HomeMy WebLinkAboutAS-LR Annual Adjustment to the Library Parcel Tax____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: June 5, 2023
Disposition: Accepted report
Agenda Item No: 5.j
Meeting Date: June 5, 2023
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Administrative Services/Library & Recreation
Prepared by:
Claire Coleman, Senior Management Analyst
Jill Tokutomi, Assistant Director,
Library & Recreation City Manager Approval: ______________
TOPIC: ANNUAL ADJUSTMENT TO THE LIBRARY PARCEL TAX
SUBJECT: REPORT CONCERNING THE ANNUAL CONSUMER PRICE INDEX (CPI) RATE
ADJUSTMENT FOR THE SPECIAL LIBRARY SERVICES PARCEL TAX FOR THE
FISCAL YEAR JULY 1, 2023 THROUGH JUNE 30, 2024 AS SPECIFIED IN VOTER-
APPROVED MEASURE D (SAN RAFAEL MUNICIPAL CODE CHAPTER 3.36)
RECOMMENDATION: Accept report concerning the San Rafael Special Library Services Parcel Tax rate
adjustment for Fiscal Year 2023-24, from July 1, 2023 through June 30, 2024, based upon the Consumer
Price Index (CPI) as authorized by Section 3.36.030 of the San Rafael Municipal Code.
BACKGROUND: On June 7, 2016 the San Rafael community voted in favor of Measure D, amending
SRMC Chapter 3.36 by extending, revising and increasing the existing Special Library Services Parcel
Tax (“Tax”) as adopted in Ordinance No. 1942 on July 18, 2016. The approved Measure D tax rates
were first assessed for the fiscal year July 1, 2017 through June 30, 2018 and levied for a period of nine
(9)years. SRMC section 3.36.030, Imposition of the Tax, provides for an annual CPI adjustment
commencing with the second year of the Tax.
ANALYSIS: SRMC section 3.36.030, “Imposition of the Tax” stipulates that an annual adjustment to the
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-Hayward Price Index for All Urban
Consumers ("CPI"). The rate increase cannot exceed three percent annually and the rate cannot be
adjusted downward.
Utilizing the Bureau of Labor Statistics - Western CPI Summaries (BLS-WS) for the San Francisco-
Oakland-Hayward, CA, All Urban Consumers Index, the April 2022 Index was 324.878 and the April
2023 Index was 338.496 resulting in a twelve (12) month composite Index of 4.19 percent increase
over the previous year’s index. The Measure D CPI adjustment cannot exceed 3 percent.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
Adjusting the Library Tax Rate by 3 percent for the upcoming fiscal year 2023-24 will increase annual
Measure D Tax Revenue from $1,139,177 (FY 2022-23) to $1,173,352 (FY 2023-24), an increase of
$34,175.
Section 3.36.030 Imposition of Tax:
Parcel Rate Types
FY 21-22 Rates
FY 22-23 Rates with CPI
Adjustment
Single Family Residential Parcel $67.06 $69.06
Multi-Family Residential or Other
Residential Parcel
$67.06 + $11.36 per
Living unit, in excess of
one, up to a maximum of
$1,137.44 per year per
parcel
$69.06 + $11.70 per
Living unit, in excess of
one, up to a maximum of
$1,171.56 per year per
parcel
Non-Residential Parcel $67.06 $69.06
Any additional funds will be used in accordance with the language of Measure D, to “maintain library
hours, equipment, materials, and services for children, teens, and adults.” Additionally, any increase in
revenue 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 3 percent increase will generate an additional $34,175 in
Measure D revenue for the fiscal year 2023-24. These revenues will be recorded in the Measure D special
revenue fund.
OPTIONS: The City Council has the following options to consider on this matter:
1. Accept the report.
2. Direct staff to return with more information.
3. Take no action.
RECOMMENDED ACTION:
Accept report concerning the San Rafael Special Library Services Parcel Tax rate adjustment for Fiscal
Year 2023-24, from July 1, 2023 through June 30, 2024, based upon the Consumer Price Index (CPI) as
authorized by Section 3.36.030 of the San Rafael Municipal Code.