1 CITY OF COLTON
City Hall, Council Chambers
650 N. La Cadena Drive
Colton, CA 92324
Website: www.coltonca.gov
Mayor Frank J. Navarro
Council Members:
David J. Toro - District 1
Ernest R. Cisneros - District 2
Kenneth J. Koperski - District 3
Dr. Luis S. Gonzalez - District 4
John R. Echevarria - District 5
Isaac T. Suchil - District 6
City Treasurer Aurelio De La Torre
City Manager William R. Smith
City Attorney Carlos Campos
City Clerk Carolina R. Padilla
AGENDA
SPECIAL MEETING
CITY COUNCIL,
COLTON UTILITY AUTHORITY, COLTON PUBLIC FINANCING AUTHORITY,
COLTON HOUSING AUTHORITY
WEDNESDAY, MAY 4, 2022 – 5:00 P.M.
COUNCIL CHAMBERS
OPEN SESSION 5:00 P.M.
OPEN SESSION CALLED TO ORDER
ROLL CALL
MAYOR AND COUNCIL ITEMS
GIFT CLOSURES
Prior to rendering a decision in any proceeding involving a license, permit, contract or other entitlement pending before the city council, any council member who has received been promised a gift or gifts aggregating $50.00 or more in value within the preceding twelve months from a party or participant in the proceeding shall disclose that fact either orally or in writing during open session. This disclosure shall be made part of the official public record of the proceeding, either as part of the minutes of the meeting or as a separate writing filed with the city. (CMC Section 2.04.030)
2 AB 1234 ORAL REPORTS
Members of the city council shall provide brief reports on meetings attended at the expense of the city. (GC Section 53232.3(d))
PUBLIC COMMENT Limit 3 Minutes
This is the portion of the meeting specifically set aside to invite your comments regarding Business or discussion items and other general comments about matters not on the agenda; however, any matter that requires action will be referred to staff for investigation and report at a subsequent Council meeting. The Council is prohibited by law from discussing or taking immediate action on items during this public comment period.
Persons desiring to submit paperwork to the City Council Members shall provide copy of any paperwork to the City Clerk for the Official Record.
Speakers will be limited to 3 minutes; provided, however, that the presiding officer shall have certain discretion to extend or limit time as provided for in the City Council Manual of Procedure.
BUSINESS ITEMS
(1) Local Ballot Initiative - Transactions & Use Tax - Local Ballot Initiative to Establish a One Cent (1¢) City Transactions and Use Tax, 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 a City Measure for the November 8, 2022 Election, RESOLUTIONS NO. R-31-22, R-32-22, R-33-22. [Staff Person: Stacey Dabbs]
DISCUSSION ITEMS
(2) Fiscal Year 2021-22 Budget Workshop #2
[Staff Person: Stacey Dabbs]
ADJOURNMENT
I, Stephanie Vargas , Acting Deputy City Clerk, hereby certify that a true and correct, accurate copy of the foregoing agenda was posted at least twenty-four (24) hours prior to the meeting per Government Code 54954.2, at the following locations:
City of Colton City Hall 650 N. La Cadena Drive
City of Colton Website, www.coltonca.gov http://www.coltonca.gov
3 PROCEDURES FOR ADDRESSING CITY COUNCIL
For the Official Record, it is requested that you obtain a card from the City Clerk and complete it by noting a specific item number on the Agenda, if applicable, or you can identify the subject that you wish to address under the Public Comment portion of the Agenda. The City Cou ncil encourages public input on all City issues within the Rules of Decorum. Speakers will be limited to the time periods provided on the Agenda; provided, however, that the presiding officer shall have certain discretion to extend or limit time as provid ed for in the City Council Manual of Procedure.
RULES OF DECORUM
To help conduct the business of the City Council in an orderly fashion, the City Council has adopted rules pertaining to decorum and order, as provided for in the City Council Manual of Procedure. The City Council will strictly enforce these rules in order to allow full expression of ideas and opinions by councilmembers, staff and the public. Generally, the City's rules of decorum prohibit comments or actions which willfully disrupt the me eting. All remarks and questions shall be addressed to the Council as a whole and not to any particular member. No individual Councilmember or member of the City staff shall be questioned without first obtaining permission from the Presiding Officer. Th e City Council asks that all persons - including councilmembers, staff and the public - act and speak respectfully.
NOTICE TO PUBLIC
Staff reports or other written documentation relating to each item referred to, on the Agenda, are available for public inspection at the following locations: Office of the City Clerk, 650 N. La Cadena Drive, Colton, CA; City of Colton Public Library, 656 9 th St., Colton, CA; or the City of Colton Internet Website, www.coltonca.gov. Any person having questions concerning any item on the Agenda may call the City Clerk at 370 -5191 to make inquiry concerning the nature of the item described on the Agenda. The City Clerk shall direct inquiries to the appropriate office.
All matters liste d under the Consent Calendar are considered by the City Council to be routine and will all be enacted by one motion. There will be no separate discussion of these items prior to the time the City Council votes on the motion, unless councilmembers, staff or the public request that specific items be discussed and/or removed for separate discussions or action.
In compliance with the American with Disabilities Act, if you need special assistance to participate in a City Meeting, please contact the City Clerk’s Office at 909-370-5001. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.
LEGAL CHALLENGES
If you challenge in court any discussion or action taken concerning an it em on this Agenda, you may be limited to raising only those issues you or someone else raised during the meeting or in
4 written correspondence delivered to the City at or prior to the City's consideration of the item at the meeting.
MANUAL OF PROCEDURE
The City Council adopted its Manual of Procedure pursuant to Resolution No. R -150-07; Amended by Minute Action on December 2, 2014 and adopted by Resolution No. R -03-15 on January 20, 2015. Copies are available in the Office of the City Clerk.
ITEM NO. 1
STAFF REPORT
DATE: MAY 4, 2022
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: BILL SMITH, CITY MANAGER
PREPARED BY: STACEY DABBS, FINANCE DIRECTOR
SUBJECT: LOCAL BALLOT INITIATIVE TO ESTABLISH A ONE CENT (1¢)
CITY TRANSACTIONS AND USE TAX, 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 A CITY MEASURE FOR THE NOVEMBER 8, 2022
ELECTION, RESOLUTIONS R-31-22, R-32-22, R-33-22
RECOMMENDED ACTION
Staff recommends that the City Council take the following action:
1. Adopt Resolution R-31-22, a Resolution of the City Council of the City of Colton calling for placement of a general tax measure on the ballot for the Tuesday, November 8, 2022 General Municipal Election for the submission to qualified voters of an Ordinance to enact a one-cent (1¢) General Transactions and Use (Sales) Tax; and
2. Adopt Resolution R -32-22, a Resolution of the City Council of the City of Colton requesting the Board of Supervisors of the County of San Bernardino to consolidate a General Municipal Election to be held on Tuesday, November 8, 2022 with the Statewide General Election to be held that date pursuant to §10403 of the Elections Code; and
3. Adopt Resolution R -33-22, a Resolution of the City Council of the City of Colton 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 at the November 8, 202 2 General Municipal Election.
1 Packet Pg. 5
Staff Report to the Mayor and City Council
Local Ballot Initiative - Transactions & Use Tax
May 4, 2022
BACKGROUND
The City of Colton provides a variety of essential general municipal services, including fire, police, and emergency 911 medical response; after -school programming for youth; senior and library services; parks maintenance; homelessness response, and other general maintenance and services. In recent years, the City’s ability to maintain these services has become more challenging due to operating costs rising at a faster pace than sustainable revenues. Based on current projections, unless a new revenue source is identified, the City faces substantial budget deficits and service reductions, jeopardizing the City’s essential services to the community.
The City’s rich history provides the basis for many things Colton residents currently enjoy, but it also means that its infrastructure, things like traffic signals, community centers, fire stations, and sidewalks, require larger investments in order to maintain them at an acceptable standard.
Colton also proudly operates its own local fire and police departments, independent from County control. This also requires more investment in capital and ongoing costs, like staffing expenses, fire and police equipment, additional insurance coverage, and technology.
Compounding these fiscal pressures even further is the economic outlook resulting as a consequence of the COVID -19 pandemic. For the City to maintain the level of service to the public during the economic impacts of the pandemic and to work towards funding deferred capital needs, addition al revenues will be necessary, in conjunction with cost containment strategies.
In recent years, the City has made several service and operations reductions to remedy shortfalls and has been diligent about financial planning to ens ure sustainability and continuity in service to the community. These measures included freezing positions, concession bargaining with employee groups , seeking grant funding for capital replacement and projects, deferring and extending capital replacement and maintenance, and passing a General Fund Transfer revenue measure. Additionally, the City Council adopted a revised General Fund Balance policy which has been the most impactful component to ensuring the City’s long -term financial sustainability.
The revised policy is multifaceted, addressing both the minimum level of required General Fund reserves and the year -end closing procedures to allocate excess revenue over expenditures to address areas of significant financial concern. Specifically, the General Fund Balance Policy has resulted in reserves for Pension and Other Post Employment Benefits (OPEB) and transfers to internal service funds to address deferred building maint enance, vehicle replacement, and risk management. However, these strategies alo ne are not sufficient to maintain our community ’s current level of service.
ISSUES/ANALYSIS
Five-year financial projections for the City’s General Fund are presented to the Finance Committee for the annual budget and mid-year budget processes. These projections include the current fiscal year, a two-year look back, and a five -year future projection. The financial model 1 Packet Pg. 6
Staff Report to the Mayor and City Council
Local Ballot Initiative - Transactions & Use Tax
May 4, 2022
forecasts revenue and expenditures based on several known factors. For expenditures, the model assumes a status quo staffing and service model and factors in contractual obligations, existing debt obligations, bargained salaries and benefits increases, actuarily -determined contributions to CalPERS for the City’s Unfunded Accrued Liability (UAL), and a marginal and steady rise in maintenance and operational costs to account for customary inflation. Local officials have limited choices in raising revenues to provide services to their communities, as voters have placed restrictions and protections in the State Constitution. Theref ore, the financial model assumes a smoothed, standard growth trend in revenues, factoring in new revenues from entitled development and other reasonable assumptions and factoring out one -time revenues in previous years, such as CARES Act funds . As shown b elow, expenditure growth is expected to outpace revenue increases in the forecast model, given the assumptions discussed.
As soon as the Fiscal Year (FY) 2023-24 budget adoption, the financial forecast model shows that the City will struggle to meet its General Fund reserve requirement of 15%, and by FY2025- 26, the City’s unassigned fund balance will be in a deficit position. Absent proactive measures to pass an initi ative for a new revenue source or a reduction in services to the community, or a combination of both, the General Fund deficit will grow each year, rendering the City insolvent.
1 Packet Pg. 7
Staff Report to the Mayor and City Council
Local Ballot Initiative - Transactions & Use Tax
May 4, 2022
2020 2021 2022 2023 2024 2025 2026 2027
Beginning Fund Balance 21,168,452 26,583,187 37,690,536 36,215,143 35,620,525 33,356,458 29,275,984 22,984,206 Revenues, including transfers 45,827,008 55,616,546 49,852,166 51,560,715 52,591,929 53,643,768 54,716,643 55,810,976 Expenditures, including transfers 40,412,273 44,509,197 51,327,559 52,155,333 54,855,997 57,724,241 61,008,422 65,077,949 Surplus/(Deficit) 5,414,735 11,107,349 (1,475,393) (594,618) (2,264,068) (4,080,474) (6,291,779) (9,266,972) Total Fund Balance 26,583,187 37,690,536 36,215,143 35,620,525 33,356,458 29,275,984 22,984,206 13,717,233 Unassigned Fund Balance 7,128,758 8,776,561 8,601,168 8,006,550 5,742,483 1,662,009 (4,629,769) (13,896,742) Committed for Litigation - 1,300,000 - - - - - - Committed for Pension 13,314,508 19,820,872 19,820,872 19,820,872 19,820,872 19,820,872 19,820,872 19,820,872 Committed for OPEB 6,139,921 7,793,103 7,793,103 7,793,103 7,793,103 7,793,103 7,793,103 7,793,103 % Reserve 20% 17% 15% 10% 3% -8% -21%
AS OF JUNE 30
The Finance Committee recommended placing a one-cent transactions (sales) and use tax on the November 2022 ballot to ensure voters have a voice in determining the level of service they want for their community. A financial forecast including a one -cent sales tax shows the City can stabilize and maintain the current service levels and continue to meet its reserve requirement throughout the five-year forecast model.
2020 2021 2022 2023 2024 2025 2026 2027
Beginning Fund Balance 21,168,452 26,583,187 37,690,536 36,215,143 37,995,525 45,231,458 50,745,984 54,145,156 Revenues 45,827,008 55,616,546 49,852,166 51,560,715 52,591,929 53,643,768 54,716,643 55,810,976 Transaction & Use Tax - - - 2,375,000 9,500,000 9,595,000 9,690,950 9,787,860 Expenditures 40,412,273 44,509,197 51,327,559 52,155,333 54,855,997 57,724,241 61,008,422 65,077,949 Surplus/(Deficit) 5,414,735 11,107,349 (1,475,393) 1,780,382 7,235,932 5,514,526 3,399,171 520,887 Total Fund Balance 26,583,187 37,690,536 36,215,143 37,995,525 45,231,458 50,745,984 54,145,156 54,666,043 Unassigned Fund Balance 7,128,758 8,776,561 8,601,168 9,046,264 10,855,247 12,233,879 13,083,671 13,213,893 Committed for Litigation 1,300,000 - - - - - - Committed for Pension 13,314,508 19,820,872 19,820,872 20,711,063 24,329,029 27,086,292 28,785,878 29,046,322 Committed for OPEB 6,139,921 7,793,103 7,793,103 8,238,199 10,047,182 11,425,813 12,275,606 12,405,828 % Reserve 20% 17% 17% 20% 21% 21% 20%
AS OF JUNE 30
Transactions (Sales) and Use Tax
State law imposes a “cap” on the amount of sales tax the County and a city within that County may levy together. California Revenue and Taxation Code § 7251.1 states that “the combined rate of all taxes imp osed in accordance with this part in any county may not exceed 2 percent.” San Bernardino County Transportation Authority has already used 0.50% of the “cap” and could propose its own additional sales tax measures in a future election, further reducing th e amount available specifically to the City of Colton. If the County or other local districts or agencies pass local sales tax measures and meet the cap, it would leave Colton voters no opportunity to implement a local sales tax measure to support local C ity services. Rather, sales taxes on sales 1 Packet Pg. 8
Staff Report to the Mayor and City Council
Local Ballot Initiative - Transactions & Use Tax
May 4, 2022
of goods within the City of Colton would become part of the County funding pool, only a portion of which would be returned to the City to support its programs. With a City -approved sales tax measure, all tax dol lars generated in Colton will remain in Colton to benefit our community directly. An additional benefit of a sales tax in the City is that visitors would share in the cost of providing services to the community.
Pursuant to the heightened revenue con straints now facing all local governments, it is Staff’s recommendation that the City Council take action to adopt a resolution to place a general sales tax measure on the ballot for the November 8, 2022 General Election. The ballot language asks voters to consider whether they want to preserve the general City services by voting in favor of a one-cent sales tax. Placing the initiative on the ballot ensures the City’s voters are afforded the opportunity to decide the level of service the City provides.
“To maintain funding for police patrols, to address homelessness, gang, drug and crime prevention, fire protection, paramedics, 911 emergency response, to maintain senior and youth services, library services, parks, sidewalks, roads, to clean and maintain public areas, and for general government use; shall a measure establishing a one -cent sales tax providing approximately $9,500,000 annually until ended by voters, requiring independent audits and guaranteeing all funds are controlled locally be adopted?”
YES
NO
Tax Measure Process
The City Council does not have the authority to establish or raise taxes, only to put a measure on the ballot for voter consideration. In order to place a tax measure on the November 8, 202 2 ballot, the City Council must approve the submissi on of the measure to the voters by a 2/3 vote of the City Council (at least five members). Resolution R -31-22 also includes the specific language for the ballot question that will be presented to voters as r equired by the Elections Code. If passed by the City Council and the electorate, the tax would be effective no sooner than the first day of the first calendar quarter, commencing more than 110 days after the adoption of the ordinance by the voters. Therefore, the tax would be effective no sooner than April 1, 2023.
FISCAL IMPACTS
If approved by voters in November 2022, a one -cent sales tax would take effect on nearly all taxable transactions in the City as of April 1, 202 3. While a precise estimate of the revenue generation cannot be made, the City’s sales tax consultant estimates that a one -cent sales tax would generate approximately $9,500,000 annually. These funds would be locally generated and therefore be safe from seizure by the State. In addition, they would enable the City to invest in services and infrastructure that the community values.
1 Packet Pg. 9
Staff Report to the Mayor and City Council
Local Ballot Initiative - Transactions & Use Tax
May 4, 2022
Total election costs for the ballot measure are currently estimated at approximately $ 50,000, which will be included accordingly in the FY2022 -23 budget. In addition, under the Revenue and Taxation Code section 7272, the California Department of Tax and Fee Administration (CDTFA) will assess the City for preparatory charges to administer the new local sales tax based on actual costs. The statutory maximum amount of these costs shall not exceed $175,000.
ALTERNATIVES
1. Prioritize essential City services in preparation for service cuts
2. Provide alternative direction
ATTACHMENT
1. Resolution R-31-22
2. Resolution R-32-22
3. Resolution R-33-22
1 Packet Pg. 10
RESOLUTION NO. R-31-22
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
COLTON, CALIFORNIA CALLING FOR THE PLACEMENT OF A
GENERAL TAX MEASURE ON THE BALLOT FOR THE
NOVEMBER 8, 2022 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 CENT (1¢)
WHEREAS, the City Council of the City of Colton (“City”) is authorized to levy a Transactions and Use Tax (“sales tax”) 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 XIII C, 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 8, 2022 General Municipal Election a measure enacting a general sales tax at a rate of one cent (1¢) on the sale and/or use of all tangible personal property sold at retail in the City until it is ended by voters, as more specifically set forth in the attached proposed ordinance adding Chapter 3.30 to Title 3 of the City’s Municipal Code; and
WHEREAS, the one cent (1¢) sales tax is a general tax, the revenue of which will be placed in the City’s general fund and will be used to pay for important general City services; and
WHEREAS, on November 6, 1996, the voters of the State of California approved Proposition 218, an amendment to the State Constitution which 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 XIII C, § 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 are to be elected is November 8, 2022; and
WHEREAS, pursuant to Government Code section 53724 (“Proposition 62”) and 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 8, 2022 ballot; and
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Attachment: Resolution R-31-22 (3543 : Local Ballot Initiative - Transactions & Use Tax)
WHEREAS, the ordinance to be considered by the qualified voters and the terms of approval, collection and use of the general sales tax 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, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF COLTON:
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, Government Code section 53724, Revenue and Taxation Code section 7285.9 and any other applicable requirements of the laws of the Sta te 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 8, 2022.
SECTION 3 . T he City Council, pursuant to California Elections Code section 9222, hereby orders that 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 su bmitted to the qualified voters at the General Municipal Election to be held on Tuesday, November 8, 2022 , in addition to any other matters required by law, there shall be printed substantially the following ballot question:
“To maintain funding for polic e patrols, to address homelessness, gang, drug and crime prevention, fire protection, paramedics, 911 emergency response, to maintain senior and youth services, library services, parks, sidewalks, roads, to clean and maintain public areas, and for general government use; shall a measure establishing a one -cent sales tax providing approximately $ 9,500,000 annually until ended by voters, requiring independent audits and guaranteeing all funds are controlled locally be adopted?” YES
NO
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
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Attachment: Resolution R-31-22 (3543 : Local Ballot Initiative - Transactions & Use Tax) 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 petitio n signed by the requisite number of voters o r 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 tha n 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 (909) 370-5001 and a copy will be mailed at no cost to you.”
SECTION 6. Notice of the election is hereby given and 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 8, 2022, file with the Board of Supervisors and the County Clerk – Registrar of Voters of the County of San Bernardino, 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 Co uncil 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).
SECTION 11. Severability. The provisions of this Resolution are severable and if any provision of this Resolution is held invalid, that provision shall b e severed from the Resolution and the remainder of this Resolution shall continue in full force and effect, and not be affected by such invalidity.
SECTION 12. This Resolution shall become effective upon its adoption.
SECTION 13. The City Clerk shall certify to the adoption of this Resolution.
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Attachment: Resolution R-31-22 (3543 : Local Ballot Initiative - Transactions & Use Tax) PASSED AND ADOPTED by the City Council of the City of Colton this 3rd day of May, 2022, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
________________________
FRANK NAVARRO
MAYOR
ATTEST:
_________________________
CAROLINA PADILLA
CITY CLERK
APPROVED AS TO FORM:
_______________________________
CARLOS CAMPOS
CITY ATTORNEY
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Attachment: Resolution R-31-22 (3543 : Local Ballot Initiative - Transactions & Use Tax)
Exhibit “A”
Transactions and Use Tax Ordinance
[attached behind this page]
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Attachment: Resolution R-31-22 (3543 : Local Ballot Initiative - Transactions & Use Tax)
ORDINANCE NO. O-08-22
AN ORDINANCE OF THE PEOPLE OF THE CITY OF COLTON, CALIFORNIA, ADDING CHAPTER 3.30 TO TITLE 3 OF THE COLTON MUNICIPAL CODE TO ENACT A ONE-CENT (1¢) 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 Colton (“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 desire to levy a Transactions and Use Tax for general purposes until repealed to fund important general City services, at a rate of one cent (1¢); and
WHEREAS, if approved by the City Council and Colton voters, the Transactions and Use Tax Ordinance will be incorporated into Chapter 3.30 of Title 3 of the Colton Municipal Code.
NOW, THEREFORE, THE PEOPLE OF THE CITY OF COLTON DO
HEREBY ORDAIN AS FOLLOWS:
Section 1. Title and Text. This Ordinance shall be known as the Colton Transactions and Use Tax Ordinance, the full text of w hich is set forth in Attachment “1”, attached hereto and incorporated herein by reference.
Section 2. Approval by the City Council. Pursuant to California Government Code section 53724 and Revenue and Taxat ion 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 May 3, 2022.
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 Colton voting at the General Municipal Election of November 8, 2022 . It shall be deemed adopted when the City Cou ncil 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.
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Attachment: Resolution R-31-22 (3543 : Local Ballot Initiative - Transactions & Use Tax)
I hereby certify that the Colton Transactions and Use Tax Ordinance was PASSED, APPROVED, AND ADOPTED by the People of the City of Colton on the 8th day of November, 2022.
CITY OF COLTON
FRANK NAVARRO, MAYOR
ATTEST:
_________________________________
CAROLINA PADILLA
CITY CLERK
APPROVED AS TO FORM:
_______________________________
CARLOS CAMPOS
CITY ATTORNEY
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Attachment: Resolution R-31-22 (3543 : Local Ballot Initiative - Transactions & Use Tax)
Chapter 3.30 - Transactions and Use Tax
Sections:
3.30.010 - Purpose.
3.30.020 - Contract With State.
3.30.030 - Transactions Tax Rate.
3.30.040 - Place of Sale.
3.30.050 - Use Tax Rate.
3.30.060 - Adoption of Provisions of State Law.
3.30.070 - Limitations on Adoption of State Law and Collection of Use Taxes.
3.30.080 - Permit Not Required.
3.30.090 - Exemptions and Exclusions.
3.30.100 - Amendments.
3.30.110 - Enjoining Collection Forbidden.
3.30.120 - Duration of Tax
Sections:
3.30.010 - 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 measure vote to 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 i dentical 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 tra nsactions 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 th e least possible deviation from, the existing statutory and administrative procedures followed by the California Department of Tax and Fee Administration in administering and collecting the California State Sales and Use Taxes.
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.
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3.30.020 - 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 Admi nistration 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.
3.30.030- Transactions Tax Rate.
For the pr ivilege 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 per cent ( 1%) 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.
3.30.040 - 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 s hall be determined under rules and regulations to be prescribed and adopted by the California Department of Tax and Fee Administration.
3.30.050 - Use Tax Rate.
An excise tax is hereby imposed on the storage, use or other consumption in the City of tan gible 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 percent (1%) 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.
3.30.060 - Adoption of Provisions of State Law.
Except as otherwise provided in this ordinance and except insofar as they ar e 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.
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3.30.070 - 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 refer red 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 Compensati on 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 whic h 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 District” 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.
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3.30.080 - Permit not Required.
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.
3.30.090 - Exemptions and Exclusions.
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 c ity, 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 undocum ented 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
b. With respect to commercial vehicles, by registration to a place of business out -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.
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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:
1. The gross receipts from the sale of which have been subject to a tran sactions tax under any state-administered transactions and use tax ordinance.
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 parti cipates 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
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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 reimbu rsement 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.
3.30.100 - 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 w ith 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 amendm ent shall operate so as to affect the rate of tax imposed by this ordinance.
3.30.110 - Enjoining Collection Forbidden.
No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court again st 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.
3.30.120 – Duration of Tax.
The tax imposed by this chapter shall continue until this ordinance is repealed.
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28 RESOLUTION NO. R-32-22
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
COLTON, CALIFORNIA, REQUESTING THE BOARD OF
SUPERVISORS OF THE COUNTY OF SAN BERNARDINO TO
CONSOLIDATE A GENERAL MUNICIPAL ELECTION TO BE HELD
ON NOVEMBER 8, 2022 WITH THE STATEWIDE GENERAL
ELECTION TO BE HELD ON THAT DATE PURSUANT TO §10403 OF
THE ELECTIONS CODE
WHEREAS, on May 3, 2022, the City Council of the City of Colton called a General Municipal Election to be held on November 8, 20 22; for the purpose of submitting to the voters the question relating to establishing a one-cent general transaction and use/sales tax on retail sales occurring within the City of Colton (the “Measure”); and
WHEREAS, it is desirable that the General Municipal Election be consolidated with the Statew ide General Election to be held on the same date and that within the City; the precincts, polling places , vote centers and election officers of the two elections be the same, and that the election department of the County of San Bernardino canvass the retu rns of the General Municipal Election and that the election be held in all respects as if there were only one election.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COLTON
DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. Request for Consolidation. Pursuant to the requirements of §10403 of the Elections Code, the Board of Supervisors of the County of San Bernardino is hereby requested to consent and agree to the consolidation of a General Municipal Election with the Statewide General Election on November 8, 2022, for the purpose of submitting to the voters the question relating to the Measure.
Section 2. Measure Language. A measure is to appear on the ballot as follows:
“To maintain funding for police patrols, to address homeless ness, gang, drug and crime prevention, fire protection, paramedics, 911 emergency response, to maintain senior and youth services, library services, parks, sidewalks, roads, to clean and maintain public areas, and for general government use; shall a measur e establishing a one - cent sales tax providing approximately $9,500,000 annually until ended by voters, requiring independent audits and guaranteeing all funds are controlled locally be adopted?”
Yes
No
Section 3. Canvass of Returns. The County el ection department is authorized to canvass the returns of the General Municipal Election. The election shall be held in all
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28 respects as if there were only one election, and only one form of ballot shall be used.
Pursuant to California Elections Code Sections 10403 and 10418, the election will be held and conducted in accordance with the provisions of law regulating the Statewide General Election.
Section 4. Necessary Steps. The Board of Supervisors is requested to issue instructions to the County ele ction department to take any and all steps necessary for the holding of the consolidated election.
Section 5. Costs. The City of Colton recognizes that additional costs will be incurred by the County by reason of this consolidation and agrees to re imburse the County for any costs upon presentation of reasonably detailed invoices.
Section 6. Filing of Resolution. The City Clerk is hereby directed to file a certified copy of this resolution with the Board of Supervisors and the election department of the County of San Bernardino.
Section 7. Certification. The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.
PASSED, APPROVED AND ADOPTED this 3rd day of May, 2022.
_________________________________
Frank Navarro, Mayor
ATTEST:
______________________________
Carolina R. Padilla, City Clerk
APPROVED AS TO FORM:
_______________________________
Carlos Campos, City Attorney
Best Best & Krieger
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28 RESOLUTION NO. R-33-22
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
COLTON, 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 AT THE NOVEMBER 8, 2022
GENERAL MUNICIPAL ELECTION
WHEREAS, a General Municipal Election is to be held in the City of Colton, California on November 8, 2022, at which there will be submitted to the voters the following measure:
“To maintain funding for police patr ols, to address homelessness, gang, drug and crime prevention, fire protection, paramedics, 911 emergency response, to maintain senior and youth services, library services, parks, sidewalks, roads, to clean and maintain public areas, and for general govern ment use; shall a measure establishing a one - cent sales tax providing approximately $9,500,000 annually until ended by voters, requiring independent audits and guaranteeing all funds are controlled locally be adopted?”
Yes
No
NOW, THEREFORE, THE CIT Y COUNCIL OF THE CITY OF COLTON,
CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. Primary Arguments. That the City Council authorizes (i) the City Council or any member(s) of the City Council, (ii) any individual voter eligib le to vote on the above measure, (iii) a bona fide association of such citizens or (iv) any combination of voters and associations, to file a written argument in favor of or against the City measure, accompanied by the printed name(s) and signature(s) of t he author(s) submitting it, in accordance with Article 4, Chapter 3, Division 9 of the Elections Code of the State of California, and to change the argument until and including the date fixed below by the City Clerk, after which no arguments for or against the City measure may be submitted to the City Clerk.
The deadline to submit arguments for or against the City Measure pursuant to this Resolution is declared by the City Clerk to be Thursday, July 21, 2022, at 5:00 p.m. Each argument shall not exceed 300 words and shall be filed with the City Clerk, signed, and include the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers who is the author of the argument.
Section 2. Rebuttal Arguments. Pursuant to Section 9285 of the Elections Code of the State of California, when the City Clerk has selected the primary arguments for and against the City Measure(s) which will be printed and distributed to the voters, the Clerk shall send copies of the primary argument in favor of the Measure(s) to the authors of the primary
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28 argument against, and copies of the primary argument against to the authors of the primary argument in favor. The authors or persons designated by them may prepare and submit rebuttal arguments not exceeding 250 words. The rebuttal arguments shall be filed with the City Clerk not later than Thursday, July 28, 2022 at 5:00 p.m. Rebuttal arguments shall be printed in the same manner as the primary arguments. Each rebuttal argument shall immediately follow the primary argument which it seeks to rebut.
Section 3. Prior Resolutions. That all previous resolutions providing for the fi ling of primary and rebuttal arguments related to City measures are repealed.
Section 4. November 8, 2022 Election. That the provisions of Sections 1 and 2 shall apply only to the election to be held on November 8, 2022, and shall then be repealed.
Section 5. Certification. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original Resolutions.
PASSED, APPROVED AND ADOPTED this 3rd day of May, 2022.
_________________________________
Frank Navarro, Mayor
ATTEST:
_______________________________
Carolina R. Padilla, City Clerk
APPROVED AS TO FORM:
_____________________________
Carlos Campos, City Attorney
Best Best & Krieger
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