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Staff Reportwx F MEETING DATE: 09/15/15 •. ITEM NO: �O8 c'ns COUNCIL AGENDA REPORT DATE: SEPTEMBER 9, 2015 TO: MAYOR AND TOWN COUNCIL FROM: LAUREL PREVETTI, TOWN MANAGER W �i SUBJECT: LONG RANGE CAPITAL FUNDING OPTIONS: A. IDENTIFY SPECIFIC FUNDING OPTIONS FOR FURTHER EXPLORATION; B. IF SPECIFIC FUNDING OPTIONS REQUIRING VOTER APPROVAL ARE IDENTIFIED BY THE TOWN COUNCIL, ESTABLISH AN AD HOC CITIZEN COMMITTEE INCLUDING TWO COUNCIL MEMBERS AND THREE LOS GATOS RESIDENTS TO CONDUCT THE EXPLORATION OF THE FUNDING OPTIONS; AND C. APPOINT TWO COUNCIL MEMBERS TO THE NEWLY FORMED AD HOC CITIZEN COMMITTEE AND INITIATE THE RECRUITMENT FOR THE RESIDENT MEMBERS OF THE COMMITTEE WITH THE INTENTION OF INTERVIEWING AND SELECTING MEMBERS AT OR BEFORE THE OCTOBER 20, 2015 TOWN COUNCIL MEETING. RECOMMENDATION: Staff recommends that the Town Council: 1. Identify specific funding options for further exploration. 2. If specific funding options requiring voter approval are identified by the Town Council, establish an Ad Hoc Citizen Committee with two Council members and three Los Gatos residents to conduct the exploration of the funding options; and 3. Appoint two Council members to the newly formed Ad Hoc Citizen Committee and initiate a recruitment for the resident members of the Committee with the intention of interviewing and selecting members at or before the October 20, 2015 Town Council meeting. PREPARED BY: STEPH Y Director n e and Administrative Services Reviewed by: Assistant Town Manager f own Attorney Z Finance N� [vIGRAdminWorkFiles\2015 Council Reports\Sept 15\L.ong Range Capital Proiects Funding LRP.doc PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: LONG RANGE CAPITAL FUNDING OPTIONS SEPTEMBER 9, 2015 EXECUTIVE SUMMARY: The Town of Los Gatos has a strong history of prudent fiscal management as demonstrated by meeting or exceeding its reserve targets and using excess General Fund monies to fund the Town's capital improvement program. Unlike other California cities, Los Gatos does not have a structural deficit and the Town is able to make its debt, pension obligation, and Other Post - Employment Benefit (OPEB) payments in a timely manner. While use of year -end General Fund savings had been the Town's mechanism to fund the Town's capital needs in the past, it has fallen short of the funding needed to support future annual infrastructure maintenance and to construct new facilities. In addition, the uncertainty of the amount of excess General Fund dollars is challenging the Town's ability to plan and deliver needed maintenance and capital improvements. This report identifies opportunities for new revenues that could be directed specifically to the Town's capital needs. The revenue options are organized into two categories: (1) Council authority to approve and (2) subject to voter approval. Establishing dedicated, reliable revenues to fund future capital needs is a solid budgeting and future planning practice which has been employed by many other cities. BACKGROUND: As discussed in a separate Council Agenda item regarding the Almond Grove streets project, one -time dollars are identified to fund the completion of that project. The one -time funds include the use of excess reserves and internal service funds (e.g., equipment replacement). This approach is not viable for other maintenance or capital improvements, and is only recommended for Almond Grove because the project is a top Council priority. Cities across California are grappling with unfunded street maintenance. The Governor's Office recognizes this need and has proposed a framework and revenue package dedicated to transportation funding and the need to address the "crumbling" streets in this state. The proposal would allocate $1.8 billion to cities and counties for street maintenance complete street projects, public transit, and state - local partnerships. The proposal is being discussed at the time of the preparation of this report. If the proposal is approved, Los Gatos would receive approximately $500,000 annually for street maintenance. This money could be dedicated to the Almond Grove rehabilitation or other on -going street repairs and maintenance needs. There is also State legislation (ACA4) proposed to lower the approval threshold to a 55% majority for local agency transportation projects. Reliable and dedicated revenue source(s) would enable the Town to plan and meets its existing and future infrastructure needs. This is consistent with a longstanding Town goal as highlighted in the Town's Capital Budget message, "Establishing a reliable, dedicated source of funding for basic capital improvements beyond the use of accumulated reserves remains a long -term need and important goal for the Town." Independent, Town controlled revenue source(s) also buffer Los Gatos from the political uncertainty that surrounds the availability of federal and state funding. Such funding would not be subject to State policy impacts. PAGE MAYOR AND TOWN COUNCIL SUBJECT: LONG RANGE CAPITAL FUNDING OPTIONS SEPTEMBER 9, 2015 DISCUSSION: To fund capital projects, the Town of Los Gatos has consistently relied upon year -end savings which has averaged $2.5 million dollars annually. Other on -going capital funding sources include Road Impact Fees, Gas Tax, Traffic Mitigation revenue, Utility Undergrounding Fees, and Storm Drain revenues. The Town may also receive one -time grants and has approximately $350,000 in Community Benefit dollars which can be used under specified terms and conditions. With increasing costs and growing infrastructure needs, the Town Council directed staff to prepare a list of additional revenue options specifically dedicated to capital funding sources. The revenue options are organized into two categories: (1) Council authority to approve and (2) subject to voter approval. At the September 15, 2015 Council meeting, staff will prepare an overhead exhibit listing all of the revenue options to assist the Council's discussion. After considering public testimony, the Council should identify which revenue option(s) it would like to explore further. If Council identifies one or more options requiring voter approval, staff recommends the formation of an Ad Hoc Citizen Committee to work with staff as discussed later in this report. Revenue Options under the Council's Approval Authority Staff has identified seven revenue options that Council has authority to enact by majority vote after due notice: • Sale or Lease of Property • Taxation of Short-Term Vacation Rentals • Commercial Property Business License • Business License Tax Audit and Amnesty Program • Sidewalk Repair Cost Sharing • Change in Refuse Vehicle Impact Fee • Certificates of Participation Sale or Lease of Property The Town owns four properties that have could potentially be sold or leased, generating approximately $4 million to $10 million one -time funds or $325,000 to $655,000 in on -going annual lease revenue. Sale or Lease of Property Property Market Value One -time Revenue Rental Rate On -going Annual Revenue 14850 Winchester Avenue $1,800,000 - $4,000,000 $155,000* 4 New York Avenue (Venue) $700,000- $2,500,000 $50,000- $175,000 75 Church Street (Forbes Mill) $550,000 - $1,000,000 $50,000 - $100,000 4 Tait Avenue (Museum) $1,000,000 - $2,500,000 $70,000 - $225,000 Total $4,050,000 - $10,000,000 $325,000 - $655,000 *Only one rentable lot PAGE 4 MAYOR AND TOWN COUNCIL SUBJECT: LONG RANGE CAPITAL FUNDING OPTIONS SEPTEMBER 9, 2015 DISCUSSION (cont'd): Town owned properties located at 20 Dittos Lane and 225 W. Main Street have Below Market Price (BMP) housing requirements and therefore have not been considered for capital funding purposes. Council may direct the sale or lease of any or all of these properties and earmark funds to the General Fund Appropriated Reserve (GFAR) Capital Projects Fund, either for a specific project or general capital funding. Taxation of Short -Term Vacation Rentals Under Town Code, short-term vacation rentals are not currently permitted within the Town of Los Gatos. Short-term vacation rentals are typically defined as a dwelling unit, other than a dwelling unit located in a hotel, that is rented to a tenant for a period of not more than 30 consecutive days. With the advent of independent online booking websites such as Airbnb.com, municipalities are experiencing a trend in what is being described as an emerging "peer -to- peer" economy. In these "peer -to- peer" economics, owners rent out something they are not using, such as a house, to a stranger on a short-term basis. The Town of Los Gatos does not currently permit these short-term vacation rentals, however has received a handful of inquiries during the summer of 2015 about how to legally register short-tern rentals as businesses within the Town. Many jurisdictions are currently grappling with how to treat these types of rentals, local examples being the City of San Jose and San Francisco. The Town could consider permitting these rentals thereby requiring a short-term vacation rental permit, Business License Tax and Transient Occupancy Tax (TOT). Should Council wish to pursue this funding source further staff would request additional time to draft Town Code language permitting short-term rentals and identifying appropriate fee structures for permits and business license tax. At this point staff estimates permitting short rentals could result in at least $100,000 in additional revenue annually. Council has the following options for short-term vacation rentals: 1. Change Town Code and authorize short-term vacation rentals within Town limits, or within designated districts, or 2. Maintain current practice of not permitting short-term vacation rentals Commercial Property (Landlord) Business License In enforcement of the Town's business license tax program, commercial property owners are not required to pay a business license tax since the tenant of the commercial property is required to have a business license for their business operating out of the commercial property. Taxing the commercial property owner could be considered a double tax of the property. However in practice, taxing commercial property owners would be taxing rental revenue derived from that building, whereas the tenant of the building is required to pay a business license tax on their business. Staff surveyed fourteen Santa Clara County jurisdictions and found that four, Los Altos, Milpitas, San Jose and Sunnyvale, tax commercial properties. The tax charged ranges from a $35 annual fee in Milpitas and a maximum annual fee of $5,000 in San Jose (based on square feet). Staff estimates taxation of commercial property owners could result in at least $100,000 in additional business license tax revenue annually. PAGE 5 MAYOR AND TOWN COUNCIL SUBJECT: LONG RANGE CAPITAL FUNDING OPTIONS SEPTEMBER 9, 2015 DISCUSSION (cont'd): Council has the following options for taxation of commercial property owners: 1. Maintain current practice, not requiring business license taxation for commercial property owners, or 2. Authorize staff to enforce business license taxation of commercial property owners. Staff would recommend fees be charged for FY 2015/16 forward. No Town Code change is required. Business License Tax Audit and Amnesty Program All businesses operating within the Town of Los Gatos are required to pay a business license tax. There are approximately 3,200 businesses operating within the Town and during the summer of 2015 staff audited 23% of these businesses to assess the Town's exposure to non - licensing. Based on this audit, staff found that approximately 8% of businesses are operating without a valid business license. Since business license tax varies depending on the classification of the business, (i.e. retail, service, professional, etc.), it is difficult to determine the lost revenue from these non - licensed businesses. The Town could elect to initiate a Business License Amnesty program, in which staff would mail notification letters to all Town addresses outlining the requirement for obtaining a business license and offering a penalty free period of time for anybody with past tax due to the Town to bring their license current without penalty. This would generate one -time money as well as on -going revenue as the business would then be captured in the Town's database for future collection. Amnesty programs often work best when combined with a business license audit. The audit completed during the summer only captured business operating out a business location within the Town. Home - based businesses are difficult to identify and were not part of the scope of the audit completed this summer. There are a variety of independent companies that perform contract business license audit services. Saratoga, San Jose and Campbell have all conducted business license audits with varying success. The City of Saratoga hired an outside consultant to complete their business license audit and estimated to receive approximately $150,000 in additional tax revenue. City of Saratoga did not offer an amnesty program and did advise that they received significant complaints from the community during the audit process. If Council wishes to pursue a business license audit further, staff recommends a request for proposal (RFP) be issued to identify a vendor to provide these services. Council has the following four business license tax options: 1. Offer a Business License Amnesty Program only, 2. Conduct a Business License Audit and offer a Business License Amnesty Program, 3. Issue an RFP for a service provider and conduct a Business License Audit only, or 4. Maintain current in -house enforcement of business license program. Sidewalk Repair Cost Sharing The Town of Los Gatos currently operates a sidewalk replacement service to residents at no cost. Some municipalities in Santa Clara County (SCC) offer these programs with a cost - sharing attribute. For example, the City of Gilroy requires a 50% cost sharing while San Jose requires residents to pay the full cost of sidewalk replacement. PAGE 6 MAYOR AND TOWN COUNCIL SUBJECT: LONG RANGE CAPITAL FUNDING OPTIONS SEPTEMBER 9, 2015 DISCUSSION (cont'd): The Town currently expends approximately $300,000 annually for residential sidewalk repairs. With residents sharing 50% of the costs, the Town could receive an additional $150,000 in revenue annually. Cost - sharing programs require significant administrative support at an estimated cost of $70,000 annually. Therefore, a 50% cost sharing agreement for residential sidewalk replacement would likely result in approximately $80,000 in annual revenues that could be allocated for other capital improvements. Council may direct staff to further pursue a cost sharing arrangement for sidewalks repairs. The Council may also indicate an initial percentage or range of cost sharing percentages as this option is explored further. Change in Refuse Vehicle Impact Fee West Valley Collection and Recycling (WVCR) submits proposed rates to the West Valley Solid Waste Management Authority (WVSWMA) on an annual basis. The WVSWMA votes to ratify the proposed rates [including a consumer price index (CPI) increase for collection services], new increased fees assessed by other agencies, new services, and any fees requested by local agencies. Staff recommends requesting an increase in Refuse Vehicle Impact fees for the next three years of $120,000 annually to more fully recapture the damage incurred to Town streets by refuse vehicles. The Town's recommended fee increase is based on the Refuse Vehicle Street Maintenance Cost Analysis study completed by the Town in spring 2015. These fees would be incorporated into the WVCR's fee calculation and recommendation submitted to the WVSWMA Board for ratification. The WVSWMA is a four member Joint Powers Authority (JPA) and rates are considered at a public meeting, requiring three votes to ratify. The Town Council could elect to specifically designate these dollars to the fund capital projects. Three of the West Valley cities, Campbell, Saratoga and the Town of Los Gatos dedicate Refuse Vehicle Impact Fee revenues to infrastructure repairs and maintenance. This is an option that Council may affirmatively select for further exploration. Certificates of Participation The Town has in the recent past issued Certificates of Participation (COP), including approximately $15 million in 2010 for the new Library and $10 million in 2002 for Downtown Street and Park improvements. These certificates were passed with a simple majority vote. The annual debt service of approximately $2 million per year was secured by a lease with the Town's Redevelopment Agency. The result being that no ongoing Town revenues like sales or property tax was needed to fund the annual debt service. With the loss of the Town's Redevelopment Agency in 2012, this mechanism for funding is no longer available. If a new COP were to be considered by the Town, an ongoing funding source (e.g., parcel tax, increased sales tax, or increased transient occupancy tax) would need to be identified to make the annual debt service payment out of Town's annual operating budget. PAGE 7 MAYOR AND TOWN COUNCIL SUBJECT: LONG RANGE CAPITAL FUNDING OPTIONS SEPTEMBER 9, 2015 DISCUSSION (cont'd): Revenue Options Subject to Voter Approval Local agencies may impose taxes, subject to voter approval, using a variety of methods. Pursuant to Proposition 218, these taxes are classified as either "general" or "special." Whether the ballot measure requires a simple majority (50 %+ 1 vote) or a super majority (two- thirds of those voting in the affirmative) depends upon the ballot language and whether the question is placed upon the ballot as a general tax increase or a special tax increase A "general tax" may be used for any public purpose — the funds are fully discretionary and may be deposited into the General Fund. A majority vote (50 % +1) of the electorate is required to impose, increase, or extend a general tax. A "special tax" is a tax imposed for a specific purpose. For example, some cities dedicate tax revenues for the payment of law enforcement or street maintenance costs rather than using the taxes for the general operations of government. A two - thirds majority of voters is required to impose, increase, or extend a tax for a specific purpose. Special tax revenues must be accounted for in a separate fund. General taxes may only be put on the ballot at the same general election when the Town Council election is held, unless the Council unanimously finds that there is an urgent need to impose the tax measure. Upon such unanimous declaration, the general tax measure may be put before the voters at a special election. Special taxes may be placed before the electorate at any time, either during a general election or in a special election. If Council would like to move forward with any of these initiatives, staff recommends that the Council establish an Ad Hoc Citizen Committee with two Council Members and three Los Gatos residents to work with staff to study the issues, seek public input (including a community survey), and report back to Council with a recommendation and drafted ballot language, if any. Staff s recommended timeline is as follows: March 2016 – Citizen Committee presents report and draft language to Council April 2016 – Further Consideration by Town Council of draft language for ballot measures and authorizing Ordinances and Council Resolution June 2016 – Approval of Town Council Resolution placing revenue generating measure on November 2016 election Any initiative passing with a vote of the electorate would begin to generate additional revenue for the Town in January 2017. PAGE 8 MAYOR AND TOWN COUNCIL SUBJECT: LONG RANGE CAPITAL FUNDING OPTIONS SEPTEMBER 9, 2015 DISCUSSION (cont'd): The following six new revenue options, all requiring voter approval, have been identified for Council consideration: • Assessment Districts • Utility User Tax (UUT) • Increased Transient Occupancy Tax (TOT) • Increased Sales Tax • Parcel Tax — General or Special • General Obligation Bonds To the extent possible, staff has gathered information from in- county jurisdictions to provide comparative information for Council to use in assessing new taxing mechanisms for the Town. Assessment Districts An Assessment District is a special district that includes property that will receive direct benefit from new public improvements or from the maintenance of existing public improvements. The most common types of assessments are for roads, storm water, parks, landscaping, and street lighting. Formation of an Assessment District requires voter approval, which must be done in the form of a mailed ballot. Assessment Districts require that at least as many ballots (as weighed by the amount of the assessment against the parcel submitting the ballot) are returned in favor of the assessment as are returned in opposition to the assessment. Each property is assessed a certain amount based on the percentage of benefit received by the property. Factors that determine the amount of benefit received may include the size of the lot or the proximity to the improvement being financed. The collection of the assessment charges occurs through County property tax collections, and is earmarked for the special assessment district as defined. Unless specified by a sunset clause, the collection will continue into the future at a minimum growth allowable by Proposition 13. A CPI (consumer price index) may also be added to the collection so as to keep revenues growing at a rate equal to expenditures. Utility User Tax (UUT) Government Code Section 37100.5 authorizes cities to collect a utility user's tax on electric, gas, cable television, water, and telephone services. The tax is collected by the utility as part of its regular billing and then remitted to the Town. The tax rate set by the Town Council is typically defined by the voter referendum used to authorize the tax. Statewide, there are approximately 150 cities and 4 counties with UUTs. The particular utility to which the tax is applied varies. In some cities, different rates apply to residential versus commercial users. The most common rate is 5 %, applied broadly among many types of utilities. The average rate is 5.5 %. Most large cities have UUTs, meaning roughly half of California residents and businesses pay a utility user tax. PAGE 9 MAYOR AND TOWN COUNCIL SUBJECT: LONG RANGE CAPITAL FUNDING OPTIONS SEPTEMBER 9, 2015 DISCUSSION (cont'd): An UUT may be imposed as a special tax earmarked for a specific purpose. However, all California cities impose the UUT as a general tax to be used for a variety of municipal service needs. The Town of Los Gatos does not have any UUT's, however some in- county jurisdictions do impose UUTs. Staff's survey of the 14 in- county jurisdictions found that: • Intrastate Only Telephone UUT — City of Sunnyvale imposes a 2% tax and is the only Santa Clara County (SCC) jurisdiction to do so. • Telephone UUT — Imposed by Cupertino, Los Altos, Palo Alto, San Jose, Gilroy and Mountain View at rates ranging between 2.4% in Cupertino to 4.75% in Palo Alto. • Electricity UUT — Imposed by Cupertino, Los Altos, Palo Alto, San Jose, Gilroy, Mountain View and Sunnyvale at rates ranging between 2.0% in Sunnyvale to 5.0% in Palo Alto, San Jose, and Gilroy. • Gas UUT - Imposed by Cupertino, Los Altos, Palo Alto, Gilroy, Mountain View, San Jose, and Sunnyvale at rates ranging between 2.0% in Sunnyvale to 5.0% in Palo Alto, San Jose, and Gilroy. • CATV UUT — Imposed by Cupertino, Los Altos, and Gilroy at rates ranging between 2.4% in Cupertino to 4.5% in Gilroy. • Water UUT — Imposed by Cupertino, Los Altos, Palo Alto, and San Jose at rates ranging between 2.4% in Cupertino to 5.0% in both Palo Alto and San Jose. The Town could generate approximately $2,000,000 in additional revenue should UUT's be imposed for telephone, gas, electricity and water. Increased Transient Occupancy Tax (TOT) The Town currently collects TOT at a rate of 10% per rental by all entities renting lodging for 30 days or less. Those taxes are remitted monthly or quarterly to the Town, and that revenue stream accounts for 4.0% of the General Fund revenues, budgeted for $1.5 million for FY 2015/16. An increase from the current 10% to 11 % will result in approximately $150,000 annually in increased TOT revenues. An increase to 12% would result in approximately $300,000 annually in increased TOT revenues. The average TOT in SCC is 11 %, with Palo Alto being the highest at 14 %, followed by Campbell and Cupertino at 12 %. The City of Gilroy has the lowest TOT at 9 %. Because TOT taxes short-term rentals, it is primarily non - residents who pay this tax. A TOT may be imposed as a special tax earmarked for a specific purpose. However, all other cities in California impose the TOT as a general tax to be used for a variety of municipal service needs at the discretion of the Town Council. PAGE 10 MAYOR AND TOWN COUNCIL SUBJECT: LONG RANGE CAPITAL FUNDING OPTIONS SEPTEMBER 9, 2015 DISCUSSION (cont'd): Increased Sales Tax California has many special taxing jurisdictions (districts), which are funded by a transaction (sales) and use tax rate that is added to the standard statewide rate of 7.50 %. The tax rates for these districts range from 0.10% to 1.0% per district. In some areas, there is more than one district tax in effect (Capitola, El Cajon, El Cerrito, Eureka, Ft Bragg, Nevada Town, Placerville, Santa Rosa, Sebastopol and Woodland). In others, there is no district tax in effect. The Town of Los Gatos does not have a sales tax add -on. An increase in sales tax would minimize the burden on local residents because those who visit the community pay approximately one -third of sales taxes paid within the Town. A Sales Tax increase may be imposed at a rate of 0.25% or a multiple thereof. The ordinance proposing the tax must be approved by majority vote of the voters in the city if the tax is for general purposes or two - thirds vote of all members of the governing body if the tax is for a specific purpose. The maximum combined rate of transactions and use taxes in any location may not exceed 2 %. Currently, Santa Clara County has transactions and use tax in the amount of 1.25 %. The City of Campbell is the only SCC jurisdiction that has a Sales Tax add -on at 0.25 %. With a 0.25% add -on the Town is estimated to generate approximately $2,000,000 in additional sales tax revenue annually. Parcel Tax — General or Special A parcel tax (otherwise known as a property -tax override) is a special non -ad valorem (non -value based) tax on parcels of property generally based on either a flat per - parcel rate or a variable rate depending on the size, use, or number of units on the parcel. However, since this tax is not based on the value of the property, it is a "fixed" tax. Parcel taxes require two - thirds voter approval and are imposed for any number of purposes, including firnding police and fire services, clean water watershed management and flood control, and neighborhood improvement and revitalization. There are approximately 10,000 taxable parcels in the Town. Therefore a $100 parcel tax would generate approximately $1.0 million in new revenue which could be designated for capital projects. General Obligation Bond General Obligation (GO) bonds are secured by a pledge of revenues legally available to the municipality. The bonds are typically secured by an annual property tax levy on real property equal to the annual debt service on the bonds. As the property tax levy on real property is considered to be the most secure of debt issuances a municipality can make, the ratings for GO bonds are usually the highest rated bonds a city can issue. The higher ratings lowers the cost of borrowing (interest rate paid to the bondholders), which can lead to greater amounts issued at a lower cost. The bonds are a "general obligation" and as such the levy is usually made against all taxable properties in the city. PAGE 11 MAYOR AND TOWN COUNCIL SUBJECT: LONG RANGE CAPITAL FUNDING OPTIONS SEPTEMBER 9, 2015 CONCLUSION: While the Town's solid financial status allows for the use of some existing reserves to fund specific projects such as Almond Grove street rehabilitation project in the short-term, the need for reliable ongoing sources of funds for other street improvements, street lighting, utility replacements, building maintenance, etc. warrant a review of the above new sources and serious consideration of an action plan to generate additional capital improvement and related maintenance funds. Other jurisdictions have done so. Therefore, staff recommends the following: 1. Identify specific funding options for further exploration. 2. If specific funding options requiring voter approval are identified by the Town Council, establish an Ad Hoc Citizen Committee with two Council members and three Los Gatos residents to conduct the exploration of the funding options; and Appoint two Council members to the newly formed Ad Hoc Citizen Committee and initiate a recruitment for the resident members of the Committee with the intention of interviewing and selecting members at or before the October 20, 2015 Town Council meeting. COORDINATION: The preparation of this report was done in coordination with staff from the Department of Finance, Town Manager's Office, Town Attorney, and Department of Parks and Public Works. FISCAL IMPACT: A variety of on -going new revenue sources have been identified for Town Council consideration. Depending on which revenue sources are identified for further consideration, new dedicated capital projects revenues of $1 million to $4 million dollars annually. ENVIRONMENTAL ASSESSMENT: This item is not a project defined under CEQA, and no further action is required.