Title
Consider approval of a request and adoption of a resolution authorizing Monterey-Salinas Transit to place a one-eighth of one percent county-wide local sales tax measure on the November 2014 ballot, for a period of 15 years, subject to the condition that the funds generated would be restricted solely for the provision of services and equipment for veterans, seniors, and persons with disabilities; subject to review by a citizens' oversight committee and subject to a special audit after implementation.
report
RECOMMENDATION:
It is recommended that the Board of Supervisors consider approval of a request and adoption of a resolution authorizing Monterey-Salinas Transit to place a one-eighth of one percent county-wide local sales tax measure on the November 2014 ballot, for a period of 15 years, subject to the condition that the funds generated would be restricted solely for the provision of services and equipment for veterans, seniors, and persons with disabilities; subject to review by a citizens' oversight committee and subject to a special audit after implementation.
SUMMARY / DISCUSSION:
Monterey-Salinas Transit (MST) is the county's primary provider of public transportation. In addition to providing traditional fixed-route and on-demand public transportation, MST currently provides a wide variety of public transportation services dedicated for veterans, seniors, and persons with disabilities, including MST RIDES, senior shuttles, discount taxi vouchers, and veterans' transportation programs.
Traditional sources of dedicated federal funding for these programs that were designed to benefit veterans, seniors, and persons with disabilities have been discontinued, which will cause these services to face potential elimination within less than a year unless an alternate funding source can be generated. Because of the loss of federal funding, and to create an independent funding source to continue to provide these vital services into the future, the MST Board is considering placing a one-eighth of one percent county-wide local sales tax measure on the November 2014 ballot. The funds would be restricted solely for the provision of services and equipment for veterans, seniors, and persons with disabilities. After implementation, the use of the funds would be subject to review by a citizens' oversight committee and subject to a special audit.
The Monterey-Salinas Transit District (MST) was established under Assembly Bill 644, the Monterey-Salinas Transit District Act, which was signed into law on October 11, 2009, adding Part 17 (commencing with Section 106000) to Division 10 of the Public Utilities Code, relating to transportation. MST's enabling legislation states: "The district has no authority to impose sales or special taxes, but may, with the concurrence of a majority of the member jurisdictions represented on the board of directors, cause to be submitted to voters of the district a ballot measure for the imposition of those taxes."
MST seeks concurrence from Monterey County, as an MST member jurisdiction, to place a one-eighth of one percent county-wide local sales tax measure on the November 2014 ballot with the funds generated by this measure to restricted solely for the provision of services and equipment for veterans, seniors, and persons with disabilities, and, after implementation, the use of the funds would be subject to review by a citizens' oversight committee and subject to a special audit. The tax would expire after 15 years, unless extended by another vote of the people.
The proposed title of the measure is: "Dedicated Local Transportation Funding for Senior Citizens, Veterans and People with Disabilities."
The proposed ballot language is: "Shall Monterey-Salinas Transit, also known as MST, provide, maintain and protect transit services for Monterey County senior citizens, veterans, and people with disabilities, including trips to vital medical appointments and veterans' job training/ placement services, by enacting a one-eighth of one cent per dollar sales tax, to replace eliminated federal and state funding with local revenue to be dedicated only to these specific purposes, subject to citizen oversight and annual independent financial and performance audits?"
Monterey County has the option of not supporting placement of this matter on the November 2014 ballot. However, MST has already received concurrence from a majority of MST member jurisdictions and is therefore able to place the matter on the ballot even without the concurrence of Monterey County. To date MST members approving this action include the Cities of Gonzalez, Monterey, Marina, Sand City, Del Rey Oaks, Carmel, Soledad, Greenfield and King City. The Cities of Seaside, Pacific Grove and Salinas are expected to consider supporting this action on July 9, 2014.
It should be noted that there is a cumulative county-wide 2% cap on sales and use taxes (regardless of the State tax rate). Many cities in the county have already adopted some form of tax which is subject to this cap. The process is one of "first come-first served" so that future tax measures will be limited by tax rates already adopted, unless special arrangements are made. Based upon information from the State Board of Equalization prior to the June elections, there appears to be up to 1% in additional taxes that may be imposed before reaching the cap, although that does not take into account other tax measures already scheduled by some cities for the November election. This proposed tax, if implemented, would be in effect for fifteen (15) years, and during this period would have an impact on the ability of local jurisdictions to seek a portion of the 2% locally imposed sales and use tax unless special legislation is approved to allow additional increments.
OTHER AGENCY INVOLVEMENT:
Information contained in this report was provided by MST.
FINANCING:
MST has succeeded in getting a majority of its member jurisdictions to concur with putting its measure on the ballot. MST will work with the Elections Department to consolidate MST's election with the county-wide election in November 2014. MST and Elections will also be entering into an agreement for MST to pay for its share of the cost of Election services.
Prepared by:
_________________________________
Annette D'Adamo
Management Analyst III
Ext. 3045
Approved by:
_________________________________
Nicholas E. Chiulos
Assistant County Administrative Officer
Attachments:
- Resolution
- Exhibit A - DRAFT MST Resolution
- Exhibit B - DRAFT MST Ordinance
- Exhibit C - DRAFT MST Ballot Language