RESOLUTION NO. R-26-04
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SAN MARINO, CALIFORNIA, DECLARING A FISCAL
EMERGENCY; CALLING AND GIVING NOTICE OF A
SPECIAL ELECTION TO BE HELD ON JUNE 2, 2026, AND
SUBMITTING ONE BALLOT MEASURE TO THE VOTERS
TO AMEND THE SAN MARINO CITY CODE TO ADD A
NEW ARTICLE 05 (“TRANSACTIONS AND USE TAX”) TO
CHAPTER XXVI, TO ESTABLISH A ONE-PERCENT
TRANSACTION AND USE GENERAL TAX; REQUESTING
THE BOARD OF SUPERVISORS OF THE COUNTY OF LOS
ANGELES TO CONSOLIDATE THE BALLOT MEASURE
ELECTION WITH THE STATEWIDE DIRECT PRIMARY
ELECTION ON JUNE 2, 2026; AND DESIGNATING
INDIVIDUALS TO SUBMIT PRIMARY AND REBUTTAL
BALLOT ARGUMENTS IN FAVOR OF THE BALLOT
MEASURE
WHEREAS, the City Council of the City of San Marino (“City Council”) is authorized to levy a transactions and use tax for general governmental purposes (a “general tax”) pursuant to California Revenue and Taxation Code Section 7258.9, subject to approval by a two-thirds vote of all members of the City Council and by a majority vote of the electorate pursuant to California Constitution Article XIII C, Section 2, and California Government Code Section 53724; and WHEREAS, the City Council is authorized to submit a measure for voter consideration to enact an ordinance at a special election pursuant to California Elections Code Section 9222; and WHEREAS, the City Council intends to submit to the voters a measure to adopt a new one-percent Transaction and Use Tax (“TUT”) on the privilege of selling tangible personal property at retail and upon the storage, use, or other consumption in the City of tangible personal property, pursuant to California Revenue and Taxation Code Parts 1.6 and 1.7 (including Sections 7251 – 7279.6 and 7285.9 – 7285.92); and
WHEREAS, the City Council intends to present the TUT measure on the ballot as a general tax imposed for general governmental purposes, with revenue from the TUT to be placed in the City’s general fund to pay for important general City services to include, but not be limited to, repairing streets/sidewalks/alleyways/potholes and other City infrastructure, improving public safety, providing youth and senior programs, library and park maintenance and enhancements, and general government use; and
WHEREAS, the text of the TUT measure to be submitted to the voters for consideration is as set forth on the Ordinance Imposing a Transaction and Use Tax to be Administered by the California Department of Tax and Fee Administration, as set forth on Exhibit “A,” attached hereto and incorporated herein by reference (“Ballot Measure””); and WHEREAS, voter consideration of general tax measures are typically consolidated with a regularly scheduled general election for members of the City Council (which would be next scheduled for November 3, 2026); however, the City Council is authorized to call a special election for voter consideration of a general tax if the City Council declares by unanimous vote there is an emergency (which could be scheduled as a special election to be consolidated with the statewide primary election on June 2, 2026), pursuant to California Constitution Article XIII C, Section 2; and
WHEREAS, during a regularly scheduled meeting of the San Marino City Council on November 12, 2025, the City Council received written and spoken evidence documenting the bases to support the conclusion that the City faces an imminent fiscal emergency that must be addressed prior to the next general election scheduled for November 3, 2026, and the record of that City Council meeting on November 12, 2025, is hereby incorporated by reference into this resolution; and
WHEREAS, during that meeting on November 12, 2025, the City Council considered evidence that the City faces a structural financial deficit by which revenue available to the City is insufficient to meet the City’s ongoing obligations to provide municipal services to its residents and property owners, and the City estimates that expenses will exceed revenues by between approximately $788,000 per year in fiscal year 2026-27 to more than $1,350,000 in fiscal year 2030-31, which represents a structural deficit ranging from approximately 2% to 3% of total general fund revenue. A significant portion of the structural deficit is the result of substantial unanticipated increases in the costs of labor required to provide services to the public. These labor costs include significant increases in costs of the California Public Employees’ Retirement System (CalPERS). As presented during the meeting on November 12, this structural deficit exists after the City has already undertaken extraordinary efforts over more than a year to utilize revenue available on a one-time basis, along with efforts to decrease costs through temporary reductions in services; however those one-time and temporary measures are not sustainable and they will not address the ongoing deficit. If the structural deficit is not more comprehensively and sustainably addressed, including through the adoption of the proposed TUT, it will result in a compounding of the deficit over time in a manner that may permanently impair the City’s ability to provide valued municipal services. Therefore, as presented during the meeting on November 12, the City has established a series of plans to more comprehensively address the deficit, and a part of those plans includes presenting the TUT Ballot Measure to the voters for consideration, as set forth in this resolution. It is necessary for the City’s voters to consider the Ballot Measure at the special election on June 2, 2026, in order to provide an opportunity for voters to consider approval of the allocation of limited TUT revenue to provide municipal services to City residents and property owners, as compared to revenue being directed toward other public agencies providing services within the City limits, due to the statutory limitations on the total amount of TUT revenue available to the City (see California Revenue and Taxation Code Sections 7251.1, 7261(a), and 7286.01; California Public Utilities Code Sections 130350.5(d) and 130350.7(h)); and WHEREAS, the City Council determines, after having duly received and considered oral and documentary evidence concerning the fiscal emergency, that it is warranted and necessary to present the TUT to the voters at a special election to be scheduled for June 2, 2026, as set forth in this resolution; and
WHEREAS, this resolution is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Public Resources Code Section 21080(b)(8), and California Code of Regulations Section 15378(b)(5) because it relates to organizational or administrative activities of the City, it leads to the establishment of funding City services within existing service areas, and will not result in direct or indirect physical changes to the environment.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN MARINO, CALIFORNIA, DOES HEREBY FIND, DETERMINE, AND RESOLVE AS FOLLOWS:
SECTION 1. The City Council hereby finds that the facts and determinations set forth in the recitals to this resolution are true and correct and support the City’s Council’s adoption of this resolution.
SECTION 2. The City Council, by unanimous vote, for the reasons described in this resolution, hereby declares the existence of an emergency in that there are imminent financial risks and dangers to the public welfare and the City’s financial ability to provide municipal services at current levels and without disruption, and urgent consideration of the Ballot Measure at the special election described in this resolution is necessary to address this emergency pursuant to California Constitution Article XIII C, Section 2(b).
SECTION 3. The City Council, by unanimous vote, hereby calls a special election on June 2, 2026, for the purpose of submitting the Ballot Measure for consideration of the qualified electors of the City, pursuant to California Constitution Article XIII C, Section 2(b), California Elections Code Sections 9222 and 12001, and California Revenue and Taxation Code Section 7285.9.
SECTION 4. The City Council hereby orders the submission of the Ballot Measure to the voters of the City of San Marino at the special election on June 2, 2026; and, subject to approval by a majority vote of the electorate, the City Council hereby approves the ordinance, and the form thereof as set forth on Exhibit “A” (the “Ballot Measure). Upon approval by a majority of the electorate, the ordinance will amend the San Marino City Code to add a new Article 05 (“Transactions and Use Tax”) to Chapter XXVI to establish a one-percent transactions and use general tax in the City.
SECTION 5. The City Council hereby approves and orders the following ballot question for the Ballot Measure to be submitted to the voters of the City of San Marino at the special election on June 2, 2026:
To maintain funding (that The State of California and Los Angeles County cannot take) exclusively for City of San Marino services including: repairing streets/sidewalks/alleyways/potholes and other City infrastructure, improving public safety, providing youth and senior programs, library and park maintenance and enhancements, and general government use; shall the City of San Marino measure be adopted levying a 1 percent transaction and use tax, raising $1,651,000 annually, until ended by voters?
Yes
No
SECTION 6: Pursuant to California Elections Code Sections 9223 and 9295, the Ballot Measure will be printed and made available for public examination upon request and for no fewer CITY OF SAN MARINO RESOLUTION NO. R-26-04
than ten (10) calendar days prior to being submitted for printing in the voter information guide.
The full text of the Ballot Measure shall be printed in the voter information guide. The City Clerk shall post notice in the City Clerk’s Office of the specific dates that the examination period will run. Notice of the special election is hereby given and the City Clerk is authorized and directed to give further or additional notices of the special election in the time, form and manner as required by law.
SECTION 7: Request for Consolidation. The City Council hereby directs the City Clerk to forward a certified copy of this resolution to the Los Angeles County Board of Supervisors (“Board of Supervisors”) and the County Registrar of Voters. The City Council hereby requests the Board of Supervisors consolidate the City’s special election as described in this resolution with the California Primary Election scheduled for June 2, 2026, pursuant to California Elections Code Division 10, Part 3 (sections 10400, et seq.). The City Council hereby acknowledges that the consolidated election will be held and conducted in the manner prescribed by California Elections Code Section 10418.
SECTION 8: The City Council hereby requests that the Board of Supervisors authorize and direct the County elections department to take any and all steps necessary to hold the special election for voter consideration of the Ballot Measure, pursuant to California Elections Code Section 10002. The City Council determines and declares that the City will pay to the County the reasonable and actual expenses incurred by the County to hold the special election. The City Council hereby authorizes the City Manager to reimburse the County for services performed upon completion of the services and presentation to the City of a properly authorized invoice for services.
SECTION 9: The City Clerk is authorized and directed to take all actions that may be necessary, in coordination with the County Registrar of Voters and the County elections department, to procure and furnish any supplies or equipment that may be necessary in order to properly and lawfully conduct the special election in accordance with this resolution and the requirements of the California Elections Code. The City Manager, or duly authorized designee, is authorized and directed to take all actions and execute all documents deemed necessary to implement the intent of this resolution.
SECTION 10. Pursuant to California Elections Code Section 9280, the City Council hereby directs the City Clerk to transmit a copy of the Ballot Measure to the City Attorney. The City Attorney shall prepare an impartial analysis of the Ballot Measure, not to exceed 500 words in length, showing the effect of the Ballot Measure on the existing law and the operation of the measure, and shall transmit such impartial analysis to the City Clerk.
SECTION 11. Pursuant to California Elections Code Sections 9286 and 9287, the City elections official shall fix the date and time for submitting arguments for or against, as well as rebuttal arguments, for the Ballot Measure.
SECTION 12. Pursuant to California Elections Code Section 9282(b), the City Council will be the individuals authorized to submit ballot arguments in favor of the Ballot Measure, and in rebuttal to any ballot argument in opposition to the Ballot Measure. The City Council hereby CITY OF SAN MARINO RESOLUTION NO. R-26-04
adopts the provisions of California Elections Code Section 9285 regarding the procedures by which the City elections official will consider ballot arguments in favor, against, or rebuttal for the Ballot Measure.
SECTION 13: The City Council hereby finds and determines that this resolution is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Public Resources Code Section 21080(b)(8), and California Code of Regulations Section 15378(b)(5) because it relates to organizational or administrative activities of the City, it leads to the establishment of funding City services within existing service areas, and will not result in direct or indirect physical changes to the environment.
SECTION 14: If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Resolution is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Resolution. The Council hereby declares that it would have adopted this Resolution, and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.
SECTION 15: This resolution shall take effect immediately upon its adoption.
PASSED, APPROVED, AND ADOPTED, at a Regular Meeting of the City Council of the City of San Marino, California, on this _____ day of __________, 2026. ______________________________________
TONY CHOU
MAYOR
ATTEST:
__________________________________
ALISON WALKER
CITY CLERK
CITY OF SAN MARINO RESOLUTION NO. R-26-04
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SAN MARINO )
I, Alison Walker, City Clerk of the City of San Marino, California, hereby certify that Resolution No R-26-04 was adopted by the City Council of the City of San Marino at a Regular Meeting held on the ___ day of _______, 2026, and that the same was adopted by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
________________________________
ALISON WALKER
CITY CLERK