HomeMy WebLinkAboutCC ORD 2014-2395 City Measure to Voters Extending Existing Transactions and Use TaxORDINANCE NO. 2014 — 2395
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
ORDERING THE SUBMISSION OF A MEASURE TO EXTEND AN EXISTING
VOTER APPROVED TRANSACTIONS AND USE TAX (A SALES TAX) IN
THE AMOUNT OF ONE PERCENT (1%) TO THE QUALIFIED VOTERS OF THE CITY
AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 4, 2014
WHEREAS, section 7285.9 of the California Revenue and Taxation Code
authorizes cities to levy, increase, or extend a transactions and use tax ("sales tax" or "sales
and use tax") at a rate of 0.25% (or any multiple thereof) to be expended for general purposes,
which transactions and use tax is subject to the approval by a two-thirds majority vote of all the
members of the City Council and by a majority vote of the qualified voters of the City voting in
an election on the issue; and
WHEREAS, Article XIII C, section 2 of the California Constitution requires that a
general tax must be approved by a majority vote of the qualified voters of the City voting in an
election on the issue, and that said election shall be consolidated with a regularly scheduled
general election for members of the governing body of the local government; and
WHEREAS, a majority of the voters of the City of National City approved a one
cent (1 %) Transactions and Use Tax which expires in September 2016; and
WHEREAS, without the revenue provided by the existing voter approved local
funding measure the City will cut public safety, reduce gang and drug prevention, police officer
staffing at local schools, neighborhood patrols and graffiti removal and eliminate up to one-third
of the City's firefighters; and
WHEREAS, local funding that cannot be taken by the State ensures adequate
funding for parks, libraries, and other City services; and
WHEREAS, the City Manager has presented evidence that the City faces at the
current expiration of the transactions and use tax a budget deficit in the magnitude of a $8
Million annual shortfall in funding City services, facilities and programs, including public safety
services, facilities and programs, which will result in a substantial reduction in those services,
facilities and programs unless additional sources of revenue can be found; and
WHEREAS, National City has one of the highest crime rates in the County and
public safety represents over 70% of the City general fund budget; and
WHEREAS, the reduction of police, firefighters and paramedics will increase 9-1-
1 emergency response times; and
WHEREAS, it is important to National City residents that we keep our own local
police and fire departments, prevent the outsourcing of these services, and maintain local
control; and
WHEREAS, thousands of people visit National City every day and this local
funding ensures that they pay their fair share for police, fire, street repair and other services
these visitors use when they are in National City; and
WHEREAS, the City Council desires to submit a ballot measure on extending the
previously approved one cent (1%) transactions and use tax to the qualified voters of the City of
National City at a Regular Municipal Election to be consolidated with the Statewide General
Election to be held on November 4, 2014 (the "Consolidated Election").
THE PEOPLE OF THE CITY OF NATIONAL CITY DO ORDAIN AS FOLLOWS:
SECTION 1. Findings.
A. At an election held on June 6, 2006, a majority of the voters of the City of National City
approved a one cent (1%) Transactions and Use Tax, commonly known as "Proposition
D."
B. Proposition D is codified in Chapter 4.60 of Title 4 of the National City Municipal Code
and has an expiration date on the tenth anniversary of the operate date thereof, unless
extended by a majority of the voters of the City.
C. An extension of Proposition D will be submitted to the voters to extend the expiration
date of Proposition D an additional twenty years, unless repealed or reduced by a vote
of the City Council.
D. The City of National City has taken many steps to reduce costs and protect services.
The City has reduced the overall number of police officers, firefighters, and other city
employees, consolidated City departments, instituted pension reform, and obtained
employee concessions.
E. The City's fiscal situation has been reviewed by the Independent Oversight Committee,
which was comprised of independent financial and municipal experts from the San Diego
region. This Independent Oversight Committee report stated:
"...the City has been able to balance the General Fund budget each year,
but the deficit is structural, returning the next year because revenues are
insufficient to cover expenses. Worse yet, the City's five year budget
forecast show these deficits will persist through 2016. In other words, the
City is not expecting to solve the structural deficit problem, although,
thanks to revenue from the District Tax and actions taken to reduce
General Fund expenditures, the City does expect to keep the deficit from
spiraling out of control. However, when Proposition D expires in 2016 the
sales tax revenue it has been contributing goes away, at which time the
general fund deficit would balloon by its expected value, estimated to be
$9.5 million."
F The City has taken significant steps toward long-term pension reform. All City employees
pay the maximum employee contributions allowed by CaIPERS into their retirement
programs. The City adopted two-tier retirement benefit structures for both safety and
.general members years before the state implemented its revised pension provisions.
G. Employees of the City have made important contributions toward the fiscal health and
stabilization of the City's finances. Employees agreed to share the costs of increases to
health care, and have taken unpaid work furlough.
H. The National City Public Library is open six days a week but operates only four hours a
day on weekends and remains closed on Fridays.
Ordering the submission of a measure to extend Ordinance No. 2014-2395
an existing Voter approved transactions and use tax 2 June 17, 2014
I. The City has deferred maintenance in its public facilities. Facilities such as Kimball Park,
El Toyon Recreation Center, and the Senior Centers are all in need of maintenance
which has been deferred due to the lack of funding.
J. The City workforce, including public safety, has been reduced approximately 14% since
2006.
K. The overall reductions taken throughout the City have broadly impacted services
throughout the City. The City Manager's Three -Year Operating Plan estimates that
further cuts amounting to 90.56 full-time equivalent positions will be necessary absent
this local revenue source of funding. Reductions in staffing is a reduction in services to
the community.
L. On May 14, 2013, the City Council was presented with various options regarding
generating local revenues. None of the other presented options were projected to
generate sufficient revenue to meet the City's operating expenses.
M. An independent Community Outreach Survey was undertaken in September, 2013
polling approximately 400 likely voters.
N. Without Proposition D, the City of National City will not be able to maintain existing
programs and services or restore services that have been reduced or eliminated, will not
be able to adequately maintain infrastructure or facilities, will not be able to add
necessary resources to the Police Department, and will not be able to maintain the
reduced Police Department staffing currently in place.
O. On January 21, 2014, the results of the independent Community Outreach Survey were
presented to the City Council.
P. On January 21, 2014, the City Council was presented a Three -Year Operating Plan for
Fiscal Years 2015 through 2017 which discussed the action plan to address the
reduction in revenue due to the expiration of Proposition D. As part of this Three -Year
Operating Plan, all departments, including Fire and Police, were directed to plan for a
24% reduction in general fund operating revenue for Fiscal Year 2017. At the conclusion
of this presentation, the City Council directed the development and drafting of a
proposed ballot measure to extend the previously voter approved one cent district sales
tax beyond its expiration date.
Q. Based on all the information presented at the June 17, 2014 meeting, both written and
oral, including the staff reports, minutes, and other relevant materials, the City Council
finds that under CEQA Guidelines 15060(c)(2) and 15378, subdivisions (2) and (4) of
subdivision (b), this action does not constitute a project under CEQA and therefore
review under CEQA is not required.
SECTION 2. At the consolidated statewide general election to be held on November 4,
2014, there shall be submitted to the qualified voters the following measure to approve an
ordinance extending the previously voter approved one cent (1 %) transactions and use tax for
general purposes:
Ordering the submission of a measure to extend Ordinance No. 2014-2395
an existing Voter approved transactions and use tax 3 June 17, 2014
National City Continuation of City Services
Funding Measure. To maintain National City's
public safety and prevent cuts to neighborhood
police patrols and officers; gang/drug prevention;
911 emergency response; fire protection and
firefighters; graffiti removal; street/pothole repair;
senior/youth/library program; and other City
services; shall National City continue its existing
voter -approved one -cent sales tax for 20 years with
Citizens' Oversight, annual independent audits, all
money kept in National City, with no increase in tax
rate?
YES
NO
SECTION 3. The measure shall be submitted to the voters of National City as required
by Section 53720, et seq., of the California Government Code, approved by the voters of
California in 1986 as Proposition 62, as required by Article XIII C of the California Constitution,
approved by the voters of California in 1996 as Proposition 218, and as required by Section
7285.9 of the California Revenue and Taxation Code.
SECTION 4. The proposed extension of the transactions and use tax shall remain at
the rate of one cent (1%) and shall expire twenty years from September 2016 (the current
expiration date), unless the City Council finds the levy and collection of the tax is no longer
necessary for the City's fiscal stability and sustainability, in which case the City Council has the
authority to reduce the rate of tax, or to terminate the imposition of the tax.
SECTION 5. This ordinance shall take effect immediately as an ordinance relating to
an election, pursuant to California Government Code Section 36937 (a).
PASSED and ADOPTED this 17th day of June, 201
ATTEST:
4�
Michael R. DallCity Clerk
PROVED AS TO FORM:
Claudia G
City Attor
a Silva
on Morrison, Mayor
Ordering the submission of a measure to extend Ordinance No. 2014-2395
an existing Voter approved transactions and use tax 4 June 17, 2014
Passed and adopted by the Council of the City of National City, California, on June 17,
2014, by the following vote, to -wit:
Ayes: Councilmembers Cano, Morrison, Natividad, Rios, Sotelo-Solis.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY:
RON MORRISON
Mayor of the City of National City, California
Lj,p
C erk of the
City
y of't ational City, California
By:
Deputy
I HEREBY CERTIFY that the foregoing Ordinance was adopted on June 17, 2014,
under the provisions of Section 65858 of the California Government Code and became
effective immediately upon said adoption.
I FURTHER CERTIFY THAT there was available for the consideration of each member
of the Council and the public prior to the day of its passage a written or printed copy of
said Ordinance.
I FURTHER CERTIFY that the above and foregoing is a full, true and correct copy of
ORDINANCE NO. 2014-2395 of the City Council of the City of National City, passed
and adopted by the Council of said City on June 17, 2014.
City Clerk of the City of National City, California
By:
Deputy