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ADOPT RESOLUTION PLACING A FUNDING PROPOSAL FOR CITY OF STOCKTON LIBRARY AND RECREATION SERVICES ON THE NOVEMBER 8, 2016 BALLOT
recommended action
RECOMMENDATION
Adopt a resolution submitting to the City of Stockton qualified voters a ballot measure seeking voter approval of a special transactions and use sales tax of one-quarter cent for 16 years, for the provision of library and recreation services; requesting the San Joaquin County Board of Supervisors to direct the County Registrar of Voters to conduct the election, which shall be consolidated with the general municipal election on November 8, 2016; directing the City Attorney to prepare an impartial analysis of the measure; authorizing arguments and the filing of rebuttal arguments for or against the measure; authorizing the City Manager to appropriate the funds necessary to pay the cost of placing the measure on the election ballot; and directing the City Clerk to take steps necessary to place the measure on the ballot and to cause the measure or ordinance to be printed.
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Summary
An ad hoc volunteer citizens group formed in 2014 with the purpose of making residents aware of the inadequate level of library services in Stockton. As a result of the Great Recession and municipal bankruptcy, the Community Services Department suffered a 50% loss in full-time staff. Library and recreation services were significantly reduced, resulting in reduced library and community center hours, loss of programs for youth, reductions in materials budgets, and the closure of library and recreation facilities. With no immediate prospect of additional revenues from traditional sources, the ad hoc group considered the feasibility of a voter-approved measure to raise revenues for library and recreation services where all funds stay local and can’t be taken by the State.
It is clear that the community values a reliable, fiscally accountable, ongoing source of locally-controlled funding for the following community library and recreational priorities:
• Providing a safe place for after-school programs for children and teens
• Providing literacy programs
• Enhancing evening and weekend hours at libraries and recreation centers
• Supporting children’s story times and sports programs
• Supporting cultural programs and classes such as arts and crafts, music and dance
At the request of the ad hoc citizens group, City staff provided information and draft ordinance language in the event such a measure was presented to the voters.
The previously reviewed and approved ballot language reads:
“Shall the Ordinance ___________ enhance Stockton’s library and recreation services, including safe after-school and summer programs for children and teens, homework centers, children’s story times, increased public computer access/wireless connectivity, and enhanced evening and weekend hours at libraries and recreation centers, funded by a 1/4-cent transaction and use (sales) tax, generating $9 million annually for 16 years, with all funds staying local and expenditures subject to an annual audit be adopted?“
Staff is presenting a recommendation on behalf of the citizen group Strong Libraries=Strong Communities, requesting the City Council to place the proposed measure before voters on the November 8, 2016 ballot.
If approved the measure will go into effect, per California State Board of Equalization policy, on April 1, 2017. The measure will sunset on April 1, 2033. Revenues from the measure will be placed in a separate City fund in order to ensure that they are spent according to the ordinance and expenditure goals outlining fund uses as identified in this staff report.
A seven-member Citizens’ Advisory Committee will be created to meet annually and review the expenditure of measure revenues and to make recommendations to the City Council regarding those expenditures. Members of the Committee will be appointed to two year terms by the City Council. Committee members may simultaneously serve on other City committees or commissions. The Friends of the Stockton Library, Library and Literacy Foundation of San Joaquin, Stockton Parks and Recreation Commission and the Stockton Parks and Recreation Foundation shall each have the opportunity to recommend candidates for the Committee to the City Council. In no event may the Committee include more than two (2) members of each of the aforementioned groups.
The City will not use the proceeds of the measure to replace general fund revenues used for local library and recreation services. Following passage of this ordinance, absent a condition of economic downturn, the City agrees to commit general fund revenue to local library and recreation services in an amount not less than the amount committed for the 2014/2015 fiscal year. In the event of an economic downturn, a reduction in general fund revenue for local library and recreation services may be considered but only one that is proportional to the reduction in City general fund revenues and is based on the 2014/2015 fiscal year level of support.
In addition, expenditures from the fund will be audited annually by an independent accounting firm, the results discussed at a City Council meeting, and posted on the City website.
DISCUSSION
Background
The impact of the Great Recession and subsequent municipal bankruptcy has taken a heavy toll on City services, particularly library and recreation services. This includes a 48% reduction in Library open hours, the closure of a library branch, a 20% reduction in open hours at Community Centers and the closure of two municipal pools providing recreation and after-school programs to children. Full-time staff that support the operations and provide services was also reduced by 50% throughout the Community Services Department.
Even prior to these difficulties, there was, and continues to be a lack of library and recreation facilities to meet the needs of our residents. The City is unable to provide consistent and adequate programs for youth, and continues to lag behind other Cities. For example, data from the California State Library shows that the Stockton San Joaquin County Library System spends only $15 per resident on library services compared to the State average of $50 per resident. Total library square footage per capita also lags behind, with only 0.25 square feet per resident compared to the State average of 0.72.
The Recreation Division is in a similar position. According to the Trust for Public Land ParkScore rankings, Stockton ranks 64 out of the 75 largest metropolitan areas in the United States for its parks and recreation services. Stockton also has 0.4 community centers per 20,000 residents, 50% below the national average of 0.84. A comparison of spending per capita with other cities in Northern California for both library and recreation illustrates where Stockton falls:
|
City |
Per Capita Library Spending |
Per Capita Parks and Recreation Spending |
|
Oakland |
$61 |
$143 |
|
Sacramento |
$24 |
$146 |
|
San Francisco |
$130 |
$229 |
|
San Jose |
$35 |
$127 |
|
Stockton |
$15 |
$33 |
Source: California State Library, Trust for Public Land, City of Stockton Operating Budget
With the City’s exit from bankruptcy in 2016 and the implementation of a Long Range Financial Plan to keep the City on track in meeting financial obligations, a solid foundation has been laid for the future. However, even with this groundwork in place, demand for City services continues to outpace the resources available to provide them. A growing population, lack of public facilities, low literacy rates, high obesity rates, public safety concerns and overall poor outcomes for many segments of the Stockton community will remain challenges for the foreseeable future.
Given these challenges, an ad hoc volunteer citizens group, Strong Libraries=Strong Communities, formed in 2014 to raise awareness of the need for library services and to advocate for more funding.
Current California law allows local municipalities to levy transaction and use sales taxes for specific purposes provided they meet certain qualifications. These include that the tax be levied in multiples of .125 per cent, that it is approved by 2/3 of qualified voters voting in the election, that it only be used for the purposes specified in the measure and that the tax conforms to the Transactions and Use Tax Law. The law prohibits the total municipal sales tax from exceeding 10%. The City of Stockton sales tax rate is currently 9%. If this ballot measure were approved, the City’s sales tax rate would increase to 9.25%.
This report presents a recommendation to place a local funding measure before the voters on November 8, 2016. Its purpose will be to provide resources specifically dedicated to improving library and recreation services within the City of Stockton. The recommended action will give voters an opportunity to consider approving revenues necessary for the City to adequately meet citizen needs and provide a level of service that can result in significant economic, social, and public safety benefits. Chief among these are the ability to offer longer hours on weekends and evenings at libraries and community centers, restore service to the Fair Oaks Library, giving young people a safe place to gather and programs to help them succeed and stay on track. Educational and recreational programs such as literacy, homework centers, and after-school athletics would also be increased to strengthen the social fabric of the City and result in a more educated and well--served community. The City would be able to invest in new facilities, especially in areas where services are currently lacking. The expenditure goals outlining uses for the funds are identified in the staff report that follows under the section entitled “Library and Recreation Local Funding Expenditure Plan.” If the measure is approved, staff will return to the City Council and present a detailed forecast and estimates for executing the current goals for measure revenues.
The alternative is that services will remain at their current level, with little opportunity to meet the pent up demand that has increased as development has occurred and services reduced.
Significant research from both the academic and government sectors also indicates a strong correlation between library and recreation services and reduced crime.
For example, the Centers for Disease Control Division of Violence Prevention has published a study identifying several strategies that have proven successful in improving lives of at-risk youth. These specifically discuss both library and recreation services as part of a multi-pronged community approach that includes the following:
• Build children’s and adolescents’ skills and competencies to choose nonviolent, safe behaviors.
• Build and maintain positive relationships between young people and caring adults in their community.
• Improve and sustain a safe physical environment in communities and create spaces to strengthen social relationships.
• Build viable and stable communities by promoting economic opportunities and growth.
• Facilitate the social cohesion and collective efficacy of the community.
Source: Preventing Youth Violence: Opportunities for Action. U.S. Centers for Disease Control and Prevention, 2014
Ballot Measure Timeline
|
City Council approval of ballot measure |
May 24, 2016 |
|
San Joaquin County Consideration |
On or before August 9, 2016 |
|
Election date |
November 8, 2016 |
Timeline for Implementation if Approved
|
Effective date of Ordinance |
November 9, 2016 |
|
Operative Date of new tax rate |
April 1, 2017 |
|
First quarterly payment received by the City |
September 2017 |
Summary of Key Provisions of the Measure
• ¼ cent Sales tax, beginning April 1, 2017 approved by 2/3 of qualified voters.
• Generating an estimated $9 million per year.
• In effect for 16 years, sunsetting on April 1, 2033.
• Establishing of a seven-member Citizen Oversight committee appointed by the City Council.
• Requires annual independent audit of the fund with results discussed at a City Council meeting and made available for public review.
• City maintenance of effort commensurate with the 2014/2015 level of General Fund support for library and recreation services.
Library and Recreation Local Funding Expenditure Plan
Proceeds from this local funding measure will be deposited into the City Treasury in a special fund entitled "Library and Recreation Special Measure Fund.” The revenues collected will be used only to supplement existing revenue collected for Library and Recreation services and shall not be used to supplant existing funding.
Monies deposited into the Fund, together with any interest that accrues will be used exclusively for library and recreation purposes, including preserving and expanding existing library and recreation programs; re-opening and upgrading facilities, services, and collections; and extending services to the unserved and under-served areas of the City. Expenditures are intended to provide the residents of Stockton with vital, quality educational and recreational services comparable to those operated in other communities.
Priorities for which the revenues from the measure will be expended include:
• Enhancing evening and weekend hours at all City libraries and community centers, and keeping them open at least six days per week.
• Opening Fair Oaks Library at least six days per week.
• There will be increased programming for youth at Libraries and Community Centers such as children’s storytimes, Science Technology Engineering and Math (STEM) education, literacy programs, Library after-school programs for children and teens, athletics, and arts programs.
• Establish two additional multi-purpose community facilities in North Stockton with both library and recreation services.
• Up to three existing facilities will be upgraded to include multipurpose Library/Community Centers.
• One additional regional sports complex will be established to provide enhanced recreation and after-school programs for kids.
• Funding will be made available for upgrades and improvements to Community Services facilities providing tutoring, recreation and after-school programs, among others.
• A 20% reserve will be established, consistent with the City’s reserve policy to insure fiscal stability.
FINANCIAL SUMMARY
Placing this measure on the ballot will require an estimated expenditure of $60,000. If approved, the measure will raise approximately $9 million dollars per year for 16 years. The City would also agree to a maintenance of effort commensurate with the level of General Fund support for library and recreation services budgeted in fiscal year 2014/2015. A reduction in general fund revenue budgeted for local library and recreation services below the 2014/15 level in response to an economic downturn will be allowable so long as the reduction in a given year is proportional to the reduction in City general fund revenues. Revenues would be collected beginning April 1, 2017. The first quarterly payment, estimated at $2.25 million will be received by the City in September 2017.