City
yof Lafayyette
2010 Real Property Transfer Tax
Feasibility Survey
February 2010
Overview and Research Objectives
The City of Lafayette commissioned Godbe Research to conduct a survey of voters to
assessassess potentialpotential ssupport
upport for
for two
two measures:measures:
?
To make the City of Lafayette an independent charter city; and
?
To increase the real property transfer tax by $7 dollars per $1,000 dollars of the
salessales price
price whenwhen aa pproperty
roperty isis sold.sold.
The survey was also designed with the following research objectives:
?
Test voter satisfaction with the quality of life and city job performance
?
Id tif th
ti
l
tt
ft
t
t hih t
ill
?
Identify the optimum real property transfer tax rate at which voters will support t ththe
measure;
?
Prioritize potential projects to be funded based on voter reception;
?
T tth i fl
f
ti
d
i
t
?
Test the influence of supporting and opposing arguments on pottentitial l votter
support; and
?
Identify any differences in voter support due to demographic and/or voter
behavioral characteristics.
Page 2
February 2010
behavioral characteristics.
Methodology Overview
?
Data Collection
Telephone Interviewing
?
Universe
Approximately 11,773 voters in the
City of Lafayette who are estimated to be
likely voters in the November 2010 election
?
Fielding Dates
January 10 to 18, 2010
?
Interview Length
20 minutes
?
Sample Size
400
?
Margin of Error
± 4.8%
Page 3
February 2010
Note: The data have been weighted to reflect the actual population characteristics of the likely voters in City of Lafayette in terms of their gender, age
and political party type.
Voter Priorities
Preserving open spaces
Repairing streets and roads
Improving the quality of public education
Reducing traffic congestion
Reducing
crime
1.6
1.5
1.5
1.3
1.2
Preventing local tax increases
12
Fostering a village-type downtown environment
Preserving the historic "Park Theater"
Increasing parking in the downtown
Providing more services to seniors
Extending library hours and programs
1.2
1.1
1.0
1.0
1.0
1.0
0.0
1.0
2.0
Extending library hours and programs
Expanding local parks
Adding more retail/businesses to downtown
Increasing housing options in the downtown
1.0
0.9
0.6
0.5
Not at all
SomewhatSomewhat
Very
Important
Not at all
Important
Very
Important
Page 4
February 2010
Note: The above rating questions have been abbreviated for charting purposes. For the exact wording, please see Appendix D. The responses were
recoded to calculate mean scores: “Very Important” = +2, “Somewhat Important” = +1 and “Not Important” = 0.
Satisfaction with Quality of Life
DK/NA
1%
Very Satisfied
81%
Somewhat
Dissatisfied
Very Dissatisfied
<1%
81%
Back to top
Somewhat
Back to top
2%
SSatitisfifiedd
16%
Total Satisfaction
97%
Page 5
February 2010
Satisfaction with City Services
Very
DK/NA
4%
Very Satisfied
43%
Back to top
Somewhat
Dissatisfied
ey
Dissatisfied
3%
Back to top
Somewhat
Satisfied
46%
4%
Total
Satisfaction
89%
Page 6
February 2010
89%
Initial Ballot Test – Charter City Measure
DK/NA
45%
In order to reclaim local autonomy from
Definitely
Yes
13%
In order to reclaim local autonomy from
the State and to preserve the economic
and fiscal independence of our city,
shall the City of Lafayette become an
independent charter city, instead of
ii
ll
Probably
it ?
Yes
18%
remaining a general law city?
If the election were held today, would
you vote yes or no on this measure?
Probably No
14%
Definitely
No
10%
Back to top
Total
Support
31%
Page 7
February 2010
Initial Ballot Test – Real Property Transfer Tax
To maintain and improve city services,
DK/NA
including:
7%
• Repairing and maintaining local streets;
• Extending library hours and services;
• Maintaining police services, patrols, and
crime prevention officers;
• Preserving open spaces and expanding
Definitely No
22%
Definitely
Yes
27%
• Preserving open spaces and expanding
local parks; and
• Maintaining downtown landscaping and
increasing parking;
Probably
Yes
29%
Shall the City of Lafayette increase the Real
Property Transfer Tax, which is collected
when a property is sold, by $7 dollars per
$1,000 dollars of the sales price?
Probably No
15%
Total
Support
56%
Page 8
February 2010
Support for Different RPTT Rates
80%
24%
24%
60%
35%
45%
24%
29%
20%
40%
Probably Yes
Definitely Yes
15%
25%
0%
$9 dollars
$7 dollars
$5 dollars
$3 dollars
Page 9
February 2010
Per $1,000 dollars of the sales price
Measure Features I
Repair failing City streets and roads
Fill potholes
Maintain/repair neighborhood streets
Maintain/repair major City streets
1.0
0.9
0.9
Maintain/repair major City streets
0.9
Ongoing maintenance of roads
After-school library programs
Acquire land to preserve open space/expand parks
I
li
tl
0.9
0.9
0.5
0.4
04
0.0
1.0
2.0
Increase police patrols
Support library programs/services
0.4
0.4
Somewhat More
Likely
Much More
Likely
No
Effect
Likely
Likely
Page 10
February 2010
Note: The above rating questions have been abbreviated for charting purposes. For the exact wording, please see Appendix D. 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.
Measure Features II
Two additional police officers on duty
Library hours on evenings/weekends
Park play structures/sports fields
Recreation facilities/programs
for all ages
0.2
0.2
0.2
p g
0.2
g
Additional senior services
Purchase, renovate and operate "Park Theater"
Preserve historic buildings in the downtown
Maintain/expand downtown parking
0.0
-0.1
-0.1
-0.3
-1.0
0.0
1.0
Additional downtown beautification
Pension program for law enforcement officers
-0.5
-0.7
Somewhat More
Likely
Somewhat
Less Likely
No Effect
Less Likely
Likely
Page 11
February 2010
Note: The above rating questions have been abbreviated for charting purposes. For the exact wording, please see Appendix D. 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.
Positive Arguments
Funds stay local; won't go to other communities/State
Over 17% streets have received a failing
grade
$15M+ needed to fund overdue street maintenance
Annual audits & citizen's oversight
State may
reduce public safety/road maintenance funding
Protect property values by providing quality services
1.1
1.1
1.0
0.9
0.9
Protect property values by providing quality services
09
Improve police response time & ensure police coverage
Only
those who buy a property will pay the RPTT
More local control over revenue
generation tools
City
has the lowest police staffing in the County
Support library hours & provide resident programs
Flattened property sales & TOT revenue; costs increased
0.9
0.8
0.8
0.8
0.8
0.7
07
0.0
1.0
2.0
Flattened property, sales, & TOT revenue; costs increased
Preserve City's unique character
Limit State involvement in local civic affairs
0.7
0.6
0.6
No Effect
Somewhat
More Likely
Much More
More Likely
LikelyLikely
Page 12
February 2010
Note: The above rating questions have been abbreviated for charting purposes. For the exact wording, please see Appendix D. The responses were
recoded to calculate mean scores: “Much More Likely” = +2, “Somewhat More Likely” = +1, and “No Effect” = 0.
Negative Arguments
No rules direct the spending of these tax dollars
Current economy, not the right time for new taxes
Charter creates more bureaucracy & red tape
City failed to pass measures in 2004, 2006 & 2007
Cit
i
h ld b
id ith
t
0.8
0.8
0.7
0.6
City services should be paid with current revenues
06
Low crime & maintained roads; we don't need new tax
Difficult to sell properties; RPTT discourages buyers
Charter will be hi-jacked by special interests
Local taxes are already too high
0.6
0.5
0.5
0.5
0.5
0.0
1.0
2.0
City Council & staff can't be trusted with the money
0.5
No Effect
Somewhat
More Likely
Much More
Likely
Page 13
February 2010
Note: The above rating questions have been abbreviated for charting purposes. For the exact wording, please see Appendix D. The responses were
recoded to calculate mean scores: “Much More Likely” = +2, “Somewhat More Likely” = +1, and “No Effect” = 0.
Final Ballot Test – Charter City Measure
In order to reclaim local autonomy from
the State and to preserve the economic
and fiscal independence of our city,
shall the City of Lafayette become an
independent charter city, instead of
remaining a general law city?
Final Ballot Test
12%
24%
20%
15%
30%
remaining a general law city?
If the election were held today, would
you vote yes or no on this measure?
0%
20%
40%
60%
80%
100%
Initial Ballot Test
13% 18% 14% 10%
45%
Definitely Yes
Probably Yes
Probably No
Definitely No
DK/NA
Page 14
February 2010
Final Ballot Test – Real Property Transfer Tax
To maintain and improve city services,
including:
• Repairing and maintaining local streets;
• Extending library hours and services;
• Maintaining police services, patrols, and
crime prevention officers;
Final Ballot Test
20%
27%
19%
27%
6%
• Preserving open spaces and expanding
local parks; and
• Maintaining downtown landscaping and
increasing parking;
Initial Ballot Test
27%
29%
15%
22%
7%
Shall the City of Lafayette increase the Real
Property Transfer Tax, which is collected
when a property is sold, by $7 dollars per
$1,000 dollars of the sales price?
0%
20%
40%
60%
80%
100%
Definitely Yes
Probably Yes
Probably No
Definitely No
DK/NA
Page 15
February 2010
Information Sources
Newspaper
Word of mouth (family, friends or colleagues)
City newsletter
72%
28%
City newsletter
20%
Internet/Websites/BLOGs
Community meetings
City website
City Council meetings
TV station
20%
8%
7%
7%
7%
TV station
6%
Radio
City Commission meetings
City departments
Other
N
fth
b
6%
3%
3%
<1%
8%
3%
0%
20%
40%
60%
80%
None of the above
DK/NA
3%
4%
Page 16
February 2010
Social Media Use
Do not use
Back to top
Facebook
51%
31%
Back to top
YouTube
Back to top
Twitter
19%
5%
Back to top
LinkedIn
Back to top
MySpace
4%
2%
Back to top
Other
DK/NA
1%
10%
Page 17
February 2010
0%
20%
40%
60%
Potential Use of Social Media
Yes
29%
No
70%
DK/NA
1%
Page 18
February 2010
n = 153
Summary and Recommendations I
?
Overall, Lafayette voters placed major City services including preserving open spaces, repairing
streets and roads, reducing traffic congestion, and reducing crime at the same or higher level of
importanceimportance than
than preventing
preventing local
local taxtax iincreasesncreases.
?
The survey results highlight the need for extensive public education to inform the voters about
the actual nature and benefits of a charter city.
?
After the simulated campaign, 30 percent of the voters were undecided about their vote on
thethe mmeasure
easure forfor LafayetteLafayette toto becomebecome aa chartercharter citycity, insteadinstead ofof remainingremaining aa generalgeneral llaw
aw citycity.
?
Only 36 percent supported this measure, while an equal number of them were opposed to it.
?
Considering the voters’ sensitivity to tax rates, a conservative real property transfer tax rate of $5
dollars per $1,000 of the property’s sales price is advisable to optimize support for the measure
amongamong the
the likely
likely November
November 20102010 votersvoters.
?
In the final ballot test, 47 percent reported their “yes” vote on a real property transfer tax of
$7 dollars tax per $1,000 dollar of the sales price. With a five-percent margin of error, total
support could be as low as 42 percent, which is well below the requisite simple majority.
I th t th
h ldt t t t l
t tth t
t f$5d ll
$1 000 d ll
?
In the tax threshold test, total support at the tax rate of $5 dollars per $1,000 dollars off ththe
sales price was at 59 percent. Accounting for the five-percent margin of error, support could
be as low as 54 percent – sufficiently more than the simple majority required in an election.
Page 19
February 2010
Summary and Recommendations II
?
The survey results indicate the following critical considerations should the City of Lafayette decide
to place the two measures on the ballot:
??
SubstantialSubstantial communications
communications are
are needed
needed to
to maximize
maximize success
success duringduring thethe prepre-electoralelectoral phase
phase
and by an independent campaign committee after the measures have been placed on the
ballot.
?
Head off voter concerns around new taxes in the midst of a historic financial crisis and clear
anyany misperceptionsmisperceptions that
that these
these tax
tax dollars
dollars would
would not
not be
be used
used effectivelyeffectively.
?
The ballot question should feature the funding needs that are the highest priority to the Lafayette
voters:
?
Repair failing City streets and roads;
?
Fill potholes;
?
Maintain and repair public neighborhood streets;
?
Maintain and repair major City streets;
?
ProvideProvide ffunding
undingforfor tthe
heongoingongoing maintenancemaintenance oof faall ll9999 milesmiles oof fLafayetteLafayette roads;roads;
?
Support after-school library programs for children and teens;
?
Acquire land to preserve open space and expand local parks;
?
Increase police patrols, neighborhood watch, and crime prevention programs; and
Page 20
February 2010
?
Support the new Lafayette Library and Learning Center programs and services.
Summary and Recommendations III
?
An education campaign should emphasize the key supporting arguments that speak to why the
two measures are necessary:
??
TheThe measure
measure willwill generategenerate local
local funds
funds forfor llocal
ocal needsneeds, andand nono moneymoney willwill gogo toto otherother
communities or the State;
?
Over 17 percent of city streets and roads have received a failing grade. This measure will
complete road maintenance and repairs throughout the City;
??
MoreMore than
than $15$15 millionmillion dollarsdollars isis neededneeded toto fundfund thethe ooverdue
verdue mmaintenance
aintenance andand repairrepair oof f
City streets. Waiting to make these repairs will only make our streets more dangerous and
more expensive to fix;
?
This measure will include annual audits and reports to the community by an independent
citizencitizen's s oversight
oversight committeecommittee to
to ensure
ensure that
that all
all funds
funds areare spentspent effectively;effectively;
?
The State is facing a financial crisis and may reduce funding for local public safety and
road maintenance, this measure is needed to offset those cuts; and
?
This measure will help protect our property values by providing quality City services,
parksparks, andand safesafe neighborhoodsneighborhoods.
Page 21
February 2010
City
yof Lafayyette
Back to top
2010 Real Property Transfer Tax
Feasibility Survey
February 2010