February 24, 2011 A New Tax for the City of Tracy Facilitator: Zane H. Johnston, Finance & Administrative Director

2 Tracy Faced Big Fiscal Challenge Commissioned Study to identify areas to cut, revamp, consolidate, etc. Study noted a new revenue source would also be necessary to balance budget if essential services were to be maintained City thought initially this would be a parcel tax City decided to poll community to find out what residents thought

Why Conduct a Poll? Election Timing / Tax Amount Political Willpower Ballot Question Wording Ballot Arguments Campaign Messaging / Target Segmentation

The Godbe Research Process Project Kick- Off Meeting Review Data / Demographics Draft Instrument Develop Sample Design Pretest and Program Field Survey Analysis & Reporting Presentation of Findings Post-Project Support

Essential Components of a Revenue Measure Survey Issues of Importance First Ballot Test Tax Threshold Projects/Programs Pro Arguments Con Arguments Duration/Special Features Second Ballot Test Demographics Voter Behavior Geographic Variables

Important Issues Not At All Impor tant Some what Import ant Very Impor tant Extre mely Impor tant Note: The above rating questions have been abbreviated for charting purposes. The responses were recoded to calculate mean scores: “Extremely Important” = +3, “Very Important” = +2, “Somewhat Important” = +1, and “Not at all Important” = 0.

Opinions of Half-Cent Sales Tax To help prevent additional budget cuts and maintain City of Tracy services, including Police (patrol, 911, police command, gang/narcotics enforcement, crime investigations, other police services); Fire protection, emergency services, and other fire services; Park/sports field maintenance; City administration; Senior, teen, and youth services; Art programs; and other general services shall the City of Tracy enact a half-cent sales tax, with resident oversight, annual independent audits, and all funds used for City of Tracy services only? Yes / No 64% / 29% 62% / 34%

Opinions of Measure Duration

Service Priorities – Tier I Somewhat More Likely Much More Likely No Effect Note: The above rating questions have been abbreviated for charting purposes. The responses were recoded to calculate mean scores: “Much More Likely” = +2, “Somewhat More Likely” = +1, “No Effect” = 0, “Somewhat Less Likely” = -1, and “Much Less Likely” = -2. Somewhat Less Likely

Informative Statements Somewhat More Likely Much More Likely No Effect Note: The above rating questions have been abbreviated for charting purposes. The responses were recoded to calculate mean scores: “Much More Likely” = +2, “Somewhat More Likely” = +1, and “No Effect” = 0.

Split Sample Important Issues (n = 600) Sales Tax Measure (n = 300)Utility Tax Measure (n = 300) Influence of Supporting Arguments (n = 300) Support for Different Tax Rates (n = 300) Influence of Opposing Arguments (n = 300) Sales Tax Measure (n = 300) Influence of Programs on Voter Support (n = 300) Influence of Projects on Voter Support (n = 300) Influence of Supporting Arguments (n = 300) Influence of Opposing Arguments (n = 300) Support for Different Tax Rates (n = 300) Support for Different Tax Durations (n = 300) Utility Tax Measure (n = 300) Demographic Questions (n = 600) Support for Different Tax Durations (n = 300)

Opinions of Parcel Tax To help maintain and prevent additional budget cuts to police patrols, crime prevention, anti-drug and gang-prevention programs; 911 emergency response times; fire protection; and firefighters and police officers shall the City of Tracy levy $200 per residential parcel annually, exempting seniors, with resident oversight, annual independent audits, and all funds used only for City of Tracy police, fire, and emergency medical services?

13 Continuing the Tracy Story City now armed with valuable information obtained from the poll City now needed to interpret this information and translate it into a ballot measure to be considered by voters City also needed a public information process to communicate to the community about the City’s fiscal situation

Turning Theory into Reality… How to Convert Your City Studies and Polling Results into a Winning Campaign 14

What is Legally Permissible City Communication? The City of Tracy, like others, is legally permitted to convey a full range of information to voters, including facts about the City’s budget deficit, existing and future budget cuts, and information gathered from the Community Survey. The City of Tracy successfully utilized all of its communication vehicles, including the Internet, city newsletters, and community presentations. The information conveyed included what the public told us about their service priorities and the proposed sales tax solution. 15 *Should not be construed as providing legal advice. Confer with your City Attorney on these matters.

A City’s Right to Communicate is Protected As described in Vargas vs. Salinas *: City-issued information cannot expressly advocate any partisan position. City-issued information is also evaluated within the context of its “style, tenor, and timing.” Cities and other public agencies have a right to speech, within these parameters. Work closely with your City Attorney, and utilize common sense practices so that your Public Education Program is being implemented within established City practices. Getting a proactive start on your long-term community communications is essential! *Should not be construed as providing legal advice. 16

Tracy’s Educational Outreach Following the completion of the community survey, results were carefully analyzed. A City Communications Outreach Program strategy was developed with the input of all parties: Consultants, Executive Staff, and City Attorney. The City of Tracy convened an outstanding Outreach Team for this project, who deployed by: Issuing internal updates to staff at all levels Refining database of key Community Organizations and Opinion Leaders Making scores of Speakers Bureau presentations Mailing Opinion Leader updates, convening meetings with the City Manager and Influentials, as needed Sending Utility Bill Inserts with pertinent factual, budgetary information 17

The Importance of Internal Communication Internal stakeholders (city staff, associations, volunteers) are the backbone of our service delivery. It is important to work from the “inside out” by educating your internal constituents so that the “Team” understands: Your proposed plan or revenue solution How and why the community’s priorities must be strongly represented within the City’s plan. Upon completion of the survey, we: Issued updates from the City Manager Delivered “Hot off the Presses” survey debriefs by GRA to Department Heads and Department Head meetings with consultants 18

Speakers’ Bureau Example 19 Speakers’ Bureau messages were tested in advance in the poll, ensuring they were user-friendly and effective. Only easy-to-understand, effective facts and information were utilized; everyone stayed “on point.”

Opinion Leaders and the Public-at-Large The City of Tracy mailed updates to Opinion Leaders regarding the budget process and community feedback surrounding the potential for what became Measure E. Selected Personal Meetings with the City Manager and Key Influentials helped to address additional questions or concerns. The City also provided budget information to constituents through utility bill inserts, ensuring that residents were properly informed and not surprised by the placement of Measure E on the ballot. 20

Drafting Measure E Ballot Language All pertinent facts and information tested in the survey was “embedded” into the staff report, resolution and ballot question. The ballot materials were specifically drafted to address community priorities expressed in the polling: General Purpose Measure requiring simple majority passage Fiscal Accountability Protections: Independent Citizens Oversight, 5-year sunset clause A ballot question that was specifically tested in polling for clarity and effectiveness 23

YES on E Campaign While the City continued to convey factual information on Measure E, a separate YES on E campaign committee was formed to directly advocate for its passage. YES on E raised over $50,000 YES on E volunteers called and identified more than 1,000 supporters YES on E ran four newspaper ads (one per week for four weeks), sent two campaign mailers to voters, put up 550 yard signs and billboards, and placed three targeted messages to all voters 24

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27 The Results in Tracy Measure E passed with 59% approval (needed simple majority)

28 Why Tracy was Successful We had fiscal credibility (prior good fiscal management) We communicated facts and kept on message We used a variety of communication vehicles available to us

29 Fiscal Credibility City had history of good fiscal management (strong reserves, low debt, etc.) We put our house in order first before asking voters for additional taxes (implemented all of the recommendations from the previous study) Implemented important “public perception items”

30 Communicated Facts (Kept on Message) 27% drop in property taxes in 3 years 34% drop in sales tax Has not been a corresponding drop in demand for services 80% of General Fund taxes go to public safety State actions (previous and current) hurt City City already made all the cuts not having an adverse impact on essential services Defined “value” of services received Tax would not harm economy or place Tracy in adverse relationship to neighboring communities

31 Used a Variety of Communication Vehicles 2 mailers to “key opinion leaders” Speakers bureau made 35 presentations – 800+ “movers and shakers” 3 newsletter inserts – 1 full edition – “Plug into the Facts” 4 time per week broadcast on Cable TV Website update Political Campaign (outside of City’s efforts)

32 If it worked in Tracy It can work for you Since % of majority vote local tax measures and 46% of 2/3 vote measures have passed statewide Tracy is relatively conservative Had local Tea Party opposition Passed at same time as conservative revolution swept nation VALUE – VALUE – VALUE !!!!!

Zane Johnston, Finance Director Johnston, Finance Director Bryan Godbe, President, Godbe ResearchBryan Godbe, President, Godbe Research Catherine Lew, Lew Edwards Group x216 Lew, Lew Edwards Group x216 Questions & Discussion