What feedback do you have on the options to Fund the Future of SLO?

Background:

The City of San Luis Obispo is embarking on a comprehensive review of the projects and associated funding needs that will provide the services and experiences local residents desire for the future of the City. City staff wants your feedback on various funding options.

The projects included in the review will improve community health, safety and recreational opportunities, expand residents’ transportation options, support smart growth, and enhance the ability of first responders to provide essential community services. Each of these projects has been previously adopted through various long-range policies and plans, such as:

· Enhancing the Mission Plaza arts and culture experience through a redesigned amphitheater, restored restroom, new café and extensive safety provisions

· Extending cross-town corridors and separated bike paths (such as the Prado Road extension, Tank Farm Road widening and completion of the Bob Jones and Railroad Safety Trails) to better provide for bicycling as a transportation mode of choice

· Upgrading or building new public safety facilities, such as a police station and emergency operations center, to enhance the ability to provide public safety services

This capital improvement project review was initiated to meet the 2017-19 Major City Goal of Fiscal Sustainability and Responsibility, one of four goals identified by the City Council and community during the budget planning process. The City has taken a holistic look at the projects desired by the community and has determined current revenue sources are inadequate to achieve community goals and that creating the SLO of the future, as recently envisioned in the City’s General Plan Land Use and Circulation Element update, will require additional financial resources over the next 20 years. City staff is considering various funding mechanisms to deliver on these needs, including sales tax and financing mechanisms through property taxes.

City staff has identified that approximately $400 million in additional revenue is needed to fully deliver on the infrastructure projects that will provide the services and experiences SLO residents desire. The Local Revenue Measure (Measure G) funds the maintenance of existing facilities. There is currently no funding to support substantial enhancements to existing services or for new projects.

Timeline:

January 16, 2018: City Council Presentation

February 2018: Staff review and refine potential projects

March 26, 2018: Community Feedback Forum at SLO Police Department, 6 p.m 

1042 Walnut St, San Luis Obispo, CA

April 17, 2018: Present feedback and receive Council direction

Funding Options:

Sales Tax

- 1% increase in sales tax would raise approximately $15 million per year. The City is analyzing a sales tax revenue measure and the duration of such a measure need to achieve identified funding needs. A 2014 study shows that approximately 70% of sales tax generated in the City is paid by visitors.

Citywide Community Facilities District

- A Community Facilities District offers a way to fund debt by assessment of a parcel tax, based on a flat amount or formula.

General Obligation Bond

- A General Obligation Bond requires voter approval and the debt is repaid by an assessment of a parcel tax based on the value of a property.