01-20-1998 - Replacement Special Tax Public Information Program - Approval of FundsTo:
From:
Subject:
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City Manager and City Council
city of West Covina
Memorandum
AGENDA
ITEM NO. C3
DATE January 20, 1998
® PRINTED ON RECYCLED PAPER
Replacement Special Tax Public Information Program
— Approval of Funds
Patrick J. Glover
City Engineer/ Public Works Director
Summary:. On April 28,1998, the City of West Covina will hold an election requesting
voter approval of a replacement special tax of $49.90 per equivalents dwelling
unit to fund Citywide Lighting and Maintenance District Services that were
previously funded through assessments. As a result of the passage of
Proposition 218 these services may no longer be funded through the' levying
of assessments. If approved by a two -third majority vote, the replacement
special tax will fund park maintenance, street landscape maintenance,
graffiti removal and the maintenance of traffic signals throughout the
community. In order to assist members of the voting community make an
informed vote on April 28,1998, the City of West Covina has developed an
impartial, fact based public information program relating to the election
issue.
BACKGROUND
In 1996 California voters passed Proposition 218 which limited local governments ability to
collect taxes, assessments and fees. - Proposition 218 placed particular restrictions on the
collection of assessments. Under its requirements a city could only collect property related
assessments against those services that were deemed to have a special benefit to the assessed
property. Services that did not provide special benefits were classified as general benefit
services and could not be funded through an assessment.
Prior to 1996 the West Covina Citywide Lighting and Maintenance District was funded primarily
through an assessment collected on all properties in the City of West Covina. With the approval
of Proposition 218 known as the Right to Vote on Taxes Act, it was necessary to reconstitute this
funding source to meet the requirements of the act. F
In July 1997 the City of West Covina conducted a mail ballot election which sought support for a
revised assessment of $38.44. This assessment would fund two special benefit services provided
through the District, street tree and street light maintenance. The other services provided through
the district were defined as general benefit services and were precluded from assessment
funding. All property owners in the City of West Covina were eligible to vote in the election and
the ballots cased were weighted based on the amount of the proposed assessment. Over 70% of
the weighted ballots received were in support of the revised assessment.
While the mailed ballot election was successful there are still a number of services without a
source of funding. These services are park and facility maintenance, street median landscaping,
graffiti removal, traffic signal maintenance and non -assessable street trees and streetlights. A
special tax is being proposed to replace the funding of these services.
At the December 16, 1997 City Council meeting the City Council set a proposed replacement
special tax rate of $49.90 per Equivalent Dwelling Unit. This tax rate when combinedwith the
current assessment would provide the typical homeowner with a 75-foot wide lot a $22.66 saving
over the old assessment of $111.00. This saving has been achieved through cost changes in
service contracts, operational efficiencies, contracting out services and staff reductions:
At the January 20, 1998, City Council meeting staff will propose an election date of April 28,
1998, to seek approval of the replacement special tax. In order to assist voters make an informed
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decision about the replacement special tax staff has developed a Public Information Program to
inform the community about the election and present impartial information about the
replacement special tax.
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City Manager and City Council
Page 2
ANALYSIS
Program Introduction and Legal Limitations
Staff has developed a program with the basic goal of providing West Covina voters with the
information they will need to make an informed decision about the replacement special tax. The
information will be presented in a clear, concise and impartial manner. Three general
informational goals have been identified. These goals provide the basis for material and
presentation development. Staff has also identified media opportunities. These opportunities
include local and city operated media as well as direct contact with the public. The program
structure is discussed in more detail later in this report.
The City is limited by the information it may present. The City may not advocate for or against
the special replacement tax. Case law states that the City may only present an impartial,
balanced picture of the tax. This includes any presentations where city vehicles, equipment or
materials are used. With this in mind staff has prepared a program that is based on information
only. All materials and presentations developed will fall within the City's legal obligation to
present impartial information.
The implementation of a purely information program will be beneficial in the City's efforts to
inform the community about this issue. Informational programs can be seen as an important
component in building voter trust of the issue. By presenting fact based information the City is
not attempting to sway voter opinion, instead the City is asking the voter to make up their own
mind based on the impartial fact based materials the City is disseminating.
Program Structure
Informational Needs — Even though the City is limited in what it can say, there is some basic
information that must be disseminated to fully inform voters about the replacement special tax.
The Citywide Lighting and Maintenance District impacts all members of the community,
therefore the security of its funding source is an important issue to the entire community. The
identified informational goals of the program will form the basis for the development of
materials and the structure of any presentations that staff develops. Following is a list of
informational goals for the public information program.
• Replacement Special Tax Election to be held on April 28, 1998 - The first informational step
is to inform members of the community that an election is being held. Often voter inactivity
results from voters being unaware of the actual election, let alone the issue. Encouraging
voter activity is an important component of the program.
• What is the Citywide Lighting and Maintenance District — It will be necessary to provide an
overview of the Citywide Lighting and Maintenance District, explain the districts' function,
funding sources and expenditures. This is necessary background that will give the
replacement special tax a context.
• What is the Replacement Special Tax — The program will need to provide a basic history of
the replacement special tax, an explanation of what it is funding and why the City needs to
replace the assessment with the replacement special tax. It will be important to put the
Special Replacement Tax into the context of the mail ballot and explain the impact of both
elections on the Citywide Lighting and Maintenance District and the typical homeowner.
Staff will also provide materials that address town hall meetings on the issue and how to obtain
additional information or request city staff to make a presentation before groups.
Special Interest Groups — Staffs goal is to reach all voters with information about the
replacement special tax. There are however, groups in the community who will have a particular
interest in the Citywide Lighting and Maintenance District. These groups will have specific
informational needs that will differ from the general voter as the result of the election may in
some way impact these groups' activities. Staff will make specific efforts to meet the
informational needs of these groups, to assist them assess the impact of the election result on
their particular group. Again all information to be presented will be factual and impartial in
nature.
City Manager and City Council
Page 3
These groups include but are not limited to:
• Sporting groups and associations • Youth activity groups
• Senior activity groups • Homeowner and renter associations
• Schools and parent teacher groups • Business and service organizations
Media and Media Activities — Three methods of distributing information have been identified.
The number of outlets for receiving information has grown enormously in recent years, as has
the amount of information available to the consumer. In order for this issue to receive visibilil
it is important that the information be available to the voter when they require it and in a form
that is beneficial to them. The methods identified below intend to maximize the resources
available to receive the broadest possible coverage of the replacement special tax issue. j
Direct Contact — it is imperative for staff to have direct contact with voters to explain the
issue and respond to any concerns and questions. Direct contact will improve voter
understanding of the issue and increase their confidence in the information they are
receiving. This particular method does not have, as wide spread exposure as other method,
but it is an important opportunity for voters to have should they require additional
information. Staff will hold town hall meetings throughout the city for interested members
of the general community. The town hall meetings will provide an opportunity for
individuals to listen to a more in-depth analysis of the issue and have their specific questior
answered. Staff will also make themselves available to groups who request additional and
specific information about the issue.
• Public Relations Activities Involving Local Media — Local media organizations have greater
exposure to voters and provide the many residents with their only source of information. It is
important for staff to develop an effective relationship with local media representatives and
encourage their participation with the issue. A preliminary sequence of press releases has
been developed and staff will meet with editorial staff to provide clear and concise
information about the issue. As the City may only release impartial, fact based information
the city staff should become a major information source for these representatives.
• Public Relations Activities Involving City Operated Media — The City of West Covina
operates three media outlets. These are the cable channel, the developing web site and the
newly revised monthly city newsletter. Each of these provides an excellent opportunity for
staff to release information to the community. A series of fact based print and electronic
articles and advertisements will provide the community with information about the
replacement special tax. Staff will also develop two direct mailings that address the
informational goals of the program. The Web Site will be updated and will feature all the
materials that are produced for the public information program.
Timeframe — The production of informational materials will begin as soon as the City C
approves the budget for the public information program. Information will begin to be
disseminated as early as February 1, 1998 and continue through to the election on April
1998. Town hall meetings will be scheduled for late March and early April 1998.
CONCLUSION
Staff is requesting City Council approval of funds to implement a public information program
relating to the replacement special tax that will be placed before West Covina voters on !April 28,
1998. The special tax will replace an assessment that funded park and facility maintenance,
street median landscaping, graffiti removal, traffic light maintenance and non -assessable street
trees and street lights, which are provided through the Citywide Lighting and Maintenance
District. The Right to Vote on Taxes Act (Proposition 218) restricted the use of assessments by
local governments and under its requirements these District services could no longer be !funded
by the assessment.
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City Manager and City Council
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The basic goal of the program is to provide the voting community with the information they
require to make an informed decision about the replacement special tax. There are restrictions
on what the City may say in the public information campaign. The City must present an
impartial and balanced view of the issue in any materials or presentations made relating to the
replacement special tax. As a result of this staff is proposing an information based program that
aims to build voter trust of the City as a primary source of fair information on the replacement
special tax.
FISCAL BIPACT
The following budget provides for the photocopying, printing, postage and incidental expenses
necessary to successfully implement the public information campaign.
Direct Mailings
(Two direct mailings)
Printing (2 x 32,000 double sided, black and white at $0.044 ea.) $ 2,816.00
Postage (2 x 32,000 at $0.13 each) $ 8,320.00
Folding and Labeling (2 x 32,000 at $0.016 each) 1024.00
Total Direct Mailing Costs $12,160.00
Inserts in West Covina Today
(One optional insert in West Covina Today for additional Town Hall
meeting exposure)
Printing (1 x 32,000 double sided, black and white copies at $0.044 ea.) $ 1,408.00
Inserting into Newspaper $ 384.00
Total Insert Costs 1,792.00
Document Printing
(The production of flyers and other informational materials in addition
to direct mailing and insert printing)
Printing (100,000 double sided, black and white at $0.044 ea.) 4,400.00
Contingency (for unanticipated costs)
Total Public Information Program Costs
1,648.00
$20,000.00
Staff is requesting City Council to allocate $20,000 from the Citywide Lighting and Maintenance
District Reserves for the implementation of the Public Information Program on the Citywide
District.
RECOAUMENDATION
It is recommended that City Council approve expenditures of $20,000 from the Citywide
Lighting and Maintenance District Reserves for the implementation of a public information
program relating to the Citywide District and the replacement special tax issue.
P 41ric over
City Engineer/ Public Works Director