REPORT TO THE CITY COUNCIL
DATE: Special Meeting of July 21, 2022
TO: Mayor Bailey and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Patrick Tang, City Attorney
Ben Fay, Special Counsel
SUBJECT: Resolution Calling an Election on November 8, 2022, for Voters to Consider a Ballot Measure to Extend the Existing Utility Users Tax at the Current Rate of 8%, submittal of the Ordinance to the Voters, and Requesting the County to Consolidate this Election with the Statewide General Election.
RECOMMENDED ACTION: Consider adoption of a resolution placing an ordinance before the voters at the November 8, 2022 General Election to amend 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8 of the Hercules Municipal Code to extend the Utility Users Tax at the current rate of 8% until ended by the Voters or repealed by the City Council; requesting that the Contra Costa County Board of Supervisors consent to the consolidation of this election with the statewide General Election to be held on the same date; directing the Registrar of Voters to conduct the election; providing for submittal of ballot arguments and rebuttals, and authorizing the City Attorney to file an impartial analysis.
FISCAL IMPACT OF RECOMMENDATION:
Continuation of the existing Utility Users Tax at the current 8% rate would provide essential funding necessary to continue basic service and staffing levels. If the UUT were allowed to expire without being continued, the loss of approximately $3.6 million a year in revenue would impair the City’s ability to provide minimal levels of service. Budget cuts that may include police and neighborhood patrols, street maintenance, parks, senior services, youth programs, and economic development would bring cause a decline in the quality of life Hercules residents currently enjoy.
BACKGROUND:
The Utility Users Tax will expire on January 1, 2025 unless the City Council approves placing a measure on the ballot and Hercules voters approve by a simple majority the continuation of the existing tax.
DISCUSSION:
At the July 12th Council meeting, after receiving public comment and after Council discussion, the Council voted 3-1 (Vice Mayor Walker-Griffin was absent from the meeting) to approve adoption of a resolution placing an ordinance before the voters at the November 8, 2022 General Election to extend the Utility Users Tax at the current rate of 8%. Pursuant to Hercules Municipal Code Sec. 8-8.408 and consistent with California Government Code Section 53724(b), the decision to place a tax measure on the ballot requires the affirmative vote of 2/3 of the Council. Meeting the 2/3 vote requirement on a five-member council means that four of five council members would have to vote in the affirmative to place the UUT continuation measure on the ballot. With a 3 to 1 vote in favor, the motion to place the measure on the ballot failed to meet the stricter majority vote requirements in the Municipal Code and under state law.
Following the vote on the UUT measure, and during the segment of the Council agenda allowing for the scheduling of future agenda items, the Council voted 4-0 to schedule the matter for further consideration at an upcoming regular meeting, or in the alternative at a special meeting, when all five council members can be available to discuss the issue. It was determined that tonight was the best opportunity to convene a meeting where all five council members could be present.
According to City Clerk Lauren Berges, the last day to submit the matter to the County for inclusion on the November 8th ballot would be August 12th, but staff would need several business days in advance of that date to finalize the required documentation.
Ballot Arguments. The draft UUT materials discussed on the evening of July 12th would authorize the Mayor to prepare and file ballot arguments in favor of the ballot measure, as well as rebuttal arguments.
Since the July 12th meeting, our consultants have clarified that the recommendation for Hercules is to use the prior language contained in previous successful UUT-related ballot measures. Provided with this staff report as Attachment 2 is the ballot argument language from the resolution presented at the July 12th meeting, and the ballot argument language from prior ballot measures that is being recommended by our consultants. Staff concurs with our consultant’s recommendation to utilize the language previously used in prior Hercules measures.
ATTACHMENTS:
UUT Staff Report from July 12, 2022 Regular Council meeting.
Designation for Ballot Arguments- Currently Proposed and Prior Designation. 3 Date Page 1