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HomeMy WebLinkAboutMINUTES - 07281992 - 2.6 C � TO: BOARD OF SUPERVISORS SE.- �`= Contra t FROM: Phil Batchelor, County Administrator Costa County DATE: July 27, 1992 '° . SUBJECT: POTENTIAL BALLOT MEASURES ADDRESSING THE NEED FOR ADDITIONAL REVENUE SPECIFIC REOUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: Review each of the following potential revenue sources and provide direction to staff regarding whether or not any measures should be prepared for inclusion on the November 3, 1992 ballot and, if so, to return proposed ballot language to the Board on August 4 , 1992 for further consideration. FINANCIAL IMPACT: The Assistant Registrar of Voters estimates that it will require approximately $50, 000 to place one or more measures on the November 3, 1992 ballot. All funds for this purpose have been removed from the County Clerk-Recorder's budget. BACKGROUND: In order to get a complete picture of the status of Phase I budget reductions following the actions taken by the Board on July 20, 1992, we have outlined below those reductions which fall into one of the following five categories : 1 . CATEGORY # 1 : DEFERRED LAYOFFS Reductions which will take place, but where the elimination of the positions have been delayed by one month (from August 31, 1992 to September 30, 1992 ) . 2 . CATEGORY # 2 : UNBUDGETED GA EXPENDITURES Anticipated expenditure reductions to the General Assistance Program for which a methodology to achieve the reductions has not yet been implemented. CONTINUED ON ATTACHMENT: X YES SIGNATURE: YU RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURES): Gpr ACTION OF BOARD ON July 28, 1992 APPROVED AS RECOMMENDED OTHER SEE ADDENDUM FOR BOARD ACTION. VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: / ABSTAIN- OF SUPERVISORS ON THE DATE SHOWN. p CC: tcc.Yj_ lL — c�s�—�O ATTESTED �N—e�`�:.� '-� g, // PHIL BATCHELOR,CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR M382 (10;881 DEPUTY t'.` .. ... =—� 3 . CATEGORY # 3 : CANCELLED COMMUNITY-BASED ORGANIZATION CONTRACTS Program reductions or eliminations on which the Board has taken action, but where there was also an expressed interest in restoring at least a portion of the planned reduction. 4 . CATEGORY # 4 : EXPLORATION OF REVENUE ALTERNATIVES Program reductions or eliminations on which the Board has taken action, but where the Board has directed that alternative methods of funding the program be explored. 5 . CATEGORY # 5 : PROGRAMS AT RISK IN PHASE II Substantially reduce the Sheriff ' s Patrol Close the West County Detention Facility Additional reductions in the Sheriff ' s Investigation Division services Additional reductions in Crime Lab services Potentially eliminate most misdemeanor and some felony prosecutions in the District Attorney' s Office. Close the Byron Boys ' Ranch Further reductions in the Public Defender' s Office Eliminate Basic Adult Care clients from Contra Costa Health Plan & Reduce their access to outpatient clinics . Eliminate urgent care and drop-in clinics Close Brentwood Clinic Reduce staffing at regional family practice and specialty clinics by 25% Reduce staffing of Adult Protective Services, Child Welfare Services, In-Home Supportive Services, Income Maintenance and GAIN by an additional 38 positions . Reduce a significant number of contracts with community- based organizations that provide mental health and alcohol/drug treatment services Following is a more detailed description of each of these categories, along with the amount of money which would be required to maintain the position or program for the balance of the current fiscal year and the amount of money required for a full fiscal year. Funds Required Remainder of Full Year 1992-93 1993-94 CATEGORY # 1 : DEFERRED LAYOFFS 1 . Sheriff ' s Department Patrol : 9 Deputy Sheriffs and 6 Sgts . - $ 762 ,750 $1,017 ,000 Investigation: 4 Deputy Sheriffs- $ 189 ,000 $ 252,000 Crime Lab: 1 Criminalist & 1 Forensic Toxicologist $ . 99,756 $ 133,008 2 . Orinda Fire Protection District 3 Firefighters $ 166,500 $ 222,000 3 . Veterans Service Office 2 clerical positions $ 51,264 $ 68, 352 CATEGORY # 2 : UNBUDGETED GA EXPENDITURES General Assistance Shortfall $5,400,000 $5,400,000 CATEGORY # 3 : CANCELLED COMMUNITY-BASED ORGANIZATION CONTRACTS (See attached list) $1,364,826 $1, 364,826 CATEGORY # 4 : EXPLORATION OF REVENUE ALTERNATIVES 1 . Career Development Employment Pgm. $ 69,950 $ 83,940 2 . Training Institute $ 178,930 $ 214, 716 GRAND TOTAL $8,282, 976 $8, 755,842 2 CATEGORY # 5 : PROGRAMS AT RISK IN PHASE II I . ADDITIONAL PHASE II REDUCTIONS WILL BE REQUIRED. IT IS IMPOSSIBLE AT THIS TIME TO PRECISELY QUANTIFY THE TOTAL DOLLAR VALUE OF THESE REDUCTIONS. IT IS LIKELY, HOWEVER, THAT THERE MAY WELL BE TENS OF MILLIONS OF DOLLARS IN ADDITIONAL REDUCTIONS REQUIRED BY PHASE II . 2 . EVEN IFA SOURCE OF REVENUE IS IDENTIFIED, IT IS QUITE LIKELY THAT IT WILL NOT BE POSSIBLE TO HAVE SUCH A SOURCE IMPLEMENTED IN TIME TO FORESTALL THE NEED FOR SOME OF THE PHASE II REDUCTIONS . 3 . IT IS ALSO POSSIBLE THAT THERE WILL BE ADDITIONAL MILLIONS OF DOLLARS IN REDUCTIONS BUILT INTO THE 1993-94 COUNTY BUDGET BY THE ADOPTION OF THE STATE BUDGET IF THE STATE BUDGET IMPLEMENTS THE AB-8 SHIFT, ELIMINATION OF THE SDAF OR OTHER MEASURES ON A TWO OR THREE YEAR BASIS. Therefore, these planned reductions are not the only programs, services and personnel in jeopardy. In an effort to consider ways to blunt the impact of these massive reductions, the Board of Supervisors directed staff to outline several potential revenue sources . Following are revenue sources the Board currently has authority to impose and several which require additional authority from the Legislature. TAXES FOR WHICH THE BOARD CURRENTLY HAS AUTHORITY: UTILITY USERS TAX IN THE UNINCORPORATED AREA OF THE COUNTY: The Board currently has authority to impose a utility users tax for general revenue purposes without a vote of the people. Each 1% of such a tax produces approximately $1,500,000 of revenue, depending on the assumptions used. This estimate assumes a maximum charge to the largest utility users and an exclusion for lower income persons or "lifeline" users . It should be noted that this figure will have to be reduced by the offsetting loss of revenue from any major industries which choose to annex to a contiguous city to escape the utility tax. Further research will be necessary to develop appropriate data from which to refine this estimate. BENEFIT ASSESSMENT FOR FIRE DISTRICT PURPOSES: The Board currently has authority to impose such assessments for fire district purposes, subject to specified property owner protest provisions which can either require that the proposed assessment be placed on the ballot or which can entirely preclude further consideration of the assessment. Currently the following districts have benefit assessments in place in the amounts indicated: Riverview Fire Protection District, $29 . 00; East Diablo Fire Protection District, $14 .50; Oakley Fire Protection District, $13 . 00 . The following Board-governed districts do not have a fire district benefit assessment in place: Bethel Island, Contra Costa County, Crockett-Carquinez, Moraga*, Orinda, Pinole and West County. * Moraga does not have a benefit assessment, but does have a voter approved special tax (Fire Flow Tax) . SPECIAL TAXES FOR POLICE SERVICE AREAS - UNINCORPORATED AREA: The Board currently has authority to impose a special non-ad valorem tax for supplemental police services upon a two-thirds vote of the voters . The voters approve a maximum tax amount and the Board annually levies up to the maximum amount by a majority vote of the Board of Supervisors . 3 COUNTYWIDE AUTHORITY FOR A TAX TO SUPPORT SPECIAL POLICE SERVICES: Currently, the Board has the authority to impose a tax on residents within defined police service districts with approval of two-thirds of the voters . Also, the Board has authority to impose a similar non-ad valorem tax countywide to support special police services, such as the Crime Lab, narcotics units, anti-gang task forces, etc. with a two thirds vote of the voters . POTENTIAL REVENUE SOURCES REQUIRING STATE LEGISLATIVE AUTHORITY: COUNTYWIDE UTILITY USERS TAX: The Board currently cannot impose a utility users tax within any incorporated area of the County. Some Legislators have discussed providing such authority to counties, with or without the concurrence of the cities and with or without the approval of the voters . Currently, five cities impose such a tax on gas, electric and telephone billings at the following rates : E1 Cerrito 8% Hercules 5% Pinole 7% Richmond 6% San Pablo 8% In addition, Pleasant Hill has a 1% tax on only a portion of telephone billings . If imposed Countywide, a 1% tax on gas and electric billings would generate over $4 ,000,000 a year, depending on the assumptions used, such as maximum charges on the largest utility users, exclusion of lower income persons and credits to the residents of cities which already impose such a tax. Further research will be necessary to develop appropriate data from which to refine this estimate. BROADENED BENEFIT ASSESSMENT AUTHORITY FOR COUNTY SERVICE AREAS: The Board currently has the authority to impose a benefit assessment for fire service and certain other fairly limited purposes, not including libraries and police services . Some Legislators have discussed broadening this authority, similar to the proposal contained in AB 1505 (Farr) which passed the Legislature in 1991 but was vetoed by the Governor because it did not require a vote of the people. Expanding this authority might allow the Board to impose such a benefit assessment for some additional services which are now provided to residents of the County. INCREASED SALES TAX IN THE UNINCORPORATED AREA OF THE COUNTY: Currently, the sales tax in Contra Costa County is 8 .25% . This includes the following elements : State General Sales Tax 4 . 75% City & County General Sales Tax 1 . 00% County Road Maintenance Sales Tax .25% SUBTOTAL 6 . 00% Bay Area Rapid Transit District .50% Measure "C" Transportation . 50% Program Realignment .50% Additional State Sales Tax . 75% TOTAL 8 .25% The County has no authority to impose any additional sales taxes at this time. Legislation (SB 1364 ) has been drafted which would provide the Board and the cities with a system for imposing an additional . 75% sales tax on July 1, 1992 and up to a total of 1 .25% on and after July 1, 1993, without a vote of the people. Each . 25% increase in the sales tax countywide produces $18,800,000 of revenue. 4 PARCEL TAX OVERRIDE FOR RETIREMENT COSTS: Cities and counties had authority during the 1982-83 and 1983-84 fiscal years to impose a parcel tax to cover the costs of a voter- approved retirement system. That authority expired on June 30, 1984 . Assemblyman Campbell was successful in getting legislation through the Legislature in 1989 to reopen this window. However, the bill was vetoed by then-Governor Deukmejian. A similar effort was made by Assemblyman Campbell in 1991 (AB 394) . The bill was abandoned when it became clear that there was not sufficient support in the Legislature to insure the approval of the Governor. Several counties are now looking at this alternative again. The County' s contribution to the retirement system for the 1991-92 fiscal year was $44 million. However, it should be noted that when the Legislature passed such legislation in 1989, it was necessary to "cap" the maximum amount which could be raised in this manner at $10, 000,000 . A similar cap might be placed on such legislation again in terms of a percentage of the actual contributions for the prior fiscal year. 5 COMMUNITY-BASED CONTRACTS AFFECTED BY BUDGET REDUCTIONS Annual Total Restoration Cost: Social Service Department Contract Balance of FY 92-93 Community Food Bank $ 119,532 $ 119,532 Contra Costa Assn. for Retarded Citizens 9,550 9,550 Mayflower 9,000 9,000 Meals on Wheels 15,312 15, 312 Family Stress Center, Inc (2 Contracts) 75,408 75,408 Contra Costa Child Care Council 68,088 68,088 Family Stress Center 56,928 56,928 Child Abuse Prevention 68,772 68,772 West Coast Children's Center 24,992 24,992 Subtotal $ 447,582 $ 447,582 Health Services Department Mental Health Community Concern $ 160,226 $ 60,000 CC Crisis and Suicide Prevention 74,515 38,000 Phoenix Programs 2,341,513 88,000 Bi-Bett Corporation 1,310,016 North Richmond Neighborhood House 275,870 Sunrise House 384,061 490,000* East County Community Detox 336 2 3 Subtotal $4,882,494 $ 676,000 District Attorney Battered Women' s Alternatives $ 207,914** 133,624 Rape Crisis Center 117,620 107,620 Subtotal $ 325,534 $ 241,244 TOTAL $5,655,610 $1,364,826 * Loss of rehab beds may increase General Assistance grant costs - analysis of fiscal impact underway. **Includes $74,290 of marriage license fees (restricted) which has already been awarded to contractor. h26:redcont.cht 0 0 ADDENDUM TO: AGENDAITEM2.6 July 28, 1992 Following the presentation of the County Administrator's report on potential ballot measures addressing the need for additional revenue, the following persons spoke: Donna Hall, Pacific Gas and Electric Company, 123 Mission Street, San Francisco; John Wolff, Executive Director, Contra Costa Taxpayers Assn., 820 Main Street, Martinez; Paul Katz, Local 1, P. O. Box 222, Martinez; Tom Stewart, 560 Railroad Avenue, Hercules; and Ethel Dodson, 396 South Street, Richmond. All persons desiring to speak were heard. At the conclusion of the discussion the Board took the following actions: 1. REFERRED to the County Administrator for report to the Board on August 4, 1992, issues associated with a modest countywide parcel tax for consideration by the electorate at the November 3, 1992, General Election; 2. REQUESTED the County Administrator to discuss with the City/County Relations Committee funding needs for countywide law enforcement services; 3. REQUESTED the County Administrator to meet with the City Managers to discuss their plans and options for providing services to their constituents during this recessionary period; 4 REQUESTED the County Administrator to provide a status report to the Board when additional information is available on the State Budget; and 5. REQUESTED the County Administrator to provide information on deadlines and costs for elections and effective dates when a successful tax measure can be added to the tax rolls.