Title
a. Receive a report with further details regarding the two potential revenue enhancement options, including increases to the County's district sales tax and transient occupancy tax; and
b. Provide additional direction to staff on next steps. (ADDED VIA ADDENDA)
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Receive a report with further details regarding the two potential revenue enhancement options, including increases to the County's district sales tax and transient occupancy tax; and
b. Provide additional direction to staff on next steps.
SUMMARY:
On March 12, 2024, the County Administrative Office (CAO) presented the countywide financial forecast to the Board of Supervisors (Board). The forecast indicated continued growth in discretionary revenues. However, the growth is not sufficient to keep up with the increased costs of doing business. An update about the County's financial condition was provided to the Board during its April 2, 2024, budget workshop. During this workshop, the Board directed staff to bring a report back to the Board to focus on the most feasible revenue options for the earliest implementation possible.
Based on this direction, staff presented the options outlined below for Board consideration during the May 7, 2024, meeting:
* Transient Occupancy Tax Increase
* District Sales Tax Increase
* Establish a new Utility User Tax
* Amend the Contribution to the Development Aside
* Decrease Expenditures
o Suspend the supplemental unfunded accrued liability (UAL) pension program
* One-time options
o Redirect funds -from the compensated absences assignment
After the presentation, the Board directed staff to: (1) engage a polling company to determine the electorate's willingness to support a district sales tax or transient occupancy tax increase measure and, (2) elaborate on the next steps needed to implement one of those two measures in the November 2024 general election.
During the May 29th Board meeting,...
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