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2020/04/17 City Council Agenda Packet "We Care for Our Residents by Working Together to Build a Better Community for Today and Tomorrow." ROHNERT PARK CITY COUNCIL, ROHNERT PARK FINANCING AUTHORITY (RPFA), SUCCESSOR AGENCY TO THE COMMUNITY DEVELOPMENT COMMISSION SPECIAL MEETING NOTICE AND AGENDA NOTICE IS HEREBY GIVEN THAT A SPECIAL MEETING will be held on Friday April 17, 2020 Open Session: 11:00 AM * COVID-19 NOTICE * Consistent with Executive Orders No. N-25-20 and No. N-29-20 from the Executive Department of the State of California and the Sonoma County Health Official’s March 17, 2020 and March 31, 2020 Shelter in Place Orders, this City Council Special Meeting will not be physically open to the public and City Councilmembers will be teleconferencing into the meeting via Zoom Video Communications software. How to observe the Meeting: To maximize public safety while still maintaining transparency and public access, members of the public can observe the meeting on Cable Channel 26 or by visiting meeting central on our website https://www.rpcity.org/city_hall/city_council/meeting_central How to submit Public Comment: Members of the public may provide public comment by sending an email to publiccomment@rpcity.org prior to the item being called on the agenda. Email comments must be related to Item 2 of this agenda and should be a maximum of 350 words, which corresponds to approximately 3 minutes of speaking time. The comments will be read for the record, with a maximum allowance of 30 minutes of total public comments, subject to the Mayor’s discretion. Comments not pertaining to this agenda item will not be read for the record. American Disability Act Accommodations: Any member of the public who needs accommodations should email the ADA Coordinator at vperrault@rpcity.org or by calling 707-588-2221. The ADA Coordinator will use their best efforts to provide reasonable accommodations to provide as much accessibility as possible while also maintaining public safety in accordance with the City procedure for resolving reasonable accommodation requests. Information about reasonable accommodations is available on the City website at https://www.rpcity.org/city_hall/departments/human_resources/a_d_a_and_accessibility_resources City Council/RPFA agendas and minutes may be viewed at the City's website: www.rpcity.org. PUBLIC HEARINGS: Council/RPFA may discuss and/or take action on any or all of the items listed on this agenda. If you challenge decisions of the City Council or the Rohnert Park Financing Authority of the City of Rohnert Park in court, you may be limited to raising only those issues you or someone else raised at public hearing(s) described in this agenda, or in written correspondence delivered to the City of Rohnert Park at, or prior to the public hearing(s). RIGHT TO APPEAL: Judicial review of any city administrative decision pursuant to Code of Civil Procedure Section 1094.5 may be had only if a petition is filed with the court no later than the deadlines specified in Section 1094.6 of the California Code of Civil Procedure, which generally limits the time within which the decision may be challenged to the 90th day following the date that the decision becomes final. SIMULTANEOUS MEETING COMPENSATION DISCLOSURE (Government Code Section 54952.3): Members of the City Council receive no additional compensation as a result of convening this special meeting of the City Council and the Rohnert Park Financing Authority. 1. CITY COUNCIL/RPFA/SUCCESSOR AGENCY JOINT REGULAR MEETING - CALL TO ORDER/ROLL CALL (Adams_____Belforte_____Stafford_____Mackenzie_____Callinan_____) 2. DISCUSSION AND DIRECTION REGARDING NOVEL CORONAVIRUS (COVID-19) RECOVERY A. Verbal Staff Report B. Public Comments C. Council discussion/direction 3. ADJOURNMENT NOTE: Time shown for any particular matter on the agenda is an estimate only. Matters may be considered earlier or later than the time indicated depending on the pace at which the meeting proceeds. If you wish to speak on an item under discussion by the Council which appears on this agenda, after receiving recognition from the Mayor, please walk to the rostrum and state your name and address for the record. Any item raised by a member of the public which is not on the agenda and may require Council action shall be automatically referred to staff for investigation and disposition which may include placing on a future agenda. If the item is deemed to be an emergency or the need to take action arose after posting of the agenda within the meaning of Government Code Section 54954.2(b), Council is entitled to discuss the matter to determine if it is an emergency item under said Government Code and may take action thereon. AGENDA REPORTS & DOCUMENTS: Electronic copies of all staff reports and documents subject to disclosure that relate to each item of business referred to on the agenda are available for public inspection on https://www.rpcity.org/city_hall/city_council/meeting_central Any writings or documents subject to disclosure that are provided to all, or a majority of all, of the members of the City Council regarding any item on this agenda after the agenda has been distributed will also be made available for inspection on our website following the day of the meeting. CERTIFICATION OF POSTING OF AGENDA I, Sylvia Lopez Cuevas, Assistant City Clerk for the City of Rohnert Park, declare that the foregoing agenda was posted and available for review on April 16th, 2020 at Rohnert Park City Hall, 130 Avram Avenue, Rohnert Park, California 94928. The agenda is also available on the City web site at www.rpcity.org Executed this 16th day of April, 2020 at Rohnert Park, California. Sylvia Lopez Cuevas Office of the City Clerk COVID-19 Recovery City of Rohnert Park April 17, 2020 California City Finances and the COVID-19 Pandemic: Revenue Sources, Timing & Getting Help COVID-19 Webinar Series April 16, 2020 League of California Cities │ www.cacities.org 4/16/2020 How to Ask a Question •All phone lines have been muted. •For written questions -use the Q&A window to the right side of your screen. Please enter your name, title and city. League of California Cities® │ www.cacities.org Speakers League of California Cities │ www.cacities.org Michael Coleman Fiscal Policy Advisor CaliforniaCityFinance.com Nick Romo Legislative Representative League of California Cities Agenda •Lessons Learned: How does COVID-19 compare to past economic downturns for California and its cities? •Begin at the Beginning: Review of California city revenue sources. •Which Eggs in Which Baskets: Discuss revenue vulnerabilities and timing of impacts. •Rain Check: What we know about impact of the small business sales tax deferral program. •Bump in the Road: Preamble on impact to local streets and roads funding. •Look for the Helpers; Be a Helper League of California Cities │ www.cacities.org NR How COVID-19 Differs From Past Economic Downturns •More immediate economic and social impacts Shelter-at-home; essential business only Unemployment has surpassed last recession, in less time •State is in a much healthier fiscal position •Stronger protections for local revenues •Cities are less dependent on State funds Except local streets and road funds (HUTA, RMRA) •Human capital and infrastructure in place to provide support League of California Cities │ www.cacities.org MC California City Revenue Sources Taxes Fees State/Fed Aid Rents, penalties Other MC General Revenues Hotel Occ Tax Sales and Use Tax (including add-on sales taxes) •Administration: CA Dept. of Tax and Fee Administration (CDTFA) •Timing: Immediate (30-60 days) •Impact: 30% to 37% decline in current quarter (positive bump from online sales) •Indicators: Shift to home cooking (groceries), declining auto/fuel sales, increased online sales. Effects depend on make -up of local tax base Key Revenue Source Impacts and Timing Concern Level: HIGH NR Sales and Use Tax (including add-on sales taxes) •Administration: CA Dept. of Tax and Fee Administration (CDTFA) •Timing: Immediate (30-60 days) •Impact: 30% to 37% decline in current quarter (positive bump from online sales) •Indicators: Shift to home cooking (groceries), declining auto/fuel sales, increased online sales. Effects depend on make -up of local tax base Hotel Tax (Transient Occupancy Tax) •Administration: City •Timing: Immediate (30 to 60 days) •Impact: 80% to 90% decline in current quarter •Indicators: Travel, social distancing restrictions –especially tourism -oriented cities (resorts, theme parks, vacation destinations) Key Revenue Source Impacts and Timing Concern Level: HIGH MC Key Revenue Source Impacts and Timing Business Operations (License) Tax •Administration: City •Timing: Delayed (most based on prior year gross receipts) •Impact: Varies. 10% to 15% decline over next two fiscal years Local specialized situations:casino, refinery, tourism •I ndicators: Economic conditions, sector specific Concern Level: Varies, delayed NR Key Revenue Source Impacts and Timing Business Operations (License) Tax •Administration: City •Timing: Delayed (most based on prior year gross receipts) •Impact: Varies. 10% to 15% decline over next two fiscal years Local specialized situations: casino, refinery, tourism •Indicators: Economic conditions, sector specific Property Tax •Administration: Counties •Timing: Delayed –mostly not until 2021-22 •Impact: Potential moderate decline in taxable value of property •Indicators: Watching industry specific re ongoing economic effect Concern Level: delayed, low MC Key Revenue Source Impacts and Timing Admissions Tax, Parking Tax, Parking Meter •Administration: City •Timing: Immediate •Impact: ~100% decline in current quarter •I ndicators: Social distancing orders preventing concerts, festivals, sporting events Property Transfer Tax •Administration: County •Timing: Immediate •Impact: ~65 % decline in current quarter, most recaptured in FY2020 -21 •Indicators: Slowdown in real estate transactions; some activity still occurring Concern Level: HIGH for some NR Key Revenue Source Impacts and Timing Admissions Tax, Parking Tax, Parking Meter •Administration: City •Timing: Immediate •Impact: ~100% decline in current quarter •I ndicators: Social distancing orders preventing concerts, festivals, sporting events Property Transfer Tax •Administration: County •Timing: Immediate •Impact: ~65% decline in current quarter, most recaptured in FY2020 -21 •Indicators: Slowdown in real estate transactions; some activity still occurring MC Key Revenue Source Impacts and Timing User Fees: Development, Recreation, etc. •Administration: City •Timing: Immediate •Impact: varies, some offset from demand -based costs •I ndicators: Stay-at-home closing recreation programs through the summer, development applications impacted by social distancing and economic concerns Other: Franchises, Fines & Forfeitures, etc. •Administration: City •Timing: 60-120 days •Impact: temporary and small •Indicators: solid waste franchisees, lower traffic NR Key Revenue Source Impacts and Timing User Fees: Development, Recreation, etc. •Administration: City •Timing: Immediate •Impact: varies, some offset from demand -based costs •I ndicators: Stay-at-home closing recreation programs through the summer, development applications impacted by social distancing and economic concerns Other: Franchises, Fines & Forfeitures, etc. •Administration: City •Timing: 60-120 days •Impact: temporary and small •Indicators: solid waste franchisees, lower traffic MC Small business sales tax extension & deferral programs Governor’s Executive Order Provides 90 -day Extension for First Quarter Filings •Businesses with returns of <$1 million get extra 3 months to file (July 31, 2020) •Provides additional 60 days to file refund claims CA Dept of Tax and Fee Admin. (CDTFA): 12 -month, interest free, $50,000 Deferral •Within existing authority •Response to tens of thousands of requests for relief •Small businesses can enter into payment plans to distribute up to $50,000 of sales tax liability over a 12-month period, interest -free Local Effects •Delay and deferrals include local 1% Bradley Burns and add -on sales taxes •CDTFA will apply the $50,000 deferral proportionally to the TOTAL effective rate in each city/counties jurisdiction (ranges from 7.25%-10.5%) NR Small business sales tax extension & deferral programs Estimated Impact & Issues •$300-500 million statewide (depending on utilization) city impact –delayed $ o For most cities ~2% to 4% of general revenues, ~2% to 12% of discretionary reserves •CDTFA will continue remitting revenues not deferred or delayed •This is a cash flow issue … but it is compounded by actual revenue losses (which are much larger for most) Considerations •Delayed revenue … not losses (mostly) •Supports small businesses in your city Next steps •CDTFA still developing portal/application (will help assess utilization rate) •Work to ensure consistent reporting and collection enforcement •Find cash flow and backfill solutions NR Local Streets and Roads Funding Countywide Transportation Sales Taxes –“Self-Help” Counties •Declines in allocations due to decline in taxable sales •Potential delays due to deferral programs State Local Streets and Roads Funding Highway Users Tax Account (HUTA), Road Maintenance and Rehabilitation Account (RMRA –SB1) •Revenues are from state per-gallon fuel taxes and vehicle registration taxes so tied to fuel consumption, vehicle values and registrations … NOT fuel price •Allocations affected by fixed “take-outs” before the city and county distributions •New estimates in May with the Governor’s May Budget Revision. MC League Advocacy State and Federal Direct requests for statutory relief Forthcoming requests for additional financial support for all cities (for expenditures and actual revenue losses) Work with your regional manager on direct member advocacy League Survey of COVID-19 Fiscal Impacts 250+ Responses Component of a larger fiscal impact model considering a range of economic and financial outlooks by experts Highlighting impacts to city operations and finances Supports requests for statutory and financial support What Now? Taking Steps ForwardNR What Now? Taking Steps Forward Connect with your colleagues, use League resources •Use League Divisions & Listservs, Regional Managers Know thyself •Understand the unique local condition of your city’s revenue sources •Understand what to be concerned about and what NOT to be concerned about and when •Understand your city’s reserves and short term financing options Get advice from professionals Open discussions with employee groups Early action is key MC What Now? Taking Steps ForwardMC Questions? Michael Coleman (coleman@muniwest.com) Nick Romo (nromo@cacities.org) www.cacities.org/coronavirus League of California Cities │ www.cacities.org