Ballot Measure DD

(Information Only)September/October 2016

Agenda

What is Measure DD?Why is Measure DD needed?Why Sales Tax Instead of Another Tax?How Will the Funds be Raised?How Will the Funds be Spent?

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What is Measure DD?

1¢ Local Add-on Sales Tax Measure•Current rate in Menifee is 8.0%•Statewide average rate is 8.5%Sales Tax funds Police, Fire, Parks, PublicWorks and the general operations of the CityIf enacted, Measure DD will generate

$6.2 million annually•Local control, not subject to Statetakeaways

•Until ended by voters3

What is Measure DD?

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Ballot Measure LanguageMENIFEE PUBLIC SAFETY/TRAFFIC CONGESTION RELIEF/VITALCITY SERVICES MEASURE.

Shall Ordinance 2016-199 of the City of Menifee to reducetraffic congestion; improve/repair local interchanges /overpasses / streets / roads / bridges / potholes; maintainlocal police / fire protection / paramedics /9-1-1 emergency response times; prevent cuts tosenior/disabled/youth programs; and provide other generalservices by enacting a 1¢ sales tax providing $6.2 millionannually until ended by voters; requiring annualindependent audits, all funds spent locally, be adopted?

Ballot Measure LanguageMENIFEE PUBLIC SAFETY/TRAFFIC CONGESTION RELIEF/VITALCITY SERVICES MEASURE.

Shall Ordinance 2016-199 of the City of Menifee to reducetraffic congestion; improve/repair local interchanges /overpasses / streets / roads / bridges / potholes; maintainlocal police / fire protection / paramedics /9-1-1 emergency response times; prevent cuts tosenior/disabled/youth programs; and provide other generalservices by enacting a 1¢ sales tax providing $6.2 millionannually until ended by voters; requiring annualindependent audits, all funds spent locally, be adopted?

Sales Tax Distribution

•K-12/Community Colleges•Education Protections

State of CA4 ¼ Cent

•Public Safety•Transportation•Mental Health/Welfare

Riverside County2 ¼ Cent

• County Transportation

Riverside CountyTransportation

Commission½ Cent

•City Services (Police, Fire,Parks, etc.)

City of Menifee1 Cent State of CA

53.1%

RiversideCounty28.1%

RiversideCounty

TransportationCommission

6.25%

City ofMenifee

12.5%Sales Tax Rate = 8%

$1 Purchase = $0.08 Sales Tax

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Sales Tax Example

8% Sales Tax=$30.80

State$16.42

County$10.53

City$3.85

New Golf Clubs = $3858% Sales Tax = $ 30.80

Sit Down Dinner = $708% Sales Tax = $5.60

8% Sales Tax=$5.60

State$2.97

County$1.93

City$0.70

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Where Do Your Property Taxes Go?

SCHOOL

DISTRICTS

$0.59

RIVERSIDE

COUNTY

$0.12

SPECIAL

DISTRICTS

$0.16

CITY OF

MENIFEE

$0.13

$0.06Goes to

GF

$0.06Goes to

Fire

Why is Measure DD Needed?

The City’s 5-Year Financial Forecast indicates a looming structuraldeficit

• Expenditures are outpacing revenues• Currently, Menifee is operating with a $2.4M deficit (expenditures

over revenue)Imbalance due to added Public Safety responsibilities, rising cost of

Pubic Safety services & continued State takeaways (VLF, Gas Tax $)• Menifee is one of only 4 cities, out of 482, not receiving Vehicle

License Fees (VLF) because of policy error in Sacramento• Menifee residents pay VLF annually, yet the City receives none of

these fees that all other cities in CA receive (478 cities in CA).• This amounts to a loss of $50 per capital based on population

(89,000 in Menifee)• $50 x 89,000 = $4,450,000 this year alone…• $21 Million lost in revenue since 2011

Measure DD will ensure continued high quality of life and fund vitalservices 8

VLF Loss Hurts Menifee

$(30,000,000)

$(20,000,000)

$(10,000,000)

$-

$10,000,000

$20,000,000

$30,000,000

$40,000,000

Temecula Hemet LakeElsinore

CanyonLake

Perris Murrieta Menifee

Vehicle License Fees (VLF)

2011 2012 2013 2014 2015 2016

$31,550,550

$23,826,850

$16,974,80

$3,182,400

$21,432,050

$32,981,500

-$21,358,500

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5 Year Financial ForecastCurrent 2016/2017 FY Budget Gap ($2,414,960)

$0.00

$5,000,000.00

$10,000,000.00

$15,000,000.00

$20,000,000.00

$25,000,000.00

$30,000,000.00

$35,000,000.00

$40,000,000.00

$45,000,000.00

2016 2017 2018 2019 2020 2021

GENERAL GOVERNMENT FIREPOLICE PROPERTY TAXSALES TAX FRANCHISE FEESDEVELOPER FEES TOT

-$5,072,180-$4,413,934

-$5,754,506

-$2,699,996-$2,145,695

Previous Year

EXP REV EXP REV EXP REV EXP REV EXP REV EXP REV

$20 MILLIONDEFICIT

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General Fund Revenues

$11MProperty Tax

38%$7M

Sales Tax24%

$5.6MDevelopment

Fee19%

$3MFranchise Fees 10%

$2.6MOther10%

Total Budget Revenues $29,380,373

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FY 16-17 Annual Operating Budget

$21,007,157PUBLIC SAFETY

66%

ADMINISTRATION11%

COMMUNITYDEVELOPMENT

5%

BUILDING & SAFETY5%

PUBLIC WORKS8%

ECONOMICDEVELOPMENT

2%

COMMUNITYSERVICES

2%

CITY COUNCIL1%

General Fund Operating Expenditures $31,795,333

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Increasing Cost of Police & Fire

0.00%5.00%

10.00%15.00%20.00%25.00%30.00%35.00%40.00%45.00%50.00%

2014 2015 2016 2017 2018 2019 2020

Price of Public Safety

Police Fire

*Status Quo-No additional officers• Police- Increases 5-7.5% per year• Fire-Increase 5% per year 13

Why Sales Tax?

Council explored the impacts of increasing otheravenues and found they were insufficient to meetrevenue demandsLocal control without State takeawaysSales Tax is paid by residents, businesses, &

non-residents (visitors)• 700,000 population within 15 miles of city

center (Newport/Haun)• 85,000 vehicle trips per day on I-215 between

Scott & Mcall• 58,000 vehicle trips on Newport• 31,000 vehicle trip on Scott

Estimated ½ or more would be paid bynon-residents (visitors)

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How Will Funds Be Raised?

Requires voter approval on November 8th

• Simple majority needed for approval (>50%)Added 1% Sales Tax (1¢ on each dollar spent)

collected at time of sale• Exempts most household products like

prescription medicines, healthcare, groceries& utilities

Merchants remit tax to the State, who thendistributes to City on quarterly basis

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How Will Funds Be Spent?

Maintain & Prevent Cuts to:Reduce Traffic Congestion

• Connect traffic signals for more effective timing• Add necessary traffic flow assistance

• Signals, stop signs, signage, enforcementMaintain Aging Infrastructure

• Roads, parks, sidewalksFund Capital Improvements

• Scott Interchange• Holland Overpass• Bradley Bridge• Murrieta Road (N-Lane Configuration)• Repair Goetz

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How Will Funds Be Spent?

Maintain & Prevent Cuts to:911 Emergency Response Times

• Maintain 4 minute average Fire/Paramedic responsetime

• Add officers for patrol & traffic congestion reliefLocal Paramedic, Police, & Fire ProtectionMaintain Public Safety Services

• Backfill 20 officer vacancies consistent with populationgrowth

• Maintain Fire staffing in city, and keep paramedics on allfire engines

Preserve Fiscal Stability & High Quality of Life

(CONTINUED)

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Questions?

For additional information/questions please visithttp://www.cityofmenifee.us/MeasureDD

Or email your questions to questions@cityofmenifee.us

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