Title
Recommendation to Provide Direction on Potential Revenue Measures to Submit to Voters for the November 3, 2020 Election. (City Manager 2110) [Not heard March 17, 2020]
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
Staff seeks direction from the City Council on whether to focus on one or more revenue measures to be placed on the November 2020 ballot, or place no measure at all.
UPDATE SINCE MARCH 17, 2020
The item was continued from March 17 after the County's shelter in place order, which took effect that day. As the public health crisis has progressed, the financial and economic toll on the City, its businesses, and its residents has come into clearer focus. This toll makes the discussion of revenue measures all the more necessary, as a possible part of the solution to the challenge of the City's declining revenues. At the same time, this discussion is all the more difficult because Alameda's residents and taxpayers face the most challenging financial circumstances experienced in decades.
Shortly before the pandemic spread, a discussion started and is continuing on another type of revenue measure not identified previously. Some cities are considering an adjustment to their local utility users tax so that the more carbon intense utilities, such as natural gas, are taxed at a higher rate than lower carbon intense utilities, such as electricity. In effect, this adjustment would serve as a local carbon tax and incentivize electrification, which is a key measure of Alameda's Climate Action and Resiliency Plan.
BACKGROUND
The City of Alameda (City) has maintained fiscal discipline and currently to meets its policy of a 25% reserve. Even with proactive measures and fiscal discipline, significant challenges exist. The General Fund is expected to have its expenses exceed revenue beginning in Fiscal Year (FY) 2021-22 based on current projections, and the City will be unable to meet its 25% reserve in that same fiscal year. B...
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