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Home My WebLink AboutRESO 10063 Resolution No. ____ Resolution of the Council of the City of Palo Alto Adopting Advisory Spending Guidelines for Proceeds of a Business Tax to be Submitted to the Voters for Approval in November 2022 R E C I T A L S A. The City of Palo Alto is a well-run municipality, with a Triple-A bond rating and a reputation for pro-active fiscal management, strong ongoing investments in public infrastructure, and conservative financial planning. However, the impacts of COVID-19, the subsequent economic downturn, and legal challenges to longstanding historic revenue sources have contributed to a projected budget gap in the City of Palo Alto’s general fund. B. Unlike most communities in California, the City of Palo Alto does not require local businesses to contribute to city projects and services through a local business tax. As Palo Alto looks to the future, City leaders have determined that the time has come to seek voter approval to tax mid-sized and large businesses operating in the City as neighboring communities do. Diversifying revenues with contributions from business will ensure that businesses pay a fair share and contribute to services used by residents, visitors and workers in the community. C. If a business tax is approved by voters, its proceeds will be placed in the City’s general fund for use on general government services. Council Members elected by the voters will determine the uses of those proceeds that best serve the public interest. D. With this Resolution, the City Council informs voters of its intentions regarding the public services and programs that would be supported by business tax revenues. Accordingly the Council of the City of Palo Alto RESOLVES as follows: SECTION 1. This Resolution No. _____ updates and supersedes Resolution No. 10058, which is hereby repealed and shall be of no force or effect. SECTION 2. Council hereby adopts the above Recitals as findings of the Council. SECTION 3. It is the Council’s intention to use proceeds of a business tax—a general tax for general government uses—to fund services and programs that support safety and quality of life. The Council approves the following advisory spending guidelines: One-Third for Transportation and Safe Train Crossings. In the coming years, Palo Alto will need to need to invest substantial local funds in the improvement and safety of train crossings. CalTrain is electrifying and trains are increasing in number. To maintain traffic flow, bicycle and pedestrian mobility, and safety, the City’s four at-grade road crossings must be modified and separated from the train right-of-way. It is estimated that an average investment of $250 million will be needed for the improvements needed at each crossing. City funds will be used as matching funds to secure additional county, state, and federal funds for these investments in transportation infrastructure. 10063 10063 DocuSign Envelope ID: 4F9C04BD-B1A9-4729-872E-D3ECF7C4A09C The Council plans to spend one-third of business tax proceeds on safe and efficient crossings for vehicles, bicyclists, and pedestrians. One-Third for Housing Affordability and Services for the Unhoused. A balanced and healthy community welcomes families and individuals from all walks of life. In Palo Alto, significant investments are needed to bring housing costs into reach for many moderate earners who work in the City, such as teachers, public safety employees, and workers in the trades and service industries. With few affordable local housing options, these workers must travel long distances between home and work, contributing to green-house gas emissions and traffic congestion. In addition, longtime residents—especially those who rent—are at risk of losing housing and being forced to relocate to other communities or become unhoused. Those who are already living in the City without housing need financial support to transition to stable, safe and clean housing. Substantial funding is needed to advance these goals. The Council plans to spend one-third of business tax proceeds on affordable housing and unhoused services. One-Third for Public Safety. Rising costs and constrained revenues have limited the City’s ability to provide public safety services—including police, fire, 911, and emergency services—at the level desired by the community. Stable long-term revenues from a business tax will put these highly- valued City services on sound footing into the future. The Council plans to spend one-third of business tax proceeds on public safety. SECTION 4. The Council finds that adoption of this Resolution is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: APPROVED: __________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: __________________________ ____________________________ City Attorney City Manager August 8, 2022 CORMACK, TANAKA BURT, DUBOIS, FILSETH, KOU, STONE DocuSign Envelope ID: 4F9C04BD-B1A9-4729-872E-D3ECF7C4A09C Certificate Of Completion Envelope Id: 4F9C04BDB1A94729872ED3ECF7C4A09C Status: Completed Subject: Please DocuSign: RESO 10063 - Adopting Advisory Spending Guidelines for Proceeds of a Business ... Source Envelope: Document Pages: 2 Signatures: 4 Envelope Originator: Certificate Pages: 2 Initials: 0 Mahealani Ah Yun AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 250 Hamilton Ave Palo Alto , CA 94301 Mahealani.AhYun@CityofPaloAlto.org IP Address: 199.33.32.254 Record Tracking Status: Original 8/9/2022 4:55:29 PM Holder: Mahealani Ah Yun Mahealani.AhYun@CityofPaloAlto.org Location: DocuSign Security Appliance Status: Connected Pool: StateLocal Storage Appliance Status: Connected Pool: City of Palo Alto Location: DocuSign Signer Events Signature Timestamp Molly Stump molly.stump@cityofpaloalto.org City Attorney City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 199.33.32.254 Sent: 8/9/2022 4:56:26 PM Viewed: 8/9/2022 5:12:47 PM Signed: 8/9/2022 5:13:05 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Ed Shikada ed.shikada@cityofpaloalto.org Ed Shikada, City Manager City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 199.33.32.254 Sent: 8/9/2022 5:13:06 PM Viewed: 8/11/2022 3:31:57 PM Signed: 8/11/2022 3:32:12 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Patrick Burt pat@patburt.org Mr Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 98.37.159.0 Sent: 8/11/2022 3:32:13 PM Viewed: 8/11/2022 6:55:05 PM Signed: 8/11/2022 7:06:41 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Lesley Milton Lesley.Milton@CityofPaloAlto.org City Clerk Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 199.33.32.254 Sent: 8/11/2022 7:06:43 PM Viewed: 8/12/2022 11:40:07 AM Signed: 8/12/2022 11:40:19 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Vinhloc Nguyen Vinhloc.Nguyen@CityofPaloAlto.org Administrative Associate III City of Palo Alto Security Level: Email, Account Authentication (None) Sent: 8/12/2022 11:40:20 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 8/9/2022 4:56:26 PM Certified Delivered Security Checked 8/12/2022 11:40:07 AM Signing Complete Security Checked 8/12/2022 11:40:19 AM Completed Security Checked 8/12/2022 11:40:20 AM Payment Events Status Timestamps