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HomeMy WebLinkAboutA21 Transparency in Fiscal Analysis of Bond, Assessments, and Tax Measures CITY COUNCIL POLICY SUBJECT: TRANSPARENCY IN FISCAL ANALYSIS OF BOND, NO.: A-21 ASSESSMENTS, AND TAX MEASURES PURPOSE: To establish a policy requiring information regarding the financial impact of proposed bond, assessments, and tax measures on Mountain View residents or taxpayers when the City Council is requested to take a position on such measures that will be submitted for voter approval and such endorsement requests meet the requirements of City Council Policy A-16, "Endorsements of Ballot Measures," or when the bond or tax measure is initiated by the City. POLICY: 1. The City of Mountain View recognizes that from time to time the City Council may be requested to take a position on ballot measures regarding local, State, and Federal issues. Policy A-16, “Endorsements of Ballot Measures,” restricts when such requests shall be considered. When the City Council is requested to endorse a bond or assessment or tax ballot measure that meets the restrictions of Policy A- 16 or when such a measure is initiated by the City prior to taking a position, it shall be City Council policy to request and review information about the financial impact on Mountain View residents or taxpayers. This information shall be clearly and transparently provided to the City Council according to the requirements of this policy in order for the City Council to make an informed decision on such a measure. 2. Financial impact information provided to the City Council, while maintaining confidentiality to individual taxpayers, shall be as follows: a. Incremental financial impact of the measure on residents or taxpayers, showing the largest, median, and lowest increased assessment or tax to persons or businesses incurring the assessment or tax increase. For example, a bond measure that will raise property tax rates should provide information on the incremental increase to the owner of the highest assessed value property in Mountain View, the median assessed value property, and the lowest; b. For other types of tax measures, such as sales tax or Transient Occupancy Tax, best efforts will be made to provide a similar range of information Page 1 of 2 CITY COUNCIL POLICY SUBJECT: TRANSPARENCY IN FISCAL ANALYSIS OF BOND, NO.: A-21 ASSESSMENTS, AND TAX MEASURES demonstrating the financial impact on taxpayers under the existing tax rate/ structure compared to if the proposed measure were approved. For example, a sales tax increase will have a direct impact on purchasers and an indirect impact on sellers. The financial impact information for this type of tax might include the highest, median, and lowest amount remitted by an entity to the City, not necessarily the amount remitted by an individual taxpayer. For Transient Occupancy Tax, the range of information might also include the incremental and total tax amount paid by customers for sample room rates. 3. City staff will coordinate with parties requesting Council endorsement of tax, assessments, and bond measures in the collection and review of this financial impact information. Staff, operating under the one-hour rule, will review the data submitted and provide the City Council with an assessment of the accuracy and quality of any information submitted in support of the request. 4. If the tax or bond measure is proposed by the City, the same type of financial impact information would be provided. Effective Date: December 2, 2008, Resolution No. 17349 KW/7/CNLPOL A21-610CP-E Page 2 of 2