ORDINANCE NO. ____
AN ORDINANCE OF THE CITY OF HERCULES AMENDING TITLE 8, CHAPTER 8 OF THE HERCULES MUNICIPAL CODE TO EXTEND THE UTILITY USERS TAX AT THE CURRENT RATE OF 8% UNTIL ENDED BY THE VOTERS OR REPEALED BY THE CITY COUNCIL THE PEOPLE OF THE CITY OF HERCULES DO ORDAIN AS FOLLOWS:
SECTION 1. Amendments to Municipal Code (deletions in strikethrough; additions in italics).
Sections 8-8.318, 8-8.401, 8-8.406, 8-8.407, 8-8.408, and 8-8.409 of the Hercules Municipal Code are hereby amended to read as follows:
Sec. 8-8.318 Sunset Termination of Tax.
This Chapter shall automatically sunset, and its provisions shall become ineffective, on January 1, 2025. (Ord. 475 § 1 (part), 2013: Ord. 395 § 1 (part), 2004. Formerly 8-8.320) The levy of taxes as provided in this Chapter shall remain in full force and effect until ended by the voters or repealed by the City Council.
Sec. 8-8.401 Purpose.
(a) The purpose of this Article is to continue the increase of two percent (2%) to the existing six percent (6%) utility users tax rate approved by the voters at the June 4, 2013, special election, for a total utility users tax rate of eight percent (8%), which eight percent (8%) rate shall be applicable from the effective date of this Article to all categories of utility services identified in this Chapter, including but not limited to telephone, electricity, gas, water, cable and video, until ended by the voters or repealed by the City Council. such time as the Finance Commission determines that the City has met its goal of achieving long term fiscal stability with adequate reserves, and the City Council approves by a two-thirds (2/3) vote to terminate the two percent (2%) increase pursuant to Section 8-8.409, after which the rate shall revert to six percent (6%), with said six percent (6%) rate to sunset on the date indicated in Section 8-8.318. (b) The continuation of the 2013 voter approved tax increase is pursuant to voter approval at the November 3, 2015, special election. (Ord. 489 § 1 (part), 2015: Ord. 481 § 2 (part), 2014: Ord. 475 § 1 (part), 2013) Sec. 8-8.406 Duties.
(a) The Commission is charged with the following responsibilities: (1) reviewing all appropriations of revenues received by the City from the sales and use taxes imposed pursuant to the provisions of this Chapter to determine whether such funds are to be used as provided for in this Chapter and the voter approved measure that adopted this Chapter; (2) reviewing the audit prepared by an independent auditor retained by the City to perform the City’s Comprehensive Annual Financial Report to determine whether such funds have been spent as provided for in this Chapter and the voter approved measure; and (3) prepare and issue the Commission’s own annual report setting forth their findings in regard to the foregoing; and (4) determining when the City has met its goal of achieving long term financial stability with adequate financial reserves, and issuing a report to Council detailing such findings, pursuant to Section 8-8.409. (b) In order to preserve the integrity and independence of the oversight process, Commission members will not play a formal role in contracting, project management, construction, or any other aspect of the funding. In addition, the Commission is not charged with decision-making on spending priorities, construction schedules, project details, funding source decisions (e.g., leveraged funds, developer fees, etc.), financing plans, tax rate assumptions, or selection of consultants, design, and construction firms. (Ord. 489 § 1 (part), 2015: Ord. 481 § 2 (part), 2014: Ord. 475 § 1 (part), 2013) Sec. 8-8.407 Effective Date.
This Article relates to the continuation of an temporary increase of two percent (2%) to the City’s existing utility users tax rate, and is a valid and binding City tax upon passage and approval by a majority of the electorate of the City of Hercules. This Article shall be considered adopted upon the date that the vote is declared by the legislative body and shall go into effect ten (10) days after that date. (Ord. 489 § 1 (part), 2015: Ord. 481 § 2 (part), 2014: Ord. 475 § 1 (part), 2013) Sec. 8-8.408 Amendments.
The City Council of the City of Hercules may make amendments to this Chapter without approval of the voters of the City if the amendments do not affect the rate of tax imposed. The City Council may amend the rate of tax imposed herein (increase or decrease) or extend the term of the tax, only upon two-thirds (2/3) vote of the Council and with approval of the voters of the City under applicable codes. (Ord. 489 § 1 (part), 2015: Ord. 481 § 2 (part), 2014: Ord. 475 § 1 (part), 2013) Sec. 8-8.409 Procedure for Termination of Two Percent (2%) Increase.
This Article providing for an increase of two percent (2%) to the existing utility users tax rate shall remain in effect until ended by the voters or repealed by the City Council. January 1, 2025, pursuant to Section 8-8.318, or until such time as the Finance Commission, created pursuant to Title 2, Chapter 2, Article 6, determines that the City has met its goal of achieving long term financial stability with adequate financial reserves. Upon finding by a two-thirds (2/3) vote of the City Council that the Finance Commission has adequately determined that the City has achieved long term financial stability with adequate financial reserves, the City Council shall enact legislation to reduce the UUT rate to six percent (6%), effective no later than one (1) year from date of passage. Notwithstanding this Section, the Council retains the independent authority to repeal the utility users tax pursuant to Section 8-8.317.
SECTION 2. Effective Date. This Ordinance, if approved by a majority of the voters of the City of Hercules at the General Municipal Election of November 8, 2022, shall become effective ten (10) days after the declaration of the results of that election by the City Council of the City of Hercules, pursuant to Elections Code section 9217.
SECTION 3. Publication. Within fifteen (15) days after the passage of this Ordinance, the City Clerk shall cause this Ordinance or a summary thereof to be published or to be posted in at least three (3) public places in the City of Hercules in accordance with the requirements of California Government Code section 36933.
SECTION 4. Codification. Upon adoption of this Ordinance pursuant to the voter approval referenced above, the City Clerk, in consultation with the City Attorney, is hereby authorized and directed to codify this Ordinance in the Hercules Municipal Code.
SECTION 5. City Council Amendments. The City Council of the City of Hercules may amend this Ordinance in any manner that does not increase the amount of tax any person would pay under this Chapter.
SECTION 6. Severability. If any section, subsection, sentence, clause, or phrase of this Chapter is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Chapter. The City Council hereby declares that it would have passed the Ordinance codified in this Chapter, and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of this Chapter would be subsequently declared invalid or unconstitutional.
SECTION 7. Execution. The Mayor is hereby authorized to attest to the adoption of the Ordinance by the voters of the City by signing where indicated below.
It is hereby certified that the foregoing Ordinance No. ___ was APPROVED by the following vote of the People of the City of Hercules on November 8, 2022:
YES:
NO:
It is hereby further certified that the foregoing Ordinance No. ___ was adopted by Declaration of the November 8, 2022 election results by the City Council of the City of Hercules on ___________, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
APPROVED: ATTESTED:
__________________ __________________
Dion Bailey, Mayor Lauren Berges, City Clerk