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AN INITIATIVE OF THE PEOPLE OF THE CITY OF SAN CLEMENTE TO ADOPT A SALES TAX INCREASE OF ONE PERCENT (1%) TO PROTECT AGAINST THE
NATURAL HAZARDS OF BEACH EROSION AND FIRES
If passed, this initiative would add a one percent (1%) special transactions and use tax (commonly known as “sales tax”) levied on the retail sale or use of taxable tangible personal property in the City of San Clemente.
Half of the proceeds will be deposited into a new City special fund known as the "Beach Protection Fund", dedicated to the planning, implementation and maintenance of beach protection and restoration efforts. The other half of the proceeds will be deposited into a new City special fund known as the "Fire Protection and Wildfire Preparedness Fund”, dedicated to fire prevention, emergency response support and wildfire risk reduction.
Beach Protection Fund expenditures must directly relate to: (1) sand replenishment, nourishment or retention projects; (2) beach erosion control measures; (3) maintenance, repair or improvement of the Beach Trail, public beach access points, pedestrian bridges, the Pier or beachfront restrooms; or (4) beach water quality protection measures. At least seventy percent (70%) of total Beach Protection Fund expenditures must be for items (1) and (2) above.
Fire Protection and Wildfire Preparedness Fund Expenditures must directly relate to: (1) support for fire protection or emergency medical response services; (2) citywide wildfire prevention programs on both public and private lands; or (3) citywide community outreach, education and engagement programs focused on wildfire prevention and vegetation management across both public and private property.
The two dedicated funds will be subject to the same independent annual audit as other City funds. Up to two hundred fifty thousand dollars ($250,000) from each fund ($500,000 total) may be expended to reimburse the City for its actual costs incurred to the Orange County Registrar of Voters for conducting the elections to enact or extend this tax. The City’s Investment Advisory Committee will serve as an Oversight Committee, reviewing expenditures of all revenue collected to determine whether such funds are properly expended. An accounting of revenues received and expenditures made from the tax will be presented annually to the City Council and made available for public review.
Additionally, the City will be required to prepare and publish an “Annual Accountability Report” including the accounting, breakdowns, summary of progress and outcomes aligned with the required Beach Protection and Wildfire Protection and Preparedness Operational Plans, performance data, unspent funds and proposed future uses, and recommendations for improvements.
Currently, the tax on retail sales within the City of San Clemente is 7.75%, which includes the base tax rate of 7.25% and Orange County’s 0.5% local transportation tax.
Of the 7.25% base tax collected by the State, the City of San Clemente receives 1.00% directly. If passed by a majority vote, the total sales tax rate within the City of San Attachment 5
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Clemente will increase to 8.75% for 10 years and could be extended for one additional 10-year term by another majority vote in 8 years.