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HomeMy WebLinkAbout1988-06-28; City Council; 9503; Transient Occupancy TaxCITN OF CARLSBAD - AGENr BILL %f 0 TRANSIENT OCCUPANCY TAX DEPT. HD. - CITY MOR*- CITY AITY m RECOMMENDED ACTION: Discuss item, and if Council deems appropriate, direct staff to draft necessary documents. ITEM EXPLANATION: On June 7, 1988, Proposition D was placed before the voters of Carlsbad. Proposi- tion D proposed to increase the Transient Occupancy Tax (TOT) by an additional 2% to pay for the promotion of tourism in the City and for a public golf course, tennis courts and related facilities. Proposition D was a special tax, and thus required a 2/3 majority of the voters casting ballots. According to the available, unofficial election results, on June 7, 1988, Proposition D received 7,641 (57.84%) yes votes and 5,569 (42.16%) no votes; 1,166 (8.8%) votes short of the necessary 2/3 majority. Council may wish to consider placing a measure similar to Proposition D on the November 8, 1988 ballot. Such a measure, if designed to pay for golf and tennis facilities, again would fall under the definition of a special tax and would require a 2/3 majority of the voters casting ballots. Another suggestion, proposed by Councilmember Mamaux, is to place the following propositions on the November 1988 ballot: i) Pursuant to the Carlsbad Municipal Code, Chapter 1.24.030, place upon the ballot for approval by a majority of the voters the use of City (general) funds to pay for the construction of a championship golf course and tennis facility, approximately seven mi 11 ion dol 1 ars ($7,000,000) , pl us two mi 11 ion dol 1 ars ($2,000,000) to go toward the development of Macario Canyon. ii) A two percent increase in the TOT (one percent to be effective January 1, 1989, and one percent to be effective January 1, 1990) the proceeds of which would go into the general fund. (Both of these propositions would only require a fifty percent plus one majority vote to pass.) Additionally, Councilmember Mamaux proposes that the City Council direct staff to draft a Council Policy stating that the TOT not be increased beyond 10% for the next fifteen (15) years. The County Registrar of Voters must receive all necessary documents no later than 5:OO p.m., Friday, August 12, 1988, for this proposition to be placed before the voters on the November 8, 1988 ballot. FISCAL IMPACT: For fiscal year 1988-89, projected TOT revenue (based on an 8% tax rate) is $3 million. A 2% tax increase should provide about $750,000 in additional revenue. The amount of revenue provided through the TOT each year will depend on the health of the tourist industry in Carlsbad. June 28, 1988 PRESENTATION TO CARLSBAD CITY COUNCIL We appreciate the fact that Council is again considering measures to eleviate the funding problem for golf and tennis facilities. Carlsbad Citizens interested in both sports activities are finding it hard to believe, however, that without funding approval by the voter we are about tenth on the priority list for serious consideration and years away from construction of either facility. Members of the Carlsbad Golf Association and Tennis Network took up the last challenge and worked very hard to influence voters on June 7 to support both Prop C and D. about 100 people working on the campaign. tax revenues for the general fund, on the other hand Prop D enjoyed a fine plurality of 58% but without a two-thirds vote we find ourselves still without funding for our facilities. I bring this to your attention because we are still looking for assurances from Coun cil that golf & tennis facilities will be built in the fore- seeable future and that funding will be made available in some form for construction of these much needed facilities. We feel that if council is sincere about adding these amenities to our Park System then we need to hear it and we need to see it in writing, whether or not this proposed measure passes in November. The years come and go but we still find ourselves very low on the priority list and without any definite assur- ance that anything will be accomplished within the next ten years. fields and other sports amenities are being built all over the city and are included in future construction plans with no problem of funding. We spent approximately $5,200.00 andhad Prop C passed and increased Ball We receive calls constantly from our membership of 1,560 asking if the City is really going to do anything on our behalf or is it double-talk from City hall. Fifty-eight per cent of the voters told us that they want Carlsbad to build a quality type golf course, Executive Course and Tennis Complex. We feel confident that this vote will be repeated in November, providing %- . CARLSBAD GOLF ASSOCIATION P.O. BOX 4507, CARLSBAD. CA 92008 .. all citizens interested in either sport will get out and work for its passage. We have had considerable deliberation regarding the proposed measure to obtain approval for a nine million dollar expenditure out of General Fund and feel that in view of the aLo two-thirds vote in November would require an additional 5,000 votes or a total of 13,000 votes and we prefer not to take that risk. support this proposal and look to Council to honor that vote if attained. We also hope Council's vote will be unanimous and that both the Chamber, of Commerce and the business community will support it, and'.'work'.'for' its passage. ast vote, alternative plans requiring a We will June 28, 1988 TO : MAYOR & COUNCIL MEMBERS FROM: Council Member Mark V. Pettine MUNICIPAL GOLF COURSE In reviewing the City Council agenda item on Transient Occupancy Tax, it seems that the overriding goal is to provide for the construction of a municipal golf course in the City of Carlsbad. I am in support of golf course facilities, and would like to suggest the Council consider two additional approaches by which this could be accomplished. One viable alternative which the City Council has not considered is having private development construct a municipal golf course for municipal purposes. Once the City has identified a site, we could send out requests for proposals, outlining the standards and type of course we want, to private sector golf course developers. The standards could include quality of course, quality of clubhouse facilities, driving range, reasonable rates, and banquet facilities to name a few. Obviously any such standards would need to be developed by the City in cooperation with the citizens most affected by a golf course. While the timing on this proposal may not be good right now, once the City has selected a site I think this would be a very viable approach to providing a municipal golf course. Another alternative is that a General Obligation Bond be placed before the voters in November for the purpose of financing a municipal golf course. This would require a two-thirds majority of the voters casting ballots for approval, and would provide the funding necessary to bond for the construction of such a golf course. According to staff the approximate cost to homeowners for a bond in the $7 million range is about $25.00 per year for a $100,000 home to finance such a project. Additionally, this tax would be capped at approximately 20 years and then be suspended. Mayor & Council Members June 28, 1988 -2- It is clear to me that there is support for a public golf course. However, the means by which we get the golf course are up for discussion. These are two alternatives which probably have many variations, but should provide an opportunity for discussion. MARK V. PETTINE,. Council Member cc: City Manager City Attornev City Clerk