1. City of Fillmore Proposed Sales Tax Initiative Election November 8, 2011

2. From where does the General Fund dollars come? Property Taxes ($1.9 m) SalesTax (currently $670k) Fees for service $468k (approx. $200k development related) Franchise Fees ($331k) License and Permits ($147k) Grants ($99K) TOT ($65k) Fines and Forfeitures ($62,500)

3. What services are provided by the General Fund? Police ($3.1 million) Fire ($785k) Parks ($100-$150k) Recreation and Pool subsidy ($100k total) Finance/City Attorney/City Manager/City Council Community Development (Planning) Public Works (streets, trees, sidewalks)

4. Where is the City financially? The City has cut $2.9M and used reserves in the last two years to balance the budget GF decrease of about 40%

5. Decrease in General Fund over Two Years

6. What was cut? Police - Motorcycle Officer & part-time Gang Officer. 12 City employees laid off All remaining City employees took an 18.5 percent cut in salaries and benefits Reduced expenditures

7. State of California-RDA The State wants to abolish Redevelopment Agencies unless the City pays a ransom (about $2 million this year and $440k, annually thereafter). By law--the City, not the Agency is responsible for paying the ransom. If the City cannot pay, $864k will not be available for City services that the City provides on behalf of the Agency.

8. The State of California-RDA The Fillmore Redevelopment Agency does not have enough money to pay the ransom for 3 reasons –Debt service must be paid off,first –The State diverted $3 million over the past two years and the Agency has to pay the Low-Mod Housing Fund back –Tax increment revenue from Property Taxes has dropped off.

9. The State of California-RDA The City is going to have to come up with $100-$200k of the $2 million to pay the ransom this year. Litigation initiated. League, other cities and the CRA filed lawsuits with Supreme Court which are pending.

10. City Needs $1.4M This year budget was balanced using $620K from the General Purpose Reserve. Roughly $916k remains. Redevelopment Agency paying $376K for Salaries and Benefits and $488K to the General Fund in transfers. Total $864K The Projected City deficit for FY 2013 is $1.4M.

11. City Needs $1.4 million What about the State Board of Equalization? –City is trying to get the Board to release City portion of the disputed funds. –Litigation/Appeal process still ongoing If not resolved in the City’s favor, the City will go into FY 2013 with an estimated $1.4M deficit.

12. Ideas to Raise $1.4M Property Tax increase (Parcel Tax) Cut additional services Economic Development Special Tax (requires 2/3 majority) Sales Tax increase

13. Property Tax Increase Parcel Tax City considered it but did not select it for the following reasons: –Current parcel tax for pool is $15 and raises $67K. Raising $489k would mean $110 per year –Fairness--only property owners pay the parcel tax.

14. Cut Services If there is another $1.4 m in cuts, the City will fundamentally have to change its operations –Cut non-self supporting recreation programs –More cuts to Police or looking for savings through contracting with another agency –Cut Fire Services (First responder or let County provide protection) –Close parks –No street repair, tree trimming or Code Enforcement –Close Pool –Minimum services provided

15. Economic Development Council is considering measures to make the City more business friendly (changes to Zoning Code and business application procedures) City belongs to a consortium for Economic Development and Council Member Walker is the Chair Working with Chamber to sponsor more business classes

16. Special Tax Requires 2/3 majority to pass and most cities choose the simple majority tax instead Special Taxes can be used for specific purposes

17. Sales Tax Increase To the citizens of Fillmore, the.75 percent increase would mean an additional 8 cents on a $10 purchase. The Sales Tax rate in LA County is 8.75 percent and Riverside County is 7.75 percent. Ventura County has one of the lowest sales tax rates in the State at 7.25 percent.

18. Sales Tax Increase The proposed sales tax increase of.75 percent will generate an additional $489K. This money will be paid not only by the citizens of Fillmore but by other people who shop and eat in Fillmore. The money will come to the City and will be used for City services.

19. Many of the products and services on which Seniors and fixed-income are exempt. Prescription medicines, medical services, grocery store food, water, sewer, trash and all other utilities are exempt. Sales Tax Exemptions

20. Is this increase permanent? No! Sales Tax increase will sunset if –The sales tax issue is resolved in the City’s favor, or –Five (5) years, whichever comes first.

21. Distribution of information Informational meetings on Tuesday, October 11 – El Dorado Community Room, 10 am – Senior Center 12:30 pm Channel 10 Website Service Clubs Printed materials

22. Questions?