HomeMy WebLinkAboutCC Res 6845 2018-07-23' RESOLUTION 6845
A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING AN
ORDINANCE ENACTING A 1.0% TRANSACTIONS AND USE TAX TO BE
ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX AND FEE
ADMINISTRATION, AND ORDERING THE SUBMITTAL OF SAID ORDINANCE TO
THE VOTERS AT NOVEMBER 6, 2018 GENERAL MUNICIPAL ELECTION
WHEREAS, on June 11, 2018, the City Council adopted the City's FY 2018 — 2019
General Fund operating budget of approximately $37.4 million. The City Council made
difficult choices and was able to adopt a budget that relies on transfers from reserves
and one-time revenue sources, and savings from vacant City jobs that will not be filled.
In spite of these efforts the budget was adopted with an approximately $80,000 deficit.
This use of one-time funds and holding positions vacant to balance the budget cannot
be sustained in future years; and
WHEREAS, every department across the City has implemented significant budget cuts
since 2008 resulting in the elimination or reduction of key city programs and services
such that further budget cuts would have a devastating impact on City services and the
safety and welfare of the community; and
' WHEREAS, despite the cuts, the City projects that budget deficits will continue to grow
in the future, and City reserve funds are at dangerously low levels and in danger of
being depleted within the next few years; and
WHEREAS, although the Orange County Transportation Authority has increased sales
taxes in recent years, those funds are not allocated directly to the City, and the City
continues to receive only 1% of the sales taxes Seal Beach businesses, residents, and
visitors pay; and
WHEREAS, in order to address this fiscal shortfall as soon as possible, and to provide a
stable and local source of new revenue to maintain and enhance important City
services, the City Council desires to place a local funding measure on the ballot at the
regular municipal election consolidated with the statewide general election on
November 6, 2018; and
WHEREAS, if enacted, a local transaction and use tax of 1.0% would provide a
protected, stable local source of about $5 million annually to improve and maintain the
funding of vital City services the community relies on; and
WHEREAS,
if enacted, a local funding measure would enable the City to maintain or improve current
' levels of public safety through police, marine safety, fire and paramedic services, school
resource officer, code enforcement, animal control, and maintaining storm drains,
streets and public parks, and funding senior, youth and neighborhood programs; and
5729&0001X21997160.d.
' WHEREAS, this measure will give Seal Beach local control over local funds for local
needs because no funds from this measure can be taken by Sacramento; and
WHEREAS, Section 7285.9 of the California Revenue and Taxation Code authorizes
any city to levy, increase or extend a transactions and use tax for general purposes at a
rate of 0.025 percent, or a multiple thereof, subject to approval by a two-thirds vote of all
of the members of the City Council and by a majority of the qualified voters of the City
voting in an election on the issue; and
WHEREAS, City Council proposes to submit to the voters of the City an ordinance
providing for the levy of a transaction and use tax.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL BEACH HEREBY
RESOLVES:
Section 1. Ordering Measure Submitted to Voters. The City Council has previously
called a regular municipal election to be held in the City on Tuesday, November 6,
2018. Pursuant to California Elections Code Sections 9222 and 10201, the City Council
hereby orders that at the said election a transaction and use tax ordinance be submitted
to the voters for approval. The full text of the Seal Beach Transaction and Use Tax
Ordinance of 2018 is attached to this Resolution as Exhibit A and incorporated herein
' by this reference. The measure to be submitted to the voters shall appear and be
printed on the ballot as follows:
City of Seal Beach
Seal Beach Neighborhood Safety and Essential Services
Protection. To offset significant budget cuts and state takeaways
and maintain City services, including community police patrols,
YES
paramedic services, fire protection, marine safety/lifeguards,
school safety, 9-1-1 response times, and other essential general
services, shall an ordinance be adopted for a one percent sales
tax to raise approximately $5,000,000 annually until ended by
voters, with independent audits to ensure transparency and
NO
funds spent only in Seal Beach?
Section 2. Approval of Ordinance: The City Council hereby approves the proposed
Seal Beach Transaction and Use Tax Ordinance of 2018, attached to this Resolution as
Exhibit A, to be submitted to the voters. The proposed measure is a new general tax,
as defined in Article XIIIC of the California Constitution, at a rate of 1.0% on
transactions and uses in the City as defined in the ordinance, to be collected by the
California Department of Tax and Fee Administration, and shall not take effect unless
and until approved by a vote of at least a majority of the voters voting on the question at
the election.
' Section 3. Impartial Analysis: The City Attorney is hereby directed to prepare an
impartial analysis of the measure pursuant to Elections Code Section 9280.
Section 4. Ballot Argument: The City Council hereby authorizes one or more of its
members to submit a ballot argument in favor of the measure pursuant to Elections
Code Section 9282.
Section 5. Certification. The City Clerk shall certify to the passage and adoption of this
Resolution and enter it into the book of original Resolutions and transmit the necessary
documents to the Orange County Registrar of Voters forthwith.
PASSED AND ADOPTED this 23'd day of July, 2018, by the following vote:
AYES: COUNCILMEMBERS: Varipapa, Deaton, Massa-Lavitt, Moore, Sustarsic
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
ABSTAIN: COUNCILMEMBERS: None
Mtat frn'L--
Mike Varipapa, Mayor
ATTES : -F SEAL
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Robin R. 'o.e s, M C, City Clerk o`,.o
APPROVED AO 0 FORM: •et
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Taig teele, City Attorney
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