Golden Gate Fields: 2 ballot measures would offset losses
Measures P and Q would offset about $700,000 in annual losses if Golden Gate Fields becomes tax exempt, leaving roughly $383,000 to address.
With a major vote on Golden Gate Fields coming up, Albany is weighing how to replace lost tax revenue if the former racetrack becomes a public park.
Albany voters will see two measures on the Nov. 3 ballot designed to preserve funding for streets, storm drains and emergency services if Golden Gate Fields becomes tax exempt.
The city of Albany expects to lose about $1.1 million annually from the sale, with the school district estimating annual losses up to $800,000.
Albany Measures P and Q on the November ballot would replace about $700,000 for city services, with Measure P providing about $300,000 for street paving and storm drains and Measure Q providing about $400,000 for emergency medical services.
"These are significant revenues for particular purposes," Albany Finance Director Reina Schwartz explained to city officials at the Oct. 5 City Council meeting.
The remaining revenue gap
Even if both measures pass, roughly $383,000 in annual revenue would still need to be addressed if the sale goes through.
Existing library reserves could cover the roughly $100,000 annual loss for more than five years, depending on cost increases for library hours, Schwartz said. Officials could also raise library parcel tax rates later to help fill the gap.
The city has not identified replacement revenue for about $163,000 in taxes currently used for landscaping and lighting, sidewalks and pathways, open space and public safety pension costs.
The city would also lose about $117,000 annually in general fund property taxes, which officials said could be offset by other revenues.
Separate sewer and clean-water fees, totaling about $124,000 annually, would continue to be collected even under new ownership.
Golden Gate Fields accounts for roughly one-fifth of the city's emergency medical services and street paving and storm drain tax revenues, and just under one-fifth of library tax revenues, Schwartz said.
According to a recent estimate from Councilman Preston Jordan, if Measure P, Measure Q and Measure T all pass, and the Golden Gate Fields deal happens, the average annual tax increase for a single-family homeowner would be close to $300 (less for condo owners).
Emilie Raguso
At the Oct. 5 City Council meeting, Schwartz explained that the Golden Gate Fields site is actually a series of parcels, including one in Berkeley.
The current plan is for Trust for Public Land to buy the site and turn it over to the East Bay Regional Park District for a public park in the years ahead.
"Spoiler alert," Schwartz said. "The vast majority of the impact that is potentially associated with this sale is to special revenue sources. It is not to the city's general fund."
The site's contribution to the general fund is less than half of 1%, she said.
How Albany Measures P and Q would change parcel taxes
As special taxes with dedicated purposes, measures P and Q require two-thirds approval by Albany voters.
Both measures would change how existing parcel taxes are calculated if Golden Gate Fields becomes tax exempt.
If Golden Gate Fields becomes tax exempt, Measure P would base the street tax on lot size rather than residential units. Measure Q would base the emergency services tax on building size rather than lot size for developed properties. Some property owners would pay more and others less.
If the sale falls through, the existing calculations would remain in place. Other provisions, including expanded low-income tax relief and lower caps on annual inflation increases, would take effect regardless.
How Golden Gate Fields revenue losses could affect Albany services
After the presentation, Councilman John Miki observed that there was "still a funding gap."
He asked for any insights into what next year's city budget might look like, adding: "How much more room is there in our budget to squeeze, knowing that we might be $400,000 short?"
"I would say that there's always room to squeeze," Schwartz said. "But that room is declining."
Miki noted that the City Council had "had a lot of discussions" in recent years about budget deficits, and said staff had worked hard to save the city money.
Under current projections, Albany expects to see general fund deficits in the ballpark of "a couple million dollars," Miki continued. He questioned whether the general fund could absorb expected losses.
"If your estimations for the future are correct, there is no general fund money to backfill with," he said.
"I would be hesitant at this point to say that there's none," Schwartz replied, adding that it would ultimately come down to "priorities and service levels."
"If that revenue is lost, we pave things more slowly," she said. "It takes longer to get to certain projects."
On the EMS side, she said services would be reduced or the general fund would have to help fill the gap.
"It's a question of priorities, and much harder trade-offs that come about," she said.
"We solve the gap now, or do we cut services?"
During the meeting, officials expressed support for revenue-generating amenities at the future park, although how those might benefit Albany remains uncertain.
Options included taxes on private businesses operating on park property, while Mayor Peggy McQuaid said she had been pressing state legislators to ensure Albany is "made whole."
Jordan said he wanted to see revenue-generating activity at the park but cautioned that it wouldn't happen anytime soon.
"Even under the best scenario, that's not going to materialize for probably 10 years, with the length of the planning process, construction, site cleanup," he said.
"We solve the gap now, or do we cut services?" he asked. "That's really what we're faced with."
Stay tuned for ongoing coverage of Golden Gate Fields, including next week's park district vote on TPL's plan to buy the property.
Watch the Oct. 5 Albany City Council meeting
The future of Golden Gate Fields: Learn more
- City of Albany: Golden Gate Fields Transition
- East Bay Regional Park District: Future Golden Gate Fields Park
- Trust for Public Land: Golden Gate Fields
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