CITY OF SIGNAL HILL
STAFF REPORT
2175 Cherry Avenue • Signal
Hill, California 90755-3799
3/8/2022
AGENDA ITEM
TO:
HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM:
HANNAH SHIN-HEYDORN
CITY MANAGER
SUBJECT:
CONSIDERATION OF A RESOLUTION OF OPPOSITION TO POTENTIAL STATE INITIATIVE 21-0042A1 - THE TAXPAYER PROTECTION AND GOVERNMENT
ACCOUNTABILITY ACT
Summary:
The City received a request from CalCities to adopt a resolution in opposition to Initiative 21-0042A1, the Taxpayer and Government Accountability Act. The initiative creates harmful barriers for local governments and voters by establishing new and stricter rules for raising taxes and fees, limiting the authority of voters, and weakening the ability of government to hold violators of state and local laws accountable.
Recommendation:
Adopt a resolution, entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIGNAL HILL, CALIFORNIA, OPPOSING STATE BALLOT MEASURE 21-0042A1, THE TAXPAYER PROTECTION AND
GOVERNMENT ACCOUNTABILITY ACT
Fiscal Impact:
There is no fiscal impact associated with the recommended action.
Staff cannot identify the precise future financial impact to the City if this ballot measure were to succeed as the language is still evolving. Additionally, implementation of the language contained in the ballot can be anticipated but is not certain until actual enforcement occurs. However, based on financial evaluations completed by CalCities, it is projected this initiative has the potential to risk $1.5 billion in tax revenues for all California cities collectively.
CITY OF SIGNAL HILL Page 1 of 3 Printed on 3/3/2022
powered by Legistar™
3/8/2022
Strategic Plan Objectives:
Goal No. 1: Ensure long-term fiscal stability.
Goal No. 3: Promote a strong local economic base.
Goal No. 6: Promote a transparent and open government.
Background and Analysis:
CalCities monitors policies coming from Sacramento and Washington on behalf of local municipalities. CalCities frequently publishes alerts when policy, legal decisions, or initiatives will significantly impact local government, positively or negatively.
On January 4, 2022, the California Business Roundtable filed the “Taxpayer Protection and Government Accountability Act” or Initiative 21-0042A1. The Taxpayer Protection and Government Accountability Act would amend the California Constitution to severely restrict the ability of the state, counties, other local agencies, and the electorate to approve or collect taxes, fees, and other revenues. The Initiative creates several consequences for local governments and local voters including, but not limited to the following:
1. Raises the threshold for voter approval of local revenue measures proposed by initiative to two -thirds and disallows local agencies from placing advisory measures on the same ballot as any general revenue measure.
2. Sets a 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.
3. Requires voter approval to expand existing taxes (e.g., utility user tax, use tax, hotel tax) to new territory (e.g., annexation) or expand the base (e.g., new utility service). This would require additional tax measures and may deter annexations and land development in cities.
4. Prohibits amendments to City charters to include a tax or fee.
5. Limits the time period new taxes can be imposed.
6. Voids taxes adopted after January 1, 2022, that do not comply with the new rules, unless reenacted.
The above list is not exhaustive but rather is a representation of the contents of the measure that may directly impact the City. If the resolution is adopted, the City will join a coalition of public safety, labor, local government, infrastructure advocates, and other organizations throughout the state in opposing Initiative 21-0042A1.
Reviewed:
_________________________
Sharon del Rosario
CITY OF SIGNAL HILL Page 2 of 3 Printed on 3/3/2022
powered by Legistar™
3/8/2022
Attachments
CITY OF SIGNAL HILL Page 3 of 3 Printed on 3/3/2022
powered by Legistar™