Introduction of Ordinance No 247 Increasing Transit Occupancy Tax and Adoption o

POINT ARENA CITY COUNCIL

AGENDA ITEM SUMMARY
AGENDA ITEM: IX B
MEETING DATE: 6/16/2026
TITLE
Introduction of Ordinance No. 247 and Adoption of Election Resolutions Related to a Proposed Increase in the Transient Occupancy Tax

RECOMMENDED ACTION

1. Introduce Ordinance No. 247 amending Chapter 3.30.030 of the Point Arena Municipal Code to increase the City’s Transient Occupancy Tax (TOT) rate from 12% to 14%, subject to voter approval.

2. Adopt Resolution No. 2026-11 calling and giving notice of the November 3, 2026 General Municipal Election and submitting the TOT increase measure to the voters.

3. Adopt Resolution No. 2026-12 requesting consolidation of the City’s General Municipal Election with the Statewide General Election.

4. Adopt Resolution No. 2026-13 setting priorities for filing written arguments regarding the measure and directing the City Attorney to prepare an impartial analysis.

ANALYSIS
The City of Point Arena currently imposes a 12% Transient Occupancy Tax (TOT) on shortterm lodging stays of 30 days or less. The tax is collected by lodging operators and remitted to the City’s General Fund. Visitors also pay a separate 1% county TOT.

At its April 21, 2026 meeting, the City Council discussed options for increasing the City’s TOT rate and directed staff to prepare the necessary documents to place a measure before the voters at the November 3, 2026 General Election. The proposed measure would increase the City's TOT rate from 12% to 14%, effective April 1, 2027, if approved by a majority of voters.

The proposed effective date of April 1, 2027, coincides with the beginning of a new Transient Occupancy Tax reporting quarter, allowing for a clean transition to the new rate and avoiding the need to apply multiple tax rates within a single reporting period.

The proposed TOT increase would be paid by visitors staying in local lodging establishments and would not directly increase taxes on City residents. Revenue generated from the tax would be deposited into the General Fund and may be used for public services, maintenance of public areas, infrastructure, and other municipal purposes. The ballot measure requires majority voter approval pursuant to California law.

To place the measure before voters, the Council must adopt the required election resolutions, including the call for election, consolidation with the statewide election, and procedures for ballot arguments and impartial analysis.

FISCAL IMPACT
The estimated cost of placing the measure on the November 2026 ballot is approximately $3,000. Based on current lodging activity, the proposed increase from 12% to 14% is projected to generate approximately $35,833 in additional annual revenue beginning in Fiscal Year 2027-28.

ATTACHMENTS

1. Ordinance No. 247 – Amendment to Transient Occupancy Tax Rate

2. Resolution No. 2026-11 – Calling Election and Submitting Measure to Voters

3. Resolution No. 2026-12 – Requesting Consolidation with Statewide Election

4. Resolution No. 2026-13 – Priorities for Ballot Arguments and Impartial Analysis

CITY MANAGER SIGNATURE
_________________________________ _____________________________ Molly C. Haviland, City Manager Paul Andersen, City Clerk ORDINANCE NO 247
AN ORDINANCE AMENDING CHAPTER 3.30.030 OF THE POINT ARENA MUNICIPAL CODE TO INCREASE THE CITY’S TRANSIENT OCCUPANCY TAX RATE FROM 12 PERCENT TO 14 PERCENT, SUBJECT TO APPROVAL OF A MAJORITY OF THE ELECTORS VOTING ON THE TAX MEASURE AT THE NOVEMBER 3, 2026 GENERAL

ELECTION
THE PEOPLE OF THE CITY OF POINT ARENA DO ORDAIN, AS FOLLOWS:

SECTION I: AMENDMENT OF CODE.

Chapter 3.03.030 of the Point Arena Municipal Code is hereby repealed and replaced with the following:

3.03.030 Amount of Tax.
(1) Pursuant to the authority of Revenue and Taxation Code Section 7280, there is levied an occupancy tax on the privilege of occupying a room or rooms in any hotel as defined in PAMC 3.30.020(1) unless such occupancy is for a period of more than 30 days.

Effective April 1, 2027, the amount of the tax shall be 14% of the room rent charged by the hotel operator. It is the responsibility of the hotel operator to collect the occupancy tax in full at the time of renting a room or rooms to a transient. It is the further responsibility of the hotel operator to remit the 14% occupancy tax to the city within the time limits set forth in this chapter.
(2). For purposes of this chapter, the phrase “the privilege of occupying a room or rooms in any hotel” shall be applied and interpreted as described in Cal. Revenue and Taxation Code § 7280(b), as amended from time to time.

SECTION II: SEVERABILITY.

If any provision of this ordinance or the application thereof to any person or circumstance is held invalid by a court of competent jurisdiction, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby.

The City Council finds and declares that it would have adopted each and every provision of this ordinance, even if it had not adopted any other provision.

SECTION III: STATUTORY AUTHORITY FOR TAX.

This ordinance is adopted pursuant to Revenue and Taxation Code section 7280.

SECTION IV: ELECTION REQUIRED.

This ordinance shall not become operative unless and until a majority of the electors voting on this ordinance approve the imposition of the tax at the General Election to be held on November 3, 2026.

SECTION V: EFFECTIVE DATE.

This ordinance relates to the levying and collecting of the City transient occupancy tax (“TOT”) and shall take effect only if approved by a majority of the voters voting on the measure at the November 3, 2026 General Election, and if approved, shall become effective April 1, 2027.

PASSED AND ADOPTED The foregoing Ordinance No. 247 was introduced, passed, and adopted at a Regular meeting of the Point Arena City Council on the 16th day of June, 2026, by the following vote:

Ayes:

Noes:

Absent:

Abstain:

WHEREUPON, the Chair declared said Resolution adopted and SO ORDERED. ____________________________________
Barbara Burkey, Mayor
ATTEST:
__________________________________
Paul Andersen, City Clerk
RESOLUTION NO. 2026-11

RESOLUTION OF THE POINT ARENA CITY COUNCIL CALLING AND GIVING NOTICE OF THE HOLDING OF A GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 3, 2026, FOR THE ELECTION OF CITY COUNCILMEMBERS AS REQUIRED BY THE PROVISIONS

OF THE LAWS OF THE STATE OF CALIFORNIA RELATING TO GENERAL LAW CITIES AND

FOR THE SUBMISSION TO THE VOTERS A QUESTION RELATING TO AN INCREASE OF THE TRANSIENT OCCUPANCY TAX RATE FROM 12% TO 14% SUBJECT TO THE APPROVAL OF A

MAJORITY OF THE ELECTORS VOTING
WHEREAS, under the provisions of the laws relating to general law cities in the State of California, a General Municipal Election is called and shall be held on Tuesday, November 3, 2026, for the election of City Councilmembers; and
WHEREAS, the City Council also desires to submit to the voters at the election a question relating to an increase in the Transient Occupancy Tax Rate from 12% to 14% Subject to the Approval of a majority of the electors voting;
WHEREAS, the City, by separate resolution, will be requesting the Mendocino County Board of Supervisors to consolidate the City’s municipal election with the Statewide General Election; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Point Arena does hereby resolve, declare, determine and order as follows:

SECTION 1. Pursuant to the requirements of the laws of the State of California relating to general law cities there is called and ordered to be held in the City of Point Arena, California, on Tuesday, November 3, 2026, a general municipal election for the purpose of electing two (2) members of the City Council for the full term of four (4) years.

SECTION 2. That the City Council, pursuant to its right and authority, does order submitted to the voters at the general municipal election the following question:

Shall Ordinance No. 247 amending Chapter 3.30.030 of the Point Arena Municipal Code to increase the City of Point Arena’s existing Transient Occupancy Tax (a bed tax paid when overnight visitors rent a room) from twelve percent (12%) to fourteen percent (14%) to fund public services and maintain public areas, effective April 1, 2027, which proposed rate increase and amendment is anticipated to raise an additional $35,833 per year in revenue and which will continue until repealed by the City Council or the city voters, be adopted?
YES
NO

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SECTION 3. That the proposed complete text of the measure Ordinance submitted to the voters is attached as Exhibit A.

SECTION 4. That the vote requirement for the measure to pass is a majority (50% +1) of the votes cast.

SECTION 5. That the ballots to be used at the election shall be in form and content as required by law.

SECTION 6. The City Clerk is authorized, instructed and directed to:

A. Furnish, distribute and receive all nomination papers; B. Receive Candidate’s Statements pursuant to Election Code §13307; C. Receive Code of Fair Campaign Practices Statements; and D. Receive Disclosure Statements as required by law.

SECTION 7. The County Clerk has been requested to and shall conduct the election pursuant to the appropriate provisions of State law. The City Clerk is authorized, instructed and directed to coordinate with the County of Mendocino Registrar-Recorder/County Clerk to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election.

SECTION 8. The polls for the election shall be open at seven o’clock a.m. on the date of the election and shall remain open continuously from that time until eight o’clock p.m. of the same day when the polls shall be closed, pursuant to Election Code §10242, except as provided in §§ 14212 and 14401 of the Elections Code of the State of California.

SECTION 9. In all particulars not recited in this resolution, the election shall be held and conducted as provided by law for holding municipal elections.

SECTION 10. 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 11. In the event of a tie vote (if any two or more persons receive an equal and the highest number of votes for an office) as certified by the County of Mendocino RegistrarRecorder/County Clerk, the City Council, in accordance with Election Code §15651(a) shall set a date, time and place and summon the candidates who have received the tie votes to appear and will determine the tie by lot.

SECTION 9. The City Clerk shall certify the passage and adoption of this resolution and enter it into the book of original resolutions.

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PASSED AND ADOPTED The foregoing Resolution No. 2026-11 was passed and adopted at a special meeting of the Point Arena City Council on the 16th day of June 2026 by the following vote:

Motion by ______________, Seconded by __________________.

Ayes:

Nayes:

Barbara Burkey
Mayor
ATTEST:

Paul Andersen
City Clerk
RESOLUTION NO. 2026-12

THE LAWS OF THE STATE OF CALIFORNIA RELATING TO GENERAL LAW CITIES AND FOR THE

SUBMISSION TO THE VOTERS A QUESTION RELATING TO AN INCREASE OF THE TRANSIENT OCCUPANCY TAX RATE FROM 12% TO 14% SUBJECT TO THE APPROVAL OF A MAJORITY OF

THE ELECTORS VOTING
WHEREAS, under the provisions of the laws relating to general law cities in the State of California, a General Municipal Election is called and shall be held on Tuesday, November 3, 2026, for the election of City Councilmembers; and
WHEREAS, the City Council also desires to submit to the voters at the election a question relating to an increase in the Transient Occupancy Tax Rate from 12% to 14% Subject to the Approval of a majority of the electors voting;
WHEREAS, the City, by separate resolution, will be requesting the Mendocino County Board of Supervisors to consolidate the City’s municipal election with the Statewide General Election;
NOW, THEREFORE, the City Council of the City of Point Arena does resolve, declare, determine and order as follows:

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SECTION 2. That the City Council, pursuant to its right and authority, does order submitted to the voters at the general municipal election the following question:

SECTION 4. That the vote requirement for the measure to pass is a majority (50% +1) of the votes cast.

SECTION 5. That the ballots to be used at the election shall be in form and content as required by law.

SECTION 6. The City Clerk is authorized, instructed and directed to:

SECTION 8. The polls for the election shall be open at seven o’clock a.m. on the date of

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the election and shall remain open continuously from that time until eight o’clock p.m. of the same day when the polls shall be closed, pursuant to Election Code §10242, except as provided in §§ 14212 and 14401 of the Elections Code of the State of California.

SECTION 9. In all particulars not recited in this resolution, the election shall be held and conducted as provided by law for holding municipal elections.

SECTION 9. The City Clerk shall certify the passage and adoption of this resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED The foregoing Resolution No. 2026-12 was passed and adopted at a special meeting of the Point Arena City Council on the 16th day of June 2026 by the following vote: Motion by ____________, Seconded by ___________.

Ayes:

Nayes:

Barbara Burkey
Mayor
ATTEST:

Paul Andersen
City Clerk
RESOLUTION NO. 2026-13

A RESOLUTION OF THE POINT ARENA CITY COUNCIL SETTING

PRIORITIES FOR FILING WRITTEN ARGUMENTS REGARDING A CITY

MEASURE AND DIRECTING THE CITY ATTORNEY TO PREPARE AN

IMPARTIAL ANALYSIS
WHEREAS, on June 16, 2026, by its Resolution No. 2026-11, this Council called a general municipal election to be held on November 3, 2026 (the “Election”) for the purpose of electing municipal officers and submitting to the voters a ballot question regarding an increase of the transient occupancy tax from 12% to 14%, subject to approval of a majority of the electors voting on the tax measure; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Point arena does hereby resolve, declare, determine and order as follows:

1. The recitals set forth above are true and correct.

2. Pursuant to Section 9222 of the Elections Code, Section 53723 of the Government Code and Section 7280 of the Revenue & Taxation Code, the transient occupancy tax ordinance attached hereto as Exhibit “A” and incorporated herein by reference, (the “Transient Occupancy Tax Ordinance”) shall be submitted to the voters at the Election.

3. The question submitted regarding the Transactions and Use Tax Ordinance shall appear on the ballot as follows:

4. Adoption of this measure requires a majority vote of those voting on the matter. The type of tax, rate of tax, and manner of collection are set forth in the Transient Occupancy Tax Ordinance.

5. The City Clerk is instructed to transmit the Transient Occupancy Tax Ordinance to the City Attorney along with a request that an impartial analysis be prepared pursuant to Elections Code Section 9280.

6. Pursuant to Section 9282 of the Elections Code of the State of California, the City Council, or any member or members of the City Council authorized by the body, or any individual

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voter who is eligible to vote on the measure or bona fide association of citizens, or any combination of voters and associations, may file a written argument, not to exceed 300 words in length, accompanied by the printed name(s) and signature(s) of the person(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, for or against the measure. In the event that more than one argument for or against a measure is timely submitted, the City’s elections official shall give preference and priority first, to arguments submitted by member(s) of the City Council, as authorized by this Resolution, and second, to individual voters, bona fide associations, or a combination thereof, in the order set forth in Section 9287 of the Elections Code.

7. Members of the City Council are authorized to submit a written argument in support of the measures submitted to the voters by this Resolution.

8. The City Council elects to authorize rebuttal arguments pursuant to Elections Code Section 9285. When the City’s elections official has selected the arguments for and against the measure to will be printed and distributed to the voters, the elections official shall send copies of the argument in favor of the measure to the authors of the argument against, and copies of the argument against to the authors of the argument in favor. The author or a majority of the authors of an argument relating to the foregoing city measure may prepare and submit a rebuttal argument not to exceed two hundred and fifty (250) words in length. A rebuttal argument may not be signed by more than five (5) authors.

The rebuttal arguments shall be filed with the City Clerk not more than ten (10) days after the final date for filing direct arguments. Rebuttal arguments shall be printed in the same manner as direct arguments. Each rebuttal argument shall immediately follow the direct argument which it seeks to rebut.

9. The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED The foregoing Resolution No. 2026-13 was passed and adopted at a Regular meeting of the Point Arena City Council on the 16th day of June, 2026 by the following vote. Motion by _______, Seconded by ________.

Ayes:

Noes:

Absent:

Abstain:

Barbara Burkey
Mayor
ATTEST:

Paul Andersen
City Clerk

Point Arena City CouncilJune 16, 2026

Point Arena City Council
June 16, 2026