BACKGROUND:
In 2018, the California Business Roundtable and American Beverage Association circulated an initiative for the November 2018 ballot. The proposed initiative would have drastically limited local revenue authority. The League of California Cities and its coalition opposed this initiative. Ultimately, the proponents withdrew the initiative from the ballot in June 2018.
In January 2022, the California Business Roundtable filed Initiative No. 21-0042A1 to impose new and stricter rules than the measure filed in 2018 related to the raising of state and local taxes, fees, assessments, and property-related fees.
In February 2023, the California Secretary of State announced Initiative No. 21-0042A1 qualified for the November 2024 ballot. The League of California Cities is calling for cities to take action to oppose the initiative and have provided a summary and fiscal analysis on the impacts of Initiative No. 21-0042A1 (Attachment 1).
DISCUSSION:
If initiative No. 21-0042A1 is passed by voters, it can have very detrimental effects on local governments’ ability to charge fees or pass local tax measures to ensure sufficient revenues to provide local government services. CaliforniaCitiesFinance.Com provides a comprehensive analysis of the impact this initiative could have on cities. (Attachment 2).
FISCAL IMPACT:
There is no fiscal impact associated with adopting the proposed resolution.
FIVE-YEAR STRATEGIC PLAN:
Goal C: Fiscal Stability and Sustainability
Objective: Cathedral City has economically prospered by facilitating the investment of private dollars in high quality development which benefits the community. We remain financially solvent by instituting prudent fiscal policies and transparent financial practices.