HomeMy WebLinkAboutFin Annual Adjustment to the Library Parcel Tax____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: June 15, 2020
Disposition: Accepted report
Agenda Item No: 4.f
Meeting Date: June 15, 2020
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: FINANCE / LIBRARY
Prepared by: Nadine Atieh Hade, Finance
Director
Henry Bankhead, Assistant Library
& Recreation Director/City
Librarian
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, 2020 THROUGH JUNE 30, 2021 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 2020-21, from July 1, 2020 through June 30, 2021, 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 Service 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 (3) 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 2019 Index was 294.801 and the April
2020 Index was 298.074 resulting in a twelve (12) month composite Index of 1.11% increase over the
previous year’s index. The MD CPI adjustment cannot exceed 3%.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
Adjusting the Library Tax Rate by the calculated 1.11% CPI for the upcoming fiscal year 2020-21 will
increase annual Measure D Tax Revenue from $1,073,340 (FY 19-20) to $1,085,254 (FY 20-21) or a
year-over-year increase of $11,914.
Section 3.36.030 Imposition of Tax:
Parcel Rate Types
FY 19-20 Rates
FY 20-21 Rates with CPI
Adjustment
Single Family Residential Parcel $62.56 $63.25
Multi-Family Residential or Other
Residential Parcel
$62.56 + $10.604 per
Living unit, in excess of
one, up to a maximum of
$1,060.39 per year per
parcel
$63.25 + $10.722 per Living
unit, in excess of one, up to
a maximum of $1,072.16
per year per parcel
Non-Residential Parcel $62.56 $63.25
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 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 $11,914 in Measure D
revenue for the fiscal year 2020-21. 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 2020-21, from July 1, 2020 through June 30, 2021, based upon the Consumer Price Index (CPI) as
authorized by Section 3.36.030 of the San Rafael Municipal Code.