HomeMy WebLinkAboutFIN Library Parcel Tax Annual Adjustment____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: 6/18/2018
Disposition: Accepted Report
Agenda Item No: 4.f
Meeting Date: June 18, 2018
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: FINANCE / LIBRARY
Prepared by: Mark Moses Finance Director
Sarah Houghton, Library Director
City Manager Approval: ______________
TOPIC: ANNUAL ADJUSTMENT TO THE LIBRARY PARCEL TAX
SUBJECT: REPORT ON ANNUAL CPI RATE ADJUSTMENT FOR THE LIBRARY PARCEL TAX
FOR THE FISCAL YEAR JULY 1, 2018 THROUGH JUNE 30, 2019 AS APPROVED
AND AUTHORIZED BY MEASURE D
RECOMMENDATION: Accept report regarding a rate increase for San Rafael Library Parcel Tax for
Fiscal Year 2019-18, beginning July 1, 2018 and ending June 30, 2019, based on Section 3.36.030 of
the San Rafael Municipal Code.
BACKGROUND: On June 7, 2016 the voters of the city of San Rafael voted in favor of Measure D,
amending Chapter 3.36 of the San Rafael Municipal Code by extending, revising and increasing the
existing Special Library Service Parcel Tax as adopted in Ordinance No. 1942 on July 18, 2016. The
approved Measure D Tax Rates were first assessed for Fiscal Year 2017-18, beginning July 1, 2017
and ending June 30, 2018 and levied the Special Library Parcel Tax for a period of nine years.
Specifically, Section 3.36.030 of the San Rafael Municipal Code, entitled “Imposition of the Tax”,
provides for an annual CPI adjustment commencing with the second year of the tax.
ANALYSIS: Section 3.36.030 of the San Rafael Municipal Code, entitled “Imposition of the Tax”
provides that an annual adjustment to the Special Library Parcel Tax rate shall be applied commencing
in the second year based on the annual percentage increase, if any, in the previous fiscal year to the
San Francisco-Oakland-San Jose Price Index for All Urban Consumers ("CPI"). This rate increase
cannot exceed three percent annually and the rate cannot be adjusted downward. Staff is presenting
this report as an information item because this will be the first year in which the mandatory CPI
adjustment is being made.
Utilizing the Bureau of Labor Statistics - Western CPI Summaries (BLS-WS) for the San Francisco-
Oakland-San Jose (Hayward).- All Urban Consumers Index, the June 2017 Index was 275.304 and the
April 2018 Index was 283.422 resulting in a ten-month composite Index of 2.95% increase over the
previous year’s index.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
Adjusting the Library Tax Rate by the calculated 2.95% CPI for the upcoming Fiscal Year 2018-19 will
increase annual Measure D Tax Revenue from $1,028,093 (FY 17-18) to $1,058,422 (FY 18-19), or a
year-over-year increase of $30,329.
Section 3.36.030 Imposition of Tax:
Parcel Rate Types
FY 17-18 Rates
FY 18-19 Rates with CPI
Adjustment
Single Family Residential Parcel $59.00 $60.74
Multi-Family Residential or Other
Residential Parcel
$59.00 + $10.00 per
Living unit, in excess of
one, up to a maximum of
$1,000.00 per year per
parcel
$60.74 + $10.295 per Living
unit, in excess of one, up to
a maximum of $1,029.50
per year per parcel
Non-Residential Parcel $59.00 $60.74
Any additional funds will be used in accordance with the language of the Measure, to “maintain library
hours, equipment, materials, and services for children, teens, and adult s.” Additionally, any increase in
revenue due to the CPI will help to offset the decrease in revenue seen annually due to the increasing
number of Senior Exemptions filed for the tax.
FISCAL IMPACT: The application of the CPI increase will generate an additional $30,329 in
Measure D revenue for Fiscal Year 2018-19. These revenues are recorded in the Measure D Special
Revenue Fund.
RECOMMENDED ACTION: Accept report.