SR-202-001 (54)
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MAY 1 2 1981
CM:JJ:JG:mmm
City council Meeting: 5/12/87
santa Monica, California
TO:
Mayor and city Council
FROM:
city Staff
SUBJECT:
Budget study Session
INTRODUCTION
This report recommends that the City Council formally set
Tuesday, May 19 and Wednesday, May 20 as Budget study Sessions
for consideration of the FY 1987-88 Proposed Budget.
DISCUSSION
After polling the city Council regarding alternative dates for
the Budget study Sessions for the FY 1987-88 Proposed Budget, the
evenings of Tuesday, May 19 and Wednesday, May 20 have been
selected.
The sessions will begin at 6: 00 p.m. in the city
council Chambers.
RECOMMENDATION
city staff recommends that the city council formally set Tuesday,
May 19 and Wednesday, May 20 at 6:00 p.m. as Budget study
Sessions for the FY 1987-88 Proposed Budget.
PREPARED BY:
Julia N. Griffin
Senior Management Analyst
(bud5l287)
/,-J
MAY 1 2 1987
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I
"
I
1987-88
SUPPLEMENTAL
BUDGET INFORMATION
City of Santa Monica
Item # 6
Date June 12, 1987
Topic Report and Recommendation on Step-lip
On-Second's Request for Fundlng
C/ED:CNS:sd:suosr
June 16,1987
Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Report and Recommendation on Step-Up-on-Second's
Request for Funding
INTRODUCTION
This
report
transmits
information
on
the
programs
of
Step-Up-On-Second as requested by the City council on June 2,
1987.
The report outlines the background of the request,
summarizes the proposed programs and recommends an approach for
funding.
DISCUSSION
I. Background
step-Up-On-Second had originally requested $72,294 to establish a
new weekend Drop-In Center program for homeless mentally ill in
Santa Monica.
The purpose was to provide a place for the
mentally ill homeless to go on weekends since other currently
Santa Monica funded homeless programs are usually not operating
during this period.
The program would lower the visibility of
the homeless in the business and tourist areas of the city. In
its recommendation not to fund the project, City staff noted the
unavailability of funds and that homeless services were not
identified for priority funding in 1987-88.
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In a recently revised request for funding, step-Up-On-Second has
requested $14,000 in Santa Monica funding to add a staff position
to serve increasing numbers of homeless mentally ill who are
being seen in their on-going weekday program.
The homeless
mentally ill appear to require a different approach and a
significant commitment of time because they do not have the same
family or other support network that is available for other
persons with a diagnosis of mental illness.
In making its initial recommendation on the weekend proposal, the
staff reviewed a detailed description of what was proposed.
However, staff did not have a complete program description of the
revised on-going program request to review, thus making a
comparison difficult. However, staff did talk with current Santa
Monica funded agencies who make referrals to Step-Up-On-Second
and
also
discussed both programs
in more
detail
with
step-Up-On-Second staff.
II. Summary of the Two Programs
Weekday Program
o This is an existing program.
o It operates 5 days a week, Monday through Friday, 9:30 a.m. -
5:00 p.m.
o
The program serves
10-25 of these have
persons. (Homeless
streets. )
between 50-70 people each day. Between
been identified as homeless mentally ill
means living in a shelter or on the
o The program is a highly structured program with a schedule of
activities from 10:00 am.- 4:30 p.m. each day. At least one
night a week there is an evening presentation.
o The purpose is to provide a supportive environment where
persons can gain self confidence, relearn lost skills to live
independently, receive vocational guidance leading in some
instances to part full time work. Provides referrals and
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information on housing, health, psychiatric care and other
community services.
o The total program budget is:
$236,000
The santa Monica request is
14,000
(The Request is for 1 full time staff person who would work
with the homeless mentally ill).
Weekend Program
o This is a new program.
o It would operate on saturday and Sunday, 10: 00 a. m. - 5: 00
p.m.
o The program is projected to serve 75 people a weekend who are
identified as homeless mentally ill.
o The program would be a drop-in center with showers, clothing,
one meal a day, referrals to psychiatric and health care and
provide an introduction to possible programming alternatives
for the clients.
o
The purpose is to offer an alternative to
mentally ill wander the streets and to
their lives and the alternatives that
facilitate the change.
having the homeless
focus on change in
can be pursued to
o The total program budget is
$86,284 (initially requested
by the agency;
approximate; not
delineated in proposal)
$47,832 (newly revised and
approximate: not
delineated in proposal)
o The Santa Monica request is
$72,294 (initially requested by
the agency)
$36,162 (Revised)
(The request is for 2 weekend staff (20 hours per week each.)
III. Brief Analysis of the Programs
weekday Program
The request for City support of the current Weekday Program has
the following merits:
el} the program would continue to servie
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the increasing numbers of homeless mentally ill persons currently
in the agency's caseload: (2) the agency has a recognized track
record of working with mentally ill individuals in a day center
setting; (3) the program accepts referrals from currently Santa
Monica funded agencies; and (4) the program may be especially
appropriate for homeless shelter residents.
However, in evaluating whether or not ci ty funding is
appropriate, the following issues were considered: (1) the
existing program currently operates without city funding and
given limited City funds, priority should be given to new
services: (2) the requested amount for salaries and benefits may
be insufficient to hire a qualified person to work with the
homeless: (3) the program may be too structured for homeless
people living on the street and may be inappropriate for some of
the homeless clients served by other agencies.
Weekend Program
In continuing to evauate the initial request for support to the
new Weekend Program, the following merits were identified: (1)
the program is non duplicative and expands limited available
services for homeless on weekends: (2) the program focuses on the
segment of the homeless least able to assert themselves and
directs them toward service alternatives: (3) the program would
help mitigate concerns expressed by businesses regarding homeless
individuals in the area during the weekend; and (4) the program
would accept referrals from currently Santa Monica funded
agencies thereby making additional services available to those
already receiving assistance.
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Several concerns were also identified:
(1) tthis is a new type
of program for the agency and therefore it will have to continue
to develop expertise in working with homeless individuals; (2) as
initially requested, there is a low amount of non-City match for
the new program; and (3) the contract would be with the Mental
Health Association as step-Up-On-Second is not yet incorporated
as a separate non-profit agency.
Based on this analysis, staff concluded that if the city's match
to the Weekend Program could be reduced, the increased level of
services to Santa Monica agencies and homeless individuals
provided by the new program is more compelling than merely
funding an existing service.
Given that weekend day center
services are an identified gap in the "continuum of homeless
services" in the community, it would be most appropriate to
consider that option if funds are available.
FISCAL/BUDGETARY IMPACT
The City's annual contribution of approximately $36,000 to the
Weekend program is detailed in the Attached Budget. If a 7-month
pilot project were funded in 1987-88 (a~lowing for evaluation
after six months to assess program effectiveness), the initial
appropriation for that period from August 1987 to through
February 1988 would be $20,974.
RECOMMENDATIONS
If City Council sees this as a budget priority and if funds are
available, city staff recommends that:
(1) Funds be awarded to the Mental Health Association of Los
Angeles County (for the step-Up-On-Second Program) to fund a
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, .
7-month pilot project to provide expanded services to mentally
ill homeless individuals during the weekend (August 1987
February 1986) J
(2) $20,974 be appropriated for the 7 month program based on the
attached preliminary budget; and
(3) Staff complete an evaluation report of the program after six
months of operation regarding service levels and the success of
the agency in meeting contract objectives, to consider at the
mid-year budget review for additional funding for the remainder
of the program year.
Prepared by: Sandra Du Vander, Grants Administrator
Community and Neighborhood Services Division
Community and Economic Development Department
SD:sh
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4 '
Proposed Annual operating Budget for Weekend Program
Step-Up-on-Second
Santa Monica Request
Salaries
Weekend Coordinator
Assistant Coordinator
20 hours 9.62/hr
20 hours 7.02/hr
$10,000
8,000
$18,000
Benefits
Fringe benefits equal to 20% of each
employees annual salary.
3,600
Operating Expenses
Space/Facilities (in-kind)*
Bookkeeping/Audit (in-kind)*
Insurance
office/program Supplies
Food
utilities
Telephone
Administrative overhead (5%)
1,800
1,500
6,240
2,100
1,200
1,722
Total Expenses
$36,162
7 months
$20,974
Projected Start-up date for the program would be August 1, 1987
as this is a new project and would require additional planning
and developmental time.
*In-kind non-city match represents 24% of the total Program
budget
SD:sh:suosbr
1987-88
SUPPLEMENTAL
BUDGET INFORMATION
City of Santa Monica
Item # 5
Date June 12, 1987
Topic Recomendatlons on Clty Support
for Nelghborhood ASSoclations
CM:C/ED:nasr
June 16, 1987
Santa Monica, California
TO: Mayor and city council
FROM: city staff and the City Manager's working Group
on Citizen Involvement
SUBJECT: Recommendations on City Support for Neighborhood
Associations
INTRODUCTION
This report transmits the results of deliberations by the city
Manager's Working Group on citizen Involvement regarding ways in
which the City can provide support to neighborhoods and
neighborhood associations.
The report outl ines the purpose of
the Working Group I summarizes its del1berations over the past
several months, and proposes a model for City support that
evolved from these deliberations.
DISCUSSION
I. purpose of the Working Group
In the Spring of 1987 t the City Manager formed a working
Group on Citizen Involvement to advise city staff and the City
Council on various approaches to involving citizens in City
issues and planning processes.
Convened at the request of
Councilmember Alan Katz after he had initiated a number of
informal meetings with community members, this group was selected
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to represent a wide range of community perspectives and is
comprised of the following individuals:
Judy Abdo
Julie Lopez Dad
Don Girard
Christopher Harding
Thomas Lannore
Vivian Linder
Penny Perlman
william Putnam
Paul Rosenstein
Robert Sullivan
While Working Group members were selected because of their
association with a range of community groups in Santa Monica and
while they often brought perspectives from these groups to the
deliberations, members did not officially represent those groups
nor do recommendations of the Working Group imply endorsement by
any particular groups in the community.
Technical support was provided by Judith Payne of the RAND
Corporation and from City staff. In addition, Councilmember Alan
Katz participated in Working Group meetings on several occasions.
The group met during the months of March through June to address
the following tasks:
o to review research conducted by RAND Corporation on current
national trends in ways cities serve neighborhoods (see
attached report);
o to identify alternative mechanisms for City support to
Santa Monica neighborhoods to ensure broad-based citizen
participation and involvement in issues that affect the
livability of these neighborhoods; and
o to develop specific recommendations regarding ways to
structure City support to neighborhoods and neighborhood
associations based on the above research and review
activities.
The Working Group did not concentrate its efforts on discussing
the alternative of no City funding at all for neighborhoods or on
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a broader mechanism to provide city support to community
organizations other than those organized by neighborhood. while
the perspectives of Working Group members were diverse,
discussions were focused on the
specific task of developing
recommendations regarding how the City could best provide support
to neighborhoods.
After lengthly deliberations, the Group was
able to develop a "consensus It model that addresses the many
perspectives of those participating.
While the discussions of
the past several months pursued a range of issues in detail, the
following "capsulizes" these discussions and highlights the most
salient issues.
II. working Group Deliberations
Group discussion focused on the following areas: (I)
Organizational
Criteria
for
City-Recognized
Neighborhood
Associations, (2) Functions of Neighborhood Associations, (3)
staff Support Functions to Neighborhoods, and (4) Alternative
Models for Providing support to Neighborhoods.
Organizational
Associations
criteria
for
City-Recognized
Neighborhood
Neighborhood associations must meet the following criteria to be
recognized and supported by the City:
o ensure open membership and the right to hold office to all
residents of the neighborhood (tenants and homeowners) f
businesses and property owners on a non-discriminatory and
equal basis
o designate geographical boundaries as defined by the
neighborhood association with a minimum size established to
qualify an area as a neighborhood
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o have a base level of dues-paying members (e.g., a minimum
number of members, a minimum percentage of population
represented)
o have a democratically-elected Board of Directors
o have SCl(C) (3) tax-exempt status
o provide a plan for continuing outreach to neighbors
o demonstrate the ability to raise funds through memberships
or other fundraising activities
o be non-political (non-electoral) in all activities at least
to the extent required by relevant IRS codes *
o be advisory in nature
o be a multi-issue organization
o establish
positions
projects
an open process to develop organizational
on City issues, including proposed development
o have a procedure for allowing and recording dissent
o develop specific workplans and perform audits (if receiving
support from the City)
o develop and implement a procedure for periodic neighborhood
evaluation of the organization
It is important to note that while these criteria apply only to
geographically-defined neighborhood associations, other issue
groups,
community-wide organizations and individual citizens
should also have access to citizen involvement activities of the
City. This report deals with support to neighborhoods but also
recognizes the need to ensure access by all residents directly to
the City on issues of concern.
* IRS tax codes prohibit non-profi t organizations from
participating in, or intervening in, any political campaign on
behalf of or in opposition to any candidate or issue included in
an election. Further, expenditures for lobbying purposes
(activities designed to influence legislation) are restricted to
a percentage of the organization's total annual expenditures.
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F~nctions of Neishborhood Associations
The following activities were identified as the range of
functions that may be performed by neighborhood associations on
behalf of neighborhood residents.
citizen Participation: Facilitation of citizen participation in
City issues that affect the livability of neighborhoods. These
issues may include I but not be 1 imi ted to , involvement in the
city project approval process, and advising the City on planning,
parking and traffic, and code enforcement issues.
Neighborhood Planning: participation in the development of
general neighborhood plans or specific plans such as neighborhood
park planning.
crime Prevention Activities: Development and implementation of
crime watch activities, street-light petitioning.
Direct Services to Residents: Information and referral for
neighborhood residents on available City services and other
community/social services; advocacy/liaison activities on behalf
of neighborhood residents; special proj ects based on specific,
identified needs of the neighborhood.
Leadership Development: provision of leadership training to
neighborhood residents and development of leadership
opportunities within the neighborhood association structure.
Neighborhood Communication: Building effective modes of
communication to ensure accurate and timely transmittal of
information regarding the broad range of issues affecting the
neighborhood.
Volunteer coordination:
volunteers for the above
association activities.
Identification
activities and
and recrui tment of
other neighborhood
Staff Support Functions to Neighborhoods
In discussing how the above activities might be implemented, the
Working Group identified a range of resources including
neighborhood volunteers, student interns and VISTA volunteers,
and paid staff. To clearly delineate functions appropriate for
staff to perform, the following tasks were identified:
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o providing the neighborhood
relevant project-specific
neighborhood livability
with timely information on
City issues affecting
o assistance in the creation and monitoring of early
notification processes on development projects
o monitoring of organizational compliance with the project
review process
o identification and training of neighborhood volunteers to
implement neighborhood association activities
o canvassing and notification of neighborhood residents or
training for volunteers to do noticing activities
o "logistical" support and assistance for neighborhood
meetings
o support to crime prevention activities
residents, meeting logistics)
o provision of direct services to residents (information and
referral, ombudsperson services)
(training of
Staff efforts should focus on the identification and training of
volunteers in the neighborhood so that residents themselves
implement the functions of the organizations.
Staff should be
prohibited from personally setting policy or developing positions
on specific neighborhood issues or serving as an advocate for
neighborhood positions (inel uding proj ect and planning issues).
Instead, staff should facilitate the development of pOlicy and
positions by neighborhood residents.
Alternative Models for providing Support to Neighborhoods
While there was some discussion by members of the Working Group
on the appropriateness of providing any City financial support to
neighborhoods, the Working Group's major task was to answer the
question, "If City support were made available to neighborhoods,
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what model of support would be the most feasible and appropriate,
given the wide divergence of perspectives in the community?"
In answer to this question, the following models were identified
as possible ways to structure City support in order to achieve
all or a portion of the neighborhood functions identified above.
Alternative 1. city staff support. city staff (ombudsperson)
would provide all or some of those staff
functions identified above. The rest of the
activities of the neighborhood association would
be performed through volunteer efforts.
Alternative 2. Creation of a Non-Profit "Neighborhood support"
Center. A new non-profit entity would be created
to receive city funds to provide centralized
staff support to member neighborhood
associations. Administrative in nature, this
organization would provide administrative
oversight for all funded activities and
coordinate City-funded resources with member
neighborhood associations.
Alternative 3. Direct City Funding of Neighborhood Associations.
The City would provide direct grants or contracts
to individual neighborhood associations for
ongoing support or for special projects. Funded
neighborhood associations would hire staff
directly to perform identified activities of the
association as described previously.
While there was careful consideration of both funding of City
staff and direct neighborhood association funding,
these
alternatives were ruled out for the fOllowing reasons:
City staff Support to Neighborhoods: While this model stresses
accountability of staff to the City, it creates possible conflict
between responding to City-identified needs and those identified
by neighborhood residents. Because oversight and supervision
would come from the city Manager's Office or a delegated
department, there may be confusion over whether the staff should
represent Ci ty or departmental posi tions as opposed to
facilitating neighborhood participation in issues of concern.
Additionally, given the need to conform to the City'S salary and
fringe benefit structure, the staffing cost per person of this
alternative is more costly than the other alternatives.
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Direct City Support to Neighborhood Associations: While this
model stresses accountability of staff to neighborhood
associations to ensure responsiveness to neighborhood needs, it
does not address the need for a comprehensive structure of
support to neighborhoods on a city-wide basis. Relying on the
City's ongoing grants monitoring process, it does not address
concerns by some community members that accountability to the
community needs to be increased to ensure open participation by
all neighborhood residents. Because administrative and
neighborhood services would be decentralized by neighborhood,
administrative and staffing costs are higher than in a more
centralized structure.
III. Proposed Model for city Support -- The creation of a
Neighborhood Support Center
The Working Group, acting as individuals and not as
representatives of any particular community groups, recognized
that the creation of a new non-profit Neighborhood Support Center
would address a number of major issues including:
(1) the need
for a "funding mechanism" that stressed both accountability to
the city and to the neighborhoods it supports, (2) the need for
skilled staff that would be sensitive to both community-wide
needs for citizen participation and also to neighborhood-specific
needs, {3) the need for a support organization that was perceived
by the community as an entity that could effectively and fairly
administer funds and assess the ability of member associations to
meet the approved organizational criteria, (4) the need to
preserve the autonomy of neighborhood associations through the
preservation of their own Board and leadership structures while
providing administrative support through the new organization,
and (5) the need for a cost-effective structure that avoided
duplication of administrative staffing and overhead costs.
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Role of the Neighborhood Support Center
Designed to be in-lieu of direct City funding of neighborhood
associations, this model provides support to neighborhoods
through the establishment of a II support centerll that would make
staff resources available to member neighborhood associations.
The maj or role of this organization would be functional and
administrative in nature. The entity would not be involved in
pOlicy-making on city or neighborhood issues but instead provide
staff support to independent neighborhood associations whiCh
perform that function.
Membership NeighborhoOd Associations
Any neighborhood association, meeting the organizational criteria
set forth in Section 1 of this report, would be eligible for
staff support from the new Support Center. It would be desirable
to have a single, inclusive neighborhood association representing
a specific neighborhood. However, associations in the same area
or with overlapping boundaries, while not encouraged, would be
allowed if they otherwise meet the stated organizational
criteria. staff resources would be allocated by the Support
Center to qualifying neighborhood associations using an objective
allocation procedure, within the limits of the Agreement with the
City.
Neighborhood Support Center Board of Directors
Board responsibilities would be narrow in scope and limited to
administrative oversight. The Board would not serve as a
"neighborhood council" or as a coalition of neighborhood
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associations. Such a group may develop but would be a different
entity.
Two Boards would be needed to fully implement this alternative.
Interim Board: The Interim Board would guide the new
organization through December 31, 1988. It would be
responsible for the development of By-laws and Articles of
Incorporation, negotiation of an Agreement with the City for
initial funding, hiring of initial staff, and the development
of procedures for the provision of staff resources to member
neighborhood associations. This 10-member Board would
represent a range of community perspectives (including
representatives from neighborhood groups, the business
communi ty , and other interested community members). Board
selection would be made based on nominations by the Working
Group. The City Council would consider the overall viability
of the Interim Board to receive city funding as it does with
all requests from non-profit organizations for City support.
From over 35 nominations made by the Working Group, the
following individuals were identified for the proposed
Interim Board;
Judy Abdo
Pat Barrett
Henry Custis
Diane Glinos
Don Girard
Norma Gonzalez
Chris Harding
Tom Larmore
Penny Perlman
Paul Rosenstein
Before executing a contract with the Neighborhood Support
Center, the corporate organization, including composition of
the Interim Board of Directors, shall be approved by the City
Manager to be consistent with this staff report.
Permanent Board: The Permanent Board would be comprised of
10 members also representing a broad range of community
perspectives. The Interim Board would be responsible for a
publicy-noticed nomination process where nominations from
interested community members and community groups would be
accepted. From this community-wide pool, the Interim Board
would select the first Permanent Board, in consultation with
the City Manager. Terms would be staggered and when
vacancies occurred, the community-wide nomination procedure
would again be followed with appointments made by the Board,
in consultation with the city Manager. Council review of
Board effectiveness, along with other performance criteria,
would occur during the city's annual funding review process.
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Support Center Staffing
Support Center staffing should address the following needs:
Administration: General administrative oversight, contract
compliance, city reporting, reception and clerical support,
fiscal management, personnel management, Board development.
Program Development: Development of program ideas and program
design and procedures for implementation of ongoing activities
and special projects.
Neighborhood Support: Volunteer recruitment, leadership
training, community outreach, community organizing, neighborhood
planning, liaison and ombudsperson functions, information and
referral.
Because the successful use of staff resources will depend on the
specific skills of those individuals actually hired, there should
be flexibility for the Board, in consultation with member
neighborhood associations, to develop a staffing plan that is
responsive to the goals of the Support Center and its member
neighborhood associations. The Board should develop a method for
consulting with neighborhood associations on such issues as staff
planning, recruitment and selection, and staff allocation to
ensure responsiveness to neighborhood needs. However, an initial
staffing plan is included in a proposed annual operating budget
for the Support Center (see Attachment) which identifies staffing
needs by those general staff functions outlined in this report.
Acknowledging the relationship between staffing levels and the
amount of support that can be provided to each neighborhood, this
initial staffing plan provides for a base level of support for
both administrative functions and direct neighborhood services.
and is intended to respond to a broad range of identified needs.
However, several neighborhood associations have expressed concern
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to the Working Group that the proposed level of staff support
available directly to the neighborhoods is not adequate. In
response, the Working Group proposes that the new Board
continually monitor the staffing needs of member neighborhood
associations and identify and pursue sources of funding to meet
additional needs as they arise.
Allocation of Staff Resources to Member Neighborhood Associations
The allocation of staff resources would be determined by the
Board of Directors after receiving annual or semi-annual
workplans from each member association outlining proposed
activities and staff needs. A Memorandum of Understanding would
be developed between the Neighborhood Support Center and each
neighborhood association regarding the level and type of support
to be received during that period. Once staff is assigned to
work on the approved workplan of a neighborhood association, it
would be the responsibility of the Support Center I s Board, in
consultation with the neighborhood association, to ensure that
the staff is addressing neighborhood association needs, pursuant
to the Memorandum of Understanding. For any increase in
resources which may become available during that period,
Memoranda of Understanding would be modified to include the
increased support.
A~ditional Funding for the Support Center
In addition to city support, the support Center, on behalf of
member neighborhood associations, could SOlicit funds from
foundations or other funding sources to provide additional
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support for special projects (e.g., neighborhood plans or special
"
direct service efforts) or to respond to additional staffing
needs. This may include possible fees from developers for
expenses associated with neighborhood review activities of
development proj ects. While such funding would come to the
Support Center rather than directly to neighborhood associations,
neighborhood associations could apply to the Support Center for
special staff support as needs arise. This does not preclude
neighborhood associations from raising funds independently for
their own activities.
FISCAL/BUDGETARY IMPACT
As indicated in the attached budget, the annual operating
expenses of the proposed Neighborhood Support Center would be
approximately $155,091 (assuming in-kind facilities could be
located) or $167,091 in the event that rental of space were
required. Assuming approximately 6 months of start-up time
needed in 1987-88 until the new organization was ready for
operation, the 1987-88 budget would be $83,356, including $5,750
in start-up costs (such as equipment, furniture, phone
installation and recruitment costs). In addition, if in-kind
space were not located, an additional $7,000 would be needed for
rent -- for a total cost of $90,356.
A General Fund appropriation, not to exceed $90,356, would be
necessary to fund the Neighborhood Support Center in 1987-88.
Funds would be set-aside until such time as the Neighborhood
Support Center is fully incorporated and eligible to receive city
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funds. Final approval would be given by the city Council upon
review of a detailed operating budget and Scope of Work.
Evaluation and Accountability of the Neighborhood Support Center
The Neighborhood Support Center would be required to have an
external, independent financial audit performed on an annual
basis to ensure fiscal accountability to the city. In addition,
the organization would provide the City with quarterly reports
outlining progress made in contracted areas. There should be a
procedure to report this progress to the community in order to
educate residents about the organization and about member
neighborhood associations. Two mechanisms should be considered:
informational newsletters to include a quarterly status report
and/or an insert in the city's newsletter, Seascape, with
neighborhood updates.
RECOMMENDA'I;IONS
City staff and the Working Group recommend that the City Council
take the following action:
(1) Take whatever budgetary actions are necessary to appropriate
up to $90,356 in General Funds for 1987-88 to be awarded to the
new organization when it is incorporated and legally eligible to
receive City funds. Final approval of the Agreement between the
City and the organization would be made by the city Council at a
later date.
Prepared by: John Jalili} city Manager
Barbara Stinchfield, Community Development Manager
Department of Community and Economic Development
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- .
Proposed Annual operating Budget
Neighborhood support center
salaries
1 FTE* (Administration, Program Development,
Board Development, special Community
Outreach Projects, Fund Development and
Proposal Writing)
1 FTE {Clerical, Reception, Community Informa-
tion and Referral, Graphics)
2 FTE (Neighborhood Outreach and Support, Com-
munity organizing, Neighborhood Planning,
Liaison and Ombudsperson Functions,
special Neighborhood Projects)
Fringe Benefits
Medical/Dental ($laD/employee/month)
FICA (7.15%)
SUI/FUI
workers' compensation
contracted Services
payroll/Bookkeeping ($385/month)
Accounting Close-Out
Financial Audit
Work Study Stipends (20% employer contrib.)
$ 35,000
22,000
50,000
$ 107,000
8,640
7,651
1,890
1,070
$
19,251
4,620
500
1,500
1,152
$ 7,772
Space/Facilities
Rent (in-kind) 1,000 sf @ $l/sf
utilities ($so/month) 960
Janitorial ($45/month) 540
$ 1,500
* 1 Full-Time Equivalent (FTE) = 2,080 hrsjyear or
40 hrjweekj52 weeks.
- 15 -
Insurance
City-Required Liability and crime coverage
operating Expenses
2,100
Office Supplies ($200jmonth)
Telephone ($400jmonth)
Postage ($200jmonth)
Printing ($400jmonth)
Equipment Repair ($25jmonth)
Copier LeasejPurchjService ($150jmonth)
Employee mileage ($.225jmi1e)
2,400
4,800
2,400
4,800
300
2,160
608
$ 17,468
TOTAL ANNUAL OPERATING EXPENSES
$155,091*
**An additional $12,000 in rental expense would be included in
the event in-kind space were not available.
- 16 -
1987 -88
SUPPLEMENTAL
BUDGET INFORMATION
City of Santa Monico
Hem * 4
Date June 11,1987
Topic Responses to Informatlon
Requests
FROM:
Mayor and City Council
City staff
TO:
SUBJECT:
Budget study session Information Requests
Attached for your review are supplemental information items which
respond to questions asked by Council Members during the Budget
Study Sessions held on Tuesday, May 19 and Wednesday, May 21,
1987.
RESPONSES TO BUDGET STUDY SESSION INFORMATION REQUESTS
1. Self-Insurance Fund Sav~ngs - Identify ~hether there are cost
savings associated with elimination of contracted claims
administration services in the Self-Insurance Funds.
The budgets for the Self-Insurance Funds will only reflect
slightly lower costs for 1987-88 due to following factors.
Under the City's contract with our present claims
administrator, fees are paid at the tilne that claims are
closed. Since there are approximately 800 open claims
pending at the present time, it is necessary for the City to
budget for close-out costs associated with work performed on
these claims by the contracted claims administrator prior to
the actual transfer of full responsibility to the City
expected in November, 1987. The City's present claims
administrator will also continue to receive fees for
administration of any flew claims which are filed prior to
November 1, 1987. The full impact of cost savings associated
with the transition to in-house claims management will
therefore not be reflected until the FY 1988-89 Budget.
2. Librarv Furniture - Identify the budgeted amounts which are
available for purchase of new and replacement furniture for the
Main Library.
The budget accounts for new and replacement furniture in the
Library are as follows:
There is approximately $10,000 available in the Main Library
Remodeling capital project account for new furniture for the
public reading area which should include ten new tables and
forty to sixty chairs.
A proposed 1987-88 capital outlay account has been budgeted
with $6,350 for desks and tables to replace built in
counters that will be eliminated by the remodel,
freestanding newspaper racks to replace former built-ins,
and swivel stools for the new reference counter.
Any additional furniture replacement needs will be
identified in future years after Library staff has obtained
some working experience with their remodeled space.
-1-
3. parkina and Traffic Enforcement in SHC Area - Explore
increased enforcement of parking violations and moving violations
in the Santa Monica College area.
The Police motorcycle units have increased enforcement
around the College. On the first day over 40 movi~g
violation citations were issued. Staff is working 1n
conjunction with the College administration to coordinate
these enforcement efforts. -
4. Increased Security Around Pier - Examine options for improved
security on the Pier and in the general area around the Pier.
Police Department staff have met with Pier and PRC staff and
are planning on extending four existing patrol beats to
include the pier and pier area in the near future as a means
of enhancing security.
5. Purchase of Emerqency Sup~lies - Provide information on the
proposed purchase of emergency supplies as recommended by the Red
Cross.
The Santa Monica chapter of the Red Cross, in accordance
with the City's Emergency Plan, is responsible for
activating and managing emergency mass care shelters in the
event of a disaster where City residents are displaced from
their homes. This responsibility includes provision of
first-aid care for minor injuries, food supplies, and
shelter accomodations. During the City's Emergency
Operations Center (EOC) exercise in August, 1986, it became
evident that the City's ability to respond to the needs of
the community following a major disaster would be largely
dependent on the availability of shelter supplies.
Currently , neither the City nor the Santa Monica Chapter
have sufficient supplies available to adequately provide for
these potential needs. In order to insure that the City t S
emergency plan is workable, it is therefore necessary to
undertake a joint effort to till the identified gaps in the
emergency shelter supply stocks.
The FY 1987-88 budget proposes the expenditure of $10,000
for the purchase of shelter items (it should be noted that
-2-
the initial Red Cross recommendation was $50,000). These
supplies will be purchased and stored by the Red Cross with
the participation of the City's Emergency Services
Coordinator in an oversight role. The specific list of
recommended supplies are presented below.
200 Aluminum cots
$ 4,000
400 Blankets
2 Medical Kits
2,000
1,300
1 Generator
1,300
Plates, cups, bowls,
utensils, paper products,
trash bags
.. 300
4 Beverage Dispensers
700
2 Portable floodlights
2 Safety gas cans
2 Electric power supply cables
300
26
108
TOTAL
$ 10,034
6. Citv SDav/Neuter C~inic - Examine the feasibility (costs and
staffing needs) which would be entailed in a City-sponsored spay
and neuter clinic through the Animal Control Division.
According to Police Department re~ords, the City has not
sponsored a spay/neuter clinic for at least the last 22
years. The City has sponsored rabies clinics in the past,
but they were eventually discontinued due to declining
attendance. The City and County of Los Angeles have
spay/neutering services at most of their shelters, and they
use their own staff veterinarians to perform the surgery.
Members of the public who inquire into spay/neuter services
are usually referred to the Animal Birth Control clinic in
Culver City. Their basic fee schedule for spaying/neutering
cats is $15 to $22, and for dogs their fees range from $27
to $52 or more, depending on the weight of the dog- The City
of Santa Monica Animal Shelter still provides free
spaying/neutering for animals that are purchased at the
shelter. If the city desired to implement a spay/neutering
service for residents on a cost-recovery basis, the charges
-3-
would probably need to be equal to or higher than the fee
schedule listed for the high volume clinic in CUlver City,
and would probably entail contracting with private
veterinarians for their services.
7. Police/Fire Social Service Assistance - What is being done
now and what additional measures can be taken in the future to
ensure that Fire and Police personnel are aware of the assistance
and services that are available to people~in need whom they may
come in contact with during the course of their normal duties.
Both the Police and Fire Departments have responded to this
inquiry:
Police The Police field personnel's primary referral
source at the present time is the Department t s Domestic
Violence Unit. The Unit offers crisis intervention and
provides information on domestic violence, child abuse,
emergency shelter needs and referrals to other social
service agencies. Officers also carry referral listings for
various agencies and may refer those in need to the Police
front desk to obtain food and shelter vouchers provided by
the Department. No special future training for Police
personnel on this subject is planned beyond the regular in-
service training for recruits and updates on service agency
operations that are noted in the weekly Information Bulletin
and at roll calls.
Fire - The Fire Chief has consulted with the appropriate
staff of the community and Economic Development Department
and arrangements have been made for special presentations to
all Fire Department staff regarding the services that are
available to those members of the public who may be in need
of assistance. It is anticipated tnat a minimum of two such
Department-wide presentations will be conducted annually.
8. AIDS Awareness Trainina - Provide update on the types of AIDS
awareness training that is made available to Fire and Police
personnel and assess whether or not AIDS education opportunties
should be expanded in the future for these City personnel.
The responses from the Police and Fire' Department are
presented below:
Police - AIDS awareness training is currently being provided
-4-
in-house for all sworn and Community Service Officer
personnel. The most recent training program was completed on
June 1, 1987. Jailers and parkinq structure Guards will
receive training as soon as scheduling permits. Future AIDS
training will be based upon updated departmental Information
Bulletins and will be the subject of roll call discussion.
The Department has also obtained audiovisual and printed
information aids for use by all field personnel.
Fire - AIDS related information and training opportunities
have been provided to all Fire Department staff since 1983.
Updated information regarding the AIDS problem is presented
on a regular basis to Fire personnel. The incorporation of a
special AIDS lecture program into the regular monthly
Paramedic training/information meetings to augment the
Department's on-going AIDS awareness effort is anticipated
to take place prior to December, 1987. This Paramedic
training is carried out in conj unction with Santa Monica
Hospital.
9. Child Abuse Information - Revise the Recreation Division
objective to incorporate the provision of child abuse education
and outreach opportunites to youth league coaches.
Based on these suggestions from the City council, the
Recreation Division objective on an orientation and training
program for Volunteer Youth Coaches will include child abuse
education and outreach information and training
opportunities.
10. Pico-Kenter Treatment options Provide report on the
treatment options which have been explored or will be explored
with respect to the Pico-Kenter storm drain.
At the current time, the City is finalizing a contract
agreement with a private consulting firm to conduct a study
on possible ultraviolet and chlorine disinfection systems
for the Pico-Kenter storm drain effluent. This study will
deal with one component of the treatment problem. An
examination of the broader category of contaminants which
may be present in storm water runoff, e. 9 . herbicides,
pesticides, solvents, heavy metals, etc. will take place in
1987-88 as a part of the citywide Master Drainage Plan
study.
-5-
~~. streetliahtina proaram ACCom!)li,.stlments - Provide update
(map) on streetlighting program accomplishments to date since the
beginning of the program.
An updated map showing the entire city-wide streetlighting
effort will be posted in the Council Chamber prior to the
meeting of June 16, 1987 for City council review.
~2. S.M. Municipal Pool - Report on the current condition of the
Santa Monica Municipal Pool located at Santa Monica College.
At the present time, there are no immediate problems with
the pool. It is operating well and there is no reason to
expect that there will be any major physical problems during
the coming summer season. In preparation for the next cycle
of the City'S capital Improvement Program, however, a
comprehensive examination of the pool facility will be
carried out and a determination of necessary
repairs/rehabilitation will be made. If it turns out that
there are pressing repair needs, a funding recommendation
will be presented to the City council as a part of the FY
1988-89 Budget.
~3. Heritaae Square Museum - Provide a copy of the Heritage
Square Museum funding request to the city Council.
A copy of the Heritage Square itemized funding request has
been attached to this report as Exhibit A.
14. "Town H~~ 1" Meetinas - Estimate the costs of holding City
Council Meetings in various locations throughout the City on a
regular basis (TOwn Hall concept).
If City Library or public school facilities are utilized,
the actual site costs would be minimal, perhaps $500 for
set-up and tear-down, transcription of minutes and security
assuming a four-hour meeting. The costs associated with
public notice mailings would be more substantial. A regular
public notice carried in the local newspaper would cost
-6-
around $100; a notice in the Santa Monica Seascape would, of
course, be free. Mailing of a separate notice letter to all
residential households in the City would cost approximately
$a,lOO for postage and materials. If commercial
establishments were included, these costs would increase by
about $430. Mailings targeted to a specific geographical
area would, of course, cost less ($.lS per household would
be a good general benchmark).
15. Civic AUditorium lrriaation System - Provide justification
for expenditures on the Auditorium irrigation system in light of
the fact that new development might be planned for the site in
the near future.
The original request for the Auditorium irrigation and
relandscaping ClP project was $102,000. This initial request
has been reduced to a $30,000 level which represents the
minimum amount of irrigation system replacement/repair which
is recommended by the Park Superintendent to deal with the
extensive deterioration of the system. The reduced amount
for this project is felt to be an appropriate investment as
as any deve1poment scenario would not affect this area for
at least three years.
16. Status of Zoninq violations by Brittalia Sports Car-
Provide an update on the current status of zoning enforcement
regarding the Brittalia Sports Car business on pico and 28th.
This business establishment has been cited on numerous
occasions in the past, and due to continued non-compliance
with required zoning restrictions charges against the owner
have been filed by the City Attorney's Office. Legal
proceedings are therefore pending at this time.
17. Water Oualitv in Santa Monica - Provide a report on the
status of water quality in Santa Monica and the reduction in the
City's reliance on water supplied from the MWO.
An information report on this topic has been attached as
Exhibit B.
-7-
18. Concrete Curina ComDound - Report on the use of white
concrete curing compound by City contractors who repair damaged
sidewalks, curbs and qutters.
"CUring compound" is a substance that is sprayed on fresh
conerete to prevent moisture from escaping too rapidly and
reducing the strength of the dried concrete. Most agencies
require pigmented as opposed to clear curing compound to be
used ~ecause it makes it easier for the Inspector to verify
its application since it is rarely possible for City
Inspectors to be at the job site when the material is
actually applied. The white coating also reflects a
considerable amount of sunlight and therfore decreases the
drying temperature of the concrete and reduces cracking.
The white curing compound is as readily available as the
clear curing compound and the price is typically either the
same or perhaps one-half cent per square feet more expensive
at the most. For a typical residential sidewalk jOb which is
5 feet wide by 20 feet long, the cost would be a maximum of
$.50 additional in the $400 total cost.
with regard to appearance, the compound is designed to
gradually disintegrate after about a month so it cannot be
seen. This feature, however, assumes that the substance was
properly applied. There does appear to be a couple of
locations in the City where the sprayer apparatus was
apparently not working properly and instead of a spray, the
compound material came out in drops about 2 inches in
diameter. This is the fault of the equipment and not the
product, and City staff will try to ensure that a similar
occurrence does not happen in the future.
~9. Fire and Police ;rn~erface - Examine the feasibility of
increasing the level of interface b~tween Police and Fire
personnel so that Fire personnel can potentially become extra
"eyes and ears" for detecting crime in process, problematic
homeless behavior, etc.
The Police Chief and the Fire Chief have consulted on this
issue and have arrived at a plan to schedule regular
meetings during the fiscal year which will include
Fire/Police staff officers, Watch Commanders, Platoon
Commanders and Unit Commanders in order to expand the level
of awareness and cooperation between the departments.
-8-
EXHIBIT A
SANTA MONICA HERITAGE MlJSECl\:1
MEMORANDUM
.
TO:
FROM:
RE:
DATE:
LYNNE BARRETTE
TOBI SMITH
BREAKDOWN FOR FUNDING REQUEST
MAY 22 t 1987
2612 Main Srrwt
San'" Monica
wli/vrnw90405 Fallowing is the breakdown for the $12.000.00 funding request:
(2J3J392853' YEARLY
ITEM: AMOUNT
1. Insurance - Building, general liabi11ty, etc. $5.000.00
2. Handicapped elevator monthly service charge @ $50.00 a mo. 600.00
3. Alarm monthly service charge @ $40.00 a mo. 480.00
4. C11mate Control equipment service charge @ $25.00 a mo. 300.00
5. Utilitles - Water, electric, gas & telephone 4,420.00
6. Trash pick-up @ $50.00 a mo. 600.00
7. Building maintenance @ $50.00 a mo. 600.00
$12,000.00
EXHIBIT B
GS:SS:EL:JH:a
May 29, 1987
Santa Monica, California
INFORMATION ITEM
To:
Mayor and City Council
From:
City staff
Subject:
Water Quality in Santa Monica
Introduction
This report provides requested information regarding "status of water
quality in Santa Monica and the reduction in the Cityts reliance on water
supplied from the MWD."
Background
Santa Monica water from both local and imported (MWD) sources complies
with, and the amounts of all requested compounds are far below, all state
and Federal regulatory standards.
The Water Division of the General Services Department and the consulting
firm of Kennedy/Jenks/Chilton are preparing an application to the South
Coast Air Quality Management District for a purification system (water
aeration facility) for locally produced groundwater. This proposed system
would remove organic contaminants from local well water and adsorb them on
activated carbon. No emission of organic contaminants to the environment
is anticipated.
Approval of the mitigation system will enable Santa Monica to utilize
additional proven local water supplies.
A groundwater investigation
program at the Airport and Marine Park (contract awarded May 26, 1987) will
show if additional supplies of groundwater are available within the City as
hypothesized in the current Water Master Plan.
f In FY 1986-87 the distribution of local and imported water is 47% and 53%
respectively.
The most optimistic
results
of
local
groundwater
investigations and development would allow the city to obtain approximately
60% of its average demand (lO million gallons per day) from local sources.
If AQMD permits are forthcoming and the investigations and development are
as great as anticipated, optimum local supplies can be realized by FY'
1991-92.
Prepared by: Stanley E. Scholl, Director of General services
Edward H. Lash, utilities Manager
John E. Hoagland, Administrative Water Engineer
(QUALITY)
~
;!tJ;t--oCJ/
':<30
h)vM./CE..
r.t!<<JX-E"'--
pi"
FI:CMD:mp/memo0330
May 12, 1987
Santa Monica, California
INFORl1ATION ITEM
TO:
Mayor and city council
FROM:
city staff
SUBJECT:
Increase in the utility User's and Transient Occupancy
Taxes in the FY 1987/88 Proposed city Budget
Introduction
This information report is being provided to you in response to
Council inquiries concerning the adequacy of current General Fund
revenues to maintain the existing level of services to the
citizens of Santa Monica next fiscal year. vllien presented with
the facts concerning the city's fiscal situation, council members
have indicated that they wish to generate additional revenues
rather than reduce service levels. As a result, the FY 1987/88
proposed City budget \.;ill include an increase in the city's
Utility Userls Tax rate from 5% to 8%, to be phased-in, one-half
in fiscal year 1987/88 and the other half in fiscal year 1988/89,
....
and the City I S Transient Occupancy Tax rate from 8% to 10%,
effective fiscal year 1987/88.
These increases will generate
$2.5 million in additional revenue in FY 1987-88 and an
additional $1.9 million in FY 198B-89.
This additional revenue will: a) provide continuation financing
into fiscal year 1987/88 and subsequent fiscal years for various
services approved by the Council over the last three and one-half
years, b) replace $1.1 million of General Revenue Sharing and
Community Development Block Grant funds lost to the city over the
- 1 -
..
last two fiscal years due to Federal cut-backs, and c) ensure the
city has the financial capability to respond to possible further
Federal funding cut backs and/or new mandates.
Background
In FY1983/84, after careful review of various revenue raising
options, council approved the phasing-in over two fiscal years of
a $2.6 million increase in city Business License taxes. This
additional funding was necessary in order to begin to address a
sizable capital infrastructure improvement backlog which had
buil t up due to Proposition 13, and to maintain City services
despite substantial cumulative state funding curtailments, a
vleakened economy, and maj or uncontrollable increases in health
insurance premiums and worker's compensation costs required by
state legislation.
Subsequently, as the fiscal relationship between the state and
local governments stabilized and the economy gradually improved,
Council began a multi-year effort to respond to major service
needs facing the City and to address various employee pay equity
issues. Highlights of major Council actions are:
Established a multi-year Capital Improvement Program
based on an in-depth assessment of the City'S long
neglected infrastructure needs.
Restructured the City's self-insurance programs in
response to soaring commercial insurance costs.
- 2 -
Ini tia ted asbestos removal procedures at the City's
main library.
Provided transition funding for the city's private
social services network as a result of the elimination
of Federal General Revenue Sharing and the curtailment
of other Federal funds.
Converted a number of long-standing
positions to permanent status.
temporary
Reclassified and up-graded clerical
schedules.
compensation
Continued competitive salaries for police personnel to
ensure the provision of high quality police services.
In addition, during the last three and a half years council has
taken the initiative in instituting additional services which
were deemed essential for maintaining the quality of life in the
city and which responded to specific citizen needs. Highlights
of these efforts are:
Increased the resources devoted to crime prevention
analysis and enforcement such as the initiation of a
motorcycle traffic unit, additional beach patrols, and
establishment of the Crime Prevention Community
outreach Program.
- 3 -
Planned and began the development of a park expansion
program which, to date, has included the Carousel,
Ocean Park and Cloverfield Parks.
Expanded security for the downtown parking structures.
Established the Park Ranger Service.
Provided services to the Frail Elderly and the
Homeless.
Developed
automation
programs.
and began
and the
implementation
police computer
of the
aided
library
dispatch
Established a City Arts program.
Implemented a major up-grading of the City I S basic
computer capabilities and support services.
Implemented various recommendations of the Task Force
on Latino Affairs concerning bilingual city
information services and recreational, cultural and
outreach programs.
Initiated the TORCA Homemmership Assistance Program
and various efforts to provide low/moderate income
housing.
Initiated an employee Child Care program.
Responded to the Santa Monica Unified
District's request for financial assistance.
School
- 4 -
Finally, council has also put into operation and continues to
financially support two non-profit corporations, the Pier
Restoration Corporation and the Third street Development
Corporation. These non-profit corporations are designed to focus
private sector abilities on the long term economic development of
two high priority community resources: the pier and the Downtown
Area.
During these three and one-half years, staff have carefully
scrutinized on-going costs and have pursued productivity
improvement efforts. However, despite these cost avoidance
techniques and in order to continue to finance City services,
last year it was necessary to utilize approximately $1.1 million
of General Fund reserves in order to adopt a balanced fiscal year
1986/87 General Fund budget. As was indicated in the letter of
transmittal for that budget, staff does not believe that it is
financially prudent to continue this practice. Further, there
are major fiscal uncertainties currently facing the city. The
President's budget, in addition to further cut-backs in community
Development Block Grant Funds, contains two policy changes which,
if adopted, represent Federal mandates that could have a
substantial financial impact on the city: a) the requirement
that all city employees be subject to the Federal Medicare
Program, and b) the proposal that cities no longer be exempt from
paying Federal gasoline taxes. If adopted these new Federal
mandates would increase city costs by approximately $.8
million/year, almost $.5 million of which would be in the General
Fund.
- 5 -
In light of these factors and since the Council does not wish to
curtail the current level of City services, it is necessary to
increase the City's ability to generate local on-going revenues
which are sufficient to finance on-going service operations.
Tax Increases Included in the FY 1987-88 proposed City Budget
During consideration of the fiscal year 1986/87 budget, staff
provided Council with a detailed report concerning revenue
enhancement options. A copy of this report is attached. Staff
has carefully reviel.<led all revenue enhancement options and has
taken into consideration Council's primary concerns that any tax
increases be reasonable and fairly applied, and that tax
collection procedures be efficient. Based on these criteria and
the funding needs now facing the city, the following tax
increases should be implemented.
Increase the City's Utility User's Tax from 5% to 8%,
but phase-in the increase over fiscal years 1987/88
and 1988/89. In effect, the tax rate would be 6 1/2%
for fiscal year 1987/88 and 8% for fiscal year
1988/89. These increases will generate approximately
$1. 8 million in additional on-going revenue for FY
1987-88 and at least $1.9 million for FY 1988-89. The
difference being due to an administrative phase-in for
the utilities during July 1987 when the current tax
rates will still be in place.
Increase the city's Transient Occupancy Tax from 8% to
10%, effective fiscal year 19B7/88. This increase
- 6 -
will generate approximately $.7 million in additional
annual revenue.
a) utility User's Tax Increase
The following table shaHs the current utility User's Tax rates
for various comparison cities:
City
Current Rate
Los Angeles
Beverly Hills
Culver City
Inglewood
Long Beach
Manhattan Beach
Redondo Beach
Torrance
10 %
-0-%
9.5 %
lO %
5 %
-0-%
5 %
6 %
As this table indicates, increasing Santa Monica's utility User's
Tax rate from 5% to 8% will place the City at approximately the
mid-range of tax rates currently used by those cities with which
the city has traditionally been compared.
Once fully implemented, staff estimates that the monthly utility
bill for the average homeowner will increase about $.40 each for
gas and electricity (data is not available from GTE to assess the
impact on telephone bills).
During the fiscal year 1987/88
phase-in period, the increase ~.;ill be about $.20 per month for
each utility.
Implementation of this tax increase will be quite efficient as
the utility company's have indicated it simply entails changing
the tax rate already built into their automated billing
procedures.
- 7 -
Since the city would continue to exempt income-eligible senior
citizens (62 or older) from paying any utility User's Tax, this
group would not be adversely affected by the proposed increase in
this tax.
Concerning the possibility previously discussed by the Council of
reducing the utility User's Tax rate for lifeline service for all
other users, staff does not recommend such a reduction. The
utility companies have indicated that to implement a lifeline tax
rate reduction would entail complex, lengthy and expensive
computer programming changes for which the City would be charged.
Moreover, if such a selective tax rate change was adopted, the
resulting net revenue increase would be insufficient to meet city
funding needs.
b) Transient Occupancy Tax Increase
The following table shows the current Transient Occupancy Tax
rates for those cities with which Santa Monica is usually
compared:
City Current Rate
Los Angeles 11 %
Beverly Hills 11 %
Culver city 8 %
Inglewood 9 %
Long Beach 7 %
Manhattan Beach 8.5 %
Redondo Beach 7 %
Torrance 9 %
Once again, increasing the city I s Transient Occupancy Tax rate
from 8% to 10% will place the city within the middle range of
rates charged by surrounding cities.
- 8 -
This tax rate adjustment will help to ensure that hotel/motel
visitors to the city contribute their fair share of the costs of
providing city services as well as the costs associated with
maintenance of the City's high quality environment.
This tax increase can be implemented with essentially no
additional administrative costs to the City and minimal costs to
the hotel/motel community.
Gann Limit Implications
staff's current projections indicate that implementation of these
tax increases will not result in the city exceeding its Gann
Limit for the next two fiscal years. However, during fiscal year
1988/89, it will be necessary for the City to seek voter approval
to continue the current Police and Protective services and
Capital Infrastructure overrides for an additional four years.
Staff therefore believes it would be prudent that as part of the
FY 1987-88 mid-year budget review, council review the status of
the City's Gann Limit in light of projected FY 1988-89 city tax
collections and the several major legislative and/or state
constitutional Gann limit-related changes which are currently
being developed for consideration by state voters during 1988.
Preparation of Implementing Ordinances
City staff are coordinating with the city Attorney so that as
part of the budget adoption process on June 16, 1987, Council
will hear for first reading ordinances necessary to implement the
tax increases set forth in this information report.
- 9 -
Prepared by: John Jalili, City Manager
Lynne Barrette, Assistant City Manager
Mike Dennis, Director of Finance
craig Perkins, Budget Coordinator
- 10 -
-
CMD:bp:supinfol Santa Monica, Callfornla
Hay 19, 1986
supplemental Budget Informatlon #6
TO:
Mayor and City Council
FROH:
city Staff
SUBJECT:
Revenue Enhancement Optlons
ThlS is to provide for discussion purposes a llst of revenue
enhancement options the Council could implement to ralse f~nds to
replace termlnated Federal funds w~ich we~e used to s~~~c~t the
Clty'S
social
services
programs.
The
pcss.:..ble
~ever:.ue
en~ar:.ce~ents are listed at Attac~ne~t A.
Backgr8a::d
0:1 January
lL
. ,
1986 and again 0:1 Fe::.ruary ~l,
:;"936 the Coune::..l
requested a ~enu of revenue e~har.ce~ents be ~~ese~t2d alcrs wi~~
the prc?osed FY~986-87 bu~get 1n or~er to prcvlce ?ederal
~eplace~ent
fundlng for the va~.:..cus nr~vate
s.-......, :::::. ""':
......--------
serVlce
agencles supported by the City.
~he amount or far:.ds re~u.:..red far
thls ?urpose is about $1.1 ~ill~on.
Ex~er~al Fiscal Constralnts a:1-:l. Rever....1e =:rl:a~ce:i1.er.:: Eval"Jatlor..
c::-.:.-:.~:-:.3.
To ass 1St. the Caunell in vlelgtnng ~::e relatl'f2 :I,e:::-1-:'5 0:: -:'~"e
varlOUS rever.ue e~hance~ent cptlons, sta:= belleves the fol~ow~r.g
exterr.a: fiscal ccnstralnts ar.d optlo~ evaluatlo~ crl~er:a shou~~
be ccns::..:::ered.
- 1
-- .
A.
External Fiscal Cor.straints
T\vo external f lscal matters
will have a direct bearlng on the council's ability to
implement some of the revenue enhancement optlons: the
newest Initiative froJ1 Howard Jarvls, the "Taxpayer's VotIng
Rights Acttl, WhlCh ,'/ill be on the Nove:r.ber 1986 ballot; ar.d
the restrictions of the city's Gann Limit.
1) 'Ihe t1Taxpayer I s Voting Rights Act" vlOuld remove the
authority of a city to inc~ease non-p~oper~y-related
general taxes WIthout a vote of lts citIzer.s. currently,
CIty co~ncils can raise ge~eral taxes by a ~a=or~~y
council vote as long as the resultl~g reve~ue is rec8r~ed
in the city's general fund a~d LS use~ for ge~eral
governmental purFoses.
If c~e :!...ill-:':"2.~=--';Te lS acc:'-8-.red 1:1
November, general pur~ose local tax Increases Wl:l not be
permitted
after A'.lg1:st 1,
1985 ,n t~out a
:ra ~ C:::-l-='l
... -
popular
vote, preceded by a 2/3r~s vote of t~e Clty CC~~Cl~ ~o
place the measure en the bal:!.ct.
Sar:.~a HC'::lca has not
lncreased any
local
taxes
S1.r:.ce
~1""""""'''''''::::-
....'-A.~_..--_
,
-,
1933,
so
no
poten~la1 problems 0= retroactlvl~Y curr2~tly eXIS~. I:
Santa Mon1ca were to increase such local taxes pr~cr to
~he Nove""ber 1935 elect:.ons, s'..:ccess :"..11 pa.sse.;e of the
Inl t:.atlve \.;c~2.d me.an that t~e ta:< ~r.c-re=.se T./culd :::e
cancelled unless it was ap9rcved by a s~cseq~er~ 2/3 ~ds
vote of the Ccur.cll to place tr.e maL~er or. ~~e ballet a.::d
by a ma]Orlty of the vc~ers be:ore Nove~ber 1953.
Furt~er, it aFpears that the Clty cou~d retaln a.::y
increased reve~ues collected betwee~ July 1936 3cd June
- 2 -
-
1987.
Based on the wording of the initiative, howeverJ
it is not clear whether the C1 ty would be requlred to
refund revenues collected from July 1987 to November 1988
as the init1ative does not address th1s time period.
2) The ab1lity of each C1ty to raise and spend tax revenues
may be restricted by its Gann Limit.
A C1.ty's l.nitial
Gann LimIt essentially cons1sted of total appropriations
financed from proceeds of taxes in FY1978-79.
Since
FY1978-79, each city's Gann Lunit has been allolded to
increase yearly by the product of the aC.~~a~ percentage
change 1n its popu~ation tl~es the lesser of the
percentage change in the Federal C?~ or State per caplta
personal
ineo:"e.
\Hth
.......
......e
aSslst':::':lCe
C:L
a c0n5~.11 tan~
wit~ special1zed exper~lse ~n Gann-related calcul~tlons,
staf.:
are
completely
revie'J/lng
a". 1
-~
Gan:1
Ll:nlt
calculations Slnce :Y1973-79.
staf.: ull~ s~or~ly adVlse
Councll co~cerning the Clty'S Fi 1936-87 Gahn Llm1t.
B. Ontlon
Evaluation
Cr!.::e~ia
S~~.p-t='
-......--
be].:e"1;.les
-:.nat
"the
follo1dlng
are
useful
C:"lte:::-la
fo~
e~fa~uatlI1-g
:::-ever,:..:.e
en~ance~e~t cDtions:
~eve~ua en~ance~e~~s
T ~ j..... ., ............
;.~" ..i.~........._L._
-'-~.--' ,"--
-- -..............-"- I
'/l.=~d
:::-22.a -:'1. ve~ 'f
la::-;e amounts of addlt.lo:-,,_al rever.:..:e, a::d ....'r.le:1 a.....'"
respons.:..ve to changes In ge:1eral eccno-:''1.lC COnc.lt.lons
should be preferred to one tl~e, rela~:velv s~all
dollar yie~d and sta=~c reve::~e e:1har.c2Jer~3.
-- Increased revenUes should be f:::-ee of use restr.:..ctlcns.
- 3 -
,-
-
Revenue enhancements which are unllkely to cause
changes in citlzen behavior are preferred, but if they
do lead to changesl those changes should be ccnslstent
wlth development I public safety or other goals of the
Clty.
Increasing revenues derived from non-residents may be
appropriate in order to ml tigate a net dralTI \vhich
they create upon ci~y resources.
A tax change shouldl if posslblel r.ake the tax more
prog::::-eSSlvei
the amount paid shou~d reflect the
ab::.lity to pay.
:~e ~~~ula~~ve tax bur~e~1
cc~s~der::.ng al~ lecal
taxes, should mee~ standards of reasonableness and
e::;:Ulty by be:Lng equivalent. far taxpayers In sHular
51.~:1a~:"Q:1S
ar:d
by
beH:g
apprc-prla-:.ely
dls~arate
bet'\reen
"taxpayers
;"Tho
recel.va.
a
subs~antially
dlfferent level of benefl~ f::::-am city services.
It should be relatlvely cost-effective fer staff to
l~ple~ent a~d collectl and f8r Cl.t::.zers to cor.pu~e and
-=:-..2
--.-...--........ ......
~ - ~
--"'-..--
2 :-::-:::.:-~:: o3:-~ 2:-~ -t. ..
Reccmrrerded Strategy
Eased C~ the external flscal cahs~::::-al~ts a~d revenue en~a~cement
e'ial '..:atl::Jn
crlteria
preser~ed
aCQ'P,.re /
st.2.::=
~eCC--":-'2~'::'S
the
fo::" :o'J:.r.g st:::-3. ':eq1 for p:::-::Jvld:nc; F'ede~3.2. r28:2. ~ce~'e'1:: ::"..lrd :.r;s fer
c~e c~t~'s sccial serVlceS prcg~a~s:
.
'"'
~
1) Adopt the proposed FY1986-37 budget which already reflects
inter1m fund1ng to continue the city's social services
programs.
2) Review the non-tax revenue enhancement opt1ons listed at
Attachment A to determine ':Hhich could be implemented for
FY1986-87.
3)
Consider
deferring
decisions
on
tax-related
revenue
e~ha~cements unt11 the results of the Nove~ber 1986 election
are. kncf...;n,
and
staff's
Ga~n
L~mit
1 .
an3_ys1s
has
been
cc~;:letelj.
P~e~a~e~ by: Jch~ Jallli, Cl~Y ~2~age~
~Ii:.c= Der:r:is I D.:..rector of Fi:la~ce
~!eganri.e Steele, Budget Dl~ectc!:'
- j -
~
Attachme~t A
Revenue Enhancement OatIons
I .
Increase Rates of Existina city Taxes/FranchIses/Etc. All tax
lncreases are SubJec~ to Gann iimIt and would be' subject to
provislons of the new Jarvis Initiative on Nov. 186 Ballot.
A. Increase Utility User Tax - Based on proJected tax revenues
of $6,232,500 fer FY 1986-87 (at the current 5% tax rate),
if the tax rate were increased by 1% point the addItional
gross revenue would be about $1,250,000. However, if the
tax rate on lIfeline usage was reduced to 3%, the net
additional revenue would be about $850,000. This net
Increase in revenue would result in a net Increase in the
average monthly honeowner's bill in Santa Monica by $.17
for electriclty, $.17 for gas and by an unknown a~ount for
telepeone (da~a 1S not available from GTE). Curre~t rates
=or c0mparIson cIties are:
Cltv
~
Current Rate
Los Angeles
Beverly hIlls
C~~ver C1ty
I~glew0od
Lc~g 3eac~
Ma"-hattan Seach
Redo~do Beach
10%
-0-
l~%*
10%
5%
-0-
~~
~c
Torrance
6%
~ Ra~e recen~ly ccar.ged to 9.5% ho\{ever effec~lve data
has not bee~ set.
Based or in=o~ation c~~~ently aval~able f~D~ t~e t~ree
pu~llc utllltles W~lC~ serVlce the Cl~Y of Santa ?l0nlca
(So~t~ern Callrornla EdIson, Southern Cal1rornIa Gas and
Ge~eral Telephone of CalifornIa) no other Clty ~as
esta~llshed dlfferentlal tax rates for life:lne usage.
?le~5e -o~e ~~=~ ~~ ~~==~~=~~~~~ ~3:: ~~~23 ~C~ ~~~c:~~2
se~v~ce were adc9tecl t~€re u~coub~ed~y ~ould be a~
Imple~entat~cn delay as t~e F~~l~c uti~l~les prepa~ed
compu~2r prog~amm~r;g to i~plemen~ t~e new ~ax rates.
B. ~nc~ease Pa~<irg Clta~lC' Flres - Sl~ce ~~ese oroceeds a~e
no~ taxes they are ~cc 5ubJec~ to Ga~~ l:mlt a~d would ~o~
be subJec~ to the prOViSIons of t~e new Ja~v:s Ir:tlat~ve
s~Guld It ?ass. Pa~~:r.g Cl~atlCr. f~nes a~e set ~y Clty
Cou~c:~ ac~:on. Slnce ~!e c~~=e~tly ~ssue a~ou~ 350,000
c~~a~~ons/Y~.f l~creas~~g f~~es by ~~e eq~~v~lent of
Sl.OOjcltatlon would YIeld $350,OCC;yr. less any cne-tl~e
lrnple~entat~on costs. Acdl~lc~al reve~ue :~ F~ 1936-37
would be about 1/2 thls a~our.t as I~ w:ll ta~3
- 1 -
--
approximately s~x months for the Court to ircrease ba~l
fees to match the city's new f~ne schedule and to re-prlnt
parking tlckets and other assoclated documents.
Of approximately 32,900 citations issued durlng ~Iarch 1986,
26,600 or about 80% were In the following maJor categories.
A comparison of current flne schedules In these ~aJor
citation categorles for nearby citles is as folIous:
Haior citation category
HC3326 HC3372 HC3373 HC3394A HC3237A
Dlsobedlence Red Zonel Street Pref.
Clty to Signs DrlVe\vav Cleanlng Heter parklng
-
Santa
Ifonlca 28.00 28.00 13.00 13.00 28.00
Harnat-;:an
Eeacj 13.00 13.00 13.00 8.00 *
Red8r.do
Beac~ 13.00 18.00 13.00 13.00 13.00(1)
Cl..:~ ver
Clty 26.00 28.00 13.00 13.00 13.00
;:er~osa
Ee~c2 13.CO 2G.OCJ 18.00 18.00 18.00(2)
T -_,............ :2e~::::-t l5.CJ 23.00 IS.CO 15.00 ><
_........La":;: I::g 1 a-deed 23.00 28.00 23.00 13.00 28.00(3)
E-e"{.j"e~ly
!-:l.lls 23.CO 13.00 28.00 13.00 13.00
Torra::-:ce * 18.00 13.00 * *
Los Ar:geles * 23.00 23.00 13.00 28.00
* Citles denlt lssue these types of cltatlons.
(1) Th1.S C1.t.y sells permits to park ~n des~gna::ed "I'c,:-a\BY Zones".
(2) T~lS c,-., sells pe~its to park 1:1 Ce~~aln ~etereQ a~e~s.
(3) T~is c l t.y sells pe:::-nn ts for "?eslcentlal ?arkln;" are3.5.
C. Increase the Co~do~lnlu~ CGr.versicn Tax - 7he curren~ tax
15 $1,008 per unlt when sold (~eN develc9~e~ts ard
conve~slor.s). I~ the tax were lncreased to 52,000 ?er U~lt
~;~~~ 5~:~1 ~~ a~~~tl~~a: $:S3,CCC ~C~:~ ~~ g~n~ra~~~ ~~=l~g
EY 1536-37, at minlmal ad7L~n~s~ratlve cost.
D. Increase the Transien~ Occ~~ancv Tax - Curre~t rate 1.s 8%;
a 1% pOlnt l~crease wc~ld Yleld a~out $300,OCO/yr. at
current h~mber of hotel rooms (not lnclud~ng t~cse under 30
day exempclen) at mlnlmal ad~lnlstratlve costs. C~rren~
rates for CC~?a=lson cities a~e:
- 2 -
-
City
Current Rate
Los Angeles
Beverly Hills
Culver city
Inglewood
Long Beach
Hanhattan Beach
Redondo Beach
Torrance
11%
7%
8%
9%
7%
7.5%
7%
8%
II. Establish New Revenue Sources
A. I~olement Ne~ Franchise Fees - Proceeds are not subJect to
Gann llID1t or to prov1sions of new Jarvis lnltlative should
it pass. Charge franchIse fees to taxicab cc~panles,
a~bulance companies, and/or the Clty water ce~pany. Total
potentlal reven~es from private sources are unknewn however
a 1% f~anchise fee for water would yield about S50,OOO/yr.
Llsted below are the local clties which have established a
f~ar.c~lse fee for their water system:
C : t '.{
Fr2.r-c!iise FoCI
Burbank
Fulle:-ton
Glendale
Ingle'JlOcd
Cr:t3.:-10
P3.saaer-toa
San nerna~dlno
I'orrance
5%
10%
15%
2%
6%
18%
10%
4%
3. I~stltute a~ Admisslors Tax - ?rocee~s we~ld be Gannable
a~d sub:ecc to the new JarVIS InIclat~ve should lt pass.
An ad~lsslens tax 15 l~pesed on the cons~mer for the
prlvilege of atte~dlng ahY show, performance, dlsplay or
eX~lb:~lGn. The tax can be levled at elther a =lat ~ate
ra~Sl~g fro~ $.02 to $.SOjtlcket, percentage of the
a~~:ss18r p~:cei ~~ S~~~ S~~~ ~: s:~=~~; ~~~~2. ~~~ ~~~ ~~
l~cluced l~ t~e price 0= Lhe ~lckeL a~d ~s collec~ed by t~e
tl~ket seller. C~rren~ly, there are fl=tee~ theaters or
halls l~censed by t~e c~ty whose cpera~io~s co~ld come
under an admlss1or-S tax. In addltlc~, ad~15s:ons to the
C:V1C A~dltarlum could come u~der thlS ne~ tax. Rough
reven~e estl~ate, i~cludirg ad~lsslons to the CIV:C
Aud:.t.8rl'-l'"1, aSS'-l~l;lg a $.25 t:.ax per tL::'<.et T..;culd. ze
$2CO,CCO to $250/CCO/y~. Ad~~nls~ra~~v= c~s~s would be
~lncr orce a collectlons sysce~ :'5 set U?
c= our lecal grou?s of cc~parisQn Cl~les (~cs Argeles,
Eeverly Rills, Culver C:ty, Ing:e~ocd, Long 5eac~,
Ma~hatta~ Beach, Redondo Eeach a~d ~or=ance) only I~gle~ood
- 3 -
--
@ $.45jadmlssion and Hanhattan Beach @ the greater of 8% or
$.35/admisslon uses an admlSSlons tax.
C. Institute a Parklng Tax - Proceeds would be Gannable and
subject to the new JarV1S initlate should lt pass. A
parking tax is imposed on the occupant of a parklng space
for the prlvilege of renting the parklng space. The tax is
based on a percentage of the amount charged for parking.
Currently, there are 46 prlvately llcensed auto parklng
lots ln the city. The exact number of parking spots
represented by these lots is unknown; but assu~lr.g the
average lot has about 100 spaces and a tax of 10% of the
gross proceeds is instltuted, a rough revenue estimate
would be from $300,OOO-$600,OOOjyr.
Of our local group of comparison cities, only Inglewood @
$. IS/vehicle uses a parking tax.
D. Ins~ltute a Non-A~ Valore~ Property Tax - Proceeds would be
Gan~able and subject to the new Jarvls lnitlatlve s~culd i~
pass. These taxes are closely akln to beneflt assessmencs
a~d are based on the Slze of the parcel (square footage,
f~ont footage, or acreage) or on ownershlp. Such a tax,
mus~ be establlshed an the basis of a 2/3 rds voter
a~9~oval If the ?rcceeds a~e to be used fc~ a s?eclf~c
pu~;cse or by ac~:o~ of t~e Clty Councll If the proceeds go
to ~he General Fund and are for general Cl~Y use. For
exa~ple In 1980 and 1982, the city of Palos Verdes ~states
levled a per parcel tax (@$82jparcel) by voter approval. A
$lOjparcel tax In Santa Monlca would Yleld about
Sl90,OOOjyear. Associated start up ad~lnlstratlve costs
could be substantial. Fo~ rental pro?er~~esl ~t lS assumed
t~at the Rent Control Board ~ould allo~ a pass thro~gh to
re~~ers of tnelr proportionate share of t~e tax.
E. Ot~er General (Far~ell Aut~crity) or S~ecial Iaxes (~.g~
fo~ suc~ t~i~9s as general m~~ic~~al servLces! ?ubllC
~~-l'lt. '8- Da~~-ea',~ ~~1,c~ r- re S~~C~~- a~d -
..L _ ,,-.1 _....L .::a. ( " ..... ..... +H _ ....... S l ...... v... _ _, l , l......:.. _ _ l,.. ~ "..'
s:dewal~s.) Proceeds would be Gannable ard sU~Ject to new
Jarv~s lnitiatlve should it pass. Charter Clties have
broad taxir.g authorlty, lin~ted only by various S~ate
Ccnst~tut~onal prOV~Slcns, thei~ own charters and the
rioC1:.::"lr'le of 5::a~2."::'=-2 2..";"".~2res~. A ge:-:e:t'"3.1 t.ax can be
l7posed by Councll actlon whIle soeclal ~axe5 req~:~2 ~i J
rds voter approval.
F. Establlsh a Mello-Roes Sueclal Dlstrict and Tax - Proceeds
. -
WCUlG De eutslde the CltylS nor~al Gann l~~:t as the
distrlct would have its ow~ Gann limIt WhlCh is set ac the
~~~e the s?eclal dlstrlc~ 1S escabllshed, and w~~~d noe be
SUbJect to prOVls~ons of new Ja~V1S lDlc:atlve s~ould It
~ass~ T~e dlstrlct a~d assccla~ed tax can be es~ab:lshed
by a 2/3rds Vcte~ a~prcva~ to fl~a~ce ce~t~~n t~pes cf
~Gbl~c serVIces ar.d/or pujl~c :ac~l~tles provlded they are
l~ acdltlon to the se~Vlces prQvlded to the a~e~ before the
d15tr~c= was es~abllshed and prov:ded that t~e ne~ serV1ces
,
...
~
.'
.
.
are not a substitute for services already avallable, and/or
provIded the new facl1ity must be assocIated Hlth the needs
that arise from the 1ncreased serVlce reqUIrements
resulting from growth in the distrIct. A !lello-Roos
special district and tax is usually used in developIng
areas.
speclfic el~gible facilitles and serv~ces are:
A. CaPItal Improvements - A dIstrict can provide for the
purchase, constructlon, expansion or rehabIlitation of any
real or other tangIble property WIth an estImated useful
life of five years or more necessary to Fleet lncreased
demands resulting from development or rehabllltatlon
occurring within the district. In additlon to direct
construction and acquisItion costs, a dlstrlct can finance
the related costs of plann1ng, design, land, rig~ts of way
a~d easelents. Public itprovements appllcable to the CIty
of Santa tlonlca that can be flnanced include:
o Local park, recreation and parkway faCIlities;
o
Llbrarle5;
~
~
A~y o~her gover~~e~tal facIlitles t:hic~ the leglslatlve
body c~ea~~ng t~e d1s~r~c~ 1S a~t~c~lzed by :a./ to
cc~struct, own or oparate.
3. PublIC Services - A district can provlde a 11TIlted
nu~ber of ongc~~g publ~c serv~ces. ~hese can be prov~ded
cnly to the extent t~ey are in acdltlon to the se~Vices
prov~ded to the area before t~e dis~ric~ ~as es~ablished
a~d ~ay ~ot subst1tute for services al~eady ava~laDle.
Ellg~~le serVlces appllcable to the Cl~Y of Santa Honica
are:
c Police prctect~on services, including cri~lnal Justice
servlces s~ch as ja1ls.
o Flre protection and suppressIo~ serVIces.
o Ambulance and para~edIc SerVIces.
o Recrea~lcn progra~ serVices and the ogeratlor and
ma1~~2nance of ;ar~s and park~ays.
o The cpe~aticn a~d maintenance of stcr~ dralnaqe
systems.
service ex?e~ditures t~at ca~ be f~na~ced ~:~~ ~re:lc-~cos
~nclude c~e pe~fo~ma~ce by e~plcyee5 o~ c;e~a~~c~s,
~alr~er.a~ce, and rs?air actlvltles.
C. Adnlrls~ra~ive CGS~S - T~e costs of c~eati~g a~d
ad~inlst=rlr.g t~e dlst~lc~, de~e~~lnlrg a~d ccllect~~g t~e
- 5 -