The URL can be used to link to this page

Home My WebLink AboutCM.General Sales Tax Measure.7.15.20 Final General Sales Tax Measure City of San Bernardino July 15, 2020 City of San Bernardino – General Sales Tax Measure Measure Z – Approved by Voters November 7, 2006 Enacted a 0.25% general sales tax for 15 years Absent action taken by voters, sunsets March 31, 2022 Has generated approximately $92 million in revenue since 2007 ($8- $9 million annually) City of San Bernardino – General Sales Tax Measure $7,119,294 $7,905,634 $8,559,046 $7,453,728 $9,717,123 $8,768,000 $7,900,000 - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Estimated FY 2021 Adopted Measure Z Revenues FY 2015 - FY 2021 Plan of Adjustment – Steps toward financial stability Modernized City Charter Annexed fire services into County Fire Protection District reduced pension and workers comp liabilities on a go-forward basis City of San Bernardino – General Sales Tax Measure Plan of Adjustment – Steps toward financial stability Reduced annual operating, pension obligation and workers comp costs on a go—forward basis by outsourcing: legal services soccer complex operations landscape maintenance Integrated Waste Management services-savings plus: one time lump payment of $5 million – bolstered General Fund reserves annual franchise revenue of over $8 million City of San Bernardino – General Sales Tax Measure Plan of Adjustment – Steps toward financial stability State pension reform – helped to control costs on a go forward basis with benefit formula reductions and employees, in addition to paying employee share of cost, also pay a portion of the City’s (employer) cost Streamlined operations, combining service lines to eliminate redundancies including consolidation of parks and public works maintenance services City of San Bernardino – General Sales Tax Measure Other steps toward financial stability: Completed fee study to ensure costs are being recovered for services provided - conservatively estimated at $967,400 Net new revenue from Cannabis Program – estimated at $666,667 City of San Bernardino – General Sales Tax Measure City of San Bernardino – General Sales Tax Measure City of San Bernardino – General Sales Tax Measure Costs to provide existing levels of service are outpacing revenues With limited ability to generate new revenue, cuts to services have been the only way to balance the budget More than 80% of the roads have been rated in either poor or very poor condition by independent pavement management engineers Deferred maintenance of street related infrastructure is estimated to be $210 million Deferred maintenance of city facilities is estimated at $195 million 10-Year Budget Forecast (Measure Z Expiring March 2022) $31.5M $29.3M $24.2M $21.4M $12.M -$6.2M -$23.8M -$41.8M -$59.4M -$76.7M -$93.4M -70% -60% -50% -40% -30% -20% -10% 0% 10% 20% 30% -$100.M -$80.M -$60.M -$40.M -$20.M $.M $20.M $40.M FY 2018-19 Audited Actual FY 2019-20 Mid-Year Projection FY 2019-20 COVID 19 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 GENERAL FUND RESERVE AS % OF BASE EXPENDITURES GENERAL FUND RESERVE General Fund Reserves General Fund Reserves Measure Z Expires City of San Bernardino – General Sales Tax Measure 10-Year Budget Forecast (Measure Z Renewal at 0.25%) $31.5M $29.3M $24.2M $21.4M $14.1M $4.3M -$4.4M -$13.1M -$21.M -$28.1M -$34.2M -25% -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% -$40.M -$30.M -$20.M -$10.M $.M $10.M $20.M $30.M $40.M FY 2018-19 Audited Actual FY 2019-20 Mid-Year Projection FY 2019-20 COVID 19 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 GENERAL FUND RESERVE AS % OF BASE EXPENDITURES GENERAL FUND RESERVE General Fund Reserves General Fund Reserves Measure Z Renewal 10-Year Budget Forecast (Measure Z Renewal at 1%) $31.5M $29.3M $24.2M $27.8M $45.8M $62.5M $81.5M $101.7M $124.M $148.4M $175.4M 0% 20% 40% 60% 80% 100% 120% 140% $.M $20.M $40.M $60.M $80.M $100.M $120.M $140.M $160.M $180.M $200.M FY 2018-19 Audited ActualFY 2019-20 Mid-Year ProjectionFY 2019-20 COVID 19FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 GENERAL FUND RESERVE AS % OF BASE EXPENDITURES GENERAL FUND RESERVE General Fund Reserves General Fund Reserves Measure Z Renewal City of San Bernardino – General Sales Tax Measure City of San Bernardino – General Sales Tax Measure Public Education and Outreach Public opinion survey conducted in August 2019 and at the end of May 2020 Residents invited to provide feedback to the City by completing a community survey by mail or on-line Sent notifications of the Council’s consideration of a potential sales tax measure and invited citizen feedback through two community informational mailers (January and June of 2020) Insert included with the January/February water bills City of San Bernardino – General Sales Tax Measure Transparency and Accountability Citizen Oversight Committee established to ensure fiscal accountability and transparency in the use of the City’s transactions and use tax revenue City of San Bernardino – General Sales Tax Measure Ballot Measure Timing State law requires that ballot measure be placed on general elections. The next opportunity to place a ballot before the voters to extend or increase the quarter cent sales tax will be November 2020. Should the measure not be placed on the November 2020 ballot or should voters not approve the extension of the sales tax, the next opportunity to place the matter on the ballot will be November 2022, which is seven (7) months after Measure Z sunsets. Conclusion Questions?