Staff recommends that the City Council adopt a resolution calling an election and submitting the consideration of an eight-year extension of Measure QQ, an existing voter-approved local public safety services tax, with adjustments to account for inflation, to the voters at the March 3, 2020 election.  The public safety parcel tax has been a vital source of funding for police, fire and youth and family services for the last 16 years. The City is currently managing an annual budget shortfall of $3.5 million per year due to a long-term structural deficit to the general fund. Loss of funding from the public safety parcel tax would result in a significant impact to the City by adding a $4.3 million budget shortfall to public safety services. While the City Council directed staff regarding the potential rate, duration and inflationary factor for the proposed extension of Measure QQ at the October 22, 2019 City Council meeting, members of the City Council subsequently expressed interest in different rates and a different ongoing inflationary factor during the informational item at the November 12, 2019 City Council meeting.  Staff recommends that the City Council adopt the resolution and provide the necessary terms regarding the proposed extension of Measure QQ.

The following is a history of the voter-approved public safety parcel tax measures.

Union City voters first approved Measure K by 68.9% at the March 2, 2004 election after the City Council adopted a resolution to place the measure for voter consideration.  Measure K provided revenue for police and fire protection services for five years. 

Subsequently, in August 2008, the City Council adopted a resolution placing Measure UU for voter consideration at the November 4, 2008 election.  Measure UU was an eight-year extension and enhancement (to provide funding for youth and family services) of Measure K.  At the election, 73.25% of the voters of Union City approved Measure UU.

In July 2016, the City Council placed Measure QQ on the ballot for the November 4, 2016 election.  Measure QQ was an eight-year extension of Measure UU.  At the election, 78.16% of Union City voters approved Measure QQ.

Measure QQ currently generates approximately $4.3 million in revenue per year.  Measure QQ, absent an extension, is scheduled to expire on June 30, 2021. The loss of this funding could result in the elimination of and significant reductions to public safety services, including:

• Elimination of youth and family service programs
• Elimination of traffic enforcement unit
• Elimination of parking enforcement program
• Reductions in routine and directed neighborhood patrols
• Reductions in investigative follow-up on property crimes (i.e. auto burglaries, fraud/forgery, identity theft, etc.)
• Lack of police responding to residential/business alarms
• Lack of investigating non-injury collisions
• Lack of ability to respond to quality of life issues, animal control, and homelessness
• Implementation of 24-hour shift brown outs of fire stations
• Increased response time to emergency and non-emergency calls for service

The gravity of this scenario would be severe to the City’s fiscal stability and would also result in significant impacts to other City services.

Consistent with the City Council’s adopted Strategic Plan, staff asked the City Council to consider placement of a measure to renew this funding in order to maintain police, fire and youth and family services. 

The City Council adopted its five-year Strategic Plan in October 2019. Out of the 59 strategies identified in the plan, the following strategies align with the City Council’s decision to renew local public safety funding through placement of a public safety parcel tax measure on the March 3, 2020 ballot:

Goal A, Strategy 2: Determine the level of reauthorization of the public safety parcel tax and develop an informational plan.

Goal C, Strategy 13: Align public safety services with community needs based on data driven decision-making approaches.

If the voters approve an extension of the public safety parcel tax, the additional funding could allow the City to pursue the following Strategic Plan strategies:

Goal C, Strategy 3: Develop a multi-departmental approach to address homelessness through coordination with staff, community organizations and Alameda County.

Goal E: Build strong connections with community partners, residents and employees.

Staff retained TBWB Strategies to advise the City regarding the feasibility of a successor ballot measure to Measure QQ in 2020.  Staff also retained Godbe Research to perform public opinion polling regarding “likely voter” survey data. 

Below is a summary of the presentations to the City Council and actions of the City Council relating to the proposed extension of Measure QQ:

1. City Council Meeting – October 22, 2019: Staff presented a report to the City Council seeking direction regarding the terms of a potential successor measure for the public safety parcel tax.  The report provided historical information related to the prior public safety tax measures placed before the voters.  Additionally staff provided the results of professionally prepared, scientific polling to the City Council and sought direction regarding placement of a potential successor measure to Measure QQ to the voters at the March 2020 election.  The City Council provided direction to return with a resolution placing a successor measure before the voters at the March 2020 election for an eight-year extension with modifications to the rate schedule with a rate of $175 per year for the most common residential parcel (with other rates adjusted by the same factor), and with annual inflationary adjustments at 3% or CPI, whichever is higher. 

1. City Council Meeting – November 12, 2019: After the October 22 City Council meeting, staff received additional individual requests for information from Councilmembers on a variety of matters regarding the public safety parcel tax.  Staff presented this information to the City Council to allow for a full discussion of these topics.  The informational report provided details regarding: the impact of inflation on the public safety parcel tax; the fiscal impact of $175 per most common parcel tax rate on police services; the benefits an eight year term for the City’s fiscal stability; the impact of the City Council’s direction on the City’s ability to achieve the City Council’s priorities identified in the City’s Strategic Plan.  Solely as an informational report, staff did not seek additional direction. However, some Councilmembers indicated support for a different rate for the successor measure of $168 per most common parcel tax rate and a flat inflation adjustment of 3% annually.  Attached is a rate schedule showing a rate of $168 per year for the most common residential parcel (with other rates adjusted by the same factor) for reference.

Consistent with past practice, the City conducted a community survey to learn from the public about their public safety priorities. The goal of this survey is to reinforce the results of the scientific poll that was carried out in late summer. The City launched the survey in September 2019, first, via a citywide mailer and then online on the City’s social media pages and to e-mail subscribers.  The City also placed a link to the survey on the City’s website at www.unioncity.org/publicsafety. The survey asked that respondents rank public safety services by order of low priority, medium priority and high priority. A total of 280 people who identified themselves as having Union City addresses responded. Below are the results of those that marked the identified public safety services as high priority:

• Preserve rapid 911 emergency response and disaster preparedness (88%)
• Protect student safety at Union City’s public schools (64%)
• Continue youth violence prevention and gang intervention programs (63%)
• Maintain neighborhood police patrols (79%)
• Prevent additional fire station closures and reduction in on-duty firefighters and paramedics (68%)

In addition, questions and comments sent into the City through this survey are attached to this staff report.

Pursuant to prior City Council direction on October 22, 2019, attached to this report is a Proposed Resolution calling an election and submitting an eight-year extension of Measure QQ to the voters at the March 3, 2020 election. The Proposed Resolution establishes a most common parcel tax rate of $175 annually with annual inflation at 3% or CPI, whichever is higher.  The City Council can modify the terms of the Proposed Resolution as it deems necessary, however, this is the final City Council meeting where the City Council can adopt the resolution with sufficient time for placement on the March 2020 ballot.  Should the Council elect to adopt the Proposed Resolution (or modify and adopt it), the following election timeline would apply:

1. November 26, 2019: Council adopts the Proposed Resolution calling an election and placing the extension of Measure QQ on the ballot. 
2. December 10, 2019: Direct arguments for or against the Proposed Measure due no later than 11:00 a.m. (Elections Code sections 9282, 9286.)
3. December 20, 2019: Rebuttal arguments due no later than 11:00 a.m.  (Elections Code section 9285.)
4. March 3, 2020: Election.

If the City Council elects to adopt the Proposed Resolution, the City Council may designate up to two Council members to draft and submit the ballot argument in favor of the measure and to draft the rebuttal argument to any argument against the measure.

The Proposed Resolution also authorizes the City Council to sign the argument and rebuttal.

If the City Council votes to place the public safety parcel tax measure on the March 2020 ballot, the City will proceed with an educational information process to inform residents about the ballot measure. The cost of carrying out this process is detailed in a subsequent agenda item at the November 26, 2019 City Council meeting.

The current public safety parcel tax is set to expire in June 2021. If the voters approve the measure placed on the March 2020 ballot, the new eight-year term will continue to provide public safety services funding through to the end of Fiscal Year 2028/2029.

If voters approve the public safety parcel tax at a new tax rate of $175 for a common sized parcel, it could cumulatively generate $20.6 million in four years, or approximately $500,000 more annually. The City Council can determine how to allocate funds from the public safety parcel tax; but, for illustrative purposes, it could fund two additional police officers, which could supplement 26 more patrol shifts a month, in addition to possibly allowing for the Police Department to designate police officers to address ongoing issues with homelessness.  

The City currently is managing a long-term structural deficit to the General Fund with an annual budget shortfall of $3.5 million a year. This has resulted in significant reductions in funding over the last few years to public safety and other city services.

If voters do not approve the public safety parcel tax measure in March, the City Council could consider placing another measure on the November 2020 ballot.  However, with this funding uncertainty, the City Council would need to begin planning for new budget reductions of approximately $4.3 million that may be needed (on top of the $3.5 million annual shortfall).  The loss of the public safety parcel tax funding will severely and negatively impact the FY 21/22-22/23 budget.

The City Council has inquired regarding the budgetary impacts of potential revenue from current and planned economic development initiatives.  The impact of such development is not and will not be enough to resolve the loss of funding from the public safety parcel tax.  In addition, the growth that will be seen by some of these initiatives will increase the demand on public safety.

The current estimated cost for placing the public safety parcel tax measure on the March 3, 2020 ballot is approximately $150,000, though that amount may fluctuate depending on whether other jurisdictions elect to place measures for voter consideration within Alameda County.  The City Clerk has budgeted for the primary March 2020 election and there is no impact to the General Fund.

Staff recommends that the City Council:

1. Conduct a public hearing.
2. Consistent with past direction, adopt the Proposed Resolution that establishes an eight-year term, an annual parcel tax rate of $175 for the most common residential parcel, and an annual inflation rate of 3% or CPI, whichever is higher; or modify the Proposed Resolution if desired, submitting the Proposed Measure to the voters at the election on March 3, 2020.
3. Designate the person(s) responsible for preparing and submitting the ballot argument and rebuttal in favor of the extension of Measure QQ.