requirement(STR)FY23-24 Services Budget: $4,445,831FY23-24 Police/Fire Budget:$3.294,000FY23-24 Revenues: $1,961,282Proposed Services Budget Reduction:$4,445,831 -$3,294,000 = $1,151,831 ReducedServices Budget minus Revenues = ReducedSpecial Tax Requirement $1,151,831 -$1,961,282 = (-$809,451) (STR)Step 1 MAXTAX from homeowners =$920,699 (FY2022-23 amount x 2%) 38 Step 1 –Step 2 Calculations, cont’d…Numbers from previous page:Special Tax Requirement: (-$809,451)Step 1 MAXTAX: $920,699 Step 2 Comparison:Comparing: Step 1 MAXTAX $920,699 ISgreater than the Special Tax Requirement (-$809,451), so MAXTAX for all non-residential properties drops to zero, and MAXTAX for residential is calculated by Steps 2a and 2b.Step 2a calculation:Divide Special Tax Requirement by Step 1 MAX TAX to derive a quotient(-$809,451) / $ 920,699 = (-0.8791) quotientStep 2b calculation:Multiply quotientby MAXTAX for each residential parcel to derive REDUCED MAXTAX for each parcel(-0.8791) x $3213.22 (example parcel) = (-$ 2,824.96) reduced parcel MAXTAX
BENEFITS FOR ALL
39 40
•The faulty CFDs have stifled growth and developmenton Mare Island for 20 years. •Every person in Vallejo has paid the price of the faulty Mare Island CFDs–in lost jobs and lost wages not paid and not spent in Vallejo that could have grown our City’s economy.•Reduced quality of life for everyonein Vallejo because the City lost tens of millions of dollars of general fund revenues that would have filled plenty of potholes, cleaned up tons of garbage, helped our homeless population and invested in our youth. •Reducing the tax burden on Mare Island will increase business, help existing businesses grow and expand, speed development--history has shown, when Mare Island thrives, Vallejo, Solano County and our entire region thrives too.
When Mare Island thrives, our City, County and Region thrive too… 41 The facts demonstrate that the “extra” fire and police taxes are an unfair burden on ALL Mare Island taxpayers. We know that Vallejo believes in FAIRNESS… City of Vallejo Code of Ethics is all about FAIRNESS…
City of Vallejo Code of Ethics, cont’d…
44 QUESTIONS?
46 SUPPLEMENTAL INFORMATION
47 /From CFD 2005-1A (Facilities) Budget for FY 2022-23•City charged Mare Island homeowners $65K + $69K = $134K for “CFD Project”•Should the City Council ask Staff what that money was used for? •Was that money used by Staff to pay Goodwin Consulting Group to challenge homeowner requests for CFD tax relief? (For example, the April 25 Goodwin presentation?)
51 Mare Island pays 1.85% of VPD budget (on top of taxes paid by all property owners.) This is 2016 amount.$833,000 in FY 2021-22 52 Mare Island CFDs pay 8.57% of VFD budget--on top of taxes paid by all property owners.
Comments:•Over 90% of all VFD calls are medical related –no relationship to building square footage.•No other CFDs in Vallejo charge for Fire Services based on this formula.
This is Goodwin 2016 number.$2,498,000 in FY 2021-22
53 54
55 The Council has determined, under Chapter 14.45 of the Vallejo Municipal Code, that the levy ofthe Special Tax for CFD No. 2002-1 shall terminate upon the determination by the Administratorthat revenues available from the following sources exceed the cost of services authorized to befunded by the CFD: revenues generated from property or activities on Mare Island that arerequired to be applied to reduce the Special Tax Requirement, including but not limited to,property tax, sales tax, utility users tax, transient occupancy tax, franchise tax, business licensefees, possessory interest tax, property transfer tax, storm drainage revenues, and net water andsanitary sewer revenue. If, in any Fiscal Year, the City determines that revenues available from these sources exceed the cost of services to be funded by CFD No. 2002-1, and such excess revenues are not associated with a one-time infusion of revenue that cannot be expected to recur in subsequent Fiscal Years, the City Clerk shall file such Notices of Cessation of Special Tax or other documents as may be required to evidence the termination of the Special Tax in accordance with the applicable provisions of the Vallejo Municipal Code.
Rate and Method of Apportionment (RMA) Language Regarding CFD 2002-1“Sunset” (from Goodwin Admin Report Appendix D) 2020 U.S. CENSUS DATA FOR 94592 -$138,491,000 ANNUAL PAYROLL In 2023, now 110 businesses on Mare Island, so the annual $138,000,000 payroll is even larger. None of this payroll is credited as “revenue” from “activities” on Mare Island in the RMA formulas.(Source re 110 businesses: Mare Island Company) 57 Offsetting Revenue Source Amount
Property Taxes 657,029$
Sales Tax 371,000$
Cable TV Franchise 23,996$
Gas Franchise 17,831$
Garbage Franchise 58,751$
Electric Franchise 110,841$
Cable TV Users 32,217$
GAS/ELECTRIC USERS 400,000$
TELEPHONE USERS 26,614$
PROPERTY TRANSFER TAX 113,260$
BUSINESS LICENSES 100,062$
INVESTMENT INCOME 50,000$
Total Offsetting Revenue 1,961,601$
CFD 2002-1 FY 2022-23 Budget -- Offsetting Revenue Sources Note:These revenues do not considerall the economic contributions of Mare Island to the City such as:->110 businesses-> 3300 well paid jobs->$138,000,000 annual payroll Eliminating Fire and Police budgets in CFD 2002-1 will substantially increase all revenues to the City by spurring development.
Economic Policy Institutehttps://www.epi.org/publication/updated-employment-multipliers-for-the-u-s-economy/Updated employment multipliers for the U.S. economy Report• By Josh Bivens• January 23, 2019 Employment multipliers per 100 direct jobs, by major private-sector industry groupMajor industry group Direct jobs
Supplier
jobs*
Induced
jobs**
Total
indirect
jobs
Agriculture, forest,
fishing, and hunting 100 93.6 134.8 228.5
Mining 100 224.0 166.0 390.0
Utilities 100 515.4 442.2 957.7
Construction 100 88.0 138.1 226.1
Durable manufacturing 100 289.1 454.9 744.1
Nondurable
manufacturing 100 184.8 329.5 514.3
* Includes materials and capital services supplier jobs** Includes jobs supported by respendingof income from direct jobs and supplier jobs, as well as public-sector jobs supported by tax revenue 100 jobs in durable manufacturing (for example, Factory OS), generates 744 other jobs (paychecks) flowing through the economy, benefitting not only Mare Island, all of Vallejo, Solano County, and beyond. 3300 jobs on Mare Island currently. (Source: Mare Island Company) In January 2008, Lennar told the City reducing CFDs would boost development on Mare Island, and that the existing CFD taxes were slowing and impeding development, to the detriment of the City’s General Fund.
63 What CFD Ratepayer Categories PayFrom “Goodwin Report” for Mare Island CFD 2002-1 FY 2021-21 (Appendix A) Category 1 includes 322 homeowner propertiesCategory 2 includes Touro University, Alco Recycling, Earthquake Protection Systems, etc.Category 3 includes over 100 Nimitz leases (including Factory O_S, Mare Island Dry Dock, Alston) Category 4 includes City of Vallejo Buildings, WETA, and MIHPF Buildings (Quarters A & B + Museum)Category 5 includes St. Peter’s ChapelCategory 6 includes unused Nimitz property likely to be used for residentialCategory 7 includes North Mare Island that was sold to Nimitz in 2022NOTE: No CFD fees are paid by the Veterans Clinic, U.S. Forestry Service, or U.S. Army Reserves.
Number from City of Vallejo Finance Dept. after various adjustments 64 EXAMPLES OF MARE ISLAND COMPANYLESSEE’S CFD FEES (from FY 2021-22 Goodwin Annual Administration Report) 65 CFD 2002-1 FY 2022-23 Budget - Revenue and Expenditures Summary (Fund 112) Offsetting Revenue Source Amount
Property Taxes 657,029$
Sales Tax 371,000$
Cable TV Franchise 23,996$
Gas Franchise 17,831$
Garbage Franchise 58,751$
Electric Franchise 110,841$
Cable TV Users 32,217$
GAS/ELECTRIC USERS 400,000$
TElEPHONE USERS 26,614$
PROPERTY TRANSFER TAX 113,260$
BUSINESS LICENSES 100,062$
INVESTMENT INCOME 50,000$
Total Offsetting Revenue Counted 1,961,601$
Budgeted Expenditures 4,535,791$
Revenues - Expenditures (2,574,190)$
Expenditures
Services and
Materials Admininistration Total
% CFD 2002-1
Budget
POLICE AND FIRE (for Mare Island)
Fire 2,498,000$ 0 2,498,000$ 55.07% Police 833,000$ 0 833,000$ 18.37% Total 3,331,000$ 73.44%
Supplemental Information:Summary of CFD 2002-1 Revenues & Expenditures FY 2022-233 Pages CFD 2002-1 FY 2022-23 Budget - Revenue and Expenditures Summary (Fund 112) Offsetting Revenue Source Amount
Property Taxes 657,029$
Sales Tax 371,000$
Cable TV Franchise 23,996$
Gas Franchise 17,831$
Garbage Franchise 58,751$
Electric Franchise 110,841$
Cable TV Users 32,217$
GAS/ELECTRIC USERS 400,000$
TElEPHONE USERS 26,614$
PROPERTY TRANSFER TAX 113,260$
BUSINESS LICENSES 100,062$
INVESTMENT INCOME 50,000$
Total Offsetting Revenue 1,961,601$
CFD Revenue to be Collected During FY 2,141,755$
Total Revenues 4,103,356$
Beginning Fund Balance 1,802,189$
Revenues + Fund Balance 5,905,545$
Budgeted Expenditures 4,598,897$
(Revenues+Fund Balance) - Expenditures 1,306,648$
CFD 2002-1 SPECIAL TAX
Expenditures
Services and
Materials Admininistration Total
% CFD 2002-1
Budget
POLICE AND FIRE (for Mare Island)
Fire 2,498,000$ 0 2,498,000$ 55.07% Police 833,000$ 0 833,000$ 18.37% Total 3,331,000$ 73.44%
GENERAL
- Predator Management 65,424$ 65,424$ 1.44% - Mainstar Services -$
--Software Programs -$ -$
-CFD Tax for Bldg 535 50,000$ 50,000$ 1.10% -Public Works Admin Costs 17,500$ 17,500$ 0.39% Total 132,924$ 2.93%
BUILDINGS
- 535, Gazebo 9,000$ 9,000$ 0.20% Alden Park Flagpole 50,000$ 50,000$ 1.10% Misc
-Public Works Admin Costs 33,840$ 33,840$ 0.75% Total 92,840$ 2.05%
STREETS, TRAFFIC LIGHTS
Trees, asphalt, paint, concrete, etc. 71,000$ 71,000$ 1.57% Steetlights, traffic lights 65,000$ 65,000$ 1.43% -Public Works Admin Costs 224,291$ 224,291$ 4.94% Total 360,291$ 7.94%
BRIDGE
Staff Costs 340,083$ 340,083$ 7.50% City Subsidy (250,000)$ (250,000)$
Public Works Admin Costs 135,441$ 135,441$ Total 225,524$ 4.97%
GROUNDS
B4 Basin, Chapel & Alden Parks 137,000$ 137,000$ 3.02% -Public Works Admin Costs 59,823$ 59,823$ 1.32% Total 196,823$ 4.34%
ADMIN
Goodwin Consulting 45,000$ 45,000$ 0.99% Legal 20,000$ 20,000$ 0.44% County Admn Fee 26,168$ 26,168$ 0.58% City Cost Distributions 105,221$ 105,221$ 2.32% Total 196,389$ 4.33%
TOTAL EXPENDITURES 3,959,675$ 576,116$ 4,535,791$ 100.00% Mare Island Community Facilities Districts 2005-1A (Services), 2005-1A (Facilities) and 2005-1B FY 2021-22 Budget - Revenue and Expenditures Summary
CFD Revenue
Beginning Fund
Balance ExpendituresEnding Fund Balance
2005-1A Services (Fund 113) 281,569$ 303,405$ 203,517$ 381,457$ 2005-1A Facility (Fund 213) 100,002$ 1,606,191$ 141,000$ 1,565,193$ 2005-1B Services (Fund 114) -$ 1,059,141$ 340,529$ 718,612$ 2005-1A (Services) Detail Services Admin Total
Grounds Services (New Image Contract)100,000$ 100,000$ Rehabilitation 25,000$ 25,000$
Gas & Electricity 2,500$ 2,500$
Water - Moved to 2005-1B Services?
Telecommunications 3,000$
LMD Administration 65,742$ 65,742$
Other Admin 7,275$ 7,275$
Total 130,500$ 73,017$ 200,517$ 2005-1A (Facilities) Detail
CFD Alternative - Finance 66,500$ 65,000$ CFD Alternative - Legal 69,000$ 69,000$
Admin 5500 5,500$
Total 135,500$ 5,500$ 141,000$ 2005-1B Detail
Security including LPR Cameras 30,000$ 30,000$ Water 114,000$ 114,000$
Lighting project, trash cans Tree Work115,000$ 115,000$ CFD Project 70,000$ 70,000$
5,000$
Admin 11,529$
Total 329,000$ 11,529$ 340,529$ 69 CFD 2002-1 $3,213.22
CFD 2005-1A Services $988.44
CFD 2005-1A - Facilities $678.22
TOTAL $4,879.88
70 What Mare Island Homeowners Pay for Fire and Police Services From CFD 2002-1 FY 2022-23 Budget
$4,598,897 Amount
% of CFD
2002-1
Budget*
Homeowner Paid*
Extra CFD Fire Tax 2,498,000$ 55.1% 1,766.60$
Extra CFD Police Tax 833,000$ 18.4% 578.06$
Total 3,331,000$ 73.50% 2,344.66$
*Based on $3213 fees for CFD 2002-1 shownon property tax bill. 71 CFD 2005-1A and 2005-1B Report Information
72 From the 2005-1A and 2005-1B Rate and Method of Apportionment (RMA) April 25, 2023City Council Meeting, Transcribed From VideoMs. Goodwin [begins 4:33:25] Well the police and fire costs are provided to us as part of the budget, so every year, we consult with the City to find out what the budget for all the services for Mare Island is. And so, it’s not, we don’t, we’re not involved in determining that budget, or understanding you know which costs, um, how the costs are allocated, there’s a list of authorized services for the island, and the budget for those services is put together by the City and provided to us.Hon. Mayor [begins 4:30:45] There is one thing I want to try to clarify tonight, it is not a question, okay, Mr. Glaze has argued that the members of Mare Island are being charged too much for police and fire services, it’s not part of the CFD formula, he maintains. Maybe that’s true and maybe that’s not, I don’t know. But,are we, realistically determining how much service for fire and police only, should be passed on to the residents of Mare Island, forgetting all the services that go with development and everything else. That seems to be the crux, because if Mr. Glaze is correct in that argument, we don’t need to change the CFDs.If he’s not correct, then we do, and each change has repercussions elsewhere. SoI don’t know how we get accurate information on that.
Goodwin PPT Slide 5, April 25, 2023
The incorrect estimated 2002 service costs have automatically increased 2% per year, every year, since 2002.Yet, the Goodwin/City Staff response is:just keep paying for 3 more years! 75 Nebb: [4:38:55] “Non-residential goes to zero before residential receives a credit, correct?”Goodwin: [4:39:25] “It’s being presented as if a simple budget reduction is the solution, and that will have no impact on what’s levied on the homeowners. “Until what’s levied on the non-residential goes to zero in Step 2, then you don’t get to Step 1 and start reducing Step 1. And that’s why the steps of taxation need to be changed.” [4:39:50]Goodwin: [4:39:57] “In the current fiscal year, $2.1 ,Million dollars was levied for services in the CFD, and only $900,000 of that was on the residential. Which means you would have to get rid of more than a million dollars in costs before the residential was even touched, and had any opportunity to be reduced. So it’s not as simple as just creating more revenues on the island, or cutting the budget a bit, because it still wouldn’t help the homeowners and I know that’s the overriding objective here.” [4:40:36] City Attorney Ms. Nebband Ms. Goodwin Discussion of CFD Special Tax Apportionment on April 25….