Agendas are available on the City Website
https://www.ridgecrest-ca.gov/council-agendas
Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority
AGENDA
December 4, 2024
Regular Session 6:00 p.m.
City Hall, Council Chambers
100 100 West California Avenue
Ridgecrest CA 93555
Ricca Charlon, CMC
City Clerk
[email protected]
(760) 499-5002
In compliance with the Americans with Disabilities Act, if you are a disabled person and you need a disability-related modification or accommodation to participate in the meeting, please contact Ricca Charlon at (760) 499-5002. Requests must be made as early as possible and at least one full business day before the start of the meeting.
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Call in for public comments:
To participate with verbal comments, please call (760) 499-5010. This phone line will allow only one caller at a time, so if the line is busy, please continue to dial. We will be allowing a 20-30 second delay between callers to give time for media delays and callers to dial in. If you wish to comment on multiple items you will need to call in as each item is presented.
CITY COUNCIL
Eric A. Bruen, Mayor
Solomon P. Rajaratnam, Mayor Pro-Tem
Kyle Blades, Vice Mayor
L. Scott Hayman, Council Member
John ‘Skip’ Gorman, Council Member
Ron Strand, City Manager
Keith Lemieux, City Attorney
Martin Koczanowicz, City Attorney
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RIDGECREST CITY COUNCIL
SUCCESSOR REDEVELOPMENT AGENCY
FINANCING AUTHORITY
HOUSING AUTHORITY
AGENDA
Wednesday, December 4, 2024 Regular Session – 6:00 p.m.
CALL TO ORDER - Roll call
APPROVAL OF AGENDA
REGULAR SESSION
• Pledge Of Allegiance
• Invocation
PRESENTATIONS
Employee Service Award Presentations
PUBLIC COMMENT OF ITEMS NOT ON THE AGENDA - Persons wishing to address the Council on matters that are within the Council’s jurisdiction and DO NOT ALREADY APPEAR ON THE AGENDA, may do so at this time.
COUNCIL ANNOUNCEMENTS/DIRECTION
CONSENT CALENDAR – All Matters Listed Under The Consent Calendar Are To Be Considered Routine And Enacted By One Motion Unless Pulled By A Council Member Or A Member Of The Public.
1. Proposed Action To Approve Draft Minutes Of The Ridgecrest City Council Regular Meeting Dated November 20, 2024 Charlon
2. Review And Approve Recognized Obligation Payment Schedule (ROPS) 2025-26 And Administrative Budget For Fiscal Year 2025-26 Of The Successor Agency To The Ridgecrest Redevelopment Agency And Approval Of Resolution Freese
3. A Resolution Of The City Council Of The City Of Ridgecrest Authorizing The City Manager To Execute Agreements With The California Department Of Tax And Fee Administration For Implementation Of A Local Transactions And Use Tax Brewton
4. A Resolution Of The City Council Of The City Of Ridgecrest Authorizing Examination Of Sales Or Transactions And Use Tax Records Brewton
DISCUSSION AND ACTION ITEMS
ORDINANCES
5. Second Reading And Adoption Of An Ordinance Of The City Council Of The City Of Ridgecrest Amending The Ridgecrest Municipal Code By Establishing A Transactions And Use (Sales) Tax To Be Administered By The State Board Of Equalization Strand
AGENDA - CITY COUNCIL / SUCCESSOR REDEVELOPMENT AGENCY / FINANCING AUTHORITY / HOUSING AUTHORITY REGULAR – December 4, 2024
COMMITTEE REPORTS
City Organization and Services Committee (‘City Org’)
Members: Mayor Eric A. Bruen and Skip Gorman
Meeting: 1
st Thursday each month at 5:30 p.m.
Location: City Hall Council Chambers
➢ Next meeting December 5, 2024
Economic Development Committee
Members: Kyle Blades and Solomon Rajaratnam
Meeting: 1st Monday of the month @ 5:15 p.m.
Location: City Hall Conference Room B, 1
st Floor
➢ Report from December 2, 2024
Finance Committee
Members: Mayor Eric A. Bruen and Scott Hayman
Meeting: 2nd Tuesday each month at 5:30 p.m.
Location: City Hall Conference Room B, 1
st Floor
➢ Next meeting December 10, 2024
Infrastructure Committee
Members: Solomon Rajaratnam and Kyle Blades
Meeting: 4
th Thursday each month at 5:00 p.m.
Location: City Hall Conference Room B, 1
st Floor
➢ Next meeting November 28, 2024 - canceled
Parks, Recreation, and Quality of Life Committee
Members: Mayor Eric A. Bruen and Skip Gorman
Meeting: 1
st Tuesday each month at 5:30 p.m.
Location: City Hall Council Chambers
➢ Report from December 3, 2024
Ridgecrest Area Convention and Visitor Bureau (RACVB)
Members: Solomon Rajaratnam and Jennifer Rickets (staff) Meeting: 4th Wednesday each month at 9:00 a.m.
Location: California Welcome Center
➢ Next meeting TBD
OTHER COMMITTEES, BOARDS, OR COMMISSIONS
CITY MANAGER REPORT
FUTURE AGENDA ITEMS
MAYOR AND COUNCIL COMMENTS
ADJOURNMENT
Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority
STAFF REPORT
SUBJECT: Employee Service Award Presentations
PRESENTED BY: Mayor and City Council
SUMMARY:
Service recognition awards presented by the Ridgecrest City Council to employees who have reached milestones in increments of five (5) or more years of employment with the City of Ridgecrest.
3 rd Quarter July - August 2024
15 Years
Aaron Tucker - Police
10 Years
Shawna Stage - Police
5 Years
Art Atencio – Police Dept.
Kristin Fields – Finance
Barbara Pudgorski - PACT
4 th Quarter September - December 2024
5 Years
Amber Peterson – Police Dept.
FISCAL IMPACT: None
ACTION REQUESTED:
Presentation Of Certificates To Employees By City Council Members CITY MANAGER’S RECOMMENDATION:
Action as requested
Submitted by: Ricca Charlon Action Date: Dec. 4, 2024
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Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority
STAFF REPORT
SUBJECT: Proposed Action To Approve Draft Minutes Of The Ridgecrest City Council Regular Meeting Dated November 20, 2024
PRESENTED BY: Ricca Charlon, City Clerk
SUMMARY:
Draft Minutes of the City Council / Successor Redevelopment Agency / Housing Authority / Financing Authority Regular Meeting Dated November 20, 2024 FISCAL IMPACT: None
ACTION REQUESTED: Approve minutes
CITY MANAGER’S RECOMMENDATION: Action as requested
Submitted by: Ricca Charlon Action Date: December 4, 2024 This Page Intentionally Left Blank
RIDGECREST CITY COUNCIL
SUCCESSOR REDEVELOPMENT AGENCY
FINANCING AUTHORITY
HOUSING AUTHORITY
DRAFT MINUTES
Wednesday, November 20, 2024 Closed Session – 5:30 p.m.
Regular Session – 6:00 p.m.
This meeting was recorded and will be on file in the Office of the City Clerk for a certain period of time from date of approval by the Ridgecrest City Successor Agency/Financing Authority/Housing Authority. Meetings are recorded solely for the purpose of preparation of minutes.
ROLL CALL – 5:30 p.m.
Council Present: Mayor Eric A. Bruen; Vice Mayor Kyle Blades; Council Member L. Scott Hayman; Council Member Skip Gorman
Absent: Mayor Pro-Tem Solomon P. Rajaratnam
Staff Present: City Attorney M. Koczanowicz; City Manager Strand; City Clerk Charlon; Chief Ysit; PW Director Reed; P & R Director Wegener
APPROVAL OF AGENDA – Attorney asked to pull item 4
Motion To Approve Agenda with pulling item 4– Blades - Gorman - 4 Ayes; 1 Absent NOTE: The vote is displayed in bold below each item. For example, Blades-Rajaratnam denotes Council Member Blades made the motion and Council Member Rajaratnam seconded the motion. Ayes, Noes, Absents, Abstentions follow.
CLOSED SESSION
CONFERENCE WITH LEGAL COUNSEL – two cases
Existing Litigation Government Code Section 54956.9.
City of Ridgecrest v. Heritage Living LLC
City of Ridgecrest v. Super 8 Hotels
REGULAR SESSION
ATTORNEY REPORT OUT OF CLOSED SESSION – No reportable action PUBLIC COMMENT OF ITEMS NOT ON THE AGENDA – R. Westa-Lusk
COUNCIL ANNOUNCEMENTS/DIRECTION
CONSENT CALENDAR
1. Proposed Action To Approve Draft Minutes Of The Ridgecrest City Council Special Meeting Dated October 30, 2024 Charlon
2. Proposed Action To Approve Draft Minutes Of The Ridgecrest City Council Regular Meeting Dated November 6, 2024 Charlon
3. Authorization For The City Manager, Ron Strand, To Sign The Notice Of Completion For The Demolition Of Pinney Pool Site; For The City Clerk To File The Notice Of Completion And For City Staff To Release Retention In The Amount Of Sixteen Thousand Two Hundred Fifty Dollars And Zero Cents ($16,250.00) To The Contractor, Resource Environmental Inc., Within Thirty (30) Days After Recordation Of The Notice Of Completion Wegener
Motion To Approve Consent Calendar – Blades – Hayman – 4 Ayes; 1 Absent
DRAFT MINUTES - CITY COUNCIL / SUCCESSOR REDEVELOPMENT AGENCY / FINANCING AUTHORITY / HOUSING AUTHORITY REGULAR – November 20, 2024
PUBLIC HEARING
4. Public Hearing And Request For The Permanent Revocation Of Business Licenses For Heritage Living LLC And Super 8 Hotels (Ridgecrest Municipal Code Section 9-236) Attorney
COMMITTEE REPORTS
City Organization and Services Committee (‘City Org’)
Members: Mayor Eric A. Bruen and Skip Gorman
Meeting: 1
st Thursday each month at 5:30 p.m.
Location: City Hall Council Chambers
➢ Next meeting December 5, 2024
Economic Development Committee
Members: Kyle Blades and Solomon Rajaratnam
Meeting: 1st Monday of the month @ 5:15 p.m.
Location: City Hall Conference Room B, 1
st Floor
➢ Next meeting December 2, 2024
Finance Committee
Members: Mayor Eric A. Bruen and Scott Hayman
Meeting: 2nd Tuesday each month at 5:30 p.m.
Location: City Hall Conference Room B, 1
st Floor
➢ Report from November 12, 2024
Infrastructure Committee
Members: Solomon Rajaratnam and Kyle Blades
Meeting: 4
th Thursday each month at 5:00 p.m.
Location: City Hall Conference Room B, 1
st Floor
➢ Next meeting November 28, 2024
Parks, Recreation, and Quality of Life Committee
Members: Mayor Eric A. Bruen and Skip Gorman
Meeting: 1
st Tuesday each month at 5:30 p.m.
Location: City Hall Council Chambers
➢ Next meeting December 3, 2024
Ridgecrest Area Convention and Visitor Bureau (RACVB)
Members: Solomon Rajaratnam and Jennifer Rickets (staff) Meeting: 4th Wednesday each month at 9:00 a.m.
Location: California Welcome Center
➢ Report from November 20, 2024
OTHER COMMITTEES, BOARDS, OR COMMISSIONS
CITY MANAGER REPORT
FUTURE AGENDA ITEMS
MAYOR AND COUNCIL COMMENTS
ADJOURNMENT - 6:26 p.m.
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CITY COUNCIL/SUCCESSOR REDEVELOPMENT AGENCY AGENDA ITEM SUBJECT: Review And Approve Recognized Obligation Payment Schedule (ROPS) 2025- 26 And Administrative Budget For Fiscal Year 2025-26 Of The Successor Agency To The Ridgecrest Redevelopment Agency And Approval Of Resolution PRESENTED BY: Cheri Freese, Finance Director
SUMMARY:
The City Council at their regular meeting of January 11, 2012 adopted Resolution No 12- 02, electing to serve as the Successor Agency to the Ridgecrest Redevelopment Agency (“Successor Agency”) for the purpose of winding down the affairs of the former redevelopment agency under state law. Among the legal procedures for this duty, the Successor Agency is required to prepare a Recognized Obligation Payment Schedule (“ROPS”) prior to each 12-month fiscal period, in a manner prescribed by the California Department of Finance (“DOF”), and submit the ROPS to the oversight board, the Kern County Auditor-Controller, the State Controller’s Office, and DOF for review and approval.
As delineated on the proposed ROPS 25-26 attached to the accompanying resolution, the total requested Redevelopment Property Tax Trust Funds (“RPTTF”) for ROPS 2025-26 is $2,588,424. The Successor Agency’s 2025-26 enforceable obligations include the following items:
1. Continuing Disclosure Reporting Fees (ROPS Line #9) of $7,500.
2. Administrative Cost Allowance (ROPS Line #13) of $250,000. Staff has also prepared a budget for Successor Agency services detailing the usage of the full $250,000 budget request. This budget includes $190,000 for staff salaries, benefits and payroll taxes, $10,000 for contracted services with RSG, and $50,000 for insurance and legal services.
3. Bond Debt Service Payments (ROPS Lines #42 and 43) totaling $2,326,504. Once the debt service on the 2018 TARB Bonds Series A and B is paid in full after March 2037 the Successor Agency will have completed its obligations and dissolution of the former redevelopment agency would be complete and all taxing agencies including the City would receive their full share of these former tax increment/RPTTF funds as property taxes, and
4. Arbitrage Report Fees (ROPS Line #44) totaling $2,000.
5. Fiscal Agent Fees (ROPS Line #45) totaling $2,420.
The staff has prepared the Successor Agency ROPS 2025-26 and Fiscal Year 25-26 Administrative Budget and is recommending approval by the Successor Agency and its submission to the Oversight Board and then DOF.
Oversight boards have broad authority to determine meeting dates at which successor agencies must submit items, to set administrative budgets, to approve enforceable obligations, and otherwise to direct the successor agency to perform activities to wind down the former redevelopment agencies. Therefore, after the ROPS 25-26 and the Administrative Budget have been approved by the Successor Agency, both will be sent to the Oversight Board for approval.
FISCAL IMPACT:
Upon approval by the Successor Agency, Oversight Board, and DOF, ROPS 25-26 would request RPTTF funding needed for the Successor Agency to timely remit payments on enforceable obligations due during Fiscal Year 2025-26. The City and other affected taxing agencies are entitled to receive the balance (“residual”) of any RPTTF available after each of the two RPTTF distribution periods based on their respective shares.
The ROPS must be completed within prescribed deadlines or the City would face potential fines. The ROPS for July 1, 2025 through June 30, 2026 (“25-26”) is due to DOF by February 1, 2025 and the City of Ridgecrest (“City”) is subject to a civil penalty equal to $10,000 per day for every day the ROPS is not submitted to DOF.
Reviewed by Finance Director
ACTION REQUESTED:
Review and approval of ROPS 2025-26 and Fiscal Year 2025-26 Successor Agency Administrative Budget and corresponding resolution.
CITY MANAGER / EXECUTIVE DIRECTOR RECOMMENDATION:
Action as requested.
Submitted by: Cheri Freese Action Date: December 4, 2024 Resolution 24 – XX Page 1 of 4
RESOLUTION NO. 24-XX
A RESOLUTION OF THE SUCCESSOR AGENCY TO THE RIDGECREST
REDEVELOPMENT AGENCY APPROVING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS) FOR JULY 1, 2025 THROUGH JUNE 30, 2026 (2025- 26) AND APPROVING THE ADMINISTRATIVE BUDGET FOR FISCAL YEAR 2025-26 WHEREAS, pursuant to the dissolution of redevelopment agencies per Assembly Bill (“AB”) ABX1 26 (Chapter 5, Statutes of 2011) and ABX1 27 (Chapter 6, Statutes of 2011), and subsequent legislation, AB 1484 (Chapter 26, Statutes of 2012) (altogether, “Dissolution Act”), the City of Ridgecrest (“City”) adopted Resolution No. 12-02 on January 11, 2012, electing to serve as Successor Agency to the Ridgecrest Redevelopment Agency (“Successor Agency”); and, WHEREAS, pursuant to Health & Safety Code (“HSC”) Section 34177(m), the Successor Agency is required to prepare a Recognized Obligation Payment Schedule (“ROPS”) prior to each 12- month fiscal period, in a manner prescribed by the California Department of Finance (“DOF”), and submit the ROPS to the oversight board, the Kern County Auditor-Controller, the State Controller’s Office, and DOF for review and approval; and,
WHEREAS, pursuant to Section 34179(j) of the Dissolution Act, in every California county there shall be only one oversight board that is staffed by the county’s auditor-controller; and, WHEREAS, the applicable consolidated oversight board overseeing this Successor Agency is called the Kern Countywide Oversight Board (“Oversight Board”); and, WHEREAS, pursuant to HSC Section 34177(m), the ROPS for the period beginning July 1, 2025 and ending June 30, 2026 (“25-26”) shall be submitted to the Oversight Board and DOF no later than February 1, 2025; and,
WHEREAS, pursuant to HSC Section 34177(m)(2), if a successor agency does not submit a ROPS by the aforementioned deadline, the city, county, or city and county that created the redevelopment agency shall be subject to a civil penalty equal to ten thousand dollars ($10,000) per day for every day the schedule is not submitted to DOF; and, WHEREAS, Section 34177(j) of the Dissolution Act requires the Successor Agency to prepare a proposed administrative budget and submit it to the Oversight Board for approval; and, WHEREAS, pursuant to Section 34177(j), the Successor Agency’s “Administrative Budget” is to include all of the following: (a) estimated amounts of the Successor Agency's administrative costs for the upcoming twelve-month fiscal period; (b) the proposed sources of payment for the costs identified in (a); and (c) proposals for arrangements for administrative and operations services provided by the city serving as Successor Agency; and,
WHEREAS, Exhibit “A” to this Resolution establishes the ROPS 25-26 and Exhibit “B” to this Resolution establishes the Administrative Budget for 25-26 in a manner consistent with that prescribed by DOF; and,
WHEREAS, the Successor Agency desires to approve the ROPS 25-26 along with the Administrative Budget for 25-26 and transmit it to the Oversight Board, the Kern County AuditorController, the State Controller’s Office, and DOF as required by HSC Section 34172, et seq.
Resolution 24 – XX Page 2 of 4
NOW, THEREFORE, BE IT RESOLVED by the Successor Agency to the Ridgecrest Redevelopment Agency, as follows:
1. The Successor Agency to the Ridgecrest Redevelopment Agency finds and determines that the foregoing recitals are true and correct.
2. The Successor Agency approves as the Recognized Obligation Payment Schedule for the period July 1, 2025 to June 30, 2026, attached hereto as Exhibit A, subject to the approval of the Kern Countywide Oversight Board and the California Department of Finance.
3. The Successor Agency approves the Administrative Budget, attached hereto as Exhibit B, that is included in the ROPS 25-26.
4. Successor Agency staff is directed to transmit the ROPS 25-26 to the Oversight Board and upon the Oversight Board’s approval, post the ROPS 25-26 on the City of Ridgecrest’s website and submit the ROPS 25-26 to DOF, the California State Controller’s Office, and the Kern County Auditor-Controller prior to February 1, 2024 as required by law.
5. Successor Agency staff is hereby authorized and directed to use their discretion to make any necessary technical revisions to the ROPS 25-26 and Administrative Budget prior to submittal to the appropriate reviewing bodies.
PASSED, APPROVED, AND ADOPTED this 4
th day of December 2024 by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
________________________________
Eric Bruen, Mayor
ATTEST:
_______________________________
Ricca Charlon, City Clerk
Resolution 24 – XX Page 3 of 4
EXHIBIT A
RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE PERIOD OF JULY 1, 2025 TO JUNE 30, 2026
Recognized Obligation Payment Schedule (ROPS 25-26) - Summary Filed for the July 1, 2025 through June 30, 2026 Period Successor Agency: Ridgecrest
County: Kern
Current Period Requested Funding for Enforceable
Obligations (ROPS Detail)
25-26A Total
(July -
December)
25-26B Total
(January -
June)
ROPS 25-26
Total
A Enforceable Obligations Funded as Follows (B+C+D) $ - $ - $ - B Bond Proceeds - - -
C Reserve Balance - - -
D Other Funds - - -
E Redevelopment Property Tax Trust Fund (RPTTF) (F+G) $ 1,303,188 $ 1,285,237 $ 2,588,425 F RPTTF 1,178,188 1,160,237 2,338,425
G Administrative RPTTF 125,000 125,000 250,000
H Current Period Enforceable Obligations (A+E) $ 1,303,188 $ 1,285,237 $ 2,588,425 Certification of Oversight Board Chairman:
Name Title
Pursuant to Section 34177 (o) of the Health and Safety
code, I hereby certify that the above is a true and
accurate Recognized Obligation Payment Schedule for
the above named successor agency. /s/
Signature Date
Ridgecrest
Recognized Obligation Payment Schedule (ROPS 25-26) - ROPS Detail July 1, 2025 through June 30, 2026
A B C D E F G H I J K L M N O P Q R S T U V W
Item
#
Project
Name
Obligation
Type
Agreement
Execution
Date
Agreement
Termination
Date
Payee Description Project
Area
Total
Outstanding
Obligation
Retired
ROPS
25-26
Total
ROPS 25-26A (Jul - Dec)
25-26A
Total
ROPS 25-26B (Jan - Jun)
25-26B
Total
Fund Sources Fund Sources
Bond
Proceeds
Reserve
Balance
Other
Funds RPTTF Admin RPTTF
Bond
Proceeds
Reserve
Balance
Other
Funds
RPTTF
Admin
RPTTF
$25,185,699 $2,588,425 $- $- $- $1,178,188 $125,000 $1,303,188 $- $- $- $1,160,237 $125,000 $1,285,237 9 Continuing
Disclosure
Reporting
Fees 11/01/
2005
06/30/2037 Rosenow
Spevacek
Group
Annual Bond
Reporting
Requirement
Ridgecrest
RDA
97,500 N $7,500 - - - 3,750 - $3,750 - - - 3,750 - $3,750 13 Employee
Costs
Admin Costs 01/01/
2014
06/30/2019 Various City
Employees
Successor
Agency &
Debt
Administration
Costs
Ridgecrest
RDA
3,250,000 N $250,000 - - - - 125,000 $125,000 - - - - 125,000 $125,000 39 Wastewater
Loan
City/County
Loan (Prior
06/28/11),
3rd party
agmtinfrastructure
11/03/
2010
11/03/2047 Ridgecrest
WasteWater
Fund / City
of
Ridgecrest
Loan to
Finance Solar
Park - As
approved by
DOF
- Y $- - - - - - $- - - - - - $-
42 2018 TARB
BondsSeries A
Refunding
Bonds
Issued After
6/27/12
05/31/
2018
03/01/2026 U.S. Bank Refunded
Bond Debt
Service
597,497 N $597,497 - - - 300,372 - $300,372 - - - 297,125 - $297,125 43 2018 TARB
BondsSeries B
Refunding
Bonds
Issued After
6/27/12
05/31/
2018
03/01/2037 U.S. Bank Refunded
Bond Debt
Service
21,187,662 N $1,729,008 - - - 869,646 - $869,646 - - - 859,362 - $859,362 44 2018 TARB
BondsArbitrage
Report
Fees 05/31/
2018
03/01/2037 BLX Group
LLC
Arbitrage
Analysis
Report
24,000 N $2,000 - - - 2,000 - $2,000 - - - - - $-
45 2018 TARB
BondsFiscal
Agent Fees
Fees 05/31/
2018
03/01/2037 U.S. Bank Fiscal Agent
Fees
29,040 N $2,420 - - - 2,420 - $2,420 - - - - - $-
Ridgecrest
Recognized Obligation Payment Schedule (ROPS 25-26) - Report of Cash Balances July 1, 2022 through June 30, 2023
(Report Amounts in Whole Dollars)
Pursuant to Health and Safety Code section 34177 (l), Redevelopment Property Tax Trust Fund (RPTTF) may be listed as a source of payment on the ROPS, but only to the extent no other funding source is available or when payment from property tax revenues is required by an enforceable obligation.
A B C D E F G H
ROPS 22-23 Cash Balances
(07/01/22 - 06/30/23)
Fund Sources
Comments
Bond Proceeds Reserve Balance Other Funds RPTTF
Bonds issued
on or before
12/31/10
Bonds issued
on or after
01/01/11
Prior ROPS
RPTTF and
Reserve
Balances retained
for future
period(s)
Rent, grants,
interest, etc.
Non-Admin
and Admin
1 Beginning Available Cash Balance (Actual 07/01/22)
RPTTF amount should exclude "A" period distribution
amount.
508,206 27 F: Last year's ending balance per DOF G:
19-20 PPA retained for 22-23
2 Revenue/Income (Actual 06/30/23)
RPTTF amount should tie to the ROPS 22-23 total
distribution from the County Auditor-Controller
280,464 7,136,084 F: Revenue from N. China Lake G: RPTTF revenue
3 Expenditures for ROPS 22-23 Enforceable Obligations
(Actual 06/30/23)
7,134,809 F and G: Expenditures reported on PPA
4 Retention of Available Cash Balance (Actual 06/30/23) RPTTF amount retained should only include the amounts
distributed as reserve for future period(s)
15,915 F: Reclassification of other funds in 24-25
5 ROPS 22-23 RPTTF Prior Period Adjustment
RPTTF amount should tie to the Agency's ROPS 22-23 PPA
form submitted to the CAC
No entry required 1,302 22-23 PPA
6 Ending Actual Available Cash Balance (06/30/23)
C to F = (1 + 2 - 3 - 4), G = (1 + 2 - 3 - 4 - 5)
$- $- $- $772,755 $-
Ridgecrest
Recognized Obligation Payment Schedule (ROPS 25-26) - Notes July 1, 2025 through June 30, 2026
Item # Notes/Comments
9 13
39 42
43 44
45 Resolution 24 – XX Page 4 of 4
EXHIBIT B
SUCCESSOR AGENCY ADMINISTRATIVE BUDGET FOR THE PERIOD
JULY 1, 2025 TO JUNE 30, 2026
EXHIBIT B
RIDGECREST SUCCESSOR AGENCY
ADMINISTRATIVE BUDGET FY 2025-26
FOR JULY 1, 2025 to JUNE 30, 2026
Expense Category Responsibilities
FY 2025-26
Proposed
Budget
Salaries and Wages
Staff salaries, benefits, and
payroll taxes
• Process payment of enforceable obligations
• Maintain documentation of Agency records
• Coordinate with consultant to answer questions and provide documentation as requested by Oversight Board, County AuditorController, and Department of Finance $190,000
TOTAL $190,000
Maintenance and
Operations
Contract services
• Prepare ROPS, PPA, staff reports, and resolutions
• Coordinate with and answer questions for Oversight Board, County Auditor-Controller, and Department of Finance
• Monitor and project cash flow to ensure sufficient revenues for obligations and to inform Agency staff of expected revenues $10,000
Insurance and legal services • Review staff reports and resolutions • Provide legal services as needed $50,000
TOTAL $60,000
TOTAL BUDGET $250,000
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Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority
STAFF REPORT
SUBJECT: A Resolution Of The City Council Of The City Of Ridgecrest Authorizing The City Manager To Execute Agreements With The California Department Of Tax And Fee Administration For Implementation Of A Local Transactions And Use Tax PRESENTED BY: Kelly Brewton, Assistant Finance Director SUMMARY:
On July 17, 2024, the Ridgecrest City Council unanimously placed Measure V – the Ridgecrest Public Safety & Essential Services Reauthorization – on the November 2024 ballot for residents’ consideration. On November 5, 2024, City of Ridgecrest voters approved Measure V, enacting a one cent transactions and use tax. Measure V will provide continued local funding for city services, including public safety services and street and road maintenance. Measure V requires accountability including citizens’ oversight, mandatory financial audits, and yearly reports to the community to ensure the funds are spent in a fiscally prudent manner.
The State Board of Equalization requires the adoption of a resolution authorizing the City Manager to execute necessary agreements with the State to set up (Exhibit A) and manage the tax (Exhibit B). Execution of the agreements authorizes the State to be reimbursed up to $175,000 of its preparatory cost to administer the tax which is withheld from future payments to the City.
FISCAL IMPACT: The transaction and use tax is expected to generate approximately $5.9 million annually. Pursuant to Section 7272 of the State Revenue and Taxation Code, the City must reimburse the State Board of Equalization up to $175,000 for preparation for administering the tax.
ACTION REQUESTED:
Staff recommends that the City Council adopt the attached resolution authorizing the City Manager to execute agreements with State Board of Equalization for collection and administration of Measure P.
CITY MANAGER’S RECOMMENDATION:
Action as requested
Submitted by: Kelly Brewton Action Date: December 4, 2024 This Page Intentionally Left Blank
RESOLUTION NO. 24-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RIDGECREST
AUTHORIZING THE CITY MANAGER TO EXECUTE AGREEMENTS WITH THE
CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION FOR
IMPLEMENTATION OF A LOCAL TRANSACTIONS AND USE TAX
WHEREAS, on July 17, 2024, the City Council approved Ordinance No. 24-56 amending the City Municipal Code and providing for a local transactions and use tax; and, WHEREAS, the California Department of Tax and Fee Administration (Department) administers and collects the transactions and use taxes for all applicable jurisdictions within the state; and,
WHEREAS, the Department will be responsible to administer and collect the transactions and use tax for the City; and,
WHEREAS, the Department requires that the City enter into a “Preparatory Agreement” and an “Administration Agreement” prior to implementation of said taxes, and, WHEREAS, the Department requires that the City Council authorize the agreements.
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Ridgecrest that the “Preparatory Agreement” attached as Exhibit A and the “Administrative Agreement” attached as Exhibit B are hereby approved and the City Manager is hereby authorized to execute each agreement.
ADOPTED AND APPROVED this 4th day of December, 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_______________________
Eric A. Bruen, Mayor
ATTEST:
______________________
Ricca Charlon, City Clerk
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Exhibit A
(Rev. 07/24) 1
AGREEMENT FOR PREPARATION TO ADMINISTER AND OPERATE
CITY'S TRANSACTIONS AND USE TAX ORDINANCE
In order to prepare to administer a transactions and use tax ordinance adopted in accordance with the provision of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code, the City of Ridgecrest, hereinafter called City, and the CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION, hereinafter called Department, do agree as follows:
1. The Department agrees to enter into work to prepare to administer and operate a transactions and use tax in conformity with Part 1.6 of Division 2 of the Revenue and Taxation Code which has been approved by a majority of the electors of the City and whose ordinance has been adopted by the City.
2. City agrees to pay to the Department at the times and in the amounts hereinafter specified all of the Department's costs for preparatory work necessary to administer the City's transactions and use tax ordinance. The Department's costs for preparatory work include costs of developing procedures, programming for data processing, developing and adopting appropriate regulations, designing and printing forms, developing instructions for the Department's staff and for taxpayers, and other appropriate and necessary preparatory costs to administer a transactions and use tax ordinance.
These costs shall include both direct and indirect costs as specified in Section 11256 of the Government Code.
3. Preparatory costs may be accounted for in a manner which conforms to the internal accounting and personnel records currently maintained by the Department. The billings for costs may be presented in summary form. Detailed records of preparatory costs will be retained for audit and verification by the City.
4. Any dispute as to the amount of preparatory costs incurred by the Department shall be referred to the State Director of Finance for resolution, and the Director's decision shall be final.
5. Preparatory costs incurred by the Department shall be billed by the Department periodically, with the final billing within a reasonable time after the operative date of the ordinance.
City shall pay to the Department the amount of such costs on or before the last day of the next succeeding month following the month when the billing is received.
6. The amount to be paid by City for the Department's preparatory costs shall not exceed one hundred seventy-five thousand dollars ($175,000) (Revenue and Taxation Code Section 7272.) Exhibit A
(Rev. 07/24) 2
7. Communications and notices may be sent by first class United States mail or through email at [email protected]. If and when communications and notices may include confidential information, communications and notices must be sent through encrypted email at [email protected] or by mail. Communications and notices to be sent to the Department shall be addressed to:
California Department of Tax and Fee Administration
P.O. Box 942879 MIC: 27
Sacramento, California 94279-0027
Attention: Administrator
Local Revenue Branch
Communications and notices to be sent to City shall be addressed to:
__________Finance Director___________________
100 W California Ave_______________
Ridgecrest, CA 93555_______________
8. The date of this agreement is the date on which it is approved by the Department of General Services. This agreement shall continue in effect until the preparatory work necessary to administer City's transactions and use tax ordinance has been completed and the Department has received all payments due from City under the terms of this agreement.
CITY OF RIDGECREST CALIFORNIA DEPARTMENT OF TAX
AND FEE ADMINISTRATION
By By
(Signature) Administrator
Local Revenue Branch
RONALD STRAND
(Typed Name) Date: _______________________________
CITY OF MANAGER
(Title)
Date: _______________________________
Exhibit B
AGREEMENT FOR STATE ADMINISTRATION
OF CITY TRANSACTIONS AND USE TAXES
The City Council of the City of Ridgecrest has adopted, and the voters of the City of Ridgecrest (hereafter called “City” or “District”) have approved by the required majority vote, the City of Ridgecrest Transactions and Use Tax Ordinance (hereafter called “Ordinance”), a copy of which is attached hereto. To carry out the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code and the Ordinance, the California State Department of Tax and Fee Administration, (hereinafter called the “Department”) and the City do agree as follows:
ARTICLE I
DEFINITIONS
Unless the context requires otherwise, wherever the following terms appear in the Agreement, they shall be interpreted to mean the following:
1. "District taxes" shall mean the transactions and use taxes, penalties, and interest imposed under an ordinance specifically authorized by Revenue and Taxation code Section 7285.9, and in compliance with Part 1.6, Division 2 of the Revenue and Taxation Code.
2. "City Ordinance" shall mean the City's Transactions and Use Tax Ordinance referred to above and attached hereto, Ordinance No. 24-05, as amended from time to time, or as deemed to be amended from time to time pursuant to Revenue and Taxation Code Section 7262.2.
ARTICLE II
ADMINISTRATION AND COLLECTION
OF CITY TAXES
A. Administration. The Department and City agree that the Department shall perform exclusively all functions incident to the administration and operation of the City Ordinance.
Exhibit B
(Rev. 7/24) 2
B. Other Applicable Laws. City agrees that all provisions of law applicable to the administration and operation of the Department Sales and Use Tax Law which are not inconsistent with Part 1.6 of Division 2 of the Revenue and Taxation Code shall be applicable to the administration and operation of the City Ordinance. City agrees that money collected pursuant to the City Ordinance may be deposited into the State Treasury to the credit of the Retail Sales Tax Fund and may be drawn from that Fund for any authorized purpose, including making refunds, compensating and reimbursing the Department pursuant to Article IV of this Agreement, and transmitting to City the amount to which City is entitled.
C. Transmittal of money.
1. For the period during which the tax is in effect, and except as otherwise provided herein, all district taxes collected under the provisions of the City Ordinance shall be transmitted to City periodically as promptly as feasible, but not less often than twice in each calendar quarter.
2. For periods subsequent to the expiration date of the tax whether by City’s self-imposed limits or by final judgment of any court of the State of California holding that City’s ordinance is invalid or void, all district taxes collected under the provisions of the City Ordinance shall be transmitted to City not less than once in each calendar quarter.
3. Transmittals may be made by mail or electronic funds transfer to an account of the City designated and authorized by the City. A statement shall be furnished at least quarterly indicating the amounts withheld pursuant to Article IV of this Agreement.
D. Rules. The Department shall prescribe and adopt such rules and regulations as in its judgment are necessary or desirable for the administration and operation of the City Ordinance and the distribution of the district taxes collected thereunder.
E. Preference. Unless the payor instructs otherwise, and except as otherwise provided in this Agreement, the Department shall give no preference in applying money received for state sales and use taxes, state-administered local sales and use taxes, and district transactions and use taxes owed by a taxpayer, but shall apply moneys collected to the satisfaction of the claims of the State, cities, counties, cities and counties, redevelopment agencies, other districts, and City as their interests appear.
Exhibit B
(Rev. 7/24) 3
F. Security. The Department agrees that any security which it hereafter requires to be furnished by taxpayers under the State Sales and Use Tax Law will be upon such terms that it also will be available for the payment of the claims of City for district taxes owing to it as its interest appears.
The Department shall not be required to change the terms of any security now held by it, and City shall not participate in any security now held by the Department.
G. Records of the Department.
When requested by resolution of the legislative body of the City under section 7056 of the Revenue and Taxation Code, the Department agrees to permit authorized personnel of the City to examine the records of the Department, including the name, address, and account number of each seller holding a seller’s permit with a registered business location in the City, pertaining to the ascertainment of transactions and use taxes collected for the City. Information obtained by the City from examination of the Department's records shall be used by the City only for purposes related to the collection of transactions and use taxes by the Department pursuant to this Agreement.
H. Annexation. City agrees that the Department shall not be required to give effect to an annexation, for the purpose of collecting, allocating, and distributing District transactions and use taxes, earlier than the first day of the calendar quarter which commences not less than two months after notice to the Department. The notice shall include the name of the county or counties annexed to the extended City boundary. In the event the City shall annex an area, the boundaries of which are not coterminous with a county or counties, the notice shall include a description of the area annexed and two maps of the City showing the area annexed and the location address of the property nearest to the extended City boundary on each side of every street or road crossing the boundary.
ARTICLE III
ALLOCATION OF TAX
A. Allocation. In the administration of the Department's contracts with all districts that impose transactions and use taxes imposed under ordinances, which comply with Part 1.6 of Division 2 of the Revenue and Taxation Code:
Exhibit B
(Rev. 7/24) 4
1. Any payment not identified as being in payment of liability owing to a designated district or districts may be apportioned among the districts as their interest appear, or, in the discretion of the Department, to all districts with which the Department has contracted using ratios reflected by the distribution of district taxes collected from all taxpayers.
2. All district taxes collected as a result of determinations or billings made by the Department, and all amounts refunded or credited may be distributed or charged to the respective districts in the same ratio as the taxpayer's self-declared district taxes for the period for which the determination, billing, refund or credit applies.
B. Vehicles, Vessels, and Aircraft. For the purpose of allocating use tax with respect to vehicles, vessels, or aircraft, the address of the registered owner appearing on the application for registration or on the certificate of ownership may be used by the Department in determining the place of use.
ARTICLE IV
COMPENSATION
The City agrees to pay to the Department as the State's cost of administering the City Ordinance such amount as is provided for by law. Such amounts shall be deducted from the taxes collected by the Department for the City.
ARTICLE V
MISCELLANEOUS PROVISIONS
A. Communications. Communications and notices may be sent by first class United States mail to the addresses listed below, or to such other addresses as the parties may from time to time designate or through email at [email protected]. If and when communications and notices may include confidential information, communications and notices must be sent through encrypted email at [email protected] or by mail.
Exhibit B
(Rev. 7/24) 5
Communications and notices to be sent to the Department shall be addressed to:
California State Department of Tax and Fee Administration P.O. Box 942879
Sacramento, California 94279-0027
Attention: Administrator
Local Revenue Branch
Communications and notices to be sent to the City shall be addressed to:
Finance Director __________________
100 W California Ave___________________________________ Ridgecrest, CA 93555__________________________________
Unless otherwise directed, transmittals of payment of District transactions and use taxes will be sent to the address above.
B. Term. The date of this Agreement is the date on which it is approved by the Department of General Services. The Agreement shall take effect on April 1, 2025. This Agreement shall continue until December 31 next following the expiration date of the City Ordinance, and shall thereafter be renewed automatically from year to year until the Department completes all work necessary to the administration of the City Ordinance and has received and disbursed all payments due under that Ordinance.
C. Notice of Repeal of Ordinance. City shall give the Department written notice of the repeal of the City Ordinance not less than 110 days prior to the operative date of the repeal.
Exhibit B
(Rev. 7/24) 6
ARTICLE VI
ADMINISTRATION OF TAXES IF THE
ORDINANCE IS CHALLENGED AS BEING INVALID
A. Impoundment of funds.
1. When a legal action is begun challenging the validity of the imposition of the tax, the City shall deposit in an interest-bearing escrow account, any proceeds transmitted to it under Article II. C., until a court of competent jurisdiction renders a final and non-appealable judgment that the tax is valid.
2. If the tax is determined to be unconstitutional or otherwise invalid, the City shall transmit to the Department the moneys retained in escrow, including any accumulated interest, within ten days of the judgment of the trial court in the litigation awarding costs and fees becoming final and non-appealable.
B. Costs of administration. Should a final judgment be entered in any court of the State of California, holding that City's Ordinance is invalid or void, and requiring a rebate or refund to taxpayers of any taxes collected under the terms of this Agreement, the parties mutually agree that:
1. Department may retain all payments made by City to Department to prepare to administer the City Ordinance.
2. City will pay to Department and allow Department to retain Department's cost of administering the City Ordinance in the amounts set forth in Article IV of this Agreement.
3. City will pay to Department or to the State of California the amount of any taxes plus interest and penalties, if any, that Department or the State of California may be required to rebate or refund to taxpayers.
4. City will pay to Department its costs for rebating or refunding such taxes, interest, or penalties. Department's costs shall include its additional cost for developing procedures for processing Exhibit B
(Rev. 7/24) 7
the rebates or refunds, its costs of actually making these refunds, designing and printing forms, and developing instructions for Department's staff for use in making these rebates or refunds and any other costs incurred by Department which are reasonably appropriate or necessary to make those rebates or refunds. These costs shall include Department's direct and indirect costs as specified by Section 11256 of the Government Code.
5. Costs may be accounted for in a manner, which conforms to the internal accounting, and personnel records currently maintained by the Department. The billings for such costs may be presented in summary form. Detailed records will be retained for audit and verification by City.
6. Any dispute as to the amount of costs incurred by Department in refunding taxes shall be referred to the State Director of Finance for resolution and the Director's decision shall be final.
7. Costs incurred by Department in connection with such refunds shall be billed by Department on or before the 25th day of the second month following the month in which the judgment of a court of the State of California holding City's Ordinance invalid or void becomes final. Thereafter Department shall bill City on or before the 25th of each month for all costs incurred by Department for the preceding calendar month. City shall pay to Department the amount of such costs on or before the last day of the succeeding month and shall pay to Department the total amount of taxes, interest, and penalties refunded or paid to taxpayers, together with Department costs incurred in making those refunds.
CITY OF ____________________________ CALIFORNIA STATE DEPARTMENT OF
TAX AND FEE ADMINISTRATION
By By
(Signature) Administrator
Local Revenue Branch
Ronald Strand____________
(Typed Name) Date: _______________________________
City Manager
(Title)
(Date)
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Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority
STAFF REPORT
SUBJECT: A Resolution Of The City Council Of The City Of Ridgecrest Authorizing Examination Of Sales Or Transactions And Use Tax Records PRESENTED BY:
Kelly Brewton, Assistant Finance Director
SUMMARY:
Sales tax records are confidential and proprietary in nature. The State Board of Equalization (BOE) grants permission to City governments to examine sales tax records for the purpose of auditing and ensuring payment of all taxes due to the City. The BOE requires an adoption of this resolution before the permission can be granted. The resolution must specify which staff (positions) may examine the records and the specific purpose for which the records may be used.
With the passage of Measure V, the BOE requires a new resolution to be filed to provide access to records for the new local sales tax. The attached resolution serves this purpose and updates the information on file for the existing sales, transaction and use tax records.
The information obtained by examination of Board records shall be used only for purposes related to the collection of City’s sales and transactions and use taxes by the Board pursuant to the contracts between the City and the Board of Equalization.
FISCAL IMPACT: None
ACTION REQUESTED:
Approve a resolution authorizing examination of the City’s sales, transactions and use tax records.
CITY MANAGER’S RECOMMENDATION:
Action as requested
Submitted by: Kelly Brewton Action Date: December 4, 2024 (Revised Jan2019)
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RESOLUTION NO. 24-XX
A Resolution of the City Council of the City of Ridgecrest Authorizing Examination of Sales or Transactions and Use Tax Records WHEREAS, pursuant to Ordinance Number 24-05, the City of Ridgecrest (City) entered into a contract with the California Department of Tax and Fee Administration (Department) to perform all functions incident to the administration and collection of sales and use taxes; and, WHEREAS, pursuant to Revenue and Taxation Code section 7270, the City entered into a contract with the California Department of Tax and Fee Administration (Department) to perform all functions incident to the administration and collection of transactions and use taxes; and, WHEREAS, the City Council of the City of Ridgecrest deems it desirable and necessary for authorized officers, employees and representatives of the City to examine confidential sales or transactions and use tax records of the Department pertaining to transactions and use taxes collected by the Department for the City pursuant to that contract; and, WHEREAS, Section 7056 of the California Revenue and Taxation Code sets forth certain requirements and conditions for the disclosure of Department records, and Section 7056.5 of the California Revenue and Taxation Code establishes criminal penalties for the unlawful disclosure of information contained in, or derived from, the sales or transactions and use tax records of the Department.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RIDGECREST HEREBY RESOLVES AS FOLLOWS:
Section 1. That the City Manager, Finance Director, or other officer or employee of the City designated in writing by the City Manager, Finance Director to the California Department of Tax and Fee Administration is hereby appointed to represent the City with authority to examine sales or transactions and use tax records of the Department pertaining to transactions and use taxes collected for the City by the Department pursuant to the contract between the City and the Department.
Section 2.
The information obtained by examination of Department records shall be used only for purposes related to the collection of City transactions and use taxes by the Department pursuant to that contract, and for purposes related to the following governmental functions of the City:
(a) Tracking and economic development
(b) Forcasting and budget related functions
(c) Detection of misallocations and deficiencies
The information obtained by examination of Department records shall be used only for those governmental functions of the City listed above.
Section 3. That Hinderliter De Llamas & Associates is hereby designated to examine the sales or transactions and use tax records of the Department pertaining to transactions and use taxes collected for the City by the Department. The person or entity designated by this section meets all of the following conditions, which are also included in the contract between the City and the Hinderliter De Llamas & Associates
a) has an existing contract with the City to examine those sales or transactions and use tax records; b) is required by that contract to disclose information contained in, or derived from, those sales or transactions and use tax records only to the officer or employee authorized under Section 1 of this resolution to examine the information.
c) is prohibited by that contract from performing consulting services for a retailer during the term of that contract;
d) is prohibited by that contract from retaining the information contained in, or derived from those sales or transactions and use tax records, after that contract has expired.
BE IT FURTHER RESOLVED that the information obtained by examination of Department records shall be used only for purposes related to the collection of City transactions and use taxes by the Department pursuant to the contract between the City and the Department and for those purposes relating to the governmental functions of the City listed in section 2 of this resolution.
Section 4. That Hinderliter De Llamas & Associates is hereby designated to examine the sales or transactions and use tax records of the Department pertaining to any petition or appeal for the reallocation/redistribtuion of sales or transactions and use taxes that was filed by Hinderliter De Llamas & Associates on behalf of the City pursuant to the contract between Hinderliter De Llamas & Associates and City. The person or entity designated by this section meets all of the following conditions, which are also included in the contract between the City and the Hinderliter De Llamas & Associates:
a) has an existing contract with the City to examine those sales or transactions and use tax records; b) is required by that contract to disclose information contained in, or derived from, those sales or transactions and use tax records only to the officer or employee authorized under Section 1 of this resolution to examine the information.
c) is prohibited by that contract from performing consulting services for a retailer during the term of that contract;
d) is prohibited by that contract from retaining the information contained in, or derived from those sales or transactions and use tax records, after that contract has expired.
Section 5. That this resolution supercedes all prior resolutions of the City Council of the City of Ridgecrest adopted pursuant to subdivision (b) of Revenue and Taxation Code section 7056.
ADOPTED AND APPROVED this 4th day of December, 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_______________________
Eric A. Bruen, Mayor
ATTEST:
______________________
Ricca Charlon, City Clerk
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CITY COUNCIL/SUCCESSOR REDEVELOPMENT AGENCY/
FINANCING AUTHORITY/HOUSING AUTHORITY AGENDA ITEM
01351.0001/1034446.2 Page 1 of 1
SUBJECT: Second Reading And Adoption Of An Ordinance Of The City Council Of The City Of Ridgecrest Amending The Ridgecrest Municipal Code By Establishing A Transactions And Use (Sales) Tax To Be Administered By The State Board Of Equalization PRESENTED BY: Ron Strand, City Manager
In November 2016, Ridgecrest residents voted to approve a one cent transaction and use (sales) tax to protect public safety services and road maintenance services. The sales tax is currently schedule to sunset on March 31, 2024.
On July 17, 2024, the City Council authorized the proposed Ridgecrest Public Safety/Essential Services Reauthorization Measure for include in the ballot for the November 5, 2024, General Municipal Election. A reauthorization of the current sales tax would not increase the rate, but maintains the current tax that was adopted in 2016. At that time City Council introduced and conducted the first reading of the Ordinance, which if approved by the voters, would amend the Ridgecrest Municipal Code to continue the tax pass the sunset date.
At the November 5th, 2024 election, voters overwhelming supported the measure, reaffirming their trust in the City’s responsible use of funds to safeguard public resources and enhance community safety. The item is before the Council for the second reading and adoption of the Ordinance continuing the one cent tax until revoked by the voters.
FISCAL IMPACT: There is no fiscal impact related to the adoption of the Ordinance. Passage of Measure V will maintain the necessary revenue streem estimated to be $6.5M per year.
ACTION REQUESTED: Motion To Waive Full Reading, Conduct Second Reading by Title Only And Adopt Ordinance No. 24-05 Of The City Council Of The City Of Ridgecrest Amending The Ridgecrest Municipal Code By Establishing A Transactions And Use Tax To Be Administered By The State Board Of Equalization.
CITY MANAGER / EXECUTIVE DIRECTOR RECOMMENDATION:
Action as requested
Submitted by: Ronald Strand Action Date: December 4, 2024 This Page Intentionally Left Blank
ORDINANCE NO. 24 - 05
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RIDGECREST AMENDING THE
RIDGECREST MUNICIPAL CODE CONCERNING A TEMPORARY REAUTHORIZATION
TRANSACTIONS AND USE (SALES) TAX TO BE ADMINISTERED BY THE STATE BOARD
OF EQUALIZATION
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF RIDGECREST as follows:
1. Purpose.
This Ordinance amends the Ridgecrest Municipal Code in order to change the term of a temporary transactions and use tax.
2. Amendment.
The existing Chapter 9, Article III of the Ridgecrest Municipal Code is hereby deleted and replaced as follows:
Article III. Temporary Transactions and Use Tax
Sec. 9-50 Purpose and Operative Date.
(a) The purpose of this article is to impose a retail transactions and use tax in accordance with the provisions of the Revenue and Taxation Code which authorizes the City to adopt this tax if a majority of the qualified voters of the City vote to approve the imposition of the tax. Unlike the tax described in Article IV of this Chapter, this tax is subject to revocation by the voters.
(b) “Operative Date” means the first day of the first calendar quarter commencing more than 110 days after the later of the adoption of this ordinance and article, the date of such adoption being as set forth on the ordinance that adopted this article, or the approval of the voters of the City of a measure approving the imposition of the transaction and use tax set forth herein; provided, that if the City shall not have entered into a contract with the State Board as required herein prior to such date, the Operative Date shall be the first day of the first calendar quarter following execution of such a contract.
(c) When becoming operative, this measure automatically repeals and replaces Measure ‘V’, which was passed by the citizens of Ridgecrest in November of 2016. (d) Prior to the Operative Date, the City shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this transactions and use tax article; provided, that if the City shall not have contracted with the State Board of Equalization prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract.
Ordinance 24-05 Page 2 of 8
11/25/24
Sec. 9-51. Transactions Tax Rate.
Commencing on the Operative Date and continuing until ended by voters, 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 a rate of one cent (1%) of the gross receipt 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. Such tax shall be in addition to any other transaction (sales) tax imposed by this Code or applicable state law.
Sec. 9-52. Place of Sale.
For the purposes of this article, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the State Board of Equalization.
Sec. 9-53. Use Tax Rate.
Commencing on the Operative Date and continuing until ended by voters, 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 or after the Operative Date of this article for storage, use, or other consumption in the incorporated territory of the City at a rate of one percent (1%) 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. Such tax shall be in addition to any other use tax imposed by this Code or applicable to state law. Specifically, this tax is in addition to the tax imposed by Article IV of this Code.
Sec. 9-54. Adoption of Provisions of State Law.
Except as otherwise provided in this article, and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this article as though fully set forth herein.
Sec. 9-55. Limitations on Adoption of State Law and Collection of Use Taxes.
In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code:
(a) Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefor. However, the substitution shall not be made when:
(1) The word “State” is used as a part of the title of the State Controller, State Treasurer, State Board of Control, State Board of Equalization, State Treasury, or the Constitution of the State of California;
Ordinance 24-05 Page 3 of 8
11/25/24
(2) The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this article; (3) In those sections, including, but not necessarily limited to, sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to:
(a) Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code; or (b) Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the State under the said provision of that Code;
(4) In sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797, or 6828 of the Revenue and Taxation Code.
(b) The word “City” shall be substituted for the word “State” in the phrase “retailer engaged in business in this State” in Section 6203 and in the definition to that phrase in Section 6203.
Sec. 9-56. Permit Not Required.
If a seller’s permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor’s permit shall not be required by this article.
Sec. 9-57. Exemptions and Exclusions.
(a) There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any State-administered transactions or use tax. (b) There are exempted from the computation of the amount of transactions tax and gross receipts from:
(1) Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the County in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government. (2) Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the City shall be satisfied:
Ordinance 24-05 Page 4 of 8
11/25/24
(a) With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Chapter 2 of Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out-of-City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and
(b) With respect to commercial vehicles, by registration to a place of business out-of-City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address.
(3) The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this article.
(4) A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this article. (5) For the purposes of subsections (3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. (c) There are exempted from the use tax imposed by this article, the storage, use or other consumption in this City of tangible personal property:
(1) The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax article. (2) Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California. (3) If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this article. (4) If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this article.
(5) For the purposes of subsections (3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice whether or not such right is exercised. (6) Except as provided in subparagraph (7), a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer.
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(7) “A retailer engaged in business in the City” shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Chapter 2 of Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City.
(d) Any person subject to use tax under this article may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use, or other consumption of which is subject to the use tax.
Sec. 9-58. Amendments.
(a) All amendments subsequent to the effective date of this article to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this article, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this article.
(b) The City Council of the City of Ridgecrest may make amendments to this article that do not affect the rate of tax imposed without approval of the voters of the City. The City Council of the City of Ridgecrest may repeal this article by a two-thirds (2/3) vote of the Council without approval of the voters of the City, provided all indebtedness secured by the tax has been satisfied.
The City Council may amend the rate of tax imposed herein (increase or decrease) or extend the term of the tax only upon two-thirds (2/3) vote of the Council and with approval of the voters of the City.
Sec. 9-59. Enjoining Collection Forbidden.
No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this article, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected.
Sec. 9-60. Use of Tax Proceeds.
All proceeds of the tax levied and imposed under this article shall be paid into the general fund for use by the City of Ridgecrest.
Secs. 9-61 – 9-78. – Reserved
DIVISION 2. – CITIZEN OVERSIGHT COMMITTEE
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Sec. 9-79. Establishment of Committee and Purpose.
A Citizens’ Oversight Committee is hereby established to oversee expenditures of the revenues received by the City from the sales and use taxes imposed pursuant to this chapter, and to ensure that tax revenues are spent by the City in a manner consistent with the voter approved measure adopting this chapter as well as any voter approved or council approved priorities adopted to implement the provisions of this chapter.
Sec. 9-80. Appointment and Tenure of Committee Members. (a) The Citizens’ Oversight Committee shall consist of five members appointed by the City Council. Three members shall constitute a quorum. The City Manager shall appoint an exofficio staff person to serve as the secretary and custodian of records who shall not have a vote. (b) Upon their appointment and during their incumbency, members of the committee shall be and remain residents of the City; provided, however, that City employees, other city officials, and City vendors shall not be qualified to serve as committee members at any time they occupy such positions or are engaged in such business. Should a member cease to be a City resident, that office shall be deemed vacant and the term of such member terminated. The secretary shall notify the City Council and City Manager of such termination as soon as administratively possible.
(c) All members of the committee shall serve at the pleasure of the City Council and may be removed by a majority vote of the City Council at any time.
Sec. 9-81. Terms of Office.
(a) Of the members of the committee first appointed, two shall be appointed for terms of one year, two shall be appointed for terms of two years, and one shall be appointed for a term of three years. Succeeding members shall be appointed for terms of four years. The secretary’s term shall be designated by the City Manager. All members shall serve until a successor is appointed and qualified.
(b) Should a member of the committee fail to attend three consecutive meetings, unless excused for cause by the chairperson, that member’s office shall be deemed vacant and the member’s term ended. The committee secretary shall immediately notify the City Council and City Clerk of such termination.
Sec. 9-82. Organization.
(a) Each January, a board, commission, or committee shall annually organize and elect a chairperson and vice-chairperson from its membership for a one-year term. In the chairperson’s or vice-chairperson’s absence or disability, the committee may designate a chairperson or vicechairperson pro tempore. (b) Regular meetings shall be held on the day and time established by resolution of the board, commission, or committee as amended from time-to-time.
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(c) Each board commission or committee shall establish a procedure for calling special meetings and may also adopt application requirements, meeting procedures, and other reasonable rules and regulations for conducting business. Minutes shall be kept of all meetings and the secretary shall deliver copies of minutes to the City Manager and City Clerk for filing and distribution to City Council members.
(d) Any board, commission, or committee may designate one of its members, or a subcommittee composed of not more than two members, to study, review, consider, or make recommendations concerning any matter within its purview, provided that, a board, commission, or committee authorized to consist of seven members may designate one of its members, or a subcommittee composed of not more than three members, to study, review, consider, or make recommendations.
Sec. 9-83. Duties.
(a) The committee is charged with the following responsibilities: (1) reviewing all appropriations of revenues received by the City from the sales and use taxes imposed pursuant to the provisions of this chapter to determine whether such funds are to be used as provided for in this chapter and the voter approved measure that adopted this chapter; (2) reviewing the audit prepared by an independent auditor retained by the City to perform the City’s Comprehensive Annual Financial Report to determine whether such funds have been spent as provided for in this chapter and the voter approved measure; and (3) prepare and issue the committee’s own annual report setting forth their findings in regard to the foregoing. (b) The committee shall confine itself specifically to funds received by the City from the sales and use taxes imposed pursuant to the provisions of this chapter. City revenues and funds generated through other sources are outside the scope of the committee. (c) In order to preserve the integrity and independence of the oversight process, committee members will not play a formal role in contracting, project management, construction, or any other aspect of the public safety funding. In addition, the committee is not charged with decision-making on spending priorities, construction schedules, project details, funding source decisions (e.g., leveraged funds, developer fees, etc.), financing plans, tax rate assumptions, or selection of consultants, design, and construction firms.”
3. Effective Date.
This Ordinance relates to the levying and collecting of the City transactions and use taxes, and is a valid and binding ordinance of the City upon passage and approval by the electorate of the City of Ridgecrest. This Ordinance shall be considered as adopted upon the date that the vote is declared by the legislative body, and shall go into effect ten (10) days after that date.
4. Severability.
If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the Ordinance and the application of such provision to other persons or circumstances shall not be affected thereby.
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5. Other
Accept as otherwise provided herein the Ridgecrest Municipal Code is Reaffirmed and Readopted.
PASSED, APPROVED, AND ADOPTED by the Ridgecrest City Council on Dec. 4, 2024, by the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_______________________________
Eric A. Bruen, Mayor
ATTEST:
_________________________________
Ricca Charlon, City Clerk