Administrative
Report
N.3., File # 23-7139 Meeting Date: 11/7/2023
To: MAYOR AND CITY COUNCIL
From: ELIZABETH HAUSE, ASSISTANT TO THE CITY MANAGER MIKE WEBB, CITY
ATTORNEY JOY FORD,
SENIOR DEPUTY CITY PROSECUTOR
TITLE
DISCUSSION AND POSSIBLE ACTION REGARDING THE CITY’S POSITION ON A PROPOSED
BALLOT INITIATIVE IMPOSING A TRANSACTIONS AND USE TAX FOR THE PURPOSE OF
ADDRESSING THE HOMELESSNESS CRISIS AND REPEALING MEASURE H
EXECUTIVE SUMMARY
The City was recently made aware of a draft ballot initiative circulated by United Way of Greater Los Angeles (Greater Way), a non-profit organization that advocates for programming addressing poverty and inequity within the county. As proposed, the draft initiative would potentially eliminate the City as a recipient of funds generated by the measure. Staff is seeking Council direction on submitting a letter to Greater Way regarding sections of the initiative that need amending or updating to ensure the City receives adequate program funding.
BACKGROUND
The ballot initiative proposed by Greater Way would repeal the 0.25% tax rate of Measure H currently in place and implement a new 0.5% tax that would be distributed under a new set of parameters outlined in the initiative. Although comprehensive in its response to the homelessness crisis, the initiative places specific limitations that restrict which projects receive funds and how those funds are managed. Specific sections the Council may wish to review include:
· Section 3(b): 60% of the Local Solutions Funds will be allocated to the City of Los Angeles, 40% to other cities
· Section 3(g): requiring that 80% of funded projects must contain 40 units or more · Section 5 (3)(c): “Claw back” provision, removing funds from cities that do not use it within a specific amount of time
Attached for Council’s consideration are letters submitted by the South Bay Cities Council of Governments and the League of California Cities, as well as an initial draft City letter, should the Council choose to move forward with a response to the proposed initiative.
COORDINATION
This report was coordinated by the City Manager’s Office and the City Attorney’s Office.
FISCAL IMPACT
N.3., File # 23-7139 Meeting Date: 11/7/2023
There is no fiscal impact associated with this item.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· Draft Ordinance - Proposed Ballot Initiative, Affordable Housing, Homelessness Solutions, and Prevention Now Transactions and Use Tax Ordinance
· Letter to Greater Way - South Bay Cities Council of Governments · Letter to Greater Way - League of California Cities
· Draft Letter to Greater Way - City of Redondo Beach