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HomeMy WebLinkAbout1149 Ordinance of Voters Extending Existing Transactions and Use Tax MEASURE P ORDINANCE NO. 1149 AN ORDINANCE OF THE VOTERS OF THE CITY OF UKIAH EXTENDING THE EXISTING TRANSACTIONS AND USE TAX BY AMENDING SECTION 1799.5 OF CHAPTER 8C OF DIVISION 1 OF THE UKIAH CITY CODE The voters of the City of Ukiah hereby ordain as follows: SECTION 1. FINDINGS. The voters of the City of Ukiah hereby find as follows: The City Council and the people of the City of Ukiah hereby find: 1. At an election held on June 7, 2005, by a vote of 1442 for and 634 against, 69.46% of the voters of the City of Ukiah approved, as a general tax, a one-half cent (0.5%) Transaction and Use Tax, commonly called a “Sales Tax” and known as “Measure S.” 2. Measure S is codified at Chapter 8c of Division 1 of the Ukiah City Code and has an expiration date under Ukiah City Code Section 1799.5 on the tenth anniversary of the Operative Date thereof, unless extended by a majority vote in a subsequent municipal election. 3. The Operative Date of Measure S was the date when the half -cent transactions and use tax was first imposed. That date was September 25, 2005, 110 days after the voters approved the measure. 4. Under Ukiah City Code Section 1799.5, the Measure S Sales Tax will terminate on September 25, 2015. 5. When Measure S passed, the voters overwhelmingly answered “Yes” to the question posed by Measure T, an accompanying advisory measure which asked: “Should additional funds for public safety, including police, fire and emergency medical services, be the first priority for the use of new sales tax revenues in the City of Ukiah?” 6. In 2005, when Measures S and T passed, the City spent $5,670,719 on public safety, including police, fire and emergency medical services. 7. Under the guidance from Measure T, the City has spent as follows for public safety: Fiscal Year General Fund Measure S Other Total (*Unaudited) FY2006 $5,286,893 $1,092,344 $ -0- $6,379,237 FY2007 $5,177,424 $2,277,084 $ 27,861 $7,482,369 FY2008 $5,451,375 $2,322,584 $ 3,794 $7,777,753 FY2009 $6,127,841 $2,129,720 $ 1,337 $8,258,898 FY2010 $7,152,310 $2,013,673 $ 79,918 $9,245,901 FY2011 $5,991,911 $2,153,968 $ 136,321 $8,282,200 FY2012 $6,233,347 $2,229,049 $ 88,158 $8,550,554 FY2013* $6,826,934 $2,412,549 $ 7,670 $9,247,153 FY2014* $6,250,200 $2,371,888 $ 500 $8,622,588 Page 1 of 3 I8. While Measure S revenues are general fund revenues subject to the budgeting discretion of the City Council, it has, in fact, used the taxes from Measure S exclusively for public safety. In addition, the City Council has increased general fund support for public safety by over 4.5 million since 2005. The City Council chose consistently throughout the financial crisis I since 2008 to sustain funding for public safety, and added to it from the General Fund, even I in the face of making significant spending reductions in other city operations and non-safety personnel. Despite this level of spending the City has struggled to maintain adequate personnel and equipment to meet the demands for public safety services which have increased substantially over the past 10 years. 9. The 10 year sunset in Measure S has created a significant problem for the City's Police Department in recruiting and retaining new peace officers, because the City cannot assure new recruits that it will have funding for their positions, after the tax revenue from Measure S terminates in 2015. 10. This measure, if passed by the voters, continues the sales tax enacted by Measure S beyond its current repealed date and provides that the tax will remain in effect until it is repealed by majority vote at a municipal election. 11. The City Council determined at its special meeting on June 24, 2014, to place this measure on the ballot for the regular municipal election on November 4, 2014, as authorized by Revenue and Taxation Code section 7285.9. 12. While this measure will continue the tax indefinitely, unless repealed or amended by the voters, a City Council resolution adopted at its meeting on June 24, 2014, will establish a committee composed of inembers of the public (the Oversight Committee) to review and report on the use of the revenue from the tax. The extension of the tax shall be approved if the measure receives at least a majority of affirmative votes. 13. Based on all of the information presented at the City Council meetings on June 18 and 24, 2014, 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. AMENDMENT OF SECTION 1799.5 OF THE UKIAH CITY CODE. Section 1799.5, "Repeal of Tax," of the Ukiah City Code shall be amended to read as follows: 1799.5 REPEAL OF TAX The tax imposed by this chapter shall be made permanent and remain in full force and effect, unless and until repealed by a majority vote at a general municipal election. SECTION 3. ORDINANCE TO BE SUBMITTED TO THE VOTERS. This ordinance shall be submitted to the voters at an election to be held on November 4, 2014. Upon approval by a majority of the voters of the City voting on this ordinance, the Transactions and Use Tax set forth in City of Ukiah Ordinance No. 1063 ("Measure S") shall be continued indefinitely, unless repealed by majority vote in a subsequent municipal election. ISECTION4. SEVERABILITY. i If any provision of this ordinance or the application thereof to any person or circumstance is held invalid by a court of competent jurisdiction, the remainder of the ordinance and the Page 2 of 3 application of such provision to the other persons or circumstances shall not be affected thereby. The voters of the City of Ukiah hereby declare that they would have adopted each and every provision of this ordinance regardless of the invalidity of any other provision. SECTION 5. CODIFICATION. Upon adoption of this ordinance pursuant to the voter approval referenced herein, the City Clerk, in consultation with the City Attorney, is hereby authorized and directed to codify this ordinance in the Ukiah City Code. SECTION 6. EFFECTIVE DATE. If this ordinance is approved by a majority of the voters voting on the issue at the November 4, 2014 election, pursuant to Elections Code Section 9217, this ordinance shall become effective ten (10) days after the City Council declares the results of the election. The Operative Date of the Transactions and Use Tax set forth in City of Ukiah Ordinance No. 1063 shall not be affected by this ordinance. Approved on June 24, 2014 by the following roll call vote of the Ukiah City Council: AYES: Councilmembers Scalmanini, Crane, Thomas, Landis, and Mayor Baldwin NOES: None ABSENT: None ABSTAIN: None Philip E. Idwin, Mayor ATTEST: li ' Kristine Lawler, City Clerk II Page3of3