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<br /> May 28, 2019, Meeting – Item 4 <br /> At the May 8 work session, City Council considered three payroll tax rate options for inclusion in the proposed ordinance. Council decided to include in the proposed ordinance a 0.0040 tax rate on employees (except for minimum wage employees) and a 0.0020 tax rate on employers and directed the City Manager to schedule a public hearing on the Community Safety Payroll Tax ordinance for May 28. The proposed ordinance also includes a reduced tax rate of 0.0020 on minimum wage employees. Council has made no decision regarding whether to refer to the voters the proposed payroll tax ordinance or, as a possible alternative, whether to refer to the voters a Charter Amendment that caps the payroll tax rates and limits use of the payroll tax revenues. If Council decides to refer the proposed payroll tax ordinance to the voters, Council will need to amend the proposed ordinance to include a new section stating that the ordinance would take effect if and only if approved by the voters. If, as an alternative to referring the proposed payroll tax ordinance to the voters, Council chooses to refer a Charter Amendment to the voters capping the rates and limiting revenue use, the Charter Amendment would state: “Any payroll tax imposed by the City is capped at 0.0020 on total <br />wages paid by employers and 0.0040 on wages earned by employees. Revenues from a payroll tax <br />imposed by the City may only be used to fund community safety services and administration of the tax.” During the City’s outreach the public has asked a consistent set of questions. Attached to this AIS as Attachment B is an FAQ with answers to the questions that are most often asked of City staff when they are meeting with the public. This FAQ, along with many other informational materials and videos, is available on the City’s website. <br /> <br /> <br />PREVIOUS COUNCIL DIRECTION September 26, 2018, Work Session February 13, 2019, Work Session <br /> Proposed Ordinance <br />Employee and Employer Rate 3.724 <br />Equity Component for Low Wage Earners 3.724(3) <br />Funds may only be used for Community Safety Initiative 3.728 <br />Independent Financial Audit of Fund Use 3.736 <br />Citizen Advisory Board Annual Performance Audit <br /> <br />3.738 <br />Payroll Tax revenue will be maintained in a separate fund. Section 2 <br />Payroll Tax Funds will not replace existing dedicated funds Section3 <br />Eliminate $840,000 annual transfer from parking fund for <br />police services <br />Section 4 <br />7 Year Review and Reauthorization Section 5