RESOLUTION NO. 2023-214
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA, SUBMITTING TO THE QUALIFIED VOTERS OF THE CITY OF POMONA A GENERAL TAX MEASURE MAINTAINING THE CURRENT RATE OF THE CITY’S TRANSACTIONS AND USE TAX AT THREE-QUARTERS PERCENT (0.75%) AND EXTENDING THE TERM OF THE TAX BY REMOVING ITS MARCH 31, 2029 SUNSET, AT THE MUNICIPAL PRIMARY ELECTION TO BE HELD ON TUESDAY, MARCH 5, 2024.
WHEREAS, pursuant to Pomona Municipal Code, Article XII of Chapter 50 (PMC Sections 50-601 through 50-615 and 50-651-653), the City currently imposes a voter-approved tax on the sale and use of tangible personal property sold at retail within the City, at a rate of three-quarters percent (0.75%) of the transaction (“Transactions and Use Tax”); and WHEREAS, pursuant to Pomona Municipal Code Section 50-614, the Transactions and Use Tax is set to expire/“sunset” on March 31, 2029, after which the City shall no longer be authorized to collect the Transactions and Use Tax; and WHEREAS, pursuant to authority provided by statute, a petition has been filed with the City Council of the City of Pomona, seeking to enact an initiative measure/ordinance which would reduce the rate of the City’s current Transactions and Use Tax from three-quarters percent (0.75%) to one-half percent (0.50%) and would also extend the term of the Tax by repealing its March 31, 2029 expiration date/sunset (the “Mendoza Initiative”); and WHEREAS, the City Clerk’s office has examined the records of voter registration and ascertained that the petition was signed by the requisite number of voters and has so certified; and WHEREAS, the City Council has not voted in favor of adoption of the Mendoza Initiative and therefore, pursuant to the California Elections Code, adopted Resolution No. 2023-211 on November 6, 2023 to place the Mendoza Initiative before the City’s voters on the March 5, 2024 Municipal Primary Election ballot; and WHEREAS, the City Council desires to place a competing measure on the March 5, 2024 Municipal Primary Election ballot that would maintain the Transactions and Use Tax at a rate of three-quarters percent (0.75%) of the transaction and which would repeal its March 31, 2029 expiration date/sunset, resulting in a rate that is different than that provided in the Mendoza Initiative; and WHEREAS, the City’s Transactions and Use Tax is a general tax, the revenue of which is placed in the City’s general fund and is used to pay for important general City services; and WHEREAS, pursuant to Proposition 218 (California Constitution, Article XIIIC, Section 2(b)) any measure proposing to impose a new general tax, or increase or extend an existing general tax must be consolidated with a “regularly scheduled general election” for members of the City Council, unless the City Council makes certain fiscal emergency findings by unanimous vote to place the measure on a special election at another date; and WHEREAS, the next regularly scheduled general election at which City Council members are to be elected is not until Tuesday, November 5, 2024; and WHEREAS, for the following reasons, the health, safety and general welfare of the citizens of the City would be endangered if the City were unable to place this Measure before its voters until November 5, 2024; and WHEREAS, the Mendoza Initiative would lower the Transactions and Use tax rate resulting in an annual revenue reduction averaging $5.8M annually in the General Fund; and WHEREAS, as outlined in the financial impact analysis report presented to the City Council on October 2, 2023 pursuant to California Elections Code Section 9212, the Mendoza Initiative would create significant and growing annual operating deficits in every year of the General Fund forecast; and WHEREAS, as outlined in the impact report, the Mendoza Initiative would deplete General Fund reserves by FY 2036-37; and WHEREAS, to avoid this financial impact, the City would have to significantly restructure and/or reduce municipal services delivered to city residents and businesses; and WHEREAS, in order to properly budget for City expenses in Fiscal Year 2024-25 and for future fiscal years, the City must know Pomona voters’ wishes sooner than the November 5, 2024 General Municipal Election; and WHEREAS, all of the circumstances described above create an emergency situation warranting the placement of this Measure on the next available election ballot date to permit the voters to decide pursuant to Proposition 218; and WHEREAS, the next available election ballot date is the City’s Municipal Primary Election to be held on Tuesday, March 5, 2024; and WHEREAS, the specific terms of the Measure are attached hereto as Exhibit “A” and by this reference made an operative part hereof, and in accordance with all applicable laws.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. Recitals. The City Council of the City hereby finds and determines that the foregoing recitals are true and correct, are incorporated herein and by this reference made an operative part hereof.
SECTION 2. Declaration of Emergency. Pursuant to California Constitution, Article XIIIC, Section 2(b), the City Council, by a unanimous vote, hereby declares the existence of an emergency in that there are imminent financial risks and dangers, as described above, to the public welfare and the City’s financial ability to provide necessary municipal services without disruption, so that an election prior to the Municipal General Election on November 5, 2024 is necessary to address such risks and dangers.
SECTION 3. Submission of Ballot Measure. The City Council of the City, pursuant to its right and authority as contained in California Constitution, Article XIIIC, Section 2(b) and California Elections Code Section 9222, by unanimous vote, hereby orders the Measure attached hereto as Exhibit “A” to be submitted to the qualified voters of the City at the Municipal Primary Election to be held on Tuesday, March 5, 2024. The proposed Measure shall be in the form attached hereto as Exhibit “A” to this Resolution and is incorporated by this reference as if fully set forth herein.
SECTION 4. Ballot Question. The City Council, pursuant to its right and authority, does hereby order that the ballot question for the Measure shall be presented and printed upon the ballot submitted to the qualified voters in the manner and form set forth in this Section 3. On the ballot to be submitted to the qualified voters at the election to be held at the Primary Municipal Election on Tuesday, March 5, 2024, in addition to any other matters required by law, there shall be printed substantially the following:
“POMONA CITY SERVICES FUNDING MEASURE. To maintain City services such as 911 emergency response, police, fire, crime prevention, youth/recreation, library, park and road maintenance, homelessness services, and other City programs, shall the measure keeping the current City Transactions and Use Tax at 0.75% beyond the March 31, 2029 sunset date and until ended by Pomona voters, providing an estimated $16.8 million annually for general government use, subject to public disclosure and oversight, be adopted?” YES
NO
SECTION 4. Election Procedures. The City Clerk is authorized, instructed, and directed to procure and furnish, or cause to be procured and furnished, any and all official ballots, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election. In all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections.
SECTION 5. Impartial Analysis. Pursuant to Elections Code section 9280, the City Council hereby directs the City Clerk to transmit a copy of the Measure to the City Attorney. The City Attorney shall prepare an impartial analysis of the Measure, not to exceed 500 words in length, showing the effect of the Measure on the existing law and the operation of the Measure, and transmit such impartial analysis to the City Clerk not later than the deadline for submittal of direct arguments for or against the Measure.
The impartial analysis shall include a statement indicating whether the Measure was placed on the ballot by a petition signed by the requisite number of voters or by the City Council. In the event the entire text of the Measure is not printed on the ballot, nor in the voter information guide, there shall be printed immediately below the impartial analysis, in no less than 10-font bold type, the following: “The above statement is an impartial analysis of Ordinance or Measure ____. If you desire a copy of the ordinance or measure, please call the Office of the City Clerk at (909) 620-2311 and a copy will be mailed at no cost to you.” SECTION 6. Notice of Election. Notice of the election is hereby 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 7. Placement on the Ballot. The full text of the Measure shall not be printed in the voter information guide, and a statement shall be printed on the ballot pursuant to Elections Code section 9223 advising voters that they may obtain a copy of this Resolution and the Measure, at no cost, upon request made to the City Clerk.
SECTION 8. Filing with County. The City Clerk shall, not later than the 88th day prior to the Primary Municipal Election to be held on Tuesday, March 5, 2024, file with the Board of Supervisors and the County Registrar of Voters of the County of Los Angeles, State of California, a certified copy of this Resolution.
SECTION 9. Public Examination. Pursuant to Elections Code section 9295, this Measure will be available for public examination for no fewer than ten (10) calendar days prior to being submitted for printing in the voter information guide. The City Clerk shall post notice in the Clerk’s office of the specific dates that the examination period will run.
SECTION 10. CEQA. The City Council hereby finds and determines that the ballot measure relates to organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment, and therefore is not a project within the meaning of the California Environmental Quality Act (“CEQA”) and the State CEQA Guidelines, section 15378(b)(5).
SECTION 11. Severability. The provisions of this Resolution are severable and if any provision of this Resolution is held invalid, that provision shall be severed from the Resolution and the remainder of this Resolution shall continue in full force and effect, and not be affected by such invalidity.
SECTION 12. Effective Date of Resolution. This Resolution shall become effective upon its adoption.
SECTION 13. Certification of Resolution. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED and ADOPTED this 6th day of November, 2023.
CITY OF POMONA:
______________________________________
Tim Sandoval
Mayor
APPROVED AS TO FORM: ATTEST:
___________________________________ _____________________________________ Sonia Carvalho Rosalia A. Butler, MMC
City Attorney City Clerk
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the City Council of the City of Pomona at a regular meeting thereof, held on the 6th day of November, 2023, by the following vote of Council:
AYES:
NOES:
ABSTAIN:
ABSENT:
___________________________________
Rosalia A. Butler, MMC
City Clerk
EXHIBIT “A”
TEXT OF GENERAL TAX MEASURE/ORDINANCE MAINTAINING THE RATE OF THE CITY OF POMONA TRANSACTIONS AND USE TAX AT THREE-QUARTERS PERCENT (0.75%) AND EXTENDING THE TERM OF THE TAX BY REPEALING ITS MARCH 31, 2029 EXPIRATION DATE/SUNSET [attached behind this page]
ORDINANCE NO. ____
AN ORDINANCE OF THE PEOPLE OF THE CITY OF POMONA, CALIFORNIA, AMENDING VARIOUS SECTIONS OF ARTICLE XII OF CHAPTER 50 OF THE POMONA MUNICIPAL CODE MAINTAINING THE RATE OF THE CITY OF POMONA TRANSACTIONS AND USE TAX AT THREE-QUARTERS PERCENT (0.75%) AND EXTENDING THE TERM OF THE TAX BY REPEALING ITS MARCH 31, 2029 EXPIRATION DATE/SUNSET THE PEOPLE OF THE CITY OF POMONA DO HEREBY ORDAIN AS FOLLOWS:
[NOTE: Deletions are in strikethrough and additions are in bold underline] SECTION 1: AMENDMENTS TO MUNICIPAL CODE.
“Article XII Transaction and Use Tax
DIVISION 1. — GENERALLY
Sec. 50-601.- Operative Date. "Operative Date" as used herein means the first day of the first calendar quarter commencing more than one hundred and ten (110) days after the City Council declares the results of the Municipal Primary general election held on Novembar-6, 2018. March 5, 2024.
Sec. 50-602. - Purpose. This Article is adopted to achieve the following purposes, among others, and directs that the provisions hereof be liberally interpreted in order to accomplish those purposes:
. . . .
C. To adopt a retail transactions and use tax that imposes a tax and provides a measure therefore that can be administered and collected by the State Board of Equalization California Department of Tax and Fee Administration in a manner that adopts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the State Board of Equalization California Department of Tax and Fee Administration in administering and collecting the California Sales and Use Taxes. . . . .
Sec. 50.604. - Contract with the State. Prior to the Operative Date of this Article, the City shall contract with the State Board of Equalization California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of this transactions and use tax; provided that if the City shall not have contracted with the State Board of Equalization California Department of Tax and Fee Administration prior to the Operative Date, it shall nevertheless so contract and in such case the Operative Date shall be the first day of the first calendar quarter following the execution of the contract.
Sec. 50- 605. Transaction Tax Rate. For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of three quarters of one percent (0.75%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this Article. . . . .
Sec. 50-607.- Use Tax Rate. An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the Operative Date for storage, use, or other consumption in the City at the rate of three quarters of one percent (0.75%) of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made. . . . .
Sec.- 50-609. - Limitations on Adoption of State Law and Collection of Use Taxes. In adopting the provisions of Part 1 of Division 2 of the Revenue & Taxations Code:
A. Whenever the State of California is named or referred to as the taxing entity, the name of the City shall be substituted therefore. However, the substitution shall not be made when:
1) The word "State" is used as part of the title of the State Controller, State Treasurer, State Board of Control California Victim Compensation Board, State Board of Equalization California Department of Tax and Fee Administration, State Treasury, or the Constitution of the State of California; 2) The result of that substitution would require action to be taken by or against the City or any agency, officer, or employee thereof rather than by or against the State Board of Equalization California Department of Tax and Fee Administration, in performing the functions incident to the administration or operation of this Article; . . . .
5) The word "City" shall be substituted for the word "State" in the phrase "retailer engaged in the business of this state" in Section 6203 and in the definition of that phrase in Section 6203. a. “A retailer engaged in business in the District” shall also include any retailer that, in the preceding calendar year or the current calendar year, has total combined sales of tangible personal property in this state or for delivery in the State by the retailer and all persons related to the retailer that exceeds five hundred thousand dollars ($500,000). For purposes of this section, a person is related to another person if both persons are related to each other pursuant to Section 267(b) of Title 26 of the United States Code and the regulations thereunder. . . . .
Sec. 50-614. — Termination and repeal. The authority to levy the taxes imposed by this Article shall be in effect until March 31, 2029, unless this Article is repealed.
Sec. 50-615 to 50-650. Reserved
DIVISION 2. – CITIZENS OVERSIGHT COMMITTEE
Sec.- 50-651.- Established. There is established a Citizens' Oversight Committee. Each Council Member shall appoint one committee member.
Sec. 50-652. Staff Liaison. The City Manager shall designate a member of city staff to serve as the staff liaison of the Citizens' Oversight Committee. The Staff Liaison shall:
A. Serve as a liaison between the Citizens' Oversight Committee and the City Council and the City Manager; B. Assist the Committee in carrying out its duties and responsibilities as provided for by this division; C. Prepare reports as directed by the City Manager or City Council; D. Attend the Committee's meetings as necessary to carry out the Liaison's functions; and E. Provide advice, information, and material to assist the Committee.
Sec. 50-653.- Duties and responsibilities: The Citizens' Oversight Committee serves in an advisory capacity. The Committee shall:
A. Annually review the City's revenues and expenditures of the Transaction and Use Tax; B. Hold public meetings throughout the year, as often as City Council directs; C. Review annual audit reports related to the tax; and
D. Prepare written reports to the City Council that summarize the Committee's findings and recommendations Sec. 50-654 to 50-700. Reserved.”
SECTION 2. CONFLICTING/COMPETING MEASURE/EFFECTIVE DATE A. Pursuant to California Elections Code Section 9217, this Ordinance must be approved by at least a majority of the eligible voters of the City of Pomona voting at the Municipal Primary Election of March 5, 2024.
B. Further, pursuant to California Elections Code 9221, this Ordinance is expressly declared by the voters to conflict with Pomona Measure “__” (the “Mendoza Initiative” establishing a different rate of sales taxation). Therefore, if both this Ordinance and the Mendoza Initiative are approved by a majority of eligible Pomona voters, the one receiving the highest number of affirmative votes shall become effective and the other shall be of no force and effect.
C. Either this Ordinance or the Mendoza Initiative, whichever receives the highest number of affirmative votes pursuant to California Elections Code Section 9221, shall be deemed adopted and take effect ten (10) days after the City Council has certified the results of that election by resolution.
SECTION 3. SEVERABILITY. If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this ordinance. The voters of the City of Pomona hereby declare that they would have passed this ordinance and each section, subsection, sentence, clause and phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases may be declared invalid.
SECTION 4. AMENDMENT AND TERMINATION. The authority to levy this tax imposed by this Ordinance shall expire when repealed by the voters. The City Council may amend this Ordinance to reduce the rate of the taxes, either permanently or for a set period of time, and may reinstate the tax at up to the maximum rate approved in this Ordinance, without a further vote of the people. The City Council shall not amend this Ordinance to increase the Transactions and Use Tax rate above what is authorized by this Ordinance, unless such amendment is submitted to and approved by the voters.
SECTION 5. CERTIFICATION. The City Clerk shall certify to the adoption of this Ordinance.
I hereby certify that this Transactions and Use Tax Rate Maintenance and Extension Ordinance was PASSED, APPROVED, AND ADOPTED by the People of the City of Pomona on the 5th day of March, 2024.
CITY OF POMONA:
______________________________________
Tim Sandoval
Mayor
APPROVED AS TO FORM: ATTEST:
___________________________________ ____________________________________ Sonia Carvalho Rosalia A. Butler, MMC
City Attorney City Clerk
Resolution No. 2023-214
November 6, 2023
Resolution No. 2023-214
November 6, 2023
Attachment No.4