Report to Mayor and Councilmembers
Date: July 9, 2024
Page: 3 of 10
Proposition 13 Capped the La Mesa Property Tax Rate in 1978 As a full service, general law city, La Mesa provides police, fire, public works and park and recreation services. The adoption of Proposition 13 in 1978 froze the property tax rates of all local jurisdictions (including La Mesa) in the State of California. The City of La Mesa has, for most of its history, been fiscally conservative. The City has very few development impact fees and has been primarily built out since the 1960s. As a result of these factors, the property tax rate for the City of La Mesa is comparatively low in relation to other municipalities. Therefore, the City is financially structurally more dependent on revenue sources other than property taxes such as sales taxes.
While property tax revenue continues to increase annually, La Mesa has been at a structural financial disadvantage when compared to other municipalities in terms of property tax revenue because of the low La Mesa property tax rate frozen in 1978. La Mesa currently has the 4th lowest property tax rate (10.99%) in San Diego County. Only El Cajon, Escondido and San Marcos are lower. The average property tax rate of all jurisdictions in San Diego County is 16.71%. If La Mesa’s property tax rate was at the County average, it would result in approximately $5,000,000 of additional revenue each year.
Report to Mayor and Councilmembers
Date: July 9, 2024
Page: 4 of 10
Percentage of Pre-Proposition 13 Homes
La Mesa has the 4th highest percentage of Pre-Proposition 13 single family homes in the County. A Pre-Proposition 13 home is one that has not been sold since 1978 when Proposition 13 was approved. Before 1978, there was no cap on how much a home’s assessed value and corresponding property taxes could increase each year. Local jurisdictions could reassess home values and property taxes as they saw fit to increase revenues to match their expenditures.
Once Proposition 13 was approved, local property tax rates were locked in using the rates from the 3 previous years and so were home assessed values. As mentioned above, La Mesa has the 4th lowest property tax rate (10.99%) in San Diego County. Prop 13 placed a cap of 2% a year on the maximum increase in a home’s assessed value that could be used for property tax purposes. While Prop 13 has been a benefit for long term homeownership in California, it has also restricted the amount of property tax revenue available to local jurisdictions. Property values in San Diego have increased significantly more than 2% per year or 46% total since 1978.
Proposition 13 compelled local jurisdictions to turn to other sources of revenue than property taxes to balance their budgets, notably sales taxes. Jurisdictions began to compete against each other to lure car dealerships and big box retail stores and their related high sales tax revenues.
La Mesa until recently had one of the older age group populations in San Diego County.
More younger families have moved to La Mesa lately to take advantage of its small town feel, good school, and convenient central location. Its residents have also held on to their homes longer than in other communities and as a result the property tax revenue has been suppressed from the effects of Prop 13. Below is a comparison of the Pre-Prop 13 homes in San Diego by community.
Report to Mayor and Councilmembers
Date: July 9, 2024
Page: 5 of 10
As mentioned above, La Mesa has the 4th highest percentage of Pre Proposition 13 homes.
Since 1997 the average annual assessed home value has gone up 145% or 5.58% a year. But, because of Proposition 13 the most the assessed value of a home that has not been sold since 1997 could have increased is 52% a difference of 93% from the average assessed value.
This high percentage (14.5%) of Pre-Prop 13 homes has resulted in the collection of comparatively less property tax in the City of La Mesa contributing to revenue challenges.
Report to Mayor and Councilmembers
Date: July 9, 2024
Page: 6 of 10
Efficient Staffing Levels
La Mesa has historically operated on a “lean staffing model”. Most services are provided by in-house staff with overflow and typically non-recurring service demand peaks provided by outside contractors. The fiscal year 2023 budget includes 268 full time employees for 60,418 residents resulting in an employee to 1000 resident ratio of 4.45.
To demonstrate how lean the staffing is in La Mesa, it is helpful to look at similar information in other San Diego jurisdictions that are full-service cities that have their own police departments. Here is a comparison from 2023:
Resident Satisfaction Survey
In March 2024 the City of La Mesa contracted with True North Research to conduct a statistically valid survey. The primary purpose of this study was to produce an unbiased, statistically reliable evaluation of voters' interest in renewing the existing Prop L local sales tax (at the current rate) to continue funding for essential city services. Additionally, should the City decide to move forward with a renewal measure in 2024, the survey can guide how best to structure the measure, so it is consistent with the community's priorities and expressed needs.
Specifically, the study was designed to:
• Gauge current, baseline support for renewing a local sales tax to continue funding general municipal services;
• Identify the types of services voters are most interested in funding, should the measure pass;
• Expose voters to arguments in favor of, and against, the proposed tax measure to assess how information affects support for the measure; and
Report to Mayor and Councilmembers
Date: July 9, 2024
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• Estimate support for the measure once voters are presented with the types of information they will likely be exposed to during an election cycle.
The survey found that La Mesa voters value the services they receive from the City and are keenly interested in keeping their community safe, clean, and well-maintained.
Collectively, these sentiments translate into strong natural support (73%) for renewing the Prop L sales tax at the current three-quarter cent rate to fund city services in the City of La Mesa, including fire protection, paramedic, crime prevention, and 911 emergency response, addressing homelessness, and keeping streets, sidewalks, infrastructure, parks, and community facilities safe, clean, and well-maintained. The results of this survey indicate that a Prop L renewal is feasible for the November 2024 ballot provided that it is kept affordable, focuses on projects and improvements that voters identify as their priorities, and is accompanied by solid community/opinion leader engagement, education, and communication.
Input is currently being collected from La Mesa residents on funding priorities. A mailer was recently sent to all registered voters with information on Prop L and asking for their feedback. An information page has also been created on the City’s website:
https://www.cityoflamesa.us/1839/Keeping-La-Mesa-Safe-and-Clean-Without-I DISCUSSION:
The importance of the revenue received from the passage of Prop L cannot be overstated regarding the financial well being of the City of La Mesa. The general fund reserves at the end of fiscal year 2008 were only $3.5M and the 2009 budget estimated that general fund reserves at the end of the fiscal year would be only $37,160. At that time the City Council recognized the immediate need for additional financial resources and voted to place a ¾ local sales tax on the November 2008 ballot (Proposition L).
The 2009 budget memo to the City Council included a discussion on proposed cuts to the organization that would be required to balance future budgets should additional revenue not be found for La Mesa. A 10% cut of all operational costs was recommended as necessary to balance the budget and included 35 full-time positions: 12 police officers; 4 community services officers; 9 fire fighters; 4 public works employees; 6 other employees; and all temporary lifeguards. The loss of these employees would result in the closure of a fire station and the municipal pool.
Fortunately, Proposition L passed and has been providing the City of La Mesa essential revenue for the past 15 years. Now the time has come to consider the extension of that critical revenue source.
Although the fiscal heath of La Mesa is currently solid, long-term projections still indicate
Report to Mayor and Councilmembers
Date: July 9, 2024
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that the revenue from Prop L will need to continue to maintain financial stability. The $12M that Prop L generates annually is 17% of general fund revenue. The recent increase in revenue from cannabis dispensaries located in La Mesa has begun to stabilize and will flatten or reduce as dispensaries open in other jurisdictions and draw business away from La Mesa. The increase in sales tax revenue that resulted from Pandemic stimulus dollars has also leveled off.
Here is a chart that shows La Mesa’s 10-year financial forecast including the expiration of Prop L in 2029.
Reserves are stable until FY2030 when they begin to decline rapidly following the loss of revenue from Prop L.
Report to Mayor and Councilmembers
Date: July 9, 2024
Page: 9 of 10
Add On Sales Taxes in Other Cities
Of the 18 jurisdictions in San Diego County, currently 9 (or half), have add-on sales taxes ranging from 0.5% to 1.0%. Chula Vista has two 0.5% add-on sales taxes, Del Mar has a
1.0% add-on sales tax, El Cajon has a 0.5% add-on sales tax, Imperial Beach has a 1.0% add-on sales tax, National City has a 1.0% add-on sales tax, Oceanside has a 0.5% addon sales tax, Solana Beach has a 1.0% add-on sales tax, and Vista has a 0.5% add-on sales tax.
The following cities are proposing add on sales taxes for the upcoming November 2024 election: San Diego (1.0%), Encinitas (1.0%), Escondido (0.5%) Lemon Grove (1.0%), San Marcos and Santee (0.5%). If all of these potential tax measures are adopted in November, then 15 of 18 cities in the County would have add on sales taxes.
Independent Citizen Oversight
The Subcommittee recommends that the City of La Mesa establish independent citizens’ oversight for the proposed tax measure. The oversight committee shall review performance targets and conduct a performance audit each year. Committee membership shall be made up of seven members including two representatives from the San Diego County Taxpayers Association.
CONCLUSION:
The cap effectively imposed by Proposition 13 on local property tax revenue made cities pivot to sales tax revenue streams in a struggle to balance their budgets. Cities were compelled to attempt to lure big box stores and car dealerships that generated large amounts of sales tax which created winners and losers and susceptibility to economic down turns. The decline of the big box store and shift to online purchases has had further negative effects on local sales tax revenues. And consumer shift from retail purchases to online services has exacerbated the negative effect on local sales tax.
All of the negative financial factors described above have compelled local jurisdictions to ask their residents to approve local transactions and use tax add-ons in order to increase local revenue to adequately maintain services at levels that residents want and expect.
All of the issues listed above put the City of La Mesa at a significant financial disadvantage resulting in a need to find additional revenue if La Mesa is to continue to provide services to the community at current levels. This is why the voters approved Proposition L in 2008 and the City still needs this revenue to continue in the future in order to maintain the same service levels.
Report to Mayor and Councilmembers
Date: July 9, 2024
Page: 10 of 10
A vote by the City Council to support the attached resolution allows the voters to decide on November 5th if the existing transactions and use tax should be extended for an additional 20 years. It is important to note that the City Council’s vote does not extend the existing transaction and use tax; instead, such action will send the issue of extending it to the voters for their consideration. A four fifths (4/5) vote is necessary for the Council to place the extension on the ballot. Thereafter, the extension would become effective with majority voter approval.
RECOMMENDATION:
Based on the information presented above the Extension of Prop L Subcommittee recommends that the City Council adopt the attached Resolution and Ordinance that would place a measure on the November 5, 2024 ballot to ask the voters of the City of La Mesa to extend the existing ¾ cent local sales tax to continue to fund vital City services for 20 years, without increasing tax rates.
Respectfully submitted by Extend Prop L Ad Hoc Subcommittee:
Reviewed by: Respectfully submitted by:
____________________ ____________________________
Mark Arapostathis Patricia Dillard
Mayor Councilmember
Attachments: A. Resolution Calling the Election for the Measure B. Resolution Setting Provisions for Rebuttal Arguments C. Resolution Primary Arguments and Impartial Analysis
D. Ordinance Extension of Proposition L
RESOLUTION NO. 2024-___
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA MESA,
CALIFORNIA, ORDERING THE SUBMISSION TO THE QUALIFIED
VOTERS OF THE CITY OF A CERTAIN MEASURE RELATING TO THE
EXTENSION OF THE TRANSACTIONS AND USE TAX (PROPOSITION L) AT THE GENERAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 5, 2024, AS CALLED BY RESOLUTION NO. 2024-______
WHEREAS, since 2008, the City of La Mesa (“City”) has relied on approximately $12,000,000 in annual local funding from a voter-approved sales tax called Proposition L and this funding is now set to expire;
WHEREAS, to keep La Mesa safe, clean, and well-maintained, the City Council believes this funding needs to be renewed at the current rate — without raising tax rates; WHEREAS, if renewed, this funding will continue to protect essential city services such as maintaining over 153 miles of streets and 53 miles of storm drains in the City; WHEREAS, if renewed, this funding will continue to protect essential city services such as keeping 133 acres of parks, recreation areas, and community facilities safe, clean, and well maintained;
WHEREAS, if renewed, this funding will continue to protect essential city services such as repairing aging infrastructure, including storm drains, pipes, sidewalks, and public facilities;
WHEREAS, if renewed, this funding will continue to protect essential city services such as providing police services, including crime prevention and investigations; WHEREAS, if renewed, this funding will continue to protect essential city services such as providing fire protection, paramedic services, and quick responses to 911 emergencies;
WHEREAS, if renewed, beautifying and keeping La Mesa clean by removing graffiti and cleaning up litter, sidewalks, and public areas;
WHEREAS, if local sales tax funding expires, the City will lose approximately $12 million in annual local funding and could need to make significant reductions to public safety services and delay the maintenance of local streets, sidewalks, parks, storm drains, and other infrastructure;
WHEREAS, all funds from the City’s local 3⁄4¢ sales tax stay local to fund local services only and the cost is paid by both residents and visitors who shop in La Mesa, adding 7.5¢ to a $10 purchase or 75¢ to a $100 purchase; WHEREAS, the measure to renew local funding will continue and strengthen fiscal accountability requirements, including an independent oversight committee, public disclosure of all spending, mandatory annual audits, all funds must stay in La Mesa, and no funds can be taken away by the State;
ATTACHMENT A
WHEREAS, essential purchases such as groceries, prescription medicine, and diapers are exempt from sales tax, helping to ensure a sales tax renewal measure is not a burden to those on fixed or limited incomes;
WHEREAS, as approved by City of La Mesa (“City”) voters and authorized by state law, the City imposes a transactions and use tax, commonly known as a local sales tax or “Proposition L,” through Revenue and Taxation Code § 7251 et seq; WHEREAS, the City’s transaction and use tax is currently set to expire in 2028, 2028, depriving the City of an important source of revenues to fund general services to its residents;
WHEREAS, the City Council wishes to extend this transactions and use tax beyond its current expiration date, without raising the tax rate, and amend Chapter 5.28 of the La Mesa Municipal Code accordingly to reflect the same; WHEREAS, the proposed ordinance implementing these amendments to Chapter
5.28 is attached hereto as Exhibit “A” (the “Ordinance”) and is incorporated by this reference;
WHEREAS, because the Ordinance extends a general tax, it must be approved by the majority of the City’s voters (California Constitution Article XIII C §2 (b); Revenue and Taxation Code § 7285.9);
WHEREAS, a General Municipal Election on Tuesday, November 5, 2024, has been called by Resolution No. 2024-____, adopted of July 9, 2024; WHEREAS, through the adoption of Resolution No. 2024-___, the City requested that the County of San Diego Board of Supervisors consolidate La Mesa’s election with the statewide election and permit the Registrar of Voters to perform certain services in conjunction with the City’s election; and
WHEREAS, the City Council also desires to submit to the voters at the election a question relating to the extension of the transactions and use tax (Proposition L) (Election Code § 9222).
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LA MESA, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. That the City Council pursuant to its right and authority, does order submitted to the voters at the General Municipal Election the following question:
Measure Protecting La Mesa Essential Services
Without Increasing Tax Rates. To continue funding
for La Mesa city services, such as keeping parks/
recreation/ community facilities safe, clean and well
maintained; fixing potholes/ maintaining streets; and
providing rapid 9-1-1 emergency response/ fire
protection/ paramedics/ crime prevention, shall the
ordinance renewing City of La Mesa's existing ¾%
sales tax be adopted at the current rate (no increase), continuing $12,000,000 annually for 20 years, with
independent oversight, audits, and all funds locally
controlled?
Yes
No
SECTION 2. That the proposed measure submitted to the voters is attached as Exhibit “A” (the draft ordinance).
SECTION 3. That the City Clerk is directed to file a certified copy of this Resolution with the Board of Supervisors and the Registrar of Voters of the County of San Diego and to issue instructions to the Registrar of Voters to take any and all steps necessary for the holding of the election.
SECTION 4. That the vote requirement for the measure to pass is a majority (50% +1) of the votes cast.
SECTION 5. That in all particulars not recited in this Resolution, the Election shall be held and conducted as provided by law for holding municipal elections.
SECTION 6. That the notice of the time and place of holding the election is 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 6. That the City Clerk shall certify to the passage and adoption of this Resolution by a two-thirds vote of all members of the City Council, as required by Revenue and Taxation Code § 7285.9, and file it with the City’s original resolutions.
PASSED AND ADOPTED at a Regular meeting of the City Council of the City of La Mesa, California, held the 9
th day of July 2024, by the following vote, to wit:
AYES:
NOES:
ABSENT:
CERTIFICATE OF CITY CLERK
I, MEGAN WIEGELMAN, City Clerk of the City of La Mesa, California, do hereby certify the foregoing to be a true and exact copy of Resolution No. 2024- , duly passed and adopted by the City Council of said City on the date and by the vote therein recited.
MEGAN WIEGELMAN, CMC, City Clerk
(SEAL OF CITY)
ORDINANCE NO. 2024-
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA MESA ADDING A NEW SECTION 5.28.135 TO THE MUNICIPAL CODE EXTENDING THE
EXISTING TRANSACTION AND USE TAX (ESTABLISHED PURSUANT TO LA MESA MUNICIPAL CODE CHAPTER 5.28) TO BE ADMINISTERED BY THE
STATE BOARD OF EQUALIZATION
WHEREAS, since 2008, the City of La Mesa (“City”) has relied on approximately $12,000,000 in annual local funding from a voter-approved sales tax called Proposition L and this funding is now set to expire;
WHEREAS, to keep La Mesa safe, clean, and well-maintained, the City Council believes this funding needs to be renewed at the current rate — without raising tax rates; WHEREAS, if renewed, this funding will continue to protect essential city services such as maintaining over 153 miles of streets and 53 miles of storm drains in the City; WHEREAS, if renewed, this funding will continue to protect essential city services such as keeping 133 acres of parks, recreation areas, and community facilities safe, clean, and well maintained;
WHEREAS, if renewed, this funding will continue to protect essential city services such as repairing aging infrastructure, including storm drains, pipes, sidewalks, and public facilities;
WHEREAS, if renewed, this funding will continue to protect essential city services such as providing police services, including crime prevention and investigations; WHEREAS, if renewed, this funding will continue to protect essential city services such as providing fire protection, paramedic services, and quick responses to 911 emergencies;
WHEREAS, beautifying and keeping La Mesa clean by removing graffiti and cleaning up litter, sidewalks, and public areas;
WHEREAS, if local sales tax funding expires, the City will lose approximately $12 million in annual local funding and could need to make significant reductions to public safety services and delay the maintenance of local streets, sidewalks, parks, storm drains, and other infrastructure;
WHEREAS, all funds from the City’s local 3⁄4¢ sales tax stay local to fund local services only and the cost is paid by both residents and visitors who shop in La Mesa, adding 7.5¢ to a $10 purchase or 75¢ to a $100 purchase; WHEREAS, the measure to renew local funding will continue and strengthen fiscal accountability requirements, including an independent oversight committee, public disclosure of all spending, mandatory annual audits, all funds must stay in La Mesa, and no funds can be taken away by the State;
Exhibit A
WHEREAS, essential purchases like groceries, prescription medicine, and diapers are exempt from sales tax, helping to ensure a sales tax renewal measure is not a burden to those on fixed or limited incomes; and
WHEREAS, for all the reasons and authority stated and cited in Resolution No. 2024- _____; and, specifically, pursuant to California Constitution Article XII C Section 2(b) and Elections Code Section 10201, the City Council has determined to submit a measure to the voters to extend the existing transactions and use tax established pursuant to La Mesa Municipal Code Chapter 5.28.
NOW, THEREFORE, BE IT AND IT IS HEREBY ORDAINED by the City Council of the City of La Mesa, California as follows:
SECTION 1: A new section 5.28.135 is hereby added to the La Mesa Municipal Code to read as follows:
“Transaction and Use Tax – Extended.
The Transaction and Use Tax established pursuant to this Chapter shall be extended to April 1, 2049 if a majority of the qualified voters of the City voting on the measure vote to approve the imposition of said extension at an election called for that purpose.” SECTION 2: Effective Date.
This Ordinance relates to extending the levying and collecting of the City transactions and use tax; and, therefore, shall take effect immediately and be published within 15 days after adoption in a paper of general circulation published and circulated within the City of La Mesa.
SECTION 3. Termination Date.
The authority to levy the transaction and use tax imposed by this Ordinance shall expire twenty (20) years following the Effective Date, on April 1, 2049.
INTRODUCED AND ADOPTED at a Regular meeting of the City Council of the City of La Mesa, California, held the 9
th day of July 2024 by the following vote, to wit:
AYES:
NOES:
ABSENT:
APPROVED:
__________________________
MARK ARAPOSTATHIS, Mayor
ATTEST:
___________________________________
MEGAN WIEGELMAN, CMC, City Clerk
CERTIFICATE OF CITY CLERK
I, MEGAN WIEGELMAN, City Clerk of the City of La Mesa, California, do hereby certify the foregoing to be a true and correct copy of Ordinance No. 2024- , duly introduced and adopted by the City Council of said City on the date and by the vote therein recited and that the same has been duly published according to law.
MEGAN WIEGELMAN, CMC, City Clerk
(SEAL OF CITY)
RESOLUTION NO. 2024-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA MESA,
CALIFORNIA, PROVIDING FOR THE FILING OF REBUTTAL ARGUMENTS
FOR CITY MEASURES SUBMITTED AT MUNICIPAL ELECTIONS
________________________________________________________________ WHEREAS, § 9282 of the Elections Code of the State of California provides for written arguments to be filed in favor of or against city measures not to exceed 300 words in length; and
WHEREAS, § 9285 of the Elections Code of the State of California authorizes the City Council, by majority vote, to adopt provisions to provide for the filing of rebuttal arguments for city measures submitted at municipal elections.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LA MESA, CALIFORNIA, DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. That pursuant to § 9285 of the Elections Code of the State of California, when the elections official has selected the arguments for and against the measure (not exceeding 300 words each) which will be printed and distributed to the voters, the elections official shall send a copy of an argument against the measure to the authors of any argument in favor of the measure immediately upon receiving the arguments.
The author or a majority of the authors of an argument relating to a city measure may prepare and submit a rebuttal argument not exceeding 250 words or may authorize in writing any other person or persons to prepare, submit, or sign the rebuttal argument.
A rebuttal argument shall not be signed by more than five authors.
The rebuttal arguments shall be filed with the City Clerk, signed, with 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, not more than 10 days after the final date for filing direct arguments. The rebuttal arguments shall be accompanied by the Form of Statement To Be Filed By Author(s) of Argument.
Rebuttal arguments shall be printed in the same manner as the direct arguments. Each rebuttal argument shall immediately follow the direct argument which it seeks to rebut.
SECTION 2. That all previous resolutions providing for the filing of rebuttal arguments for city measures are repealed.
SECTION 3. That the provisions of Section 1 shall apply at the next ensuing municipal election and at each municipal election after that time.
SECTION 4. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.
ATTACHMENT B
PASSED AND ADOPTED at a Regular meeting of the City Council of the City of La Mesa, California, held the 9
th day of July 2024, by the following vote, to wit:
AYES:
NOES:
ABSENT:
CERTIFICATE OF CITY CLERK
I, MEGAN WIEGELMAN, City Clerk of the City of La Mesa, California, do hereby certify the foregoing to be a true and exact copy of Resolution No. 2024- , duly passed and adopted by the City Council of said City on the date and by the vote therein recited.
MEGAN WIEGELMAN, CMC, City Clerk
(SEAL OF CITY)
RESOLUTION NO. 2024-____
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA MESA,
CALIFORNIA, SETTING PRIORITIES FOR FILING WRITTEN ARGUMENTS
REGARDING A CITY MEASURE AND DIRECTING THE CITY ATTORNEY
TO PREPARE AN IMPARTIAL ANALYSIS
WHEREAS, a General Municipal Election is to be held in the City of La Mesa, California, on November 5, 2024, at which there will be submitted to the voters the following measure:
Measure Protecting La Mesa Essential Services
Without Increasing Tax Rates. To continue funding for
La Mesa city services, such as keeping parks/
recreation/ community facilities safe, clean and well
maintained; fixing potholes/ maintaining streets; and
providing rapid 9-1-1 emergency response/ fire
protection/ paramedics/ crime prevention, shall the
ordinance renewing City of La Mesa's existing ¾%
sales tax be adopted at the current rate (no increase), continuing $12,000,000 annually for 20 years, with
independent oversight, audits, and all funds locally
controlled?
Yes
No
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LA MESA, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. That The Clerk is authorized, instructed, and directed to prepare and publish a notice of the measures. Direct arguments shall be due by August 15, 2024, in the City Clerk’s office during regular business hours, and the 10-day public review period for the direct arguments will be August 16, 2024 to August 25, 2024.
SECTION 2. The City Attorney shall cause the preparation of an impartial analysis of the measure, which shall be due by August 16, 2024, in the City Clerk’s office during regular business hours, and the 10-day public review period for the impartial analysis will be August 17, 2024, to August 26, 2024.
SECTION 3. The City Council hereby acknowledges its authority, pursuant to California Elections Code § 9282, to submit a written argument not to exceed 300 words in length and authorizes the following member(s) of its body as the City Council’s designee to submit arguments in favor of the measure on behalf of the City Council.
Mayor Mark Arapostathis (In Favor)
Councilmember Patricia Dillard (In Favor)
The City Clerk as the City Election Official has fixed the date of August 15, 2024, during normal business hours, for the submittal of primary written argument(s) in favor of or against the measure not exceeding 300 words, accompanied by the printed name(s) and signature(s) of the author(s) submitting it, in accordance with Article 4, Chapter 3, Division 9 of the Elections Code
ATTACHMENT C
of the state of California. The arguments may be changed or withdrawn until and including the date fixed by the City Clerk, after which no arguments for or against the City measure may be submitted to the city Clerk.
The arguments shall be filed with the City Clerk, signed, with the printed names(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. The arguments shall be accompanied by the Form of Statement To Be Filed By Author(s) of Argument and the List of Supports/Opponents Submission Form.
SECTION 4. Pursuant to Resolution No. 2024-____ previously adopted by the City Council allowing rebuttal arguments, rebuttal arguments will be allowed in accordance with Elections Code § 9285. Rebuttal arguments may not exceed 250 words. Rebuttal arguments shall be due by August 20, 2024, in the City Clerk’s office during regular business hours, and the 10-day public review period for the rebuttal arguments shall be August 21, 2024, to August 30, 2024.
SECTION 5. This Resolution shall take effect immediately upon its adoption.
SECTION 6. The City Council hereby authorizes and directs the City Manager, in consultation with the City Attorney, to perform any and all actions necessary and proper to effectuate the purpose of this Resolution.
SECTION 7. That in all particulars not recited in this Resolution, the Election shall be held and conducted as provided by law for holding municipal elections.
SECTION 8. That the City Clerk shall certify to the passage and adoption of this Resolution by a two-thirds vote of all members of the City Council, as required by Revenue and Taxation Code § 7285.9, and file it with the City’s original resolutions.
PASSED AND ADOPTED at a Regular meeting of the City Council of the City of La Mesa, California, held the 9
th day of July 2024, by the following vote, to wit:
AYES:
NOES:
ABSENT:
CERTIFICATE OF CITY CLERK
I, MEGAN WIEGELMAN, City Clerk of the City of La Mesa, California, do hereby certify the foregoing to be a true and exact copy of Resolution No. 2024- , duly passed and adopted by the City Council of said City on the date and by the vote therein recited.
MEGAN WIEGELMAN, CMC, City Clerk
(SEAL OF CITY)
ORDINANCE NO. 2024-
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA MESA ADDING A NEW SECTION 5.28.135 TO THE LA MESA MUNICIPAL CODE EXTENDING
THE EXISTING TRANSACTION AND USE TAX (ESTABLISHED PURSUANT TO LA MESA MUNICIPAL CODE CHAPTER 5.28) TO BE ADMINISTERED BY
THE STATE BOARD OF EQUALIZATION
WHEREAS, since 2008, the City of La Mesa (“City”) has relied on approximately $12,000,000 in annual local funding from a voter-approved sales tax called Proposition L and this funding is now set to expire;
WHEREAS, to keep La Mesa safe, clean, and well-maintained, the City Council believes this funding needs to be renewed at the current rate — without raising tax rates; WHEREAS, if renewed, this funding will continue to protect essential city services such as maintaining over 153 miles of streets and 53 miles of storm drains in the City; WHEREAS, if renewed, this funding will continue to protect essential city services such as keeping 133 acres of parks, recreation areas, and community facilities safe, clean, and well maintained;
WHEREAS, if renewed, this funding will continue to protect essential city services such as repairing aging infrastructure, including storm drains, pipes, sidewalks, and public facilities;
WHEREAS, if renewed, this funding will continue to protect essential city services such as providing police services, including crime prevention and investigations; WHEREAS, if renewed, this funding will continue to protect essential city services such as providing fire protection, paramedic services, and quick responses to 911 emergencies;
WHEREAS, beautifying and keeping La Mesa clean by removing graffiti and cleaning up litter, sidewalks, and public areas;
WHEREAS, if local sales tax funding expires, the City will lose approximately $12 million in annual local funding and could need
to make significant reductions to public safety services and delay the maintenance of local streets, sidewalks, parks, storm drains, and other infrastructure; WHEREAS, all funds from the City’s local 3⁄4¢ sales tax stay local to fund local services only and the cost is paid by both residents and visitors who shop in La Mesa, adding 7.5¢ to a $10 purchase or 75¢ to a $100 purchase; WHEREAS, the measure to renew local funding will continue and strengthen fiscal accountability requirements, including an independent oversight committee, public disclosure of all spending, mandatory annual audits, all funds must stay in La Mesa, and no funds can be taken away by the State;
ATTACHMENT D
WHEREAS, essential purchases like groceries, prescription medicine, and diapers are exempt from sales tax, helping to ensure a sales tax renewal measure is not a burden to those on fixed or limited incomes;
WHEREAS, for all the reasons and authority stated and cited in Resolution No. _______; and, specifically, pursuant to California Constitution Article XII C Section 2(b) and Elections Code Section 10201, the City Council has determined to submit a measure to the voters to extend the existing transactions and use tax established pursuant to La Mesa Municipal Code Chapter 5.28.
NOW, THEREFORE, BE IT AND IT IS HEREBY ORDAINED by the City Council of the City of La Mesa, California as follows:
SECTION 1: A new section 5.28.135 is hereby added to the La Mesa Municipal Code to read as follows:
“Transaction and Use Tax – Extended.
The Transaction and Use Tax established pursuant to this Chapter shall be extended to April 1, 2049 if a majority of the qualified voters of the City voting on the measure vote to approve the imposition of said extension at an election called for that purpose.” SECTION 2: Effective Date.
This Ordinance relates to extending the levying and collecting of the City transactions and use tax; and, therefore, shall take effect immediately and be published within 15 days after adoption in a paper of general circulation published and circulated within the City of La Mesa.
SECTION 3. Termination Date.
The authority to levy the transaction and use tax imposed by this Ordinance shall expire twenty (20) years following the Effective Date, on April 1, 2049.
INTRODUCED AND ADOPTED at a Regular meeting of the City Council of the City of La Mesa, California, held the 9
th day of July 2024 by the following vote, to wit:
AYES:
NOES:
ABSENT:
APPROVED:
__________________________
MARK ARAPOSTATHIS, Mayor
ATTEST:
___________________________________
MEGAN WIEGELMAN, CMC, City Clerk
CERTIFICATE OF CITY CLERK
I, MEGAN WIEGELMAN, City Clerk of the City of La Mesa, California, do hereby certify the foregoing to be a true and correct copy of Ordinance No. 2024- , duly introduced and adopted by the City Council of said City on the date and by the vote therein recited and that the same has been duly published according to law.
MEGAN WIEGELMAN, CMC, City Clerk
(SEAL OF CITY)