HomeMy WebLinkAboutResolution No. 24-8258 - Calling for a General Sales Tax Measure on the November 5, 2024 General Municipal Election Ballot of One-Quarter Cent (1/4)RESOLUTION NO. 24-8258
€ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY CALLING
FOR THE PLACEMENT OF A GENERAL (SALES) 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 SUPPLEMENTAL GENERAL TRANSACTIONS AND USE TAX
(SALES TAX) AT THE RATE OF ONE -QUARTER CENT (1/40)
WHEREAS, the City of Downey ("City") is authorized to levy a Transactions and Use
(sales) Tax ("TUT") for general purposes pursuant to California Revenue and Taxation Code
Section 7285.9, subject to approval by a majority vote of the electorate pursuant to Article XIIIC,
Section 2 of the California Constitution ("Proposition 218"); and
WHEREAS, pursuant to California Elections Code section 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 November 5, 2024
General Municipal Election a. measure establishing a supplemental general TUT of one -quarter
cent (1/40) on the sale and/or use of all tangible personal property sold at retail in the City until it
is repealed by voters, as more specifically set forth in the attached proposed ordinance adding
Chapter F to Article V1 of the City's'Municipal Code; and
WHEREAS, the one -quarter cent (1/40) TUT is a general tax, the revenue of which will be
placed in the City's general fund and will be used to pay for general City services; and
WHEREAS, Downey is a full service City with its own police and fire departments; and
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WHEREAS, last year saw a'five year high in reported property crimes in Downey, and in
2023 there were over a combined 3,100 robberies, burglaries and thefts including auto thefts;
and
WHEREAS, the proposed measure would provide locally controlled funding that could help
maintain 911 emergency response times and police patrols in neighborhoods and business areas;
and
WHEREAS, over 70% of calls to the Downey Fire Department are related to medical
emergencies; and
WHEREAS, funding from the proposed measure could help maintain and improve
emergency response times as well as recruit, retain, and equip firefighters and paramedics to
respond to emergencies; and
WHEREAS, the proposed measure will provide locally controlled funds that could be used
for maintaining 911 emergency response times, resources for first responders, preventing crimes
including -thefts and burglaries, ensuring children have safe places to play, parks, road
maintenance, playgrounds, and youth and senior programs and maintaining Downey's quality of
life; and
WHEREAS, all funds from the measure would be locally controlled and must be spent to
benefit Downey residents; and
WHEREAS, on November 6, 1996, the voters of the State of California approved
Resolution No. 24-8258
Page 2
Proposition 218, an amendment to the State Constitution that 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, pursuant to Proposition 218 (California Constitution; Article XIIIC, section
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
will be elected is November 5; 2024; and
WHEREAS, pursuant to Revenue and Taxation Code section 7285.9, a two-thirds (2/3)
vote of all members of the City Council is required to place the Measure on the November 5, 2024
ballot; and
WHEREAS, the ordinance to be considered by the qualified voters and the terms of
approval, collection and use of the general TUT 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, THE CITY COUNCIL OF THE CITY OF DONEY DOES
HEREBY RESOLVE AS FOLLOWS:
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
Section 9222, Revenue and Taxation Code Section 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, November 5, 2024.
SECTION 3. The City Council, pursuant to California Elections Code section 9222,
hereby orders that the ballot question for 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,- November 5, 2024, in addition to any other matters required by law, there shall be
Resolution No. 24-8258
Page 3
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 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 guide, 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 (562) 904-7280 and a copy will be mailed at no cost to
you."
SECTION 6. Notice of the election is herebygivenand 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 on the ballot pursuant to Elections
Code section 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, :November 5, 2024, file with the Board of
Supervisors and the Registrar of Voters of the County of Los Angeles, State of California, a
certified copy of this Resolution.
SECTION 9. Public Examination. Pursuant to Elections Code section 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).
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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.
Resolution No. 24-8258
Page 4
SECTION 12. This Resolution shall become effective upon its adoption.
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SECTION 13. The City Clerk shall certify to the adoption of this Resolution.
APPROVED AND ADOPTED this 23Id day of July, 2024,
MARIO TRUJILLO,_M or
ATTEST:
A �ALIE`IADUA�RTE,�MC��
City Clerk
APPROVED AS TO FORM;
lzn= lyt "'.
JOqA M. FUNK
City Attorney
I HEREBY CERTIFY that the foregoing Resolution was adopted by the City Council of the City
of Downey at a Regular meeting held on the 23ra day of July, 2024, by the following vote, to wit:
AYES: Council Members: Ortiz, Pemberton, Sosa, Mayor Trujillo
NOES: Council Member: None.
ABSENT Council Member: Frometa
ABSTAIN: Council Member: None.
IMT&aAL�ICIA DUARTE, CMC
City Clerk
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Resolution No.-825
Page 5
Exhibit "A"
Transactions and Use Tax Ordinance
[attached behind this page]
Resolution No. 24-8258
Page 6
i ORDINANCE NO.
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AN ORDINANCE OF THE PEOPLE OF THE CITY OF DOWNEY, CALIFORNIA,
ADDING CHAPTER IF TO ARTICLE VI OF THE DOWNEY MUNICIPAL CODE
TO ENACT A'"SUPPLEMENTAL ONE -QUARTER CENT (1/40) 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
Downey ("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 of Downey desire to add Chapter 1 F to Article VI of the
Downey Municipal Code establishing a general Supplemental Transactions and Use Tax
("TUT') until ended by voters, on the sale and/or use of all tangible personal property sold at
retail in the City, at a rate of one -quarter percent'(1/4%n).
NOW, THEREFORE, THE PEOPLE OF THE CITY OF DOWNEY DO HEREBY
ORDAIN AS FOLLOWS:
SECTION 1. 'Title and Text. This Ordinance shall be known as the "Downey Supplemental
General Transactions and Use Tax", the full text of which is set forth in the attachment hereto
and incorporated herein by reference.
SECTION 2. ,Approval by the City Council Pursuant to California 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 July 23, 2024.
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 Downey voting at the General Municipal Election of November 5,
2024. 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:
1 hereby certify that the Downey Supplemental General Transactions and Use Tax
Ordinance was PASSED, APPROVED, AND ADOPTED by the People of the City of Downey
on the 5th day of November, 2024.
i CITY OF DOWNEY
MARIO TRUJILLO
Mayor
Resolution No. "24-858
Page 7
ATTEST:
MARIA ALICIA DUARTE, CMC
City Clerk
APPROVED AS TO FORM:
,JOHN M. FUNK
City Attorney
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Resolution No. 24-8258
Page 8
Chapter 1 F — SUPPLEMENTAL GENERAL TRANSACTIONS AND USE TAX
Sections:
6199.80 -'Title.
6199.81 - Purpose.
6199.82 - Contract With State.
6199.83 Transactions Tax Rate.
6199.84 Place of Sale.
6199.85 - Use Tax Rate.
6199.86 -Adoption of Provisions of State Law.
6199.87 Limitations on Adoption of State Law and Collection of Use Taxes
6199.88 - Permit Not Required.
6199.89 - Exemptions and Exclusions.
6199.90 Amendments.
6199.91 - Enjoining Collection Forbidden.
6199.92 Duration of Tax
6199.93 Audit and Review.'
Sections:
6199.80 - Title.
This ordinance shall be known as the "City of Downey Supplemental General Transactions and
Use Tax Ordinance". The City of Downey hereinafter shall be called "City." This ordinance shall
be applicable in the incorporated territory of the City.
6199.81 -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 measurevoteto 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
i procedures followed by the California Department of Tax and Fee Administration ,in
administering and collecting the California State Sales and Use Taxes:
Resolution No. 24-8258
Page 9
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.
6199.82 - 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.
6199.83 - 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 one -quarter percent (1/4%) 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.
6199.84 - 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.
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 one -quarter
percent (1/4%) 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.
6199.86 - 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.
Resolution No. 24-8258
Page 10
6199.87 - 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,
California Victim Compensation Board, 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 reference to 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 of the Revenue and Taxation Code and in the
definition of that phrase in Section 6203.
1. "A retailer engaged in business in the City" 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.
6199.88 Permit not Required.
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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.
6199.89 - Exemptions and Exclusions.
Resolution No.24-8258
Page 11
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 i
b: With respect to commercial vehicles, by registration to a place of businessout-
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: l
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.
Resolution No. 24-8258
Page 12
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.
6199.90 - 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.
Resolution No. 4- 258
Page 13
6199.91 Enjoining Collection Forbidden.
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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.
6199.92 - Duration of Tax.
The tax imposed by this chapter shall continue until this ordinance is repealed.
6199.93 - Audit and Review.
The proceeds of the tax imposed by this chapter, as well as the expenditure thereof, shall be
audited annually by an independent accounting firm. The City Council shall discuss the results
of such audit at a meeting of the City Council that is open to the public. The report of such audit
shall be posted on the"City's website.
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