Item 56 2023-01472 Administrative Approvals and Arguments Associated with the March 5, 2024 Municipal Election - Call and Give Notice for Placement, Selection of Argument Authors, and Call for an Impartial Analysis by the City Attorney’s Office for One Measure: The Sacramento Business Operations Tax Update of 2024 — Sacramento City Council, November 14, 2023

City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-01472 11/14/2023 Discussion Item 56.

Administrative Approvals and Arguments Associated with the March 5, 2024 Municipal Election - Call and Give Notice for Placement, Selection of Argument Authors, and Call for an Impartial Analysis by the City Attorney’s Office for One Measure: The Sacramento Business Operations Tax Update of 2024
File ID: 2023-01472
Location: Citywide
Recommendation: Adopt a 1) Resolution calling for a municipal election to be held on Tuesday, March 5, 2024, for the purpose of calling and giving notice of measures; a 2) Resolution calling and giving notice of the placement of one measure on the March 5, 2024 Municipal Election ballot: The Sacramento Business Operations Tax Update of 2024; a 3) Resolution requesting the Board of Supervisors of the County of Sacramento to consolidate the City of Sacramento’s March 5, 2024 Municipal Election with the Statewide election of the same date; a 4) Resolution requesting the Sacramento County Board of Supervisors to permit the Sacramento County Elections Official to render certain elections services to the City of Sacramento relating to the conduct of the March 5, 2024 and the Statewide election of the same date a 5) Resolution directing the preparation of an impartial analysis for the Sacramento Business Operations Tax Update of 2024, for inclusion in the March 5, 2024 Municipal Election official ballot; a 6) Resolution authorizing members of the City Council to author arguments for the Sacramento Business Operations Tax Update of 2024, that will be presented to the voters in the March 5, 2024 Municipal Election Voter Information Guide; and a 7) Resolution setting regulations for ballot arguments that will be presented to the voters in the March 5, 2024 Municipal Election Voter Information Guide.

Contact: Mindy Cuppy, City Clerk, (916) 808-5442, Office of the City Clerk, [email protected]; Kamie Southward, Program Specialist, (916)808-7604, [email protected], Office of the City Clerk Attachments:
1-Description/Analysis
2-Resolution Calling for a Municipal Election to be Held for Measures 3-Resolution Calling and Giving Notice of the Placement of One Measure on the Ballot 4-Resolution Consolidating the City of Sacramento’s Election with the Statewide Election 5-Resolution Requesting the County Voter Registrar to Render Elections Services 6-Exhibit B - City-County Election Services MOU

Page 1 of 3 ends

File ID: 2023-01472 11/14/2023 Discussion Item 56.
7-Resolution Directing the Preparation of an Impartial Analysis of Measure 8-Resolution Authorizing City Councilmembers to Author Arguments for Measure 9-Resolution Approving Regulations for Ballot Arguments 10-Exhibit A - Sacramento Business Operations Tax Update of 2024 Description/Analysis
Issue Detail: On September 19, 2023, the city council adopted a resolution calling for the holding of a municipal election on March 5, 2024. In accordance with the Sacramento City Charter, regular city elections are to be consolidated with statewide elections. In accordance with California Elections Code section 9222, the council must adopt a resolution to place a measure on the ballot.

As provided in California Elections Code section 9280, for any measure approved for placement on the ballot by the City Council, the City Council may direct the City Clerk to transmit a copy of the measure to the City Attorney for preparation of an impartial analysis of the measure. The analysis is for the purpose of showing the effects of the measure on existing law and the operation of the measure. The analysis shall be printed in the official Voter Information Guide preceding the arguments and shall not exceed 500 words. The impartial analysis is due in the Office of the City Clerk no later than Monday November 27, at 4:30 p.m. An impartial analysis will provide both the City of Sacramento and the voters of the city with impartial information regarding the measure.

To secure its position in the selection of ballot arguments for the Sacramento Business Operations Tax Update of 2024, in the event the City Clerk receives more than one argument in support or opposition of the measure, the City Council may select who will author and file the ballot argument(s) on the City Council’s behalf. This action will ensure that the City Council’s argument(s) have priority selection for printing in the official Voter Information Guide pursuant to the selection criteria in California Elections Code section 9287. If the City Council, or authorized member(s), do not submit an argument for a City Council measure, any individual voter who is eligible to vote on the measure, or bona fide association of citizens, or any combination of voters and associations, may submit an argument in support of or opposition to any measure.

Up to five authors’ names will be printed with the argument. If the City Council, as a body, chooses to submit an argument, at least one of the Councilmembers should be designated as the author.

If more than one argument is received for a given position, the City Clerk will follow the selection criteria outlined in the Sacramento City Code section 1.16.070, which provides for the following author priority: (a) The City Council, or members authorized by the council; (b) charter officer or officer of department director; (c) individual voters who are eligible to vote on the measure; or (d) a bona fide association of citizens, or combination of voters and associations.

Prior to an election, the City shall adopt a resolution that establishes regulations for the preparation of ballot arguments. The primary arguments are due in the Office of the City Clerk no later than 4:30 p.m. on Monday, November 27, 2023. Both supporting and opposing arguments must be received in order for a rebuttal argument to be submitted. If arguments, both supporting and opposing the measure, are appropriately received each side will be given the opportunity to provide a

Page 2 of 3 ends

File ID: 2023-01472 11/14/2023 Discussion Item 56.
written rebuttal. The rebuttal arguments are due in the Office of the City Clerk no later than 4:30 p.m. on Friday, December 8, 2023.

Policy Considerations: The actions outlined in this report are in accordance with the Sacramento City Code, Sacramento City Charter, and the California Elections Code.

Economic Impacts: None.

Environmental Considerations: None.

Sustainability: None.

Commission/Committee Action: None.

Rationale for Recommendation: The recommendations are consistent with standard practice, the Sacramento City Code, and the California Elections Code.

Financial Considerations: The estimated cost of an election for this measure is $497,000. This estimate includes four printed pages pertaining to the measure, the cost will increase if additional pages are needed. There is sufficient funding in the elections budget to cover the cost for this measure.

Local Business Enterprise (LBE): None.

Page 3 of 3 ends

RESOLUTION NO. 2023-XXXX
Adopted by the Sacramento City Council
November 14, 2023
Calling for a Municipal Election to be Held on Tuesday, March 5, 2024, for the Purpose of Proposing Ballot Measures, as Required by the Provision of the Laws of the State of California Relating to Charter Cities

BACKGROUND
A. On November 14, 2023, the Sacramento City Council directed a municipal election to be held on March 5, 2024, for the purpose of submitting an ordinance to the voters.

B. As provided in the California Elections Code, elections must be formally called by resolution.

BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:

SECTION 1.

Pursuant to the requirements of the laws of the State of California relating to charter cities, there is called and ordered to be held in the City of Sacramento, California, on Tuesday, March 5, 2024, a municipal election, for the purpose of voting on a proposed ballot measure.

SECTION 2.

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

SECTION 3.

That the election voting centers shall be open at 7:00 a.m. on the day of the election ad shall remain open continuously from that time until 8:00 p.m. of the same day when the voting centers shall be closed, except as provided in Section 14401 of the Elections Code of the State of California. All ballot drop-off locations shall be open at least during regular business hours beginning not less than 288 days before the day of the election as provided in California Elections Code Section 4005(a)(1), (B).

SECTION 4.

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

SECTION 5.

That notice of the time and place of holding the election is hereby given and the City Clerk is hereby authorized, instructed and directed to give further or additional notice of the election, in the time, form, and manner required by law.

SECTION 6.

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

RESOLUTION NO. 2023-XXXX
Adopted by the Sacramento City Council

November 14, 2023

Calling and Giving Notice of the Submittal to the Voters Establishing the Sacramento Business Operations Tax Update of 2024 to be included in the Municipal Election on March 5, 2024

BACKGROUND

A. On November 14, 2023, the City Council adopted Ordinance 2023-XXXX, known as the Sacramento Business Operations Tax Update of 2024, which ordinance is subject to approval by the voters.

B. On November 14, 2023, the City Council adopted Resolution 2023-XXXX calling for, giving notice of, and consolidating a Municipal Election to be held in conjunction with the Statewide Municipal Election to be held on Tuesday, March 5, 2024 for the purpose of proposing ballot measures.

C. The City Council desires to submit the measure to the voters at the March 5, 2024 Municipal Election.

BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:

SECTION 1.

The City Council hereby orders that the following question be submitted to the voters in the City of Sacramento, California on March 5, 2024:

Measure __ - Ordinance - Sacramento Business Operations Tax Update of 2024

“Shall the measure amending the City of Sacramento’s perpetual business operations tax – by increasing the gross receipts taxable threshold to $100,000, setting new flat tax rates for professionals ($684), setting new flat tax rates for nonexempt residential rentals, hotels, and short-term rentals ($114, plus $2.85/unit over stated thresholds), and setting new maximum annual taxes (based on gross receipts), all with yearly cost-of- living adjustments, for an estimated annual increase of $6,700,000 for general government use – be adopted?”

YES

SECTION 2.

That the text of the proposed measure to be submitted to the voters is attached as Exhibit A.

SECTION 3.

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

SECTION 4.

SECTION 5.

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

SECTION 6.

SECTION 7.

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

Table of Contents:

Exhibit A

RESOLUTION NO. 2023-XXXX
Adopted by the Sacramento City Council
November 14, 2023
Requesting the Board of Supervisors of the County of Sacramento to Consolidate the City of Sacramento’s March 5, 2024 Municipal Election with the Statewide Election on the Same Date

BACKGROUND
A. The City Council has called and ordered a municipal election to be held on March 5, 2024, for the purpose of submitting an ordinance to the voters.

B. As provided in the California Elections Code, the request for consolidation with the jurisdiction conducting the election must be formally adopted.

C. It is desirable that the City’s municipal elections be consolidated with the California statewide direct primary election to be held on the same date and in the same manner as if there were one election.

BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:

SECTION 1.

Pursuant to the requirements of Section 10403 of the Elections Code, the Board of Supervisors of the County of Sacramento is hereby requested to c onsent and agree to the consolidates of a municipal election with the statewide election on Tuesday, March 5, 2024, for the purposes of the voting on a proposed ballot measure.

SECTION 2.

That the County Elections Department is authorized to canvass the re turns of the municipal elections. The elections shall be held in all respects as if there were only one election, and only one form of ballot shall be used.

SECTION 3.

That the Board of Supervisors is requested to issue instructions to the Sacramento County Registrar of Voter’s Office to take any and all steps necessary for the holding of the consolidated election.

SECTION 4.

That the City of Sacramento recognizes that additional costs will be incurred by the County by reason of this consolidation and agrees to reimburse the County for any costs.

SECTION 5.

That the City Clerk is hereby directed to file a certified copy of this resolution with the Sacramento County Board of Supervisors and the Sacramento County Registrar of Voter’s Office.

SECTION 6.

That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

RESOLUTION NO. 2023-XXXX
Adopted by the Sacramento City Council

November 14, 2023

Requesting the Sacramento County Board of Supervisors to Permit the Sacramento County Elections Official to Render Certain Elections Services to the City of Sacramento Relating to the Conduct of the March 5, 2024, Municipal Election, Pursuant to Section 10002 of the Elections Code

BACKGROUND
A. On November 14, 2023, the City Council adopted resolutions (2023-XXXX & 2023-XXXX) calling for, giving notice of, and consolidation of the City’s Municipal Election to be held on Tuesday, March 5, 2024 and the Statewide Municipal Election to be held on Tuesday, March 5, 2024.

B. In the course of conducting the elections it is necessary for the City to request services of the County.

C. All necessary expenses in performing these services shall be paid by the City of Sacramento.

BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:

SECTION 1.

The Board of Supervisors of the County of Sacramento is hereby requested to permit the County Voter Registrar to render the following services in accordance with and pursuant to the provisions of the California Elections Code to the City of Sacramento in conducting a Municipal Election to be held on Tuesday March 5, 2024.

1. Establish voting centers, secure election officers, and prepare and mail notices of appointment.

2. Purchase vote center supplies and absentee voter supplies.

3. Print sample ballots and polling place cards, including the statements of candidates’ qualifications and mail to registered voters.

4. Transport ballots, original books of affidavits, ballot boxes, and other supplies to voting centers.

5. Provide printed official ballots.

6. Provide for “Vote by Mail” voting through the Office of the County Registrar of Voters.

7. Supervise and conduct election.

8. Tabulate electronic votes.

9. Perform all things necessary or incidental to accomplish the proper and legal conduct of the election.

SECTION 2.

That the Sacramento County Registrar of Voter’s Office is authorized to canvass and certify the returns of the March election.

SECTION 3.

That the City of Sacramento recognizes that costs will be incurred by Sacramento County by reason of this election and agrees to reimburse Sacramento County for these costs.

SECTION 4.

That the City Clerk is hereby directed to file a certified copy of this resolution with the Sacramento County Board of Supervisors and the Sacramento County Registrar of Voter’s Office.

SECTION 5.

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

Table of Contents:

Exhibit B

City of Sacramento
No Requires Council Approval:

Recording Requested Real Estate N rOther Party Signature Needed Date:

Department: City Clerk
Project Mgr: Phoebe Schueler
Contract Services:

Phone Number: 808-7605
Comment:

Division:

Supervisor: Wendy Klock-Johnson
Division Mgr:

Org Number: 04001011
Date
It ) 5-
Department Signature or Initial
Signature or Initial Date Authorization
Tax ID # if applicable:

YES Meeting: 10/27/2015
General Information
Type: Other PO Type: Select PO Type
$ Not to Exceed: $
Attachment: Original No.:

Original Doc Number:

Other Party: County of Sacramento Registrar of Voters Certified Copies of Document:: f_.

Project Name: Election Services Deed None
Included ESeparate
Project Number: Bid Transaction #: E/SBE-DBE-M/VVBE:

Department Information
Review and Signature Routing
/).-12.-1c"
Send Interoffice Mail ri Notify for Pick Up
Concolino, Shirley4

Department Director:

City Mgr: yes ri No Lii
Contract Cover/Routing Form: Must Accompany ALL Contracts;

however, is not part of the contract. (01-01-09)
Project Mgr:

Accounting:

Contract Services:

Supervisor:

Division Manager:
(6 1-4701-5
II 0-idgif) 67
Date City Attorney Signatieor Initial
City Attorney: fOiNsK
For City Clerk Processing
Finalized:

Initial:

Received: (City Clerk Stamp Here)
:01 V L 1 /ION 5101
'ilt-41MOVS
'd.-10 S.

El3Ri.
.41.13
,k1Ki

MEMORANDUM OF UNDERSTANDING BY AND BETWEEN

THE CITY OF SACRAMENTO
AND

THE COUNTY OF SACRAMENTO

1. PARTIES. This Memorandum of Understanding (MOU) is entered into by the City of Sacramento, a California charter city and municipal corporation ("City") and the County of Sacramento, a political subdivision of the State of California ("County").

2. PURPOSE OF THIS MOU. The purpose of this MOU is to define the expectations, rights, and responsibilities of the parties with regard to providing certain services for all elections.

This MOU supersedes any other agreement between the parties related to the matters covered by this MOU. By entering this MOU the parties are mutually cancelling that certain City Agreement No. 83119, which was approved by the Board of Supervisors Resolution No. 84-124 and City Council Resolution 83-1034.

3. ROLES AND RESPONSIBILITIES. The responsibilities of the Sacramento County Registrar of Voters and the City Clerk of the City of Sacramento are defined in Attachment A (Scope of Services), which is a part of this MOU.

4. REIMBURSEMENT FOR SERVICES PROVIDED. The City agrees to reimburse the County for elections services within 30 days from receipt of an invoice from the County Elections Office. If there is a dispute about services provided or costs claimed, the Registrar of Voters and the City Clerk shall meet in good faith to resolve the dispute before any other remedies are sought.

5. MUTUAL INDEMNIFICATION.

5.1 City agrees to indemnify and hold harmless County, its officers, employees, agents, and volunteers from any and all liabilities for injury to persons and damage to property arising out of any act or omission of City, its officers, employees, agents or volunteers in connection with City's performance of its obligations under this MOU.

5.2 County agrees to indemnify and hold harmless City, its officers, employees, agents, and volunteers from any and all liabilities for injury to persons and damage to property arising out of any act or omission of County, its officers, employees, agents or volunteers in connection with County's performance of its obligations under this MOU.

5.3 This Section 5 survives the termination or expiration of this MOU.

6. TERM OF AGREEMENT. This MOU is effective upon the signatures of the parties, and may be modified at any time by the written consent of the parties. It may be terminated at any time upon mutual consent of the parties, or unilaterally upon written notice from the terminating party to the other party at least 60 days prior to the date of termination. The City shall reimburse the County for cost of services provided through the date of the termination notice. 2015-1915 ,
Title: Election Services
Other Party: County of Sacramento
Registrar of Voters

MEMORANDUM OF UNDERSTANDING BY AND BETWEEN

THE CITY OF SACRAMENTO
AND

THE COUNTY OF SACRAMENTO

2. PURPOSE OF THIS MOU. The purpose of this MOU is to define the expectations, rights, and responsibilities of the parties with regard to providing certain services for all elections.

5. MUTUAL INDEMNIFICATION.

5.3 This Section 5 survives the termination or expiration of this MOU.

CITY OF SACRAMENTO, a California COUNTY OF SACRAMENTO, charter city and municipal corporation a political subdivision of the State of California
By: /
4 it
4 44. 4 1_
y Clerk
Date: -el 1.5
Approved as to Form: Approved as to Form:

By: ( 4
County Counsel

ATTACHMENT A

SCOPE OF SERVICES

ALL ELECTIONS
Registrar of Voters shall provide the following services for all City of Sacramento elections:

1. Prepare election process forms and provide to the City Clerk at least 120 days prior to the election.

2. Verify signatures on petitions, including but not limited to, all candidate official filing forms, nomination paper petitions, and supplemental nomination paper petitions; initiative, referendum, and recall petitions; Notices of Intent to Circulate Petitions; and Notices of Intent to Recall.

3. Assign measure letters.

4. Prepare, translate, and format the sample ballot for materials including, as applicable:
candidates' statement, ballot arguments and rebuttals, measure ballot title and summary, measure impartial analysis, facsimile ballot, voting instructions, polling location information, and map and/or address of ballot drop-off locations in the City of Sacramento.

5. Provide all sample ballot materials to the City Clerk for review and confirmation within •the Registrar's time frames to make necessary changes in time to meet legal deadlines prior to printing and mailing.

6. Supply sample ballot materials to registered voters in the affected Council Districts.

7. Provide to the City Clerk an electronic listing of all electors eligible to vote in the election, including polling location, if applicable.

8. Provide ballot tabulation equipment and qualified and trained personnel for its operation throughout the election as provided by law.

9. Provide security during ballot counting and tabulation process.

10. Provide sufficient personnel to deliver, process, count, and tabulate election ballots.

11. Provide sufficient personnel to process, count, and tabulate signature withdrawal requests.

12. Distribute and process vote-by-mail ballots.

13. Distribute and process provisional ballots and challenged ballots.

14. Perform canvass and issue Official Statement of Vote to the City Clerk as required by federal and state election laws.

15. Prepare invoices for services rendered within 45 days of the election and provide revised invoices, as necessary, following cost reconciliation

16. Refer media inquiries and requests relating to City of Sacramento elections to the City Clerk.

17. Other services as requested by the City Clerk.

The City Clerk shall provide the following services to the Registrar of Voters for all City of Sacramento elections:

1. Provide a copy of the resolution calling the election and requesting services as required by federal and state election law.

2. Provide City Council action regarding costs for printing of candidate statements.

3. Promptly forward candidates' Candidate Official Filing forms and Statement of Qualification upon submittal.

4. As applicable, promptly furnish copies of the full text of measures, including a written description of any related maps or images, impartial analysis, ballot title and summary, arguments, and rebuttals.

5. Promptly review and confirm content and content placement of sample ballot materials.

6. Furnish copies of published Notice of Election and list of qualified candidates.

7. Remit payment for services rendered within 30 days of receiving invoice.

ELECTION POLLING LOCATIONS
The Registrar of Voters shall provide the additional following services for City of Sacramento polling location elections:

1. Establish polling locations that are compliant with State of California law regarding accessibility.

2. Provide furniture and equipment, as needed, for polling locations and poll workers.

3. Hire, train, and compensate poll workers and alternate poll workers.

4. Hire, train, and compensate Coordinators and technical teams for technical and logistical support to poll workers and elections personnel.

5. Provide the City Clerk with a direct link to County website that indicates polling locations.

The City Clerk shall provide the additional following services for City of Sacramento polling election locations:

1. Provide location and security for a ballot box for vote-by-mail drop-offs at City Hall on Election Day and at least 15 days prior.

ALL-MAIL-BALLOT ELECTIONS
The Registrar of Voters shall provide the additional following services for City of Sacramento all-mail-ballot elections:

1. Provide materials, equipment, staffing, and activities required for all-mail-ballot elections as required by law.

2. Hire and train workers for ballot drop-off locations.

3. Provide for the establishment of ballot drop -off locations, with days and hours of operation for a period of at least 15 days prior to Election Day and on Election Day from 7 a.m. to 8 p.m. or as required by election law.

4. Provide materials, furniture, and equipment, as needed, for ballot drop-off locations.

5. Timely deliver all official ballots as required by law.

6. Provide daily tallies of returned ballots by Council District to the City Clerk.

The City Clerk shall provide to the Registrar of Voters for City of Sacramento all-mail-ballot elections:

1. Assist with the identification of potential facilities for ballot drop-off locations.

2. Provide location and security for a ballot box for vote-by-mail drop-offs at City Hall on Election Day and 15 days prior to Election Day or as otherwise required by law.

RESOLUTION NO. 2023-XXXX
Adopted by the Sacramento City Council
November 14, 2023
Directing the City Attorney to Prepare an Impartial Analysis of the Sacramento Business Operations Tax Update of 2024, Approved by the City Council to be Submitted to the Voters at the Primary Municipal Election to be Held on Tuesday, March 5, 2024

BACKGROUND
A. On November 14, 2023, the City Council adopted Ordinance 2023 -XXXX, known as the Sacramento Business Operations Tax Update of 2024, which ordinance is subject to approval by the voters.

B. On November 14, 2023, the City Council adopted Resolution 2023-XXXX approving for placement on the March 5, 2024 Municipal Election ballot a question pertaining to the Sacramento Business Operations Tax Update of 2024.

C. The City of Sacramento desires to have an impartial analysis of the measure.

BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:

SECTION 1.

The City Council hereby directs the City Attorney to prepare an impartial analysis of the measure pertaining to the Sacramento Business Operations Tax Update of 2024, showing the measure’s effect on existing law and its operation. The impartial analysis is not to exceed 500 words, and the City Attorney shall file it with the City Clerk no later than Monday November 27, 4:30 p.m.

SECTION 2.

The City Clerk is hereby directed to cause the impartial analysis to be printed in the official sample ballot for the March 5, 2024, Primary Municipal Election.

SECTION 3.

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

RESOLUTION NO. 2023-XXXX
Adopted by the Sacramento City Council
November 14, 2023
Authorizing the City Council or Members of the City Council to Submit Written Argument(s) for the Sacramento Business Operations Tax Update of 2024, Approved by the City Council to be Submitted to the Voters at the Primary Municipal Election to be Held on Tuesday, March 5, 2024.

C. The City Council desires to submit argument(s) for the measure.

BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:

SECTION 1.

The City Council hereby authorizes the following members, on behalf of the Council, to file a written argument for/support the question pertaining to the Sacramento Business Operations Tax Update of 2024:

Name(s) __________________________

SECTION 2.

The City Council hereby authorizes the following members, on behalf of the Council, to file a written argument against/opposing the question pertaining to the Sacramento Business Operations Tax Update of 2024:

Name(s) __________________________

SECTION 3.

The arguments shall be prepared in accordance with the California Elections Code and the resolution pertaining to the regulations of ballot arguments (Resolution 2023-XXXX).

SECTION 4.

The primary arguments are due in the Office of the City Clerk no later than 4:30 p.m. on Monday, November 27, 2023. If arguments, both in support and opposition, are appropriately received, each side will be given the opportunity to provide a written rebuttal. The rebuttal arguments are due in the Office of the City Clerk no later than 4:30 p.m. on Friday, December 8, 2023.

SECTION 5.

The City Council hereby directs the City Clerk to certify the passage and adoption of this resolution and enter it into the book of origin.

RESOLUTION NO. 2023-XXXX
Adopted by the Sacramento City Council
November 14, 2023
Approving Regulations Pertaining to Ballot Arguments that will be Presented to the Voters in the March 5, 2024 Municipal Election Voter Guide

BACKGROUND

A. On November 14, 2023, the City Council adopted Ordinance 2023 -XXXX, known as the Sacramento Business Operations Tax Update of 2024, which ordinance is subject to approval by the voters.

BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:

SECTION 1.

GENERAL PROVISIONS. Pursuant to Sacramento City Code section 1.16.070 , the city council, or a councilmember(s) authorized by the council, charter officer, department director, or an individual voter who is eligible to vote on the measure, or bona fide association of citizens, or a combination of voters and associations, may file a written argument for or against any city measure.

SECTION 2.

FOREIGN LANGUAGE POLICY . Pursuant to the Federal Voting Rights Act, measures shall be translated into all languages required by the County of Sacramento. The Sacramento County Registrar of Voters (Registrar) is required to translate ballots into Spanish and Chinese.

The Registrar shall print and mail official sample ballots containing measures to all voters in English, Spanish, and Chinese. The Registrar shall make the official sample ballots in the required languages available at all voting center locations and in the Sacramento County Election Official’s office.

SECTION 3.

MISCELLANEOUS. All translations shall be provided by a professionally certified translator procured by the Sacramento County Registrar of Voters. Authors may not translate their own arguments.

Primary arguments and rebuttals shall be typewritten in block paragraph style on the City’s official Argument Form provided by the Office of the City Clerk. Text shall be of uniform size and darkness, and with uniform spacing. Therefore, authors may not use underlining; ALL CAPS; italics; bold print; dashes (--); bullets (•); stars ( ) or other forms of emphasis; multiple punctuation (e.g. “……” or “------” or “!!!!!!”; emojis or emoticons. All paragraphs will be left justified.

There is no maximum number of paragraphs for the written arguments.

Arguments containing endorsements shall be accompanied by a written authorization letter(s) from the person(s) and/or organization(s) offering the endorsement at the time the argument is submitted.

Letters must be signed and dated. Arguments containing the name of a person other than the author shall be accompanied by an original letter from the named person granting permission to use their name in this manner. Letters must be signed and dated. Arguments containing the name of any organization must be accompanied by an original letter from the named organization signed and dated by an officer authorized to do so by the organization.

Initial arguments shall not exceed 300 words in length. Rebuttal arguments, if applicable, shall not exceed 250 words in length.

The standard word count as provided in the Elections Code shall be used. All proper nouns, including geographical names, shall be considered as one word; for example, “City of Sacramento” shall be counted as one word. Regularly hyphenated words appearing in any generally available standard reference dictionary published in the United States within 10 years preceding the election shall be counted as one word. Each abbreviation for a word, phrase, or expression shall be counted as one word. Words in statements containing hyphens that are not found in the dictionary as described above shall be counted as individual words. Each part of all other hyphenated words shall be counted as a separate word. Dates, monetary amounts, and whole numbers containing digits shall only be counted as one word. (Ex. 01/01/1900, $100.00 or 100). Telephone numbers, email addresses, and internet addresses shall be counted as one word.

SECTION 4.

Primary and rebuttal arguments that are not in compliance with the formatting guidelines shall be reformatted by the City Clerk. Primary and rebuttal arguments that exceed the allotted word count shall be shortened by removing words from the end of the argument text until the word limit is reached.

SECTION 5.

Rebuttals to primary arguments are permissible only when primary arguments in support and opposition of a measure are submitted.

Ordinance No.2023 Adopted on 1
1331527
ORDINANCE NO.

Adopted by the Sacramento City Council
Date Adopted

AN ORDINANCE AMENDING VARIOUS SECTIONS OF, AND ADDING A SECTION TO, ARTICLE IV OF CHAPTER 3.08 OF THE SACRAMENTO CITY CODE, RELATING TO THE BUSINESS

OPERATIONS TAX
BE IT ENACTED BY THE COUNCIL OF THE CITY OF SACRAMENTO:

SECTION 1.

Section 3.08.170 of the Sacramento City Code is hereby amended to read as follows:

3.08.170 Gross receipts.

Every person not falling within the categories described in sections 3.08.180, 3.08.190,

3.08.200, and 3.08.205 shall pay an annual business operations tax as follows:

A. Every person that has gross receipts of $100,000 or less shall pay a flat tax of $50 for each year.

B. Every person that has gross receipts in excess of $100,000 shall pay a flat tax of $50, plus $.0004 for each dollar of gross receipts in excess of $100,000 for the reporting period.

C. Maximum tax. The maximum annual tax liability for any person under this section is as set forth in section 3.08.255.

D. Flat tax rate adjustment. The gross receipts threshold amount and the flat tax rates in this section shall be adjusted annually as provided in section 3.08.255.

SECTION 2.

Section 3.08.180 of the Sacramento City Code is hereby amended to read as follows:

3.08.180 Professionals.

A. Professionals —General. Every person engaged in the profession of: accountant, architect, attorney, audiologist, bacteriologist, certified public accountant, engineer, dentist, mortician, optometrist, osteopath, physician, podiatrist, psychologist, surgeon, or veterinarian shall pay a flat annual business operations tax of $684.

Ordinance No.2023 Adopted on 2
1331527
Nothing in this subsection shall be construed or deemed to apply to any person engaged in any of the professions enumerated in this subsection solely as the employee of any other person conducting, carrying on or managing such business, occupations or professions in the city, except, however, that each such employee who has a contractual right to participate in the income or profits of the business, or is a shareholder of a professional corporation organized pursuant to section 13400 et seq., of the California Corporations Code must pay the tax.

Every person who employs an individual who would be subject to a business operations tax under this section if the individual was not exempted from the payment of said tax by the preceding paragraph shall pay a flat annual business operations tax of $ 68 for each such exempt individual in their employ.

B. Professionals —Brokers. Every person engaged in the business of real estate broker, insurance broker, or stockbroker, whether full or part-time, shall pay a flat annual business operations tax of $684 for the principal broker or broker of record plus a flat tax of $68 for each employe e, agent, representative , or independent contractor subject to supervision by a principal broker or broker of record who devotes time to handling of rents, listing property, collecting or selling property, soliciting or writing insurance policies, or working as a salesperson or floorperson.

C. Maximum tax. The maximum annual tax payable by any firm under provisions of this section is as set forth in section 3.08.2 55. “Firm” is defined as any professional corporation, partnership, or other business entity whose individual members share in the profits of the business entity.

D. Revenue measure. Nothing contained in this chapter shall be construed as giving the city council, or any of the officers of the city in charge of administration of this chapter, any regulatory powers over any licensee who is engaged in the practice of a profession, trade, or calling and is one whose privilege to so engage in such profession, trade or calling is granted by the state or any of its agencies. As to such persons, and as indic ated in section 3.08.020, this chapter shall be construed as existing for revenue purposes only.

E. Flat tax rate adjustment. The flat tax rates in this section shall be adjusted annually as provided in section 3.08.255.

SECTION 3.

Section 3.08.190 of the Sacramento City Code is hereby amended to read as follows:

3.08.190 Contractors.

A. Every person engaged in any type of business activity as a contractor which requires a city building permit shall pay a business operations tax at the time the building permit is issued at the rate of $0.40 per $1,000 for each $1,000 or fraction thereof of the value used to determine the charge for the building permit.

Ordinance No.2023 Adopted on 3
1331527
B. The maximum annual tax payable by any person under this section is as set forth in section 3.08.2 55. It shall be the responsibility of the contractor who has paid the maximum tax to establish at the time a building permit is issued that the maximum has been reached and that no additional tax is due.

SECTION 4.

Section 3.08.200 of the Sacramento City Code is hereby amended to read as follows:

3.08.200 Housing and shelter.

A. Rental of residential real property. Except for short -term rentals as defined in section 17.228.104.D, e very person engaging in the business of offering residential real property for rental shall pay a flat annual business operations tax of $ 114 plus a flat tax of $2.85 for each rental unit in excess of four units. Any person with fewer than four units is exempt from payment of the business operations tax.

B. Hotels, motels, short-term rentals. Eve ry person engaging in the business of renting out accommodations substantially on a transient occupancy basis , including short-term rentals as defined in section 17.228.104.D, shall pay a flat annual business operations tax of $114 plus a flat tax of $2.85 for each rental unit in excess of three units per situs.

C. Rental of nonresidential real property. Persons engaging in the business of offering nonresidential real property for lease or rental shall be taxed pursuant to section

3.08.170.

D. Maximum tax. The maximum annual tax liability for any person under subsection A, and for any situs under subsection B, is as set forth in section 3.08.255.

E. Flat tax rate adjustment. The flat tax rates in this section shall be adjusted annually as provided in section 3.08.255.

SECTION 5.

Section 3.08.240 of the Sacramento City Code is hereby amended to read as follows:

3.08.240 Penalties.

If a business operations tax owed under this chapter is not paid within 30 days of the date the tax is due and payable, a penalty shall be added to the unpaid amount. If the tax is still delinquent after an additional 30 days, an additional penalty shall be added to the unpaid amount . The amount of these penalties shall be as established by city counci l resolution.

SECTION 6.

Ordinance No.2023 Adopted on 4
1331527
Section 3.08.255 is hereby a dded to article IV of chapter 3.08 of the Sacramento City Code , to read as follows:

3.08.255 Maximum tax and adjustments.

A. Maximum tax. The maximum annual tax liability under sections 3.08.170,

3.08.180, 3.08.190, and 3.08.200 is set forth in this section.

1. For every person with annual gross receipts of $500,000,000 or less:
a. Effective July 1, 2024, the maximum annual tax liability is $30,000. b. Effective July 1, 2025, the maximum annual tax liability is $60,000. c. Effective July 1, 2026, the maximum annual tax liability is $90,000. d. Effective July 1, 2027, the maximum annual tax liability is $120,000. e. Effective July 1, 2028, the maximum annual tax liability is $150,000.

2. For every person with annual gross receipts in excess of $500,000,000:
a. Effective July 1, 2024, the maximum annual tax liability is $40,000. b. Effective July 1, 2025, the maximum annual tax liability is $80,000. c. Effective July 1, 2026, the maximum annual tax liability is $120,000. d. Effective July 1, 2027, the maximum annual tax liability is $160,000. e. Effective July 1, 2028, the maximum annual tax liability is $200,000.

3. Effective each July 1 thereafter, the maximum annual tax liability shall be increased in proportion to the increase in the Bureau of Labor Statistics Consumer Price Index for All Urban Consumers, San Francisco/Oakland/San Jose area (1982 —1984=100) (or any successor measure) from January 1 st through December 31 st of the immediately preceding year.

B. Gross receipts threshold and flat tax rate adjustments. Effective July 1, 2025 and each July 1 ther eafter, the gross receipts threshold amount in section 3.08.170 and the flat tax rates set fort h in sections 3.08.170, 3.08.180, and 3.08.200 shall be increased in proportion to the increase in the Bureau of Labor Statistics Consumer Price Index for All Urban Consumers , San Francisco/Oakland/San Jose area (1982 —1984=100) (or any successor measure) from January 1st through December 31st of the immediately preceding year.

Ordinance No.2023 Adopted on 5
1331527
SECTION 7. Rate adjustments.

Notwithstanding any tax rate or maximum annual tax liability imposed by this ordinance, the city council may, in its discretion, at any time by resolution implement any lower tax rate or maximum annual tax liability it deems appropriate (including by business type) , and may by resolution increase such tax rate or maximum annual tax liability, not to exceed the tax rate or maximum annual tax liability established under this ordinance.

SECTION 8. Severability.

If any portion of this ordinance is for any reason held to be invalid or unenforceable by a court of competent jurisdiction, the remaining portions of this ordinance shall rem ain in effect. The people of the City of Sacramento hereby declare that they would have adopted each portion of this ordinance, notwithstanding the fact that any one or more portions of this ordinance is declared invalid or unenforceable and, to that end, the provisions of this ordinance are severable.

SECTION 9. Majority Approval; Effective Date.

This ordinance shall be effective only if approved by a majority of the voters voting on this ordinance and shall go into effect on July 1, 2024.

Adopted by the City of Sacramento City Council on by the following vote:

Ayes:

Noes:

Abstain:

Absent:

MAYOR
Attest:

City Clerk
Ordinance No.2023 Adopted on 6
1331527

Passed for Publication:

Published:

Effective:

Sacramento City CouncilNovember 14, 2023

Sacramento City Council
November 14, 2023