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(1) Approval of the Measure CC and Measure C Sales Tax Status Report (FY23, Q3) for Transmittal to City Council, Providing Feedback/Discussion on the New Reporting Format, and (2) Approval of the Real Property Transfer Tax Status Report (FY23, Q4) for Transmittal to City Council.
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Meeting Date: September 13, 2023
Contact Person/Dept: Melissa Zak/Finance Department
Phone Number: (310) 253-5865
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [] Attachments: [X]
Public Notification: (Email) Meetings and Agendas - Finance Advisory Committee (09/07/2023)
Departmental Approval: Lisa Soghor, Chief Financial Officer (09/07/2023)
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RECOMMENDATION
Staff recommends the Finance Advisory Committee (FAC) approve the Measure CC and Measure C Sales Tax Status Reports (FY2022-2023, Third Quarter) and Real Property Transfer Tax Status Report (FY2022-2023, Fourth Quarter) for transmittal to City Council.
BACKGROUND/DISCUSSION
In November 2012, Culver City residents voted in support of Measure Y, a half cent transaction and use tax to maintain critical City services for the next 10 years. In March 2020, Culver City residents voted in support of ballot Measure CC, the continuation of the half cent tax through 2033. Measure Y is now referred to as Measure CC. The FAC Work Plan is to “Continue to provide quarterly reports to the City Council on Measure CC proceeds."
In November 2018, voters passed a quarter cent local transaction and use tax under Measure C to maintain the current level of public safety services, community programs, infrastructure maintenance, and other City services funded through the City’s General Fund . Measure C collections began in April 2019 and will remain in effect until ended by voters. The ballot measure included the stipulation that, if passed, the FAC would provide quarterly reports of fund proceeds and expenditures to the City Council. The FAC Work Plan was revised to include this requirement.
The FAC and staff have developed infographic-based Measure CC and Measure C Status Reports to provide background information, identify top 25 sales tax producers, illustrate budget versus actual results for the fiscal year, and show the cumulative totals received for each period.
Due to a lag in receiving data from the reporting agency, Measure CC and Measure C reports for review this period cover FY2022-2023, Third Quarter (January-March 2023).
The FAC has additionally requested to review and transmit a Real Property Transfer Tax Status Report to the City Council. The Real Property Transfer Tax (RPTT) is a one-time tax imposed by the City when a property is sold in Culver City. RPTT revenues go into the General Fund and are used to provide essential services including deferred maintenance of parks, facilities, and streets, addressing homelessness, and providing programs for seniors, youths, and economic recovery.
Real Property Transfer Taxes are issued directly to the City from Los Angeles County; therefore, the RPTT report for review this period covers the more recent Fourth Quarter of FY2022-2023 (April-June 2023).
ATTACHMENTS
1. 2023_09_13 ATT1 - Measures CC & C Status Report Q3 FY23
2. 2023_09_13 ATT2 - Real Property Transfer Tax Status Report Q4 FY23
MOTION
That the Finance Advisory Committee:
1. Authorize transmittal of the Quarterly Status Reports (Measure C and Measure CC, and Real Property Transfer Tax) to the City Council