City Council
259 N. Wilma Avenue
Ripon, CA 95366
MEMO
To: Honorable City Council
From: Kevin Werner, City Administrator
Date: 04/12/2022
Subject: Oppose Initiative 21-0042A1
RECOMMENDED ACTION:
Staff is recommending the City Council oppose the Taxpayer Protection and Government Accountability Act (AG# 21-0042A1) and approve the attached resolution.
BACKGROUND:
In 2018, the Tax Fairness, Transparency and Accountability Act (AG# 17-0050A1), was being circulated to qualify for the November 2018 ballot. This initiative would have drastically limited local revenue authority. The measure was met with opposition and the measure’s proponents withdrew the initiative from the ballot in June 2018.
DISCUSSION/ANALYSIS:
On Jan. 4, 2022, the California Business Roundtable filed the Taxpayer Protection and Government Accountability Act (AG# 21-0042A1). This measure is far more detrimental to cities than the measure filed in 2018, because it would decimate vital local and state services to the benefit of wealthy corporations.
Generally, the Taxpayer Protection and Government Accountability Act limits voters’ authority, adopts new and stricter rules for raising taxes and fees, and makes it more difficult to hold violators of state and local laws accountable. The following summarizes specific concerns with the proposed legislation:
1) Limit voter authority and accountability
Limits voter input. Prohibits local voters from providing direction on how local tax dollars should be spent by prohibiting local advisory measures. Invalidates the Upland decision that allows a majority of local voters to pass special taxes. Taxes proposed by the Initiative are subject to the same rules as taxes placed on the ballot by a city council. All measures passed between January 2022 and November 2022 would be invalidated unless reenacted within 12 months. 2) Restrict local fee authority to provide local services Impacts franchise fees. Sets new standard for fees and charges paid for the use of local and state government property. The standard may significantly restrict the amount oil companies, utilities, gas companies, railroads, garbage companies, cable companies, and other corporations pay for the use of local public property. Rental and sale of local government property must be “reasonable” which must be proved by “clear and convincing evidence.”
Except for licensing and other regulatory fees, fees and charges may not exceed the “actual cost” of providing the product or service for which the fee is charged. “Actual cost” is the “minimum amount necessary.” The burden to prove the fee or charge does not exceed “actual cost” is changed to “clear and convincing” evidence. 3) Restrict authority of state and local governments to issue fines and penalties for violations of law
Requires voter approval of fines, penalties, and levies for corporations and property owners that violate state and local laws unless a new, undefined adjudicatory process is used to impose the fines and penalties.
4) Restrict local tax authority to provide local services Requires voter approval to expand existing taxes (e.g., UUT, use tax, TOT) to new territory (e.g., annexation) or expanding the base (e.g., new utility service). City charters may not be amended to include a tax or fee. New taxes can be imposed only for a specific time period. Taxes adopted after Jan. 1, 2022, that do not comply with the new rules, are void unless reenacted.
All state taxes require majority voter approval.
Prohibits any surcharge on property tax rate and allocation of property tax to state. 5) Other changes
No fee or charge or exaction regulating vehicle miles traveled can be imposed as a condition of property development or occupancy.
Cal Cities, along with a broad coalition of local governments, labor and public safety leaders, infrastructure advocates, and businesses, strongly oppose this initiative.
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RIPON OPPOSING THE TAXPAYER PROTECTION AND
GOVERNMENT ACCOUNTABILITY ACT
WHEREAS, an association representing California’s wealthiest corporations is behind a deceptive proposition aimed for the November 2022 statewide ballot; and WHEREAS, the measure creates new constitutional loopholes that allow corporations to pay far less than their fair share for the impacts they have on our communities, including local infrastructure, our environment, water quality, air quality, and natural resources; and WHEREAS, the measure includes undemocratic provisions that would make it more difficult for local voters to pass measures needed to fund local services and infrastructure, and would limit voter input by prohibiting local advisory measures where voters provide direction on how they want their local tax dollars spent; and
WHEREAS, the measure makes it much more difficult for state and local regulators to issue fines and levies on corporations that violate laws intended to protect our environment, public health and safety, and our neighborhoods; and
WHEREAS, the measure puts billions of dollars currently dedicated to state and local services at risk, and could force cuts to public schools, fire and emergency response, law enforcement, public health, parks, libraries, affordable housing, services to support homeless residents, mental health services, and more; and
WHEREAS, the measure would also reduce funding for critical infrastructure like streets and roads, public transportation, drinking water, new schools, sanitation, and utilities.
THEREFORE, BE IT RESOLVED that the City of Ripon, opposes Initiative 21-0042A1.
THEREFORE, BE IT FURTHER RESOLVED, that the City of Ripon will join the NO on Initiative 21-0042A1 coalition, a growing coalition of public safety, labor, local government, infrastructure advocates, and other organizations throughout the state.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Ripon this 12th day of April, 2022, by the following vote:
RESULT: DEFEATED [2 TO 3]
MOVER: Leo Zuber, Council Member
SECONDER:Dean Uecker, Mayor
AYES: Dean Uecker, Leo Zuber
NAYS: Michael Restuccia, Daniel de Graaf, Gary Barton
THE CITY OF RIPON,
A Municipal Corporation
By ________________________________
DEAN UECKER, Mayor
ATTEST:
By: ___________________________
LISA ROOS, City Clerk