HomeMy WebLinkAboutFIN Annual Adjustment to the Library Parcel Tax____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: 6/17/2019
Disposition: Accepted Report
Agenda Item No: 4.i
Meeting Date: June 17, 2019
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: FINANCE / LIBRARY
Prepared by: Henry Bankhead, Interim Library
Director
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, 2019 THROUGH JUNE 30, 2020 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 2019-20, from July 1, 2019 through June 30, 2020, 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
San Rafael Municipal Code (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 Fiscal Year 2017-18, from 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 of the tax rate 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 automatically 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 (3) percent annually and the rate
cannot be adjusted downward. This is an informational report concerning the calculation of the rate
increase for Fiscal Year 2019-20.
Utilizing the Bureau of Labor Statistics - Western CPI Summaries (BLS-WS) for the San Francisco-
Oakland-Hayward, CA, All Urban Consumers Index, the April 2018 Index was 283.422 and the April
2019 Index was 294.801 resulting in a twelve (12) month composite Index of 4.015% increase over the
previous year’s index. The Measure D CPI adjustment cannot exceed 3%.
Adjusting the Library Tax Rate by the calculated 3% CPI for the upcoming Fiscal Year 2019-20 will
increase annual Measure D Tax Revenue from $1,047,382 (FY 18-19) to $1,078,803 (FY 19-20), or a
year-over-year increase of $31,421.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
Section 3.36.030 Imposition of Tax:
Parcel Rate Types
FY 18-19 Rates
FY 19-20 Rates with CPI
Adjustment
Single Family Residential Parcel $60.74 $62.56
Multi-Family Residential or Other
Residential Parcel
$60.74 + $10.295 per
Living unit, in excess of
one, up to a maximum of
$1,029.50 per year per
parcel
$62.56 + $10.604 per Living
unit, in excess of one, up to
a maximum of $1,060.39
per year per parcel
Non-Residential Parcel $60.74 $62.56
Any increase in revenue due to the CPI increase 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 increased 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 CPI increase will generate an additional $31,421 in Measure D
revenue for Fiscal Year 2019-20. These revenues are 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 2019-20, from July 1, 2019 through June 30, 2020, based upon the Consumer Price Index (CPI) as
authorized by Section 3.36.030 of the San Rafael Municipal Code.