FROM:
Development Services
SUBJECT:
Title
Resolutions to Place Measure on the November 5, 2024 General Municipal Election Ballot to Enact a General Transactions and Use Tax (Sales Tax) at the Rate of One Percent (1%); To Consolidate the General Municipal Election with the Statewide General Election, and to Set the Deadline and Rules for Primary Arguments and Rebuttal Arguments Regarding the Measure.
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RECOMMENDATION:
Recommendation
1. Adopt Resolution No. 2024-057, A Resolution of the City Council of the City of Fontana, California calling for the placement of a general tax measure on the ballot for the November 5, 2024 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 one percent (with tax ordinance included).
2. Adopt Resolution No. 2024-058, A Resolution of the City Council of the City of Fontana, California, requesting the Board of Supervisors of the County of San Bernardino to consolidate a general municipal election to be held on November 5, 2024 with the statewide general election to be held on that date pursuant to §10403 of the Elections Code.
3. Adopt Resolution No. 2024-059, A Resolution of the City Council of the City of Fontana, 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 on the November 5, 5054 general municipal election.
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COUNCIL GOALS:
• To practice sound fiscal management by emphasizing capital formation.
• To improve public safety by maximizing fire and emergency medical service resources.
• To improve public safety by minimizing community impact from disaster events with emergency and disaster preparedness and community awareness
• To invest in the city's infrastructure (streets, sewers, parks, etc.) by maintaining and improving the city's existing infrastructure.
• To invest in the city's infrastructure (streets, sewers, parks, etc.) by improving the aesthetics of the community.
• To increase citizen involvement by seeking community input.
• To increase citizen involvement by promoting healthy lifestyle opportunities to Fontana residents of all ages.
DISCUSSION:
Pursuant to California Revenue and Taxation Code section 7285.9, a City is authorized to levy a Transactions and Use (Sales) Tax (TUT) for general purposes, subject to the approval, by a majority vote, of the electorate pursuant to Article XIIIC, section 2 of the California Constitution (“Proposition 218”). Staff is proposing that the Council place a 1 percent general TUT on the ballot. If implemented, the TUT is estimated to produce $46,000,000 in sales tax annually that could be used to fund, or help fund, many general City services including maintaining 911 response, fire/police protection; recruiting/retaining well-trained police officers; helping prevent property crimes/thefts/burglaries; keeping public areas/parks safe/clean; addressing homelessness; protecting local drinking water sources; repairing streets/potholes.
To implement the one percent (1%) TUT, the City must first place the measure on the ballot for the November 5, 2024 General Election to give City voters the opportunity to vote on the measure. In order to place a tax measure on the November 5, 2024 ballot, the City Council must approve the submission of the measure to the voters by a 2/3 vote of the City Council (at least four affirmative votes). If adopted by majority vote of the electorate, the attached tax ordinance will be added to the municipal code to establish the aforementioned TUT.
FISCAL IMPACT:
Potential $46,000,000 in annual additional revenue that could go towards general City purposes.
The estimated cost for an election is based on the number of registered voters. Once the election is conducted, the County Registrar of Voters’ will submit the actual costs associated with the election, which could come in higher or even lower than the estimated costs. Staff has budgeted $154,000.00 in the Fiscal Year 2024/25 Proposed Operating Budget in account #10122000-8130. The statutory maximum amount of these costs shall not exceed $175,000, however the “start-up” cost is usually much less than that. CDTFA will also assess an annual administration fee that is typically a fraction of one percent of revenue collected. All other funding from the tax will be remitted to the City and remain under local control to fund City services and programs.
MOTION:
Approve staff’s recommendation
ATTACHMENTS:
1. Resolution No. 2024-057 calling for the placement of a general tax measure on the ballot for the November 5, 2024 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 one percent.
2. Resolution No. 2024-058 requesting the Board of Supervisors of the County of San Bernardino to consolidate a general municipal election to be held on November 5, 2024 with the statewide general election to be held on that date pursuant to §10403 of the Elections Code.
3. Resolution No. 2024-059 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 on the November 5, 2024 general municipal election.