ACTION REQUESTED:
Title
Communication from the Mayor and City Manager with a Request for the Following:
A. APPROVE a RESOLUTION Submitting a Public Question to Referendum Pertaining to the FIREFIGHTERS' PENSION TAX (ADVISORY REFERENDUM), and
B. APPROVE a RESOLUTION Submitting a Public Question to Referendum Pertaining to the POLICE PENSION TAX (ADVISORY REFERENDUM).
Body
At the October 27, 2020 City Council Meeting, the Council directed the City Manager and Corporation Counsel to draft advisory referendum questions for the Council to consider. Those questions are attached to this Council Communication.
The City Council discussed the Fire Protection Tax and Police Protection Tax levies, as well as public safety pension costs and the property tax levies that support those pensions on September 8. The background from that communication is attached below. January 19, 2021 is the deadline to place a referendum on the April 6, 2021 ballot, whether the question is binding or advisory.
The City Council has three options:
1. Place binding referendum questions on the ballot for a Fire Protection Tax and a Police Protection Tax. These two questions are outlined below. The City Council would need to determine the tax rate for each levy, (0.01% equals $200,000 of property taxes) and pass a resolution. A rate of 0.10% would generate approximately $2,000,000 for a Fire Protection Tax and a rate of 0.10% would generate approximately $2,000,000 for a Police Protection Tax. The passage of these referendum questions would cost the owner of a $125,000 home $83.33 in additional property taxes.
2. The City Council could place an advisory referendum on the ballot asking the voters about their willingness to support additional property taxes for public safety pensions. The City Council would have latitude in crafting the advisory question for the voters to decide.
3. The City Council could plan, as part of the 2022 budget process, to increase the Fire and Police Pensio...
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