RESOLUTION NO. 2022-31
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES PROPOSING TO ADOPT A SPECIAL TAX INCREASING THE CITY’S
TRANSACTIONS AND USE TAX (SALES TAX) BY ONE-HALF PERCENT (0.5%),
CALLING FOR A SPECIAL MAILED BALLOT ELECTION TO BE HELD ON AUGUST 30, 2022, ORDERING THAT A QUESTION RELATING TO THE LEVY OF A
SPECIAL TAX BE SUBMITTED TO THE QUALIFIED VOTERS AT THE SPECIAL
MAILED BALLOT ELECTION, REQUESTING THAT THE BOARD OF
SUPERVISORS OF MONTEREY COUNTY CONSENT TO THE CONSOLIDATION
OF THE SPECIAL ELECTION WITH ANY OTHER ELECTION CONDUCTED ON
SAID DATE AND REQUESTING ELECTION SERVICES FROM THE MONTEREY
COUNTY ELECTIONS DEPARTMENT
WHEREAS, after several years of planning and extensive public outreach and input, the City of Gonzales is pursuing the construction of a Community Center Complex Project (“Project”) which will include a public library, Teen Innovation Center, a fitness studio, standalone gymnasium, multi-use conference rooms, consulting and counseling rooms, commercial kitchen, a 3,500 square foot Community Hall to host fitness and recreation classes and competitive sports events and public and private functions extensive outdoor venues which include an exercise area, amphitheater with stage, and meet-and-greet lounge areas; and WHEREAS, the Council, Staff and Community are generally of the joint opinion that the Project, as planned, will provide a multitude of recreation, education and social activities for local and regional residents and will be of benefit to the health and the quality of life for City residents of all ages; and
WHEREAS, the total cost estimate for the Project is $42.8 million dollars ($34.8 million dollars for the base project and an additional $8 million for the stand-alone gymnasium), and while the City has been and continues to be diligent in seeking and obtaining funding sources for the Project, including significant State and local grants and use of City Measure X tax funds, the City still faces a significant Project funding deficit; and WHEREAS, the Council has determined that it is in the best interest of the community to seek voter approval of a special transactions and use tax as authorized by Revenue and Taxation Code Section 7285.91, with the revenues initially dedicated exclusively to financing and funding a portion of the cost of the Project, and thereafter, if the Project is fully funded before the expiration of the established term of the tax, to street maintenance and repair.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF GONZALES DOES HEREBY RESOLVE, DECLARE DETERMINE AND ORDER AS FOLLOWS:
Section I. Recitals and Findings
1. All of the foregoing recitals are true and correct and are incorporated herein by reference.
2. The City’s current Temporary Transactions and Use Tax is set at 1%. It is estimated that a onehalf percent (0.5%) increase in the City’s Transaction and Use Tax would generate an additional $750,000 a year. These funds would provide the City with a source of security for financing the outstanding balance of the cost of the Gonzales Community Center Complex Project, with any funds generated after the complete funding of said Project being dedicated to street maintenance and repair. All special transactions and use tax revenues would be kept in a separate account from the revenues generated by the existing general transaction and use tax.
3. The City anticipates that the impact of a one-half percent (0.5%) increase to the City’s Transaction and Use Tax will not create an unduly heavy financial burden on the City’s significant sales tax producing businesses since they are already paying a comparable sales tax in other cities and regions.
Section II. Call For All Mail Ballot Election
Pursuant to California Constitution Article XIIIC, Section 2, the provisions of Government Code Sections 50075-50077.5, and 53720-53730, Elections Code Sections 4100 et seq., including but not limited to Section 4108, and Elections Code Section 12001, and other applicable law, the Council hereby calls for a special all-mail ballot election at which it will submit to the qualified voters of the City a question, that if approved, would adopt a one-half percent (0.5%) special Temporary Transaction and Use Tax, as authorized by Revenue and Taxation Code Section 7285.91, for a term of forty (40) years. When added to the City’s existing Temporary Transactions and Use Tax of one percent (1% ), this would result in a total Transactions and Use Tax in the City of one and one-half percent (1.5%). Pursuant to Elections Code Section 1500, the election would be held on August 30, 2022.
Section III. Proposed Ordinance
The ordinance authorizing the special temporary transactions and use tax to be approved by the voters pursuant to Section II is as set forth in Exhibit A hereto. The City Council hereby approves the ordinance, the form thereof, and its submission to the voters of the City at a special all-mail ballot election on August 11, 2022, consolidated with any other election held on this date, subject to approval of this resolution by a two-thirds (2/3) vote of the City Council and a two-thirds (2/3) vote of the qualified voters of the City. The ordinance specifies that a special Temporary Transactions and Use Tax of one-half percent (0.5%) shall be imposed on the gross receipts of any retailer from the sale of all tangible personal property sold at retail in the City and on the sales price of tangible personal property stored, used or otherwise consumed in the City.
The term of the special tax shall be forty (40) years. The California Department of Tax and Fee Administration shall collect the tax from retailers subject to the tax and remit the same to the City. Pursuant to Article XIIB of the California Constitution, the appropriations limit of the City shall be increased in the amount equal to the proceeds of the special tax (if approved by the voters).
Section IV. Ballot Language
The official ballot to be used at said all-mail ballot election shall conform to the laws of the state of California with relation thereto. The proposed Temporary Transactions and Use Tax shall be submitted to the voters at an all-mail ballot election to be held on August 30, 2022, in the form of the following question:
“Gonzales Community Center Temporary Tax Measure. Shall the measure establishing a Special Temporary Gonzales Transactions and Use Tax at the rate of one-half percent (0.5%) for a term of 40 years through 2062, with all funds initially used exclusively for financing and funding the Gonzales Community Center Complex Project, and thereafter, upon full funding of the Complex, exclusively for street maintenance and repair, be adopted? The special tax would generate an estimated $750,000.00 annually.”
The words “Yes” and “No” shall be printed on the ballots so the qualified electors may express their choice.
The Monterey County Elections Department is requested to print the full measure text, attached hereto as Exhibit A, exactly as filed in the voter information guide for the August 30, 2022 all mail election, as applicable.
Section V. Impartial Analysis and Submission of Ballot Arguments To the extent required or allowed by law, the City Attorney is hereby authorized to prepare an impartial analysis of the proposed measure in compliance with applicable law. Written arguments in favor or opposed to the proposed tax measure, and rebuttals thereto, will also be accepted in accordance with applicable laws and regulations.
Section VI. CEQA
The City finds that no analysis of the proposed special temporary transactions and use tax is required pursuant to the California Environmental Quality Act (“CEQA”) because: 1) with respect to revenues used for the Community Center Complex Project, the Project has been determined to be exempt from CEQA analysis pursuant to CEQA Guidelines section 15332- Class 32- in-fill development.; and, 2) with respect to revenues used for general street maintenance and repair, the City Council finds that the proposed tax does not constitute a project under CEQA Guidelines 15378, subdivisions (2) and (4) of subdivision (b), due to the fact that the proposed tax merely creates a government funding mechanism that does not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment, and therefore, review under CEQA is not required.
Section VII. Request to Consolidate and Election Services and Canvassing
Pursuant to Elections Code Section 10400, the City requests and authorizes the Registrar of Voters of Monterey County to consolidate this election with any other election conducted on the same date established herein, August 30, 2022, for the ease and convenience of the registered voters and to take advantage of any costs savings possible by such consolidation. The election shall be held and conducted, the votes canvassed and the returns made, and the results ascertained and determined as provided by all laws applicable to an all-mail ballot election on a special tax measure. Pursuant to Elections Code Section 10002, the City hereby requests the Board of Supervisors of the County of Monterey to permit the Monterey County Elections Department, at City expense, to provide all necessary election services and to canvass and report the results of the election and agrees to pay the costs of all such services incurred by the County in providing such assistance upon presentation of a bill to the City. The City Manager is hereby authorized and directed to enter into or modify any written agreement for such services with the County of Monterey Elections Department, including but not limited to the County’s standard “Service Agreement for the Provisions of Election Services.” The City Clerk or Acting City Clerk is authorized and instructed to provide whatever cooperation is necessary to facilitate the proposed all-mail ballot election.
Section VIII. Publication of Measure
In accordance with Section 12111 of the Elections Code and Section 6061 of the Government Code, the City Clerk is hereby authorized and directed to cause notice of the measure to be published once in the Salinas Valley Tribune, a weekly newspaper of general circulation, circulated in the City of Gonzales and hereby designated for that purpose by the Council of Gonzales.
Section IX. Effective Date
This Resolution shall become effective immediately upon its passage and forthwith entered upon the minutes of this Council and kept and maintained by the City Clerk of the City of Gonzales.
Section X. Transmission of Resolution
The City Clerk is hereby authorized and directed to certify to the due adoption of this Resolution and to transmit a copy hereof so certified to the Board of Supervisors and the Registrar of Voters of Monterey County.
Section XI. Corrections
The City Clerk and City Attorney are authorized to make any typographical, clerical, nonsubstantive corrections to this resolution and to the ballot measure as may be deemed necessary by the Monterey County Clerk/Registrar of Voters.
PASSED AND ADOPTED by the City Council of the City of Gonzales at a special meeting duly held on the 31st day of May, 2022 by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
____________________________
Jose L. Rios, The Honorable Mayor
ATTEST:
_________________________________
Mary Villegas, Deputy City Clerk