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Home My WebLink AboutD-1 Staff Report - Calling Measure for Transaction Use (Sales)Tax Measure - March 2020 BallotSCHEDULED ITEM D-1 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: TALIKA M. JOHNSON, DIRECTOR OF ADMINISTRATIVE SERVICES DATE: NOVEMBER 18, 2019 SUBJECT: ADOPT RESOLUTIONS TO PLACE A TRANSACTION AND USE (SALES) TAX MEASURE ON THE MARCH 3, 2020 BALLOT BACKGROUND: For several months, the Council has received reports on the City’s fiscal condition. The forecasts presented projected General Fund budget deficits ranging from $2.1 to $3.3 million annually over the next five years. On November 4, 2019, Staff also presented ideas to Council to reduce the projected budget shortfalls through cost savings and Council-approved revenue enhancement measures. Through these recommended efforts, projected annual deficits are reduced to $1.3 to $2.7 million. However, additional revenues will be required in order to maintain City services at current levels. Therefore, Staff recommends the City Council adopt the attached resolutions to place a three-quarter cent (3/4¢) sales tax measure on the March 3, 2020 ballot for voter consideration. RECOMMENDATIONS: Staff recommends that the City Council take the following actions: 1)Adopt attached resolution 2019-C54 calling for the placement of a general tax measure on the ballot for the March 3, 2020 General Municipal Election for the submission to the qualified voters of an ordinance to enact a general transactions and use (sales) tax at the rate of three-quarter cent (3/4¢); and 2)Adopt attached resolution 2019-C55 providing for the filing of primary and rebuttal arguments and setting rules for the filing of written arguments regarding a city measure to be submitted at the March 3, 2020 General Municipal Election; and 3)Adopt attached resolution 2019-C56 requesting the Board of Supervisors of the County of Los Angeles to consolidate a General Municipal Election to be held on March 3, 2020 with the statewide primary election to be held on that date pursuant to §10403 of the elections code. APPROVED CITY COUNCIL 11/18/2019 Consideration of Sales Tax Ballot Measure November 18, 2019 Page 2 ANALYSIS: The General Fund currently has a $46.9 million operating budget. Over the next five years it’s estimated the budget will grow to $48.6 million. Given the City’s current revenue base, beginning in Fiscal Year (FY) 2019/20 and over the next five years, annual budget deficits are projected ranging from $2.1 million to $3.3 million. While the City has a diverse revenue mix, expenditures are outpacing revenues. Major budget components include: • Over fifty-eight percent (58%) of the total budget is for police and fire safety services o Police budget alone consists of eighty-seven percent (87%) staffing costs • Sixty percent (60%) of the budget is personnel related costs • Major non-personnel related costs make-up nearly thirty-one percent (31%) of the budget, which includes over 12% for the fire safety contract The City’s budget policy requires a balanced budget, meaning expenditures should not exceed revenues. Deficit spending means the City must tap into reserves to bridge revenue shortfalls. In addition to a budget policy, the City has a General Fund Reserve Policy which is used as a benchmark tool to assess financial performance. Beginning with the current FY 2019/20 budget year, reserves are projected to be $580,000 below the target of $10.0 million without an increase to revenues and/or decrease in costs. A summary of the forecasted budget results and estimated reserve balances is provided in Table 1: Table 1: Five-Year Budget Forecast and Reserves Analysis (status quo) The above forecasts assume status quo operations and do not take into account unforeseen events or expenses that may place further strain on the City’s budget. In order to maintain targeted reserve levels in accordance with the adopted policy, either revenues will need to be increased or significant service cuts will need to be considered. Without additional revenue and/or cost cutting measures, the above predicts depletion of reserves by end of FY 2023/24. There are three options to address the forecasted budget deficits: 1) Use reserves to cover projected deficits 2) Make budget cuts by reducing services to the community 3) Enhance revenues, including consideration of voter-approved local funding options Actual FY 17-18 Revised FY 18-19 ADOPTED FY 19-20 ESTIMATED FY 20-21 ESTIMATED FY 21-22 ESTIMATED FY 22-23 ESTIMATED FY 23-24 Total Revenues 42,208,830 44,653,924 44,755,099 42,702,543 45,153,801 45,605,339 46,061,393 Total Expenses 44,849,887 42,336,440 46,871,180 46,003,554 47,636,594 48,112,960 48,594,090 Operating Surplus or (Deficit)(2,641,057)$ 2,317,484$ (2,116,081)$ (3,301,011)$ (2,482,793)$ (2,507,621)$ (2,532,697)$ Beginning Available Reserves Balance 12,484,905 9,843,848 12,161,332 10,045,251 6,744,240 4,261,447 1,753,827 Ending Available Reserves Balance 9,843,848 12,161,332 10,045,251 6,744,240 4,261,447 1,753,827 (778,870) Reserves Target 6,265,725 10,265,725 10,625,252 10,825,533 10,734,120 10,829,267 10,911,308 Above/(Below) Reserves Target 3,578,123 1,895,607 (580,001) (4,081,293) (6,472,673) (9,075,440) (11,690,178) Consideration of Sales Tax Ballot Measure November 18, 2019 Page 3 Over the past several months, Council has received reports regarding the City’s budget and Staff’s ongoing Fiscal Sustainability Assessment efforts performed to ensure the City is: capturing all revenues per contractual agreements, maximizing revenue potential through contracts and franchise agreements, and running its operations as lean as possible without negatively impacting services to Azusa residents and businesses. Most recently on November 4th, Staff provided Council updates on the ongoing Fiscal Sustainability Assessment and recommended cost savings and revenue enhancement ideas. Staff identified operational efficiencies that result in estimated cost reductions of $324,000 annually, and also identified a revenue enhancement opportunity (an increase to the City’s hazardous materials facilities tax rate) which is estimated to result in annual revenue increases of up to $1 million over the next five years. If approved by Council these efforts could reduce projected budget deficits to $1.3 to $2.7 million annually as shown in Table 2. Table 2: Five-Year Budget Forecast and Reserves Analysis (revised) Part of the Assessment also included Council approval to engage the Community in order to assess their service priorities prior to recommending major reductions in services and to gauge public support of the potential revenue enhancement measures requiring voter approval. Fairbank, Maslin, Maullin, Metz & Associates (FM3) conducted a Community Issues Survey in July within the City of Azusa to examine residents’ general attitudes and concerns about the City and received 363 responses from registered Azusa voters. The study found that most respondents have favorable views of the City of Azusa, but 76% believe there is a need for additional funding. Findings from the study include: • Most respondents have a favorable view of the City. Overall, more than half of all respondents (54%) believe the City of Azusa is headed in the right direction. Only 27 percent believe the city is off on the wrong track, while two-in ten are not sure (20%). Similarly, six-in-ten respondents (60%) believe their local neighborhood is also headed in the right direction, while only slightly over a quarter (28%) believe it's off on the wrong track. • A majority of the respondents believe the City of Azusa has a significant need for more funding. Over three-fourths (76%) of all respondents believe the City has either a great or some need for additional funds to provide the level of city services that Azusa residents identified as priorities, with over a third (36%) indicating that need is great. In contrast, Actual FY 17-18 Revised FY 18-19 ADOPTED FY 19-20 ESTIMATED FY 20-21 ESTIMATED FY 21-22 ESTIMATED FY 22-23 ESTIMATED FY 23-24 Total Revenues 42,208,830 44,653,924 44,755,099 42,702,543 45,153,801 45,605,339 46,061,393 Total Expenses 44,849,887 42,336,440 46,871,180 46,003,554 47,636,594 48,112,960 48,594,090 Operating Surplus or (Deficit)(2,641,057)$ 2,317,484$ (2,116,081)$ (3,301,011)$ (2,482,793)$ (2,507,621)$ (2,532,697)$ Add: Cost Savings Measures 324,000 324,000 324,000 324,000 324,000 Add: Contract/Franchise Enhancements 250,000 500,000 687,500 875,000 Revisd Operating Surplus or (Deficit)(1,792,081)$ (2,727,011)$ (1,658,793)$ (1,496,121)$ (1,333,697)$ Beginning Available Reserves Balance 12,484,905 9,843,848 12,161,332 10,369,251 7,642,240 5,983,447 4,487,327 Ending Available Reserves Balance 9,843,848 12,161,332 10,369,251 7,642,240 5,983,447 4,487,327 3,153,630 Reserves Target 6,265,725 10,265,725 10,625,252 10,825,533 10,734,120 10,829,267 10,911,308 Above/(Below) Reserves Target 3,578,123$ 1,895,607$ (256,001)$ (3,183,293)$ (4,750,673)$ (6,341,940)$ (7,757,678)$ Consideration of Sales Tax Ballot Measure November 18, 2019 Page 4 only one in ten respondents (10%) believe the City has no real need for additional funding. In addition to the findings, respondents identified seven key City service priorities they’d like to see addressed or maintained: 1. Continuing police anti-gang enforcement programs 2. Addressing homelessness 3. Maintaining police patrols of neighborhood schools 4. Maintaining police patrols of neighborhoods, parks and recreations areas 5. Preventing reductions to police officer staffing levels 6. Maintaining city services 7. Repairing streets and potholes Post Survey, City Staff furthered engaged with Community members by launching Join the Conversation (JTC), where Residents were asked to take a brief survey to rank how important those seven service priorities were to them. Staff also attended several standing community meetings in September and October to provide an overview of the City’s budget and the results of the Community Issues Survey, and also invited attendees to complete the brief JTC survey. Thus far, over 390 responses have been received with these City service priorities results: Thorough review of departmental budgets shows the City runs a lean operation in providing services to the Community. Because operations are already lean, reducing projected deficits via further budget cuts would require significant staffing reductions. For example, reducing the Consideration of Sales Tax Ballot Measure November 18, 2019 Page 5 General Fund budget by $1 million could be achieved with elimination of six (6) police officer positions, but a significant deficit would still exist, thus, requiring further service reductions and/or additional revenues. In order to prevent further service reductions, Staff recommends the City Council provide the Azusa voters the opportunity to consider a sales tax measure in order to generate additional revenues to maintain these services. In 2018, Azusa police officers, local firefighters and paramedics responded to more than 100,000 calls for service, including 15,000 911 calls of which 1,900 were medical emergencies. Additionally, the cost of the LA County Fire Department contract to provide fire protection and 911 emergency response services to Azusa residents increased 16% last year and is expected to continue to rise significantly each year. Additional local funding could be used to maintain current police, firefighter and paramedic staffing levels, and 911 emergency response times. Transaction and Use Tax (sales tax) A transactions and use (sales) tax is a way to increase revenues and ensure that those dollars stay in the City. The sales tax rate in Azusa is 9.5%, of which the City receives a 1.0% allocation. Legally, a 10.25% sales tax can be assessed with majority voter approval. Revenues from City’s current 1.0% allocation of sales tax range from $5.6 - $6.3 million annually. An additional 0.75% local tax could generate $4.0 - $4.5 million as a direct allocation to the City rather than an indirect allocation through the LA County pool, which would result in much less revenue to Azusa (see table below). California has a sales tax rate of 7.25% (state mandate). Los Angeles County and the municipalities, and districts within Los Angeles County are allowed to increase the sales tax up to a combined total of 10.25%. The County of Los Angeles has already utilized 2.25% of the allowable 3.00% threshold. Following is an overview of sales tax dollars generated within Azusa and a summary of how much of those dollars have come back as direct allocations to the City. As shown in Table 3, Azusa has only received 17% of the sales tax dollars generated in the City. Table 3: Sales Tax Generated in the Azusa Jurisdiction vs. Local Returns Props & Measures Sale Tax Local Returns Return %Sale Tax Local Returns Return % 3.6875 State General Fund - Taxation Code-Section 6051, 6201 20,819,168$ -$ 0.00%23,217,824$ 0.00% 0.2500 State General Fund - Taxation Code-Section 6051.3, 6201.3 1,411,469 - 0.00%1,574,090 0.00% 0.5000 State of CA- Local Public Safety (Prop 172)2,822,938 325,850 11.54%3,148,180 338,812 10.76% 0.5000 State of CA-Local Health and Social Services 2,822,938 - 0.00%3,148,180 0.00% 1.0625 State of CA-Local Revenue Fund 5,998,743 - 0.00%6,689,881 0.00% 0.2500 County Transportation Fund 1,411,469 - 0.00%1,574,090 0.00% 1.0000 City of Azusa (Brandley -Burns)5,645,876 5,645,876 100.00%6,296,359 6,296,359 100.00% 0.5000 Prop A 2,822,938 923,057 32.70%3,008,813 999,027 33.20% 0.5000 Prop C 2,822,938 767,248 27.18%3,008,813 828,665 27.54% 0.5000 Measure R 2,822,938 573,465 20.31%3,008,813 621,677 20.66% 0.5000 Measure M 2,822,938 519,690 18.41%3,008,813 699,738 23.26% 0.2500 LA County Measure H - Homeless 1,411,469 - 0.00%1,504,406 229,650 15.27%* 9.5000 Total 53,635,822$ 8,755,186$ 16.32%59,188,259$ 10,013,928$ 16.92% *Note: The City has not received direct returns from Measure H, only from services grants. Fiscal Year 2017/18 Fiscal Year 2018/19 Sales Tax Rate % Consideration of Sales Tax Ballot Measure November 18, 2019 Page 6 Due to an unusual provision of State law, there is a legal “cap” on the amount of transactions and use tax the County and a city within that County may assess together. There currently remains 0.75% of “cap room” legally available to cities within Los Angeles County to propose their own local sales tax measures to their voters. Los Angeles County is not proposing any countywide sales tax measures for the March, 2020 election. Therefore, if Azusa places a 0.75% sales tax measure on the March, 2020 ballot and the tax is approved by Azusa voters, that local revenue source will remain in effect until repealed by Azusa voters and any subsequent Los Angeles County sales tax measure will not affect this local tax. However, if the City does not place a sales tax measure on the ballot or if it is not voter-approved in March, 2020, any subsequent Los Angeles County sales tax measure, if approved by County voters, could use more of the legal “cap room” under State law and thereby limit the maximum sales tax rate Azusa could propose to its voters in the future (i.e., a future voter-approved County 1/4¢ Sales Tax could reduce the maximum rate Azusa could propose to its voters from 3/4¢ to 1/2¢). This has motivated a number of Los Angeles County cities to propose their own local sales tax measures sooner rather than later in order to maximize the amount of revenue available under State law that will directly benefit their residents. Attachment 1 is a summary of recent sales tax measures with pass and fail rates for information. Advantages of a Sales Tax measure adopted by the City are the tax: • is regionally paid, not entirely by the City’s residents • has a statutory cap of 10.25% • revenues generated in Azusa stay within Azusa and are not collected and allocated by the County (only a portion of which is allocated directly to Azusa) According to the Community Issues Survey, 60% of respondents expressed support for a TUT (sales tax) ballot measure. Therefore, Staff recommends the City Council adopt resolutions to place a three-quarter cent (3/4¢) TUT (sales tax) measure on the March 3, 2020 ballot for voter consideration. Since this is general tax, simple majority voter approval is required to pass the measure. If approved by Azusa voters, the additional revenues generated from the sales tax will help to maintain the General Fund and City services to the Community supported by the General Fund. The legal deadline to call a local ballot measure is 88 days prior to the election (December 6 for the March 3, 2020 ballot). Therefore, Staff recommends Council take action on this matter tonight in order to meet this deadline. Since the recommended sales tax measure would be included with the City’s general election, the cost of adding the measure is estimated at $20,000- $30,000. On the other hand, calling a special election in November, 2020 would cost the City approximately $150,000 - $200,000. Sufficient budget is available at this time to cover the estimated cost of calling the tax measure. Should the cost of the measure exceed budgeted funds, Staff will request a budget amendment during the FY 2019/20 Mid-Year Budget Review. After the measure is called, the City Attorney’s Office will prepare an impartial analysis of the measure and persons in favor or against the measure may submit arguments and rebuttals. Each of these will be printed in the voter information guide along with the measure. The deadlines for these actions are set forth in the attached resolutions (impartial analysis and direct arguments are Consideration of Sales Tax Ballot Measure November 18, 2019 Page 7 due to the City Clerk by Thursday, December 12 by 5:30 p.m. and rebuttals, if any, are due Monday, December 23 by 5:30 p.m.) FISCAL IMPACT: With prudent spending and maintaining current levels of service to the Community, Staff initially presented projected budget deficits ranging from $2.1 to $3.3 million over the next five years beginning in the current 2019/20 Fiscal Year. Through Staff’s ongoing efforts to find creative ways to lessen the projected shortfalls, operational efficiencies and revenue enhancement opportunities have been identified which, if adopted by Council, will reduce those projected deficits to $1.3 to $2.7 million. Still, these budget deficits will diminish the General Fund’s reserves and create shortfalls from the adopted General Fund Reserves Policy. Without additional revenues or major cost-cutting strategies, General Fund reserves will be depleted by 2024/25. A voter approved sales tax measure could generate additional revenues to maintain target reserve levels, help the City maintain and possibly enhance services to the Community and meet its financial obligations. The cost of Council approving placement of a Sales tax measure on the March 3, 2020 ballot is estimated to cost $20,000 - $30,000, far less than a special ballot measure in November, 2020 would cost. The potential increase of General Fund revenues of $4.0 - $4.5 million annually, outweighs the one-time cost of placing the measure on the City’s general election ballot. If approved at the March 3, 2020 election, revenues from the additional sales tax will start to be realized in October 2020. Prepared by: Reviewed and Approved: Talika M. Johnson Sergio Gonzalez Director of Administrative Services City Manager Attachments: 1. 2017-2019 Sales Tax Measures 2. Resolution 2019-C54 3. Resolution 2019-C55 4. Resolution 2019-C56 CALENDAR YEAR 2019 SALES TAX BALLOT INITITATIVESPage 1 of 2 Ballot Measure: County: Outcome:Amount:[3] Length: Purpose:[4]Election date Measure E: Glendora General Sales TaxLos Angeles0.75% No expirationGeneral March 5, 2019 Measure A: Arcadia General Sales TaxLos Angeles0.75% No expirationGeneral June 4, 2019Measure S: Parlier Sales Tax Fresno1.0% No expirationGeneral November 5, 2019 Measure H: Oakdale Sales Tax Extension for City ServicesStanislaus0.5% 11 years City services November 5, 2019 Measure G: San Bruno Sales TaxSan Mateo0.5% No expirationGeneral November 5, 2019 Measure CR: Claremont Sales Tax Increase Los Angeles0.75% No expirationGeneral November 5, 2019 Measure I: Irwindale Sales Tax Increase Los Angeles0.75% No expirationGeneral November 5, 2019 Measure PS: Lynwood Sales TaxLos Angeles1% No expirationGeneral November 5, 2019 Measure K: Monrovia City Sales Tax Increase Los Angeles0.75% No expirationGeneral November 5, 2019 Attachment 1 CALENDAR YEAR 2019 SALES TAX BALLOT INITITATIVES Page 2 of 2 Ballot Measure: County: Outcome:Amount:[3] Length: Purpose:[4]Election date Measure S: Sierra Madre Sales Tax Increase Los Angeles 0.75% No expirationGeneral November 5, 2019 Measure A: South Pasadena Sales Tax Increase Los Angeles 0.75% No expirationGeneral November 5, 2019 CALENDAR YEAR 2018 SALES TAX BALLOT INITITATIVES Page 1 of 10 There were 82 ballot measures related to sales taxes on local California ballots in 2018. Sixty-nine of these measures were approved (84 percent), and 13 were defeated (16 percent). Ballot Measure: County: Outcome:Amount:[5]Length: Purpose:[6] Election date Measure C: El Segundo Sales Tax Los Angeles 3/4 cent Never General April 10, 2018 Measure A: Alameda County Sales Tax for Childcare and Early Education Alameda .5% 30 years Childcare and early education June 5, 2018 Measure S: Huntington Park Sales Tax Increase Los Angeles $0.01 Unknown General June 5, 2018 Measure S: Santa Cruz Quarter‐Cent Sales Tax Measure Santa Cruz .25% (quarter‐cent) Never General June 5, 2018 Measure E: Kingsburg Sales Tax Fresno 1 cent ($1 for a $100 purchase) 10 years Police officers, firefighters, paramedics, and equipment June 5, 2018 Measure J: Lassen County Sales Tax Lassen 0.75% Indefinite General June 5, 2018 Measure K: Lassen County Advisory Measure for Public Safety Funding Lassen June 5, 2018 CALENDAR YEAR 2018 SALES TAX BALLOT INITITATIVES Page 2 of 10 Ballot Measure: County: Outcome:Amount:[5]Length: Purpose:[6] Election date Measure F: Corte Madera Parcel Tax Elimination and Sales Tax Extension Marin 0.75% Indefinite General June 5, 2018 Measure A: Chula Vista Half‐Cent Sales Tax San Diego 0.5% Never General June 5, 2018 Measure E: Grass Valley Sales Tax Measure Nevada One cent Never General June 5, 2018 Measure C: Angels City Facility and Services Sales Tax Calaveras 0.5% Indefinite General November 6, 2018 Measure E: Folsom General Purpose Sales Tax Sacramento 0.5% 10 years General November 6, 2018 Measure G: Santa Cruz Sales Tax Santa Cruz $0.005 12 years General November 6, 2018 Measure C: Mendota Sales Tax Increase Fresno 1.980% No expiration General November 6, 2018 Measure J: Coalinga Sales Tax Measure Fresno 1% 10 years General November 6, 2018 Measure M: Kerman Sales Tax Fresno 1% No expiration General November 6, 2018 Measure N: Fowler Sales Tax Fresno 1% No expiration General November 6, 2018 CALENDAR YEAR 2018 SALES TAX BALLOT INITITATIVES Page 3 of 10 Ballot Measure: County: Outcome:Amount:[5]Length: Purpose:[6] Election date Measure P: Fresno Sales Tax for Recreation and Arts Fresno 0.375% 30 years Recreation and arts November 6, 2018 Measure I: Eureka Sales Tax Increase Humboldt 0.25% 20 years Roads November 6, 2018 Measure J: Rio Dell Sales Tax Renewal Humboldt 1% 5 years General November 6, 2018 Measure O: Humboldt County Sales Tax Renewal Humboldt $0.005 No expiration General November 6, 2018 Measure AA: Marin County Transportation Sales Tax Renewal Marin $0.005 30 years TransportationNovember 6, 2018 Measure A: Santa Clara County Sales Tax Renewal Santa Clara $0.0125 Indefinite General November 6, 2018 Measure G: Los Gatos Sales Tax Santa Clara $0.0125 20 years General November 6, 2018 Measure F: Alameda Sales Tax Measure Alameda 0.5% No expiration General November 6, 2018 Measure L: Albany Sales Tax Renewal Alameda $0.005 No expiration General November 6, 2018 CALENDAR YEAR 2018 SALES TAX BALLOT INITITATIVES Page 4 of 10 Ballot Measure: County: Outcome:Amount:[5]Length: Purpose:[6] Election date Measure O: Garden Grove General Sales Tax Orange 1% No expiration General November 6, 2018 Measure P: Laguna Beach Emergency Response Sales Tax Orange 1% 25 years Emergency response, fire safety November 6, 2018 Measure U: Placentia General Sales Tax Orange 1% No expiration General November 6, 2018 Measure X: Santa Ana General Sales Tax Orange 1.5% 20 years General November 6, 2018 Measure BB: Seal Beach General Sales Tax Orange 1% No expiration General November 6, 2018 Measure K: King City Sales Tax Increase Monterey 1% 10 years General November 6, 2018 Measure L: King City Use of Sales Tax Revenue Advisory Question Monterey November 6, 2018 Measure N: Marina Sales Tax Increase Monterey 1.5% 15 years General November 6, 2018 Measure O: Gonzales Sales Tax Increase Monterey 1.0% 20 years General November 6, 2018 CALENDAR YEAR 2018 SALES TAX BALLOT INITITATIVES Page 5 of 10 Ballot Measure: County: Outcome:Amount:[5]Length: Purpose:[6] Election date Measure S: Monterey Street and Infrastructure Sales Tax Renewal Monterey 1% 8 years Streets, infrastructure November 6, 2018 Measure N: Chowchilla Public Safety Sales Tax Madera 1% 8 years Public safety services November 6, 2018 Measure H: Los Banos Sales Tax Merced 0.5% No expiration General November 6, 2018 Measure K: Yuba County Sales Tax Yuba 1% sales tax 10 years General November 6, 2018 Measure X: Oceanside General Sales Tax San Diego 0.5% 7 years General November 6, 2018 Measure Q: Barstow Sales Tax San Bernardino 1% increase No expiration General November 6, 2018 Measure U: Oroville Sales Tax Butte 1% No expiration General November 6, 2018 Measure V: Paradise Sales Tax Butte 0.5% 10 years General November 6, 2018 Measure U2018: Santa Maria Sales Tax Renewal Santa Barbara 1% No expiration General November 6, 2018 CALENDAR YEAR 2018 SALES TAX BALLOT INITITATIVES Page 6 of 10 Ballot Measure: County: Outcome:Amount:[5]Length: Purpose:[6] Election date Measure X2018: Carpinteria Sales Tax Santa Barbara 1.25% No expiration General November 6, 2018 Measure N: West Sacramento Sales Tax Yolo .25% no expiration general November 6, 2018 Measure N: Dixon Sales Tax Solano 0.5% 10 years City roads and infrastructure November 6, 2018 Measure W: Antioch Sales Tax Contra Costa 1.0% 20 years General November 6, 2018 Measure X: Martinez Sales Tax Contra Costa 0.5% 15 years General November 6, 2018 Measure A: San Fernando Sales Tax Renewal Los Angeles 0.5% No expiration General November 6, 2018 Measure C: Culver City Sales Tax Increase Los Angeles November 6, 2018 Measure I: Pasadena Sales Tax Los Angeles 0.75% No expiration General November 6, 2018 Measure J: Pasadena Sales Tax Revenue Advisory Question Los Angeles November 6, 2018 CALENDAR YEAR 2018 SALES TAX BALLOT INITITATIVES Page 7 of 10 Ballot Measure: County: Outcome:Amount:[5]Length: Purpose:[6] Election date Measure L: Lawndale Sales Tax Los Angeles 0.75% No expiration General November 6, 2018 Measure P: Burbank Sales Tax Los Angeles 0.75% No expiration General November 6, 2018 Measure R: Cudahy Sales Tax Los Angeles 0.75% 10 years General November 6, 2018 Measure S: Glendale Sales Tax Los Angeles 0.75% No expiration General November 6, 2018 Measure Y: Santa Fe Springs Sales Tax Los Angeles 1% No expiration General November 6, 2018 Measure CC: Covina Sales Tax Increase Los Angeles 0.75% No expiration General November 6, 2018 Measure LP: La Puente Sales Tax Increase Los Angeles 0.5% No expiration General November 6, 2018 Measure PG: Pomona Sales Tax Los Angeles November 6, 2018 Measure W: San Mateo County Roads and Transit Sales Tax San Mateo 0.5% 30 years Roads/transit November 6, 2018 CALENDAR YEAR 2018 SALES TAX BALLOT INITITATIVES Page 8 of 10 Ballot Measure: County: Outcome:Amount:[5]Length: Purpose:[6] Election date Measure RR: Redwood City Sales Tax San Mateo 0.5% No expiration General November 6, 2018 Measure I: Kern County Unincorporated Area Sales Tax Kern 1% No expiration General November 6, 2018 Measure N: Bakersfield Sales Tax Kern 8.25% No expiration General November 6, 2018 Measure M: Sonoma County Parks and Conservation Sales Tax Sonoma 0.125% 10 years Parks November 6, 2018 Measure O: Santa Rosa Fire Recovery Sales Tax Sonoma 0.25% 6 years Fire recovery November 6, 2018 Measure Q: Sebastopol Sales Tax Renewal Sonoma 0.5% No expiration General November 6, 2018 Measure G: San Benito County Transportation Sales Tax San Benito 1% 30 years TransportationNovember 6, 2018 Measure H: Fort Bragg Sales Tax Mendocino 0.375% 15 years General November 6, 2018 Measure AA: Wildomar Sales Tax Riverside 1% No expiration General November 6, 2018 CALENDAR YEAR 2018 SALES TAX BALLOT INITITATIVES Page 9 of 10 Ballot Measure: County: Outcome:Amount:[5]Length: Purpose:[6] Election date Measure R: Norco Sales Tax Riverside 1% No expiration General November 6, 2018 Measure T: Murrieta Sales Tax Riverside 1% No expiration General November 6, 2018 Measure L: Alturas Sales Tax Modoc November 6, 2018 Measure I: Porterville Sales Tax Tulare $0.01 No expiration General November 6, 2018 Measure U: Port Hueneme Sales Tax Ventura 1% No expiration General" November 6, 2018 Measure L: Lodi Sales Tax San Joaquin $0.005 No expiration General November 6, 2018 Measure A: Red Bluff Sales Tax Tehama 0.25% Expires March 31, 2031 General November 6, 2018 Measure B: Red Bluff Sales Tax Advisory Question Tehama November 6, 2018 CALENDAR YEAR 2018 SALES TAX BALLOT INITITATIVES Page 10 of 10 Ballot Measure: County: Outcome:Amount:[5]Length: Purpose:[6] Election date Measure B: Roseville Sales Tax Placer 0.5% No expiration General November 6, 2018 Measure K‐18: Paso Robles Sales Tax San Luis Obispo 0.5% 6 years General November 6, 2018 Measure N‐18: Paso Robles Sales Tax for Streets and Sidewalks Advisory Question San Luis Obispo November 6, 2018 Measure U: Sacramento Sales Tax Sacramento No expiration General November 6, 2018 CALENDAR YEAR 2017 SALES TAX BALLOT INITITATIVES Page 1 of 3 In 2017, there were 21 local sales tax measures on the ballot in California. Of the 21 measures, 14 were approved, and seven were defeated. Eight measures were designed to fund specific purposes, such as public safety, while 13 measures were for general purposes. The eight ballot measures designed for specific purposes required a two-thirds (66.67 percent) supermajority vote, as outlined by state law. The rest required a simple majority. Fifteen of the measures were designed with no expiration date, while the remaining six measures were designed to expire within five to 20 years. The 21 local sales tax measures in California proposed an average tax increase of .64 percentage points. The measure that proposed the lowest sales tax was for a 0.125 percent tax to fund library services in Stanislaus County—it was approved. Seven cities—Santa Barbara, Woodlake, Coalinga, Montebello, Mendota, Corcoran, and Lindsay—along with Madera County, all proposed a 1 percent sales tax, the highest amount. Four of these measures were approved. Ballot Measure: County: Outcome:Amount:[7]Length: Purpose:[8] Election date Measure H: Los Angeles County Sales Tax for Homeless Services and Prevention Los Angeles 0.25% 10 years Homeless services March 7, 2017 Measure L: Madera County Fire and Sheriff Services Sales Tax Madera 1% 20 years Fire and sheriff services March 7, 2017 Measure O: Lindsay Sales Tax Tulare 1% No expirationGeneral June 6, 2017 Measure L: Seaside Sales Tax Monterey 0.5% No expirationGeneral June 6, 2017 Measure A: Corcoran Sales Tax Kings 1% No expirationGeneral June 6, 2017 Measure B: Mendota Sales Tax Fresno 1% increase No expirationLaw enforcementAugust 29, 2017 CALENDAR YEAR 2017 SALES TAX BALLOT INITITATIVES Page 2 of 3 Ballot Measure: County: Outcome:Amount:[7]Length: Purpose:[8] Election date Measure B: Mendocino County Mental Health Sales Tax Mendocino 0.5% (5 years); 0.125% 5 years; Indefinite Mental health November 7, 2017 Measure I: Burlingame Sales Tax San Mateo 0.25% Never General November 7, 2017 Measure S: Montebello Sales Tax Los Angeles 1% Never General November 7, 2017 Measure EM: El Monte Sales Tax Extension Los Angeles 0.5% 10 years General November 7, 2017 Measure HH: Hawthorne Sales Tax Los Angeles 0.75% Never General November 7, 2017 Measure B: Larkspur Sales Tax Marin 0.75% Never General November 7, 2017 Measure J: Barstow Fire and EMS Sales Tax San Bernardino 0.5% Never Fire and EMS November 7, 2017 Measure K: Victorville Fire and Police Sales Tax San Bernardino 0.5% Never Fire and Police November 7, 2017 Measure D: Palm Springs Sales Tax Riverside 0.5% Never General November 7, 2017 CALENDAR YEAR 2017 SALES TAX BALLOT INITITATIVES Page 3 of 3 Ballot Measure: County: Outcome:Amount:[7]Length: Purpose:[8] Election date Measure C: Coalinga Sales Tax Fresno 1% Never General November 7, 2017 Measure S: Stanislaus County Library Sales Tax Stanislaus 0.125% 12 years Library services November 7, 2017 Measure P: Farmersville Sales Tax Tulare 0.5% Never General November 7, 2017 Measure R: Woodlake Sales Tax Tulare 1% Never General November 7, 2017 Measure C: Santa Barbara Sales Tax Santa Barbara 1% Never General November 7, 2017 Measure C: South Lake Tahoe Road Improvement Sales Tax El Dorado 0.5% 15 years Road maintenanceNovember 7, 2017 RESOLUTION NO. 2019-C54 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA CALLING FOR THE PLACEMENT OF A GENERAL TAX MEASURE ON THE BALLOT FOR THE MARCH 3, 2020 GENERAL MUNICIPAL ELECTION FOR THE SUBMISSION TO THE QUALIFIED VOTERS OF AN ORDINANCE TO ENACT A GENERAL TRANSACTIONS AND USE TAX (SALES TAX) AT THE RATE OF THREE-QUARTERS CENT (3/4¢) WHEREAS, the City Council of the City of Azusa (“City”) is authorized to levy a Transactions and Use Tax (“sales tax”) for general purposes pursuant to California Revenue and Taxation Code §7285.9, subject to approval by a majority vote of the electorate pursuant to Article XIIIC, §2 of the California Constitution (“Proposition 218”); and WHEREAS, pursuant to California Elections Code §9222, the City Council has authority to place local measures on the ballot to be considered at a Municipal Election; and WHEREAS, the City Council would like to submit to the voters at the March 3, 2020 General Municipal Election a measure enacting a general sales tax at a rate of three-quarters cent (3/4¢) on the sale and/or use of all tangible personal property sold at retail in the City until it is ended by voters, as more specifically set forth in the attached proposed ordinance adding Article VIII to Chapter 70 (Taxation) of the City’s Municipal Code; and WHEREAS, the 3/4% sales tax is a general tax, the revenue of which will be placed in the City’s general fund and will be used to pay for important general City services; and WHEREAS, on November 6, 1996, the voters of the State of California approved Proposition 218, an amendment to the State Constitution which requires that all general taxes which are imposed, extended or increased must be submitted to the electorate and approved by a majority vote of the qualified electors voting in the election; and WHEREAS, the community has identified the following as service priorities: continuing police anti-gang enforcement programs, addressing homelessness, maintaining police patrols of neighborhood schools, maintaining police patrols of neighborhoods, parks and recreation areas, preventing reductions to police officer staffing levels, maintaining city services and repairing streets and potholes; and WHEREAS, in 2018, Azusa police officers, local firefighters and paramedics responded to more than 100,000 calls for service, including 15,000 911 calls of which 1,900 were medical emergencies; and WHEREAS, the City seeks to maintain 911 response, firefighter and paramedic staffing levels; and WHEREAS, the cost of the Los Angeles County Fire Department contract to provide fire protection and 911 response services to Azusa residents increased 16% last year and will continue to rise each year; and Attachment 2 WHEREAS, in recent years, state prisons have given early release to more criminals, resulting in increased of gang-related crime in the City; and WHEREAS, the City seeks to maintain Azusa police officer staffing levels and patrols to improve neighborhood safety; and WHEREAS, the City also seeks to maintain after-school and recreational programs that serve thousands of local youth each year; and WHEREAS, an additional source of local funding could be used to maintain current police, firefighter and paramedic staffing levels, 911 emergency response times, after-school programs and other community priorities identified above; and WHEREAS, pursuant to Proposition 218 (California Constitution Article XIIIC, §2(b)), the general rule is that any local election for the approval of an increase to a general tax must be consolidated with a regularly scheduled general election for members of the governing body of the local government; and WHEREAS, the next regularly scheduled general election at which City Council members are to be elected is March 3, 2020; and WHEREAS, pursuant to Government Code §53724 (“Proposition 62”) and Revenue and Taxation Code §7285.9, a two-thirds (2/3) vote of all members of the City Council is required to place the Measure on the March 3, 2020 ballot; and WHEREAS, the ordinance to be considered by the qualified voters and the terms of approval, collection and use of the general sales tax are described and provided for in the ordinance/measure attached hereto as Exhibit “A” (the “Measure”) and by this reference made an operative part hereof, in accordance with all applicable laws. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF AZUSA: SECTION 1. Incorporation of Recitals. The foregoing recitals are true and correct and are hereby incorporated and made an operative part of this Resolution. SECTION 2. Submission of Ballot Measure. Pursuant to California Elections Code §9222, Government Code §53724, Revenue and Taxation Code §7285.9 and any other applicable requirements of the laws of the State of California relating to the City, the City Council, by a two-thirds (2/3) vote of all members, hereby orders the Measure to be submitted to the voters of the City at the General Municipal Election to be held on Tuesday, March 3, 2020. SECTION 3. The City Council, pursuant to California Elections Code §9222, hereby orders that the Measure shall be presented and printed upon the ballot submitted to the qualified voters in the manner and form set forth in this Section 3. On the ballot to be submitted to the qualified voters at the General Municipal Election to be held on Tuesday, March 3, 2020, in addition to any other matters required by law, there shall be printed substantially the following ballot question: “To maintain City of Azusa police, firefighter and paramedic staffing levels, 9-1-1 emergency response services, gang enforcement and neighborhood patrols; address homelessness to maintain public health/safety; repair parks, library, community centers; and maintain graffiti removal, senior services including meals on wheels, afterschool programs and other City services, shall a measure be adopted establishing a 3/4¢ sales tax providing approximately $4,500,000 annually until ended by voters, requiring annual independent audits with all funds benefiting Azusa residents?” YES NO SECTION 4. Conduct of Election. The City Clerk is authorized, instructed, and directed to procure and furnish any and all official ballots, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election. In all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections. SECTION 5. Pursuant to California Elections Code Section 9280, the City Council hereby directs the City Clerk to transmit a copy of the Measure to the City Attorney. The City Attorney shall prepare an impartial analysis of the Measure, not to exceed 500 words in length, showing the effect of the Measure on the existing law and the operation of the Measure, and transmit such impartial analysis to the City Clerk not later than the deadline for submittal of primary arguments for or against the Measure. The impartial analysis shall include a statement indicating whether the Measure was placed on the ballot by a petition signed by the requisite number of voters or by the City Council. In the event the entire text of the Measure is not printed on the ballot, nor in the voter information portion of the sample ballot, there shall be printed immediately below the impartial analysis, in no less than 10-font bold type, the following: “The above statement is an impartial analysis of Ordinance or Measure ____. If you desire a copy of the ordinance or measure, please call the Office of the City Clerk at [insert phone number] and a copy will be mailed at no cost to you.” SECTION 6. Notice of the election is hereby given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, form and manner as required by law. SECTION 7. Placement on the Ballot. The full text of the Measure shall not be printed in the voter information guide, and a statement shall be printed in the ballot pursuant to Elections Code §9223 advising voters that they may obtain a copy of this Resolution and the Measure, at no cost, upon request made to the City Clerk. SECTION 8. Filing with County. The City Clerk shall, not later than the 88th day prior to the General Municipal Election to be held on Tuesday, March 3, 2020, file with the Board of Supervisors and the County Clerk – Registrar of Voters of the County of Los Angeles, State of California, a certified copy of this Resolution. SECTION 9. Public Examination. Pursuant to California Elections Code §9295, this Measure will be available for public examination for no fewer than ten (10) calendar days prior to being submitted for printing in the voter information guide. The City Clerk shall post notice in the Clerk’s office of the specific dates that the examination period will run. SECTION 10. The City Council hereby finds and determines that the Measure relates to organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment, and therefore is not a project within the meaning of the California Environmental Quality Act (“CEQA”) and the State CEQA Guidelines, section 15378(b)(5). SECTION 11. Severability. The provisions of this Resolution are severable and if any provision of this Resolution is held invalid, that provision shall be severed from the Resolution and the remainder of this Resolution shall continue in full force and effect, and not be affected by such invalidity. SECTION 12. This Resolution shall become effective upon its adoption. SECTION 13. The City Clerk shall certify to the adoption of this Resolution. PASSED AND ADOPTED by the City Council of the City of Azusa this 18th day of November, 2019, by the following vote: AYES: NOES: ABSTAIN: ABSENT: ______________________________________ JOSEPH ROCHA, MAYOR ATTEST: _______________________________ City Clerk APPROVED AS TO FORM: ________________________________ Marco Martinez, City Attorney Exhibit “A” Transactions and Use Tax Ordinance [attached behind this page] ORDINANCE NO. ____ AN ORDINANCE OF THE PEOPLE OF THE CITY OF AZUSA, CALIFORNIA, ADDING ARTICLE VIII TO CHAPTER 70 OF THE AZUSA MUNICIPAL CODE TO ENACT A THREE-QUARTERS PERCENT (3/4%) GENERAL TRANSACTIONS AND USE TAX (SALES TAX) TO BE ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION WHEREAS, pursuant to California Revenue and Taxation Code Section 7285.9 the City of Azusa (“City”) is authorized to levy a Transactions and Use Tax for general purposes, subject to majority voter approval; and WHEREAS, the People of the City desire to levy a Transactions and Use Tax for general purposes until repealed to fund important general City services, at a rate of three-quarters percent (3/4%); and WHEREAS, if approved by the City Council and Azusa voters, the Transactions and Use Tax ordinance will be incorporated into Article 8 of Chapter 3 of Title 3 of the Azusa Municipal Code. NOW, THEREFORE, THE PEOPLE OF THE CITY OF AZUSA DO HEREBY ORDAIN AS FOLLOWS: Section 1. Title and Text. This Ordinance shall be known as the Azusa Transactions and Use Tax Ordinance, the full text of which is set forth in Attachment “1”, attached hereto and incorporated herein by reference. Section 2. Approval by the City Council. Pursuant to California Government Code Section 53724 and Revenue and Taxation Code Section 7285.9, this Ordinance was duly approved for placement on the ballot by a minimum two-thirds (2/3) supermajority of all members of the City Council on November 18, 2019. Section 3. Approval by the Voters. Pursuant to California Elections Code Section 9217, this Ordinance shall be deemed adopted and take effect only if approved by a majority of the eligible voters of the City of Azusa voting at the General Municipal Election of March 3, 2020. It shall be deemed adopted when the City Council has certified the results of that election by resolution and shall take effect ten (10) days thereafter. Section 4. Operative Date. “Operative Date” for the Transactions and Use Tax means the first day of the first calendar quarter commencing more than 110 days after the date this Ordinance is adopted, as set forth in Section 3 above. Section 5. Severability. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the Ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. I hereby certify that the Azusa Transactions and Use Tax Ordinance was PASSED, APPROVED, AND ADOPTED by the People of the City of Azusa on the 3rd day of March, 2020. CITY OF AZUSA JOSEPH ROCHA, MAYOR ATTEST: _________________________________ City Clerk APPROVED AS TO FORM: _______________________________ Marco Martinez, City Attorney Article VIII - Transactions and Use Tax Sections: 70-301 - Purpose. 70-302 - Contract With State. 70-303 - Transactions Tax Rate. 70-304 - Place of Sale. 70-305 - Use Tax Rate. 70-306 - Adoption of Provisions of State Law. 70-307 - Limitations on Adoption of State Law and Collection of Use Taxes. 70-308 - Permit Not Required. 70-309 - Exemptions and Exclusions. 70-310 - Amendments. 70-311 - Enjoining Collection Forbidden. 70-312 – Duration of Tax Sections: 70-301 - Purpose. This ordinance is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes: A. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose. B. To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code. C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the California Department of Tax and Fee Administration in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the California Department of Tax and Fee Administration in administering and collecting the California State Sales and Use Taxes. D. To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this ordinance. 70-302 - Contract With State. Prior to the operative date, the City shall contract with the California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the City shall not have contracted with the California Department of Tax and Fee Administration prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract. 70-303 - Transactions Tax Rate. For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of three-quarters percent (3/4%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this ordinance. 70-304 - Place of Sale. For the purposes of this ordinance, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the California Department of Tax and Fee Administration. 70-305 - Use Tax Rate. An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the operative date of this ordinance for storage, use or other consumption in said territory at the rate of three-quarters percent (3/4%) of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made. 70-306 - Adoption of Provisions of State Law. Except as otherwise provided in this ordinance and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this ordinance as though fully set forth herein. 70-307 - Limitations on Adoption of State Law and Collection of Use Taxes. In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code: A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefor. However, the substitution shall not be made when: 1. The word “State” is used as a part of the title of the State Controller, State Treasurer, State Board of Control, California Department of Tax and Fee Administration, State Treasury, or the Constitution of the State of California; 2. The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the California Department of Tax and Fee Administration, in performing the functions incident to the administration or operation of this Ordinance. 3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to: a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or; b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code. 4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code. B. The word “City” shall be substituted for the word “State” in the phrase “retailer engaged in business in this State” in Section 6203 and in the definition of that phrase in Section 6203. 1. “A retailer engaged in business in the District” shall also include any retailer that, in the preceding calendar year or the current calendar year, has total combined sales of tangible personal property in this state or for delivery in the State by the retailer and all persons related to the retailer that exceeds five hundred thousand dollars ($500,000). For purposes of this section, a person is related to another person if both persons are related to each other pursuant to Section 267(b) of Title 26 of the United States Code and the regulations thereunder. 70-308 - Permit not Required. If a seller’s permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor’s permit shall not be required by this ordinance. 70-309 - Exemptions and Exclusions. A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state-administered transactions or use tax. B. There are exempted from the computation of the amount of transactions tax the gross receipts from: 1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government. 2. Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the City shall be satisfied: a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out-of- City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and b. With respect to commercial vehicles, by registration to a place of business out- of-City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address. 3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance. 4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this ordinance. 5. For the purposes of subparagraphs (3) and (4) of this subsection, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. C. There are exempted from the use tax imposed by this ordinance, the storage, use or other consumption in this City of tangible personal property: 1. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance. 2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California. 3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance. 4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this ordinance. 5. For the purposes of subparagraphs (3) and (4) of this subsection, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. 6. Except as provided in subparagraph (7), a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer. 7. “A retailer engaged in business in the City” shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City. D. Any person subject to use tax under this ordinance may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax. 70-310 - Amendments. All amendments subsequent to the effective date of this ordinance to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this ordinance, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance. 70-311 - Enjoining Collection Forbidden. No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this ordinance, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected. 70-312 – Duration of Tax. The tax imposed by this Article shall continue until this ordinance is repealed. RESOLUTION NO. 2019-C55 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, PROVIDING FOR THE FILING OF PRIMARY AND REBUTTAL ARGUMENTS AND SETTING RULES FOR THE FILING OF WRITTEN ARGUMENTS REGARDING A CITY MEASURE TO BE SUBMITTED AT THE MARCH 3, 2020 GENERAL MUNICIPAL ELECTION WHEREAS, a General Municipal Election is to be held in the City of Azusa, California on March 3, 2020, at which there will be submitted to the voters the following measure: “To maintain City of Azusa police, firefighter and paramedic staffing levels, 9-1-1 emergency response services, gang enforcement and neighborhood patrols; address homelessness to maintain public health/safety; repair parks, library, community centers; and maintain graffiti removal, senior services including meals on wheels, afterschool programs and other City services, shall a measure be adopted establishing a 3/4¢ sales tax providing approximately $4,500,000 annually until ended by voters, requiring annual independent audits with all funds benefiting Azusa residents?” Yes No NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS: Section 1. Primary Arguments. That the City Council authorizes (i) the City Council or any member(s) of the City Council, (ii) any individual voter eligible to vote on the above measure, (iii) a bona fide association of such citizens or (iv) any combination of voters and associations, to file a written argument in favor of or against the City measure, accompanied by the printed name(s) and signature(s) of the author(s) submitting it, in accordance with Article 4, Chapter 3, Division 9 of the Elections Code of the State of California, and to change the argument until and including the date fixed below by the City Clerk, after which no arguments for or against the City measure may be submitted to the City Clerk. The deadline to submit arguments for or against the City Measure pursuant to this Resolution is declared by the City Clerk to be Thursday December 12, 2019, at 5:30 p.m. Each argument shall not exceed 300 words and shall be filed with the City Clerk, signed, and include the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers who is the author of the argument. Section 2. Rebuttal Arguments. Pursuant to Section 9285 of the Elections Code of the State of California, when the City Clerk has selected the primary arguments for and against the City Measure which will be printed and distributed to the voters, the Clerk shall send copies Attachment 3 2 of the primary argument in favor of the Measure to the authors of the primary argument against, and copies of the primary argument against to the authors of the primary argument in favor. The authors or persons designated by them may prepare and submit rebuttal arguments not exceeding 250 words. The rebuttal arguments shall be filed with the City Clerk not later than Monday December 23, 2019, at 5:30 p.m. Rebuttal arguments shall be printed in the same manner as the primary arguments. Each rebuttal argument shall immediately follow the primary argument which it seeks to rebut. Section 3. Prior Resolutions. That all previous resolutions providing for the filing of primary and rebuttal arguments related to City measures are repealed. Section 4. March 3, 2020 Election. That the provisions of Sections 1 and 2 shall apply only to the election to be held on March 3, 2020, and shall then be repealed. 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. PASSED, APPROVED AND ADOPTED this 18th day of November, 2019. _____________________________ Joseph Rocha, Mayor ATTEST: ___________________________ City Clerk APPROVED AS TO FORM: ___________________________ Marco Martinez, City Attorney 3 I, _________________, City Clerk of the City of Azusa, do hereby certify that the foregoing resolution is the actual resolution duly and regularly adopted by the City Council at a regular meeting on the 18th day of November, 2019, by the following vote to wit: AYES: NOES: ABSTAIN: ABSENT: _____________________________ City Clerk RESOLUTION NO. 2019-C56 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY OF LOS ANGELES TO CONSOLIDATE A GENERAL MUNICIPAL ELECTION TO BE HELD ON MARCH 3, 2020 WITH THE STATEWIDE PRIMARY ELECTION TO BE HELD ON THAT DATE PURSUANT TO §10403 OF THE ELECTIONS CODE WHEREAS, on November, 18, 2019, the City Council of the City of Azusa adopted Resolution No. 2019-C54, calling a General Municipal Election to be held on March 3, 2020; for the purpose of submitting to the voters the question relating to the Transactions and Use Tax; and WHEREAS, it is therefore desirable that the General Municipal Election be consolidated with the Statewide Primary Election to be held on the same date and that within the City the precincts, polling places and election officers of the two elections be the same, and that the election department of the County of Los Angeles canvass the returns of the General Municipal Election and that the election be held in all respects as if there were only one election. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS: Section 1. Request for Consolidation. Pursuant to the requirements of §10403 of the Elections Code, the Board of Supervisors of the County of Los Angeles is hereby requested to consent and agree to the consolidation of a General Municipal Election with the Statewide Primary Election on Tuesday, March 3, 2020, for the purpose of submitting to the voters the following question relating to the Transactions and Use Tax. Section 2. Measure Language. A measure is to appear on the ballot as follows: “To maintain City of Azusa police, firefighter and paramedic staffing levels, 9-1-1 emergency response services, gang enforcement and neighborhood patrols; address homelessness to maintain public health/safety; repair parks, library, community centers; and maintain graffiti removal, senior services including meals on wheels, afterschool programs and other City services, shall a measure be adopted establishing a 3/4¢ sales tax providing approximately $4,500,000 annually until ended by voters, requiring annual independent audits with all funds benefiting Azusa residents?” Yes No Section 3. Canvass of Returns. The County election department is authorized to canvass the returns and perform all other proceedings incidental to and connected with the General Municipal Election. The Election shall be held in all respects as if there were only one election, and only one form of ballot shall be used. Pursuant to California Elections Code Attachment 4 2 Sections 10403 and 10418, the election will be held and conducted in accordance with the provisions of law regulating the Statewide Primary Election. Section 4. Necessary Steps. The Board of Supervisors is requested to issue instructions to the County election department to take any and all steps necessary for the holding of the consolidated election. Section 5. Costs. The City Council determines and declares that the City will pay to the County the reasonable and actual expenses incurred by the County by the consolidation of the General Municipal Election with the Statewide Primary Election. The City shall reimburse the County for services performed when the work is completed and upon presentation to the City of a properly approved bill. The City Manager of the City of Azusa is authorized and directed to pay for the expenses incurred after receiving a statement from the County of Los Angeles. Section 6. Filing of Resolution. The City Clerk is hereby directed to file a certified copy of this resolution with the Board of Supervisors and the election department of the County of Los Angeles. Section 7. Certification. The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. PASSED, APPROVED AND ADOPTED this 18th day of November, 2019. _____________________________ Joseph Rocha, Mayor ATTEST: ___________________________ City Clerk APPROVED AS TO FORM: _____________________________ Marco Martinez City Attorney 3 I, _________________, City Clerk of the City of Azusa, do hereby certify that the foregoing resolution is the actual resolution duly and regularly adopted by the City Council at a regular meeting on the 18th day of November, 2019, by the following vote to wit: AYES: NOES: ABSTAIN: ABSENT: _____________________________ City Clerk