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HomeMy WebLinkAbout2019-10-10; Data Request from Biennial Business Survey Presentation; |Marcella, Christie| Barberio, Gary|'_;'.flilhe members of the: Cl1Y COUNCIL · Date 10/10/1,1CA ✓ cc v · CM .✓ COO .,_r:-DCM (3) ✓ . Council Memorandum Oct. 10, 2019 To: From: Via: Re: Honorable Mayor Hall and Members of.the City Council Christie Marcella, Economic Developmen?tan .ger · Gary Barberio, Deputy City Manager, Com , 1ty Services Elaine Lukey, Chief Operations Officer • Data Request From _Biennial Business Survey Presentation {city of Carlsbad Memo ID# 2019113 This memorandum provides information related to data requested by Mayor Hall during the presentation ofthe city's biennial business survey conducted by BW Research. Background At the July 9, 2019, City Council Meeting, Community & Economic Development staff and Josh Williams, President of BW Research, presented the results of the Biennial Business Survey, which is conducted every two years to get a sense of how our businesses perceive Carlsbad as a place to do business. During that presentation, Mayor Hall requested follow up data, outside the original scope of work, related to employment by small businesses in Carlsbad and that relationship to the assessed value of commercial property in the city. Discussion Duri.ng'the City Council Meeting, Mayor Hall's question was made in reference to the proposed split roll to be voted on in November 2020. From the California Chamber of Commerce advocacy website: The California Schools and Local Community Funding Act of 2018-a proposal for a split roll property tax-is a constitutional aniendment that now has qualified . for the November 2020 ballot. If approved by the voters, this initiative would amend Prop. 13 and increase taxes by reassessing business property every three years to the market price. While tax roll information and employment information are attainable, staff believe the question was intended to understand how small businesses may be affected should commercial properties be assessed every year to market rate for property tax purposes. While this information request was not in the scope of the work for the Biennial Business Survey, staff from the Community & Economic Development Department reached.out to BW Research to understand what it would take to conduct such analysis. BW Research has proposed looking at both property tax assessment and employment data for five-year increments going back to 2004 Community Services Branch Community & Economic Development Department 1635 Faraday Ave. I Carlsbad, CA 92008 I 760-602-2732 t Honorable Mayor Hall and Members of the City Council Oct. 10, 2019 · Page 2 (2004, 2009; 2014, 2019). Using the most readily available annual assessed value reports from the Assessor's Office, BW Research could build a model making simplifying assumptions (like percent of small businesses th.at own their property) to provide estimates related to the impact of the proposed legislation. Next Steps The cost of the proposed analysis would be approximately $5,000-$10,000 and will take 6-9 months to complete. Should City Council desire to have this analysis conducted, please provide direction at a future City Council Meeting. If City Council does not wish to pursue the more in-depth analysis, staff will monitor the proposed legislation and share the information with City Council as it becomes available. cc: Scott Chadwick, City Manager Celia Brewer, City Attorney Mike Peterson, Interim Community & Economic Development Director