HomeMy WebLinkAbout06. Adopt Reso Opposition to the Erosion of Local Control Over Local Taxes and FeesItem
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TO: i HONORABLE MEMBERS OF THE CITY COUNCIL q,�m S-.
FROM: MAYOR SEAN ASHTON
SUBJECT: OPPOSITION TO THE EROSION OF LOCAL CONTROL OVER LOCAL TAXES
AND FEES
RECOMMENDATION
That the City Council adopt`
RESOLUTION OF • OF OF DOWNEY
TAXES AND FEES
City of Downey is very proud of recognition as the 2017 Most Business -Friendly City, and our
previous years as a Finalist for the award. The Council and the community actively balance the
needs of local residents, businesses and visitors in the provision of services, including police,
fire, paramedic, parks, library, building and safety and code enforcement. There is also a critical
balance in the payment for those services.
Annually, the City undertakes an evaluation of the approximate cost to provide general services
(those services for which every resident, business and visitor is a beneficiary) and spread those
evenly among the various revenue sources (property tax, business licenses, sales tax, utility
user tax and transient occupancy taxes). In addition, there are specialized services from which
an individual or a business received a larger benefit than the general community (such as a
conditional use permit to operate a business in specific zones, or the safety inspections
necessary for the expansion of a building). Those services are assessed a fee based upon the
cost to provide the service, and the fees are adopted at a public hearing at a public City Council
meeting with prior notice provided online and in the local newspaper.
However, a proposed ballot measure is currently being circulated for signatures that would
require, among other things, that the City to place those fees on an election ballot and generate
a 2/3 vote of the electorate before the fees could be enacted. There would also be a
requirement for any extension of an existing tax or for the increase or reduction of a tax, or the
implementation of a new tax, to be adopted by an affirmative vote of 2/3 of the electorate. This
prohibitively high threshold would virtually freeze all existing revenues at their 2018 values, even
when the cost of providing services increases, leading to an effective subsidy of services such
as those provided to businesses, at the cost of general public safety and community services.
It is thus with great concern that I ask my esteemed colleagues on the City Council to adopt this
resolution of opposition, and join me in efforts to top this measure and eliminate the provisions
that are harmful to local communities.
RESOLUTION NO,
PAGE 2
FISCAL IMPACT"
The potential impact to the General Fund is substantial.
ATTACHMENTS
Exhibit A — Resolution
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY
OPPOSING ATTEMPTS TO CIRCUMVENT LOCAL CONTROL OVER SALE -1
TAXES AND FEES
WHEREAS, California's cities, counties and special districts follow strict guidelines and
existing state law regarding the imposition, reduction and change of taxes and fees; and
WHEREAS, there is a "signature -gathering campaign for a state ballot measure currently
sponsored by the California Business Roundtable that would eliminate a local community's right,
through its duly -elected City Council, to adopt, change, extend or eliminate local taxes and fees;
and
WHEREAS, it is important for local community members, in concert with their duly -
elected officials, to determine the services and funding levels appropriate for their own cities;
and
WHEREAS, the proposed ballot measure would unduly burden local tax payers by
effectively requiring them to subsidize, through the general fund,.a business's permits, fees, and
licensing, unless the local government pays to place a fee resolution on the local ballot annually;
NOW, - i OF OF DOWNEY DOES
YEREBY RESOLVE• •
SECTION 1. The City of Downey hereby opposes efforts to curtail local control over local
taxes and fees; and
SECTION 2. Staff is hereby direct to transmit a copy of this adopted resolution to the
League of California' Cities, the California Business Roundtable, and any other interested party
and
SECTION 3. The City Clerk shall certify to the adoption of this Resolution.
APPROVED AND ADOPTED this 13th day of March, 2018..
Sean Ashton
Mayor
MARIA ALICIA DUARTE, CMC
City Clerk
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AYES:
Council Member
NOES:
Council Member:
ABSENT:
Council Member:
ABSTAK
Council Member:1
MARIA ALICIA DUARTE, CIVIC
City Clerk