CITY OF CHARLOTTESVILLE, VIRGINIA
                  CITY COUNCIL AGENDA



  Agenda Date:           November 7, 2022

  Action Required:       Resolution approval

  Presenter:             Samuel Sanders, Jr., Deputy City Manager

  Staff Contacts:        Samuel Sanders, Jr., Deputy City Manager
                         Krisy Hammill, Director of Budget

  Title:                 Appropriating Funds for Bag Distribution in Connection with Plastic Bag
                         Tax - $20,000 (2nd reading)


Background
On July 18, 2022, City Council adopted a plastic bag tax to begin January 1, 2023. This tax levy is
the result of action passed during the 2020 General Assembly session where Virginia localities
received enabling authority to impose a disposable plastic bag tax within their jurisdictional limits.
The City of Charlottesville has expressed a concern about the equity impact of such a tax. The
legislation allows localities to impose a five cent ($.05) per bag tax on disposable plastic bags
provided by certain retailers.

The enabling legislation includes stipulations on the use of the associated revenues. Revenues from
this tax must be used for programs supporting the following:

    1.   environmental cleanup,
    2.   litter and pollution mitigation,
    3.   environmental education efforts, and/or
    4.   to provide reusable bags to SNAP or WIC benefit recipients.


In preparation for the tax levy to go into effect, it is necessary to procure a supply of bags for
distribution to recipients of SNAP and WIC benefits as provided by the state legislation authorizing
the tax.

Discussion
Department of Social Services staff will manage the distribution of bags to eligible households ahead of the start of
the tax collection beginning January 1, 2023. Staff will develop a distribution plan to reach the 3600 households
that makeup the 5000 individuals currently eligible to receive SNAP benefits through the Department
of Social Services. DSS Leadership will also coordinate with the health department to provide bags
for distribution to the 1570 clients who make up its current caseload.

The bags will be of high recycled content, if not 100% recycled, to ensure this project meets the
expectations of a climate impact program in association with the recently presented Climate Action
Plan. Bags will be purchased to provide at least two bags to each interested household while
supplies last.

Staff will monitor the actual revenues generated from the tax and the initial receipts will be used to
replace the initial investment from the Council Strategic Initiatives Fund. Any funds in excess of this
initial investment will be retained for additional bag purchases before being utilized to support
pollution mitigation or education efforts as permitted by the enabling legislation.

Alignment with City Council's Vision and Strategic Plan
This item aligns with Strategic PLan Goal: 1.5 Intentionally address issues of race and equity.

Community Engagement
Department of Social Services staff will distribute bags to SNAP and WIC eligible households per the
enabling legislation for the plastic bag tax.

Budgetary Impact
The revenue collected from the imposed bag tax will be used to off-set the cost of the recycled
content bags.

Recommendation
With City Council's approval, staff will utilize the funds to acquire as many recycled content bags to
ensure a minimum of two bags per SNAP and WID eligible households in the City of Charlottesville.

Alternatives
City Council could choose to direct additional funds to expand the distribution of bags to other
potentially impacted households of the new tax levy.

Attachments
1.   PBT Resolution - $20,000