AGENDA
ITEM
RESOLUTION NO. 2022-75
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES IN
SUPPORT OF MEASURE P, A MEASURE TO BE CONSIDERED BY THE VOTERS
AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 8, 2022, EXTENDING THE TERM OF THE CITY’S TRANSACTIONS AND USE TAX THROUGH 2064, WITH CONTINUED USE OF TAX REVENUE
ANNUAL AUDITS BY AN INDEPENDENT AUDITOR AND COMMUNITY REVIEW BY CITIZENS’ ADVISORY COMMITTEES
WHEREAS, the voters of the City of Gonzales have previously approved two tax measures, Measure K and Measure X, (known collectively as the “Gonzales Quality of Life Temporary Tax Measure”) setting the City’s current Temporary Transactions and Use Tax (TUT), as codified in Chapter 3.29 in the Gonzales City Code, at one percent (1%). The 1% TUT, administered as Measure X but accounted for as two separate funds, Measure K and Measure X, each of which receives .5% of all Measure X tax proceeds and is overseen by a separate oversight committee, has established a sales tax rate in Gonzales at 8.75%, one of the lowest tax rates in Monterey County. With guidance provided by Measure K and Measure X TUT Advisory Committees, TUT revenues in Gonzales have been used for a variety of projects, including but not limited to funding debt service for the Community Pool, award-winning youth services and leadership programs, park improvements (restrooms, tot lot, playground equipment), preliminary Community Center Complex Project costs, grant programs, senior programs, and internet accessibility for all citizens; and 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 (“Community Center”) which will include a public library, a Teen Innovation Center, a fitness studio, stand-alone gymnasium, multi-use conference rooms, consulting and counseling rooms, a commercial kitchen, a 3,500 square foot Community Hall to host fitness and recreation classes, competitive sports events, and public and private functions, and extensive outdoor venues that include an exercise area, amphitheater with stage, and meet-and-greet lounge areas; and
WHEREAS, the Council, Staff and Community generally appear to be of the joint opinion that the Community Center will provide a multitude of recreational, educational and social activities for local and regional residents and will be of significant benefit to the health and the quality of life for City residents of all ages; and WHEREAS, estimated costs for the Community Center are $34.8 million for the base project, and an additional $8 million for a standalone gymnasium requested and supported by community members and the Council, for a total cost estimate for the Community Center of $42.8 million dollars; and
WHEREAS, while the City has been and continues to be diligent in seeking and obtaining funding sources for the Community Center, including significant State and local
grants and the recommended and limited use of a portion of the proceeds from the Measure X TUT revenues, Community Center costs have been adversely impacted by the COVID-19 pandemic and the current war between Russia and Ukraine. As a result of these circumstances, the cost of the Community Center is significantly outpacing available funding sources, thus creating a substantial funding deficit; and
WHEREAS, after considering the above-referenced Community Center funding deficit, as well as the overall Community and Council desire for said Project, the Council asked the City’s electorate to consider adoption of a tax measure establishing a new special one-half percent (.5%) increase to the City’s TUT. Said measure failed to garner the approval of the two-thirds majority necessary for a special tax at an all-mail ballot election on August 30, 2022; and
WHEREAS, in light of the failure to approve the afore-referenced special tax, the Council now believes it is now more important than ever to extend the term of the City’s existing 1% TUT. Revenues generated by the proposed extension, currently estimated to generate $1,500,000 annually, would provide the City with greater financial flexibility to not only maintain essential governmental services and Core Programs on a long-term basis, but to also continue to pursue a number of capital projects and proactive programs, including the Community Center; and
WHEREAS, extension of the City’s existing 1% TUT will provide the City with a significant long-term financial tool needed to address ongoing challenges in maintaining the above-referenced services, programs and projects, particularly in the current climate of financial uncertainty in both the state and nation; and
WHEREAS, after due deliberation, on August 1, 2022, the Gonzales City Council adopted Resolution No. 2022-58, placing a question on the ballot of the consolidated general and municipal election to be held on November 8, 2022, for consideration by the voters of “Measure P- The Gonzales Enhanced Quality of Life Temporary Tax Extension Measure” (“Measure P”), that would amend the Gonzales City Code to extend the term of the City’s 1% TUT by 20 years, from 2044 through 2064, all pursuant to California Constitution Article XIIIC, Section 2, Government Code Section 53724, Elections Code Section 9222, and the Gonzales City Code; and
WHEREAS, as noted above, Measure P, if approved by a simple majority of the voters, would extend the term of the City’s existing 1% Transactions and Use Tax on retail transactions involving personal property by twenty (20) years, until 2064. Tax revenue would be collected by the California Department of Tax and Fee Administration and remitted to the City; the revenues would be audited annually by an independent auditor and a public expenditure report would be issued annually regarding the use of the revenues from the tax; use of the tax revenues would continue to be subject to review and recommendation of the City’s Measure K and Measure X Transaction and Use Tax Advisory Committees; and revenues would continue to be devoted to the City of Gonzales and its residents and could not be taken by the State; and
WHEREAS, the Council sincerely believes that the adoption of Measure P will assist in supporting the City Council’s and community’s desire to provide a variety of services and the much-needed Community Center and is in keeping with the City’s goal of maintaining a safe, clean, family-friendly community.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF GONZALES does hereby resolve, declare, determine and order as follows:
1. The City Council of the City of Gonzales, and each member hereof, does hereby support Measure P- The Gonzales Enhanced Quality of Life Temporary Tax Extension Measure.
2. The City Council urges the citizens of Gonzales to learn the facts concerning the City’s current fiscal condition and the plans and status of the Gonzales Community Center Complex Project in order to make a reasoned and educated decision concerning Measure P.
3. Notwithstanding this resolution of support, the Council is fully aware of the restrictions imposed on the use of City resources to support ballot measures and represents that no public funds have been or will be used to campaign for or against Measure P.
PASSED AND ADOPTED by the City Council of the City of Gonzales at a regular meeting duly held on the 17th day of October, 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