SOUTH GATE CITY COUNCIL/ SOUTH GATE HOUSING
AUTHORITY/ SUCCESSOR AGENCY TO THE COMMUNITY
DEVELOPMENT COMMISSION OF THE CITY OF SOUTH GATE
SPECIAL JOINT BUDGET MEETING AGENDA
Tuesday, June
9, 2026 at
6:30 p.m.
JOINT BUDGET MEETING AGENDA
SOUTH GATE COUNCIL CHAMBERS
8650 CALIFORNIA AVENUE
SOUTH GATE, CA 90280
DIAL-IN NUMBER 1 (213) 338-8477
MEETING ID: 873 1579 4571
VIEW MEETING LIVE ONLI477 NE AT:
HTTPS://YOUTUBE.COM/@SOUTHGATECA90280
City Officials
MAYOR,
Joshua Barron
CITY CLERK,
Yodit Glaze
VICE MAYOR,
Al Rios
CITY TREASURER,
Jose De La Paz
COUNCIL MEMBER,
Maria del Pilar Avalos
CITY MANAGER,
Rob Houston
COUNCIL MEMBER,
Maria Davila
CITY ATTORNEY,
Ra
ú
l F. Salinas
COUNCIL MEMBER,
Gil Hurtado
1 . VIEW THE MEETING LIVE ONLINE VIA YouTube:
South Gate, CA - YouTube
Please allow up to 24 hours after the meeting for the archive to be available.
2. LISTEN TO THE MEETING ONLINE VIA ZOOM:
https://us06web.zoom.us/j/87315794571
To address the City Council press *9 to raise your hand and *6 to unmute yourself when instructed.
3. PARTICIPATE BEFORE THE MEETING by emailing the City Clerk at:
1 [email protected] no later than 4:00 p.m. on the day of the meeting. Please write "Public Comment" in the subject line.
4. ATTEND THE MEETING IN PERSON
*The disruption in service of any alternative method does not prelude the City Council or other legislative body from taking further action and moving forward on the agenda.
Meeting Schedule
The regular meetings of the City Council are held on the second and fourth Tuesday of each month, closed session business will usually commence at 5:30 p.m., when scheduled, and general business session will commence at 6:30 p.m.
Brown Act
Agendas are drafted to accurately state what the legislative body is being asked to consider. The legislative body can take action on "all items" listed on the agenda and be in compliance with the open meeting laws. Under the Brown Act, no action may be taken on a matter unless it is listed on the agenda, or unless certain emergency or special circumstances exist. The governing body may direct staff to investigate and/or schedule certain matters for consideration at a future meeting.
City's Vision Statement
We envision a thriving, safe and inclusive community where everyone has the opportunity to access exceptional services, education and support to be resilient and live full, vibrant lives.
Public Communications
Public Comments on agenda items are limited to three (3) minutes. All comments are to be addressed directly to the Agency Members not to the members of the public.
Emails for public comment received prior to 4:00 pm on the day of the Council Meeting will be summarized by the City Clerk, not read in its entirety. A copy of the email will be provided to the City Council and will also be available at the City Clerk's Office for public review. A copy of each email will be recorded for public record and noted on the official minutes of tonight's meeting.
Call to Order/Roll Call With Invocation & Pledge
CALL TO ORDER:
Joshua Barron, Mayor
INVOCATION:
Tina De La Rosa, Acting Director of Parks & Recreation
PLEDGE OF ALLEGIANCE:
ROLL CALL:
Yodit Glaze, City Clerk
Public Hearings
1. Continued from 04/28/2026 Meeting - Draft Community Development Block Grant (CDBG) and HOME Investment Partnership FY 2026-2027
2 Following the conclusion of the public hearing, the City Council will consider: (CD)
a. Adopting a Resolution approving the Fiscal Year 2026-2027 Annual Action Plan;
b. Authorizing the City Manager, or designee, to submit to the U.S. Department of Housing and Urban Development (HUD) the Fiscal Year 2026-2027 Annual Action Plan; and
c. Authorizing the City Manager or his designee to enter into agreements with eligible subrecipients in a form acceptable to the City Attorney.
Documents:
Item 1 Report 06092026.pdf
2. Fiscal Year 2026-27 Budget, Master Fee and Charges Schedule, CIP and Appropriations Limit for Fiscal Yr. 2026-27
Following the conclusion of the public hearing, the City Council will consider: (AS)
a. Receive and file presentations on the Proposed FY 2026-27 Budgets and 1-Year Capital Improvement Program (CIP);
b. Adopt a Resolution approving the FY 2026-27 Municipal Budget in the amount of $282,102,715, including all funds and departments, and adopting the included Financial and Budgetary Policies, along with any additions or deletions the Legislative Bodies may enact;
c. Adopt a Resolution recalculating the FY 2025-26 Gann Appropriations Limit in the amount of $109,371,003 and establishing the FY 2026-27 Gann Appropriations Limit in the amount of $114,853,681;
d. Adopt a Resolution establishing the FY 2026-27 Master Fees and Charges Schedule and rescinding Resolution No. 2025-26-CC.
Documents:
Item 2 Report 06092026.pdf
Reports and Presentations
3. Potential Language Change of UUT Measure
The City Council will consider: (CM)
a. Selecting a Utility Users Tax rate of 8% or 9%, in place of the 7% rate reflected in the documents presented on April 14, 2026;
b. Adopting the Amended and Restated Resolution, submitting the revised ballot measure 3 to the voters at the November 3, 2026 General Municipal Election, by the required two- thirds vote of the full Council under California Government Code section 53724(b);
c. Approving the revised proposed Ordinance for submission to the voters; and
d. Directing staff to transmit the adopted documents to the Los Angeles County Registrar- Recorder/County Clerk before the August 7, 2026 filing deadline.
Documents:
Item 3 Report 06092026.pdf
4. Zoom and Agenda Translation Update
-
Comments From The Audience - Non-Agenda Items
During this time, members of the public may address the City Council regarding any items not listed on the agenda and within the subject matter jurisdiction of the City Council and not on this agenda. Comments from the audience will be limited to three (3) minutes per speaker; unless authorized by the Mayor, the time limit may not be extended by utilizing another member's time. There will be no debate or action on items not listed on the agenda unless authorized by law. The collective initial period of time for comments from the audience shall be limited to 45 minutes. Any speaker that did not get a chance to speak during this segment due to the 45-minute limitations will be able to speak at the end of the meeting prior to adjournment.
Note: The City Council desires to provide all members of the public with the opportunity to address the Council. Nevertheless, obscene language, comments intended to disrupt/interfere, other actions which disrupt the progress of the meeting or slanderous comments will not be tolerated and may result in ejection and/or may constitute a violation of South Gate Municipal Code Section1.04.110.
Reports And Comments From City Officials
During this time, members of the City Council will report on matters pertaining to their service on various intergovernmental boards and commissions as a representative of the City pursuant to Assembly Bill 1234. City Council Members will also have an opportunity to comment on matters not on the agenda.
Consent Calendar Items
Agenda Items
5,6,7,8,9,10,11,12
,
13,14,15, and 16
are Consent Calendar Items. All items
including Ordinances, Resolutions and Contracts, may be approved by adoption of the Consent Calendar, individually and collectively by one (1) motion. There will be no separate discussion of these items unless Members of the City Council, the public, or staff request that specific items be removed from the Consent Calendar for separate discussion and action.
Members of the public are permitted to speak on any item listed but their time period is limited to three (3) minutes in total.
4 Any motion to introduce or adopt an Ordinance on the Consent Calendar shall be: (1) a motion to waive the reading of the Ordinance and introduce the Ordinance or (2) a motion to waive the reading of the Ordinance and adopt the Ordinance, as appropriate.
5. Calling for the General Municipal/Consolidated Election of November 3, 2026
The City Council will consider: (CLERK)
a. Adopting a Resolution calling for the holding of a General Municipal Election to be held on Tuesday, November 3, 2026, for the election of certain officers and requesting the Board of Supervisors of the County of Los Angeles to consolidate the election with any and all elections also called to be held on Tuesday, November 3, 2026 and requesting the Board to render specified services to the City relating to the conduct of a General Municipal Election to be held on Tuesday, November 3, 2026; b. Adopting a Resolution approving regulations for Candidates for Elective Office pertaining to Candidates' Statement Submitted to the voters at the General Municipal Election to be held on Tuesday, November 3, 2026;
c. Adopting a Resolution to resolve a tie vote by Lot using the coin toss method for Elective Offices in the event of a tie vote at the November 3, 2026, Municipal Election; and
d. Authorizing the City Clerk to issue a notice of a General Municipal Election to be held on November 3, 2026.
Documents:
Item 5 Report 06092026.pdf
6. Adopt Ordinance Granting a Franchise Agreement to Torrance Pipeline Company, LLC
The City Council will consider: (PW)
a. Waiving the reading in full and adopt Ordinance No. ________ granting a five-year
franchise to Torrance Pipeline Company, LLC, with an
automatic five-year extension
unless the City provides timely notice of termination, for the use, maintenance, repair,
and replacement
of one existing pipeline beneath designated public streets, together with related appurtenances, for the transmission and distribution of oil and oil products.
Documents:
Item 6 Report 06092026.pdf
7. Approve Resolution Adopting the Local Streets and Roads Funding Program Project List for Fiscal Year 2026-27
The City Council will consider: (PW)
5 a. Adopting a Resolution adopting the Local Streets and Roads Funding Program Project List for Fiscal Year 2026/27 to program (a) $350,000 in Senate Bill 1 funds for the Annual Sidewalk Grinding Program, (b) $1,450,000 in Senate Bill 1 funds for the Citywide Residential Resurfacing Phase V, (c) $408,180 in Senate Bill 1 funds for the Citywide Residential Resurfacing Phase VI, and (d) $400,000 in Senate Bill 1 funds for the Citywide Sidewalk Improvements Phase XI, for a grant total of $2,608,180 in Senate Bill 1 funds.
Documents:
Item 7 Report 06092026.pdf
8. Approve Amendment No. 1 to Contract No. 2022-83-CC with United Pacific Services for Modification of Tree Trimming Cycle from a 4-Year to a 5-Year Cycle
The City Council will consider: (PW)
a. Approving Amendment No. 1 to the Agreement with United Pacific Services, Inc., extending the agreement through June 30, 2027, for continued citywide tree maintenance services and modifying the tree trimming cycle from a four-year cycle to a five-year cycle, for a not to exceed amount of $859,955; and
b. Authorizing the Mayor to execute Amendment No. 1 to the Agreement, Contract No. 2022-83-CC, in a form acceptable to the City Attorney.
Documents:
Item 8 Report 06092026.pdf
9. Approve Amendment No. 1 to Contract No. 2025-86-AC with MV Cheng & Assoc.
Extending Professional Financial and Accounting Services and Reallocation of Funds
The City Council will consider: (AS)
a. Approving Amendment No. 1 to Contract No. 2025-86-AC, Professional Services Agreement with MV Cheng, extending the professional financial and accounting services contract through December 31, 2026, or until project completion,
b. Authorizing the Mayor to execute Amendment No. 1 in a form acceptable to the City Attorney, and
c. Approving the reallocation of $5,000.00 from Salaries (Account No. 100-301-12-5101) to Professional Services (Account No. 100-301-12-6101) to fund the contract for the remainder of the current fiscal year (FY 2025-26).
Documents:
Item 9 Report 06092026.pdf
10. Approve Agreement with NV5 for Construction Management and Inspection 6 Services City Hall Reroof Project, City Project No. 732-ARC
The City Council will consider: (PW)
a. Approving an Agreement with NV5, Inc. to perform construction management and inspection services on the South Gate Park Wells Reservoir Interconnection City Project No. 746-WTR (Interconnection Project), in an amount not-to-exceed $68,603;
b. Authorizing the City Manager to approve and execute amendments to the Agreement up to a cumulative amount of $50,000; and
c. Authorizing the Mayor to execute the Agreement in a form acceptable to the City Attorney.
Documents:
Item 10 Report 06092026.pdf
11. Approve Agreement with JA Salazar for Construction of South Gate Park Wells Reservoir Interconnection Project, City Project No. 746-WTR
The City Council will consider: (PW)
a. Approving Agreement with JA Salazar for the construction of the South Gate Park Wells Reservoir Interconnection, City Project No. 746-WTR, in an amount not-to-exceed $305,948;
b. Authorizing the Mayor to execute the Agreement in a form acceptable to the City Attorney;
c. Authorizing the City Manager to approve contract change orders up to a cumulative amount of $100,000 in Water Funds; and
d. Approving the Notice of Exemption for South Gate Park Wells Reservoir Interconnection, City Project No. 746-WTR (Interconnection Project).
Documents:
Item 11 Report 06092026.pdf
12. Deductive Change Order and Notice of Completion for the Automatic Meter Reading Upgrade, Phase IV, City Project No. 685-WTR
The City Council will consider: (PW)
a. Approving Deductive Change Order No. 1 to Contract No. 2025-02-CC with JA Salazar Construction & Supply Corporation for the Automatic Meter Reading (“AMR”) Upgrade, Phase IV, City Project No. 685-WTR, reducing the contract amount by $112,145;
b. Authorizing the City Manager to execute Deductive Change Order No. 1 to Contract 7 No. 2025-02-CC;
c. Accepting completion of the Automatic Meter Reading (“AMR”) Upgrade, Phase IV, City Project No. 685-WTR by JA Salazar Construction & Supply Corporation, effective October 31, 2025; and
d. Directing the City Clerk to file a Notice of Completion with Los Angeles County Registrar Recorder’s Office.
Documents:
Item 12 Report 06092026.pdf
13. Notice of Completion and Appropriation of Funds for the Tweedy Mile Project, City Project No. 614-ST
The City Council will consider: (PW)
a. Approving the Notice of Completion for the construction of the Tweedy Mile Complete Street Project, City Project No. 614-ST, Federal Project No. ATPL-5257 (039) (“Project”), performed by Sequel Contractors, Inc., effective May 30, 2025;
b. Appropriating $149,000 in Proposition C Funds and $101,000 in Measure M Funds to pay outstanding administrative expenditures on the Tweedy Mile Complete Street Project, City Project No. 614-ST, Federal Project No. ATPL-5257 (039);
c. Transferring $75,000 in Measure W Funds from the Chakemo Improvements - Atlantic- Legacy, City Project No. 593-ST. to the Tweedy Mile Complete Streets, City Project No. 614-ST, Federal Project No. ATPL-5257 (039); and
d. Directing the City Clerk to file the Notice of Completion with the Los Angeles County Registrar Recorder’s Office.
Documents:
Item 13 Report 06092026.pdf
14. Ratification of Emergency Storm Drain Repairs and Authorization of Payment to Pipe Tec for Work at Hollydale Regional Park
The City Council will consider: (PW)
a. Approving Amendment No. 2 to the Agreement for Sanitary Sewer Main Closed-Circuit Television Inspection Services Agreement, Contract No. 2023-65-CC (“Agreement”), with Pipe Tec to fund emergency storm drain repair work performed at Hollydale Regional Park.
Documents:
8 Item 14 Report 06092026.pdf
15. Funding Appropriation from the South Gate Police Department, Heating, Ventilation, and Air Conditioning Replacement Project, City Project No. 667-GEN for the Construction of South Gate Emergency Operational Center, City Project No. 582-ARC
The City Council will consider: (PW)
a. De-obligating $308,667 in Building Infrastructure and Maintenance Funds from the EOC Renovation Project, City Project 582-ARC.
b. Reallocating $308,667 in Building Infrastructure and Maintenance Funds from the SGPD-HVAC Renovation Project, City Project 667-GEN, to the South Gate Emergency Operations Center, City Project No. 582-ARC, to fully fund construction services.
Documents:
Item 15 Report 06092026.pdf
16. Blanket-Asphalt Materials Purchase Order
The City Council will consider: (PW)
a. Approving a $10,805 increase to the Blanket Purchase Order for asphalt materials to cover current expenditures and outstanding invoices.
Documents:
Item 16 Report 06092026.pdf
Recommendations and Requests
17. City Council Appointments to the Various City Commissions, Committees, and Boards
The City Council will consider: (CM)
a. Ratifying the motion made by Council Member Maria Del Pilar Avalos to remove Eric Trujillo as her representative from Parks & Recreation Commission.
Documents:
Item 17 Report 06092026.pdf
18. Warrant Register for June 9, 2026
The City Council will consider: (ADMIN SVCS)
9 a. Approving the Warrant Register for June 9, 2026.
Total of Checks: $2,109,959.09 Less: Voids
(0.00)
Less: Employee Payroll Deductions
(404,534.29)
Grand Total: $1,705,424.80
Cancellations: None
Documents:
Item 18 Report 06092026.pdf
Adjournment
I, Yodit Glaze, City Clerk, certify that a true and correct copy of the foregoing Meeting Agenda was posted on June 4, 2026, at 7:30 p.m., as required by law.
Yodit Glaze
City Clerk
GENERAL NOTICE TO THE PUBLIC
The City Council adopted new rules relating to the conduct of the public meetings, proceedings, and business in the City of South Gate on July 12, 2022, (Resolution 2022-38-CC) and go into effect on August 1, 2022. Resolution #2022-38-CC is available at the City Clerk’s Office.
MEETING SCHEDULE
Regular meetings of the City Council are held on the second and fourth Tuesday of each month, closed session meetings will commence at 5:30 p.m. unless posted otherwise on its agenda. The regular City Council meetings will commence at 6:30 p.m. Agendas are available at the following locations:
City Clerk
Office,
Public Notice Boards at City Hall, and on the
City’s web page at https://www.cityofsouthgate.org
The Public can sign up to receive automatic notices of postings of agendas for the City Council or any other Commission or Board of the City of South Gate. Visit the City webpage and click on the Agenda & Minutes icon. That will take you the page where an individual can enter their email in the “Email Updates” box to register.
PUBLIC COMMENT/PARTICIPATION
Any person may request to address a legislative body during a public meeting. The Presiding Officer will call upon those present in the Council Chambers first. After all speakers in the Chambers have spoken, the Presiding Officer will call upon those participating via zoom or teleconference.
Speakers are limited to three (3) minutes on any item listed on the agenda, including public hearings.
Under Comments from the Audience portion, speakers are also limited to a single three (3) minutes time limit. Comments from the Audience is initially limited to 45 minutes at each meeting. Any speaker still wishing to speak, that did not speak, will have an addition Comments from the Audience opportunity after 10 the last business item is finished. The Presiding Officer may extend the time limit as long as there is no objection from the City Council as a body.
To ensure that the public is able to participate, the City provides the opportunity to submit their comments in person, virtually, email, phone call, mail and any other method which may become available. Methods of participation may be subject to change during other such times when a State of Emergency, Health Order or State Executive Order limits in-person participation.
CURFEW
In absence of a motion duly adopted by majority vote of the City Council, the Presiding Officer may adjourn the City Council meetings at 10:30 p.m. The Presiding Officer may ask the City Council if any agenda items listed should be continued or dealt with during the meeting. For those items to be continued, the City Council can direct the item be placed on the next City Council agenda or the current meeting may be adjourned to a time certain at which time the meeting shall be reconvened as an Adjourned Regular Meeting of the City Council and action upon the published agenda continued.
STAFF REPORTS
As a general rule, staff reports. or other written documentation are prepared/organized with respect to each item of business listed on the agenda. Meeting agendas and staff reports are available at least 72- hours prior to the scheduled regular City Council meeting and a minimum of 24-hours prior to a Special City Council meeting. There are times when the City Council receives written material. revised material after the posting of agendas, these materials are become a public record and will be available for public view within 72-hours after the meeting in which they were received. Those materials and any other public document can be inspected in the City Clerk's Office located at 8650 California Avenue, South Gate.
SERVICES TO FACILITATE ACCESS TO PUBLIC MEETINGS
In compliance with the American with Disabilities Act, if you need special assistance to participate in the City Council Meetings, please contact the Office of the City Clerk. Notification 48 hours prior to the City Council Meeting will enable the City to make reasonable arrangements to assure accessibility. For further information, please contact the Office of the City Clerk at (323) 563-9510 or via email at [email protected]
.
11 Office of the
South Gate City Clerl.
'JUN - 4 ,)(1;'6 Item No. 1
FILED
q:,,, Ci0 ofSouth Gate
CITY COUNCIL
AGENDA BULL
For the Regular Meeting of: June 9, 2026
Originating Department: Community Development
1)epartmentDirector:'/""""'(j"{ CipManager: J/oJ""{"(j=l Gabriel Perez Rob Houston
SUBJECT: FISCAL YEAR 2026-2027 ANNUAL ACTION PLAN FOR THE COMMUNITY DK:VELOPMENT BLOCK GRANT (CDBG) AND HOME INVESTMENT PARTNERSHnaS (HOME) [8.
PURPOSE: To consider adopting Fiscal Year 2026-2027 Annual Action Plan for the CDBG and HOME Funds.
RF,COMMENDF,D ACTIONS: Following the conclusion of the Public Hearing, the City Council will consider:
a. Adopting a Resolution approving tJhe Fiscal Year 2026-2027 Annual Action Plan; b. Authorizing the City Manager, or designee, to submit to the U,S. Department of Housing and Urban Development (HUD) the Fiscal Year 2026-2027 Annual Action Plan; and c, Authorizing the City Manager or his designee to enter into agreements with eligible subrecipients in a form acceptable to the City Attorney.
FNSCAL NMPACT: In Fiscal Year 2026-2027, the City of South Gate has been allocated $1,153,140 in CDBG funds with an additional $34,099 available as carryover and $486,118.63 in HOME funds.
There is no fiscal impact to the City's General Fund.
NOTICING REQtJIREMENT:
Advertising andnotification ofthe PublicHearing were conducted incotnpliance with Municipal Code Section 11,50,020 (Public HearingNotification) and published in The South Gate Press on March 26, 2026, The notice provided for a 30-day public comment period, The Public Hearing was originally scheduled for April 28, 2026; however, at thatmeeting, the City Council continued the Public Hearing to June 9, 2026. In addition, a draft copy of the Fiscal Year 2026-2027 Annual Action Plan (AAP) andthe Public HearingNotice were posted onthe City's website, The draft AAP will remain available forpublicreview and comment, and atiy comments receivedwill be addressed during the June 9, 2026, Public Hearing meeting.
ANALYSNS: Each year, the City prepares an Annual Action Plan in connection with the five-year Consolidated Plan, which details how the City will spend its allocated CDBG and HOME f'unds. The AAP is the second year of the five-year Consolidated Plan cycle that was adopted on July 8, 2025.
The AAP has two principal purposes:
1 12
* To identify the projects and programs to be undertaken during the upcoming fiscal year, and the proposed objective and outcomes to be achieved within the overall context of the five-year consolidated plan; and
* To act as the City's application process for federal formula grants, comprised of the CDBG and HOME programs.
For FY 2026-2027 HUD has allocated the City $1,153,140 in CDBG fiu'ids with an additional $34,099 available as carryover, and $486,118.63 in HOME funds.
On October 30, 2025, a legal notice of funding availability was published, and notifications were sent to non-profit organizations and city departments to inform prospective applicants of the availability of CDBG funds for Fiscal Year 2026-2027. The Citizen Advisory Committee (CAC) reviewed the applications and later heard presentations from the applicants at their meetings of February 18, 2026, and February 25, 2026. The CAC recommendation for the Public Service programming was that, should the City receive less funding, only the Graffiti Abatement allocation would be decreased. All other non-Public Service programming would be changed proportionately.
The proposed CDBG funding allocations as recommended by the Citizen Advisory Committee for Fiscal Year 2026-2027 are as follows:
Anticipated CDBG Funding Allocation for FY 2026-2027 $1,153,140 Carz Over $34,099
Administration (20% Fisca} Year Allocation Cap) $230,628 CDBG: Fair Housing (2026) $24,000
CDBG: Administration (2026) $206,628
Publie Services (15% Fiscal Year Allocation Cap) $172,971 CDBG: Graffiti Abatement Program (2026) ' $107,971 CDBG: Family Violence Prevention Program (2026) $27,000 CDBG: Police Explorers (2026) $23,000
CDBG: South Gate Home Modification Program (2026) $15,000 Non-Public Services $783,640
CDBG: South Gate Women's Business Center (2026) $12,000 CDBG: Neighborhood Revitalization Program (2026) $385,820 CDBG: Street and Sidewalk Improvement Program (2026) $385,820 Tthttxl Ffflll//(' l'vnnthcod #th AJ? I}vt'mvnmmotl ftsv'T7V ')(J'Hs-1{J')7 QI I S2'7 ')20 Jl lull &6& A Ml & I&iJ Jl I I/F I/IJ L 14 At/ u & J111161 u 18118 ff &L All J It/ l Jl 1 jd u di l/- jir t/ j / D j_ 5111 l 5Av iJ ) The proposed HOME funding allocations for FY 2026-2027 are listed below:
Antiiaing+pd TT()'A4'F. Runding A11npg#irirn flip RV InM';-lnll QzlS26 11 52 /,1 11 $1 l P @Al l) %ll A Y -a_JLlJ Jl IJljUl IJI l h L &ll Nv k All 11 "- i 11 Ad l 141 "T 11115111Jiilf HOME: Administration (2026) * $48,611
HOME: Residential Rehabilitation Program (2026) $364,590.63 HOME: CHDO Set Aside (2026) $72,917
Total Fumds Proposed to be Programmed,for FY2026-2027 $486,118.63 * HOME Administration has 1 0% cap
2 13
BACKGROUND: The City of South Gate has been an annual recipient of CDBG funds since the enactment of the Housing and Community Development Act of 1974. The City is deemed as an "entitlement" jurisdiction because it maintains a population above 50,000 and meets certain other demographic criteria. CDBG funding can be used for a variety of projects and programs primarily benefiting persons of low- and moderate-income.
The HUD regulations regarding AAPs mandate citizen participation and public review process, including a public hearing, prior to submission. The draft Annual Action Plan is available for public review and comment (Attachment B).
ATTACHMENTS: A. Proposed Resolution
B. Draft AAP
C. Proof of Publication - Public Hearing Notice
3 14
Attachment A
Agenda Bill 6/09/26
RESOLUTION N0. 2026
CITY OF SOUTH GATE
LOS ANGELES COUNTY, CALIFORNIA
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA, RECEIVING AND APPROVING THE FISCAL YEAR 2026-2027
ANNUAL ACTION PLAN AND AUTHORIZING THE EXECUTION OF ALL NECESSARY DOCUMENTS FOR THE SUBMITT AL OF SAID PLAN TO THE U.S.
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WHEREAS, the U.S. Department of Housing and Urban Development ("HUD") requires all jurisdictions that receive federal entitlement funds to prepare an Annual Action Plan that identifies the projects to be '[unded with Community Development Block Grant ("CDBG") and HOME Investment Partnerships ("HOME");
WHEREAS, the City of South Gate ("City") prepared and submitted a Five-Year Consolidated Plan, wich contained an Action Plan, to HUD for the City covering the period July 1, 2025, to June 30, 2030;
WHEREAS, the purpose ofthe Consolidated Plan and the Annual Action Plan is to identify housing and community development needs andto develop specific goals and objectives to address those needs over a five-year period and is a requirement of the U.S. Department of Housing and Urban Development that the City must meet in order for the City to continue to receive federal housing and cornrnunity development funds;
WHEREAS, the Annual Action Plan constitutes an application to HUD for Fiscal Year 2026-2027 federal furids from the CDBG and HOME programs; WHEREAS, the City has prepared an Annual Action Plan for Fiscal Year 2026-2027 with the participation of the Citizens Advisory Cornrnittee and made it available for public review and comments on March 26, 2026, which was posted on the City's website for the required thirty-day public review period;
WHEREAS, the City published a Notice of Availability of the Annual Action Plan for Fiscal Year 2026-2027 and a Notice of Public Hearing on March 26, 2026, scheduling this matter for final public comment and City Council consideration for April 28, 2026, and at that meeting, the City Council continued the Public Hearing to June 9, 2026.
WHEREAS, on June 9, 2026, the City Council did conduct a duly noticed public hearing to hear public cornrnent on the Annual Action Plan for Fiscal Year 2026-2027 and received final public comment on this Annual Action Plan.
NOW, THERF,FORE, THE CITY COUNCIL OF THF, CITY OF SOUTH GATE DOES HEREBY RESOLVE AS FOLLOWS:
SF,CTION 1. The City Council does hereby declare that the above recitals are true and correct and are incorporated herein by reference.
Pagelof3
15 SECTION 2. The City Council does hereby approve the Fiscal Year 2026-2027 Annual Action Plan attached hereto as Exhibit "A."
SECTION 3. The City Manager, and/or their designee, is authorized to take reasonable actions needed to implement this Resolution, including adjusting program funds based on HUD's final allocation and respective program percentages. The City Manager, and/or their designee, is further authorized to submit the Annual Action Plan to the appropriate HUD office on behalf of the City and to promulgate and implement administrative policies and procedures needed to effectuate the Annual Action Plan.
SECTION 4. The City Manager and/or their designee is hereby directed to file a copy of said Annual Action Plan to HUD.
SECTION 5. The City Manager is hereby authorized to enter into agreements with eligible sub- recipients, in a form acceptable to the City Attorney.
SECTION 6. The City Clerk shall certify the adoption of this Resolution which shall be effective upon its adoption.
PASSED, APPROVED, and ADOPTED on this 9'day ofJune 2026.
CITY OF SOUTH GATE:
Joshua Barron, Mayor
City of South Gate
ATTEST:
Yodit Glaze, City Clerk
City of South Gate
(SEAL)
APPROVED AS TO FORM:
DRAFT('
Raul F. Salinas, City Attorney
City of South Gate
Page2of3
16 ST ATE OF CAI,IFORNIA
COUNTY OF LOS ANGELES
CITY OF SOUTH GATE
SS:
I, Yodit Glaze, City Clerk of the City of South Gate, County of Los Angeles, State of California, hereby certify that the foregoing Resolution ff was passed and adopted by the City Council of the City of South Gate, signed by the Mayor and attested by the City Clerk at a regular meeting of said Council held on the 9" day of June, 2026 and that said Resolution was adopted by the following vote, to-wit:
AYES:
NOES:
ABST AIN:
ABSENT:
Yodit Glaze, City Clerk
City of South Gate
Page3of3
17 Attachment B
Agenda Bill 6/09/26
Cityof
South
(,ate-
FISCAL YEAR 2026-2027 AN
DRAFT
NUAL ACTION PLAN
Annual Action Plan SOUTH GATE
OMB Control No: 25'06-0117 (exp. 09/30/2021)
18 Table of Contents
Executive Summary... 3
AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b) PR-05 Lead & Responsible Agencies - 91.200(b).
AP-20 Consultation - 91.100, 91.200(b), 91.215(1). 3 6
7 AP-12 Participation - 91.105, 91.200(c) 12
AP-15 Expected Resources - 91.220(c)(1,2).
AP-20 Annual Goals and Objective.
AP-35 Projects - 91.220(d).
AP-38 Project Summary......
AP-50 Geographic Distribution - 91.220(f)
Affordable Housing.....
AP-55 Affordable Housing - 91.220(g).
AP-60 Public Housing - 91.220(h)
AP-65 Homeless and Other Special Needs Activities - 91.220(i).
AP-75 Barriers to Affordable Housing - 91.220(j)...
AP-85 0ther Actions - 91.220(k).. .. .. ...... ......
AP-90 Program Specific Requirements - 91.220(1) (1,2,4).
Annual Action Plan SOUTH GATE
OMB Control No: 2506-0117 (exp. 09/30/2021)
19 Executive Summary
AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b)
1. Introduction
The City of South Gate's 2026-2027 AAP is based on priorities established by the City's Five-Year Consolidate Plan (FY 2025-2029). The 2026-2027 Action Plan is the second year of the City's FY 2025-2029 Consolidated Plan and serves as the City's blueprint for providing decent affordable housing to lower-income households, providing suitable living environments, expanding economic opportunities, and expanding the capacity of non-profit housing providers to the residents of the City of South Gate. This strategic plan sets forth goals, objectives, and performance benchmarks for measuring and establishing a framework for progress. The City will receive Sl,153,140 in FY 2026-2027 CDBG funds with an additional S134,099 available in carryover funds, for a total of Sl,187,239. The City will also receive S486,118.63 in HOME funds for FY 2026-2027. Currently the City does not anticipate any additional HOME carryover funds for programming.
The City's Community Development Department manages, plans, submits, and implements the CDBG and HOME grant process. The Department is involved in activities which enhance coordination among public and non-profit, private housing providers, and health and service agencies.
2. Summary of the objectives and outcomes identified in the Plan Needs Assessment Overview
The CDBG and HOME funds will be used to meet the objectives and goals established in the 2025- 2029 Consolidated Plan.
The goals of the 2025-2029 Consolidated Plan include:
@ Public Services
* Maintain & Provide Affordable Housing
* Public Facilities & Infrastructure Improvements
* Economic Development
* Fair Housing
* Planning & Administration
3. Evaluation of past performance
The City continually strives to improve the performance of its operations and those of its partners who provide services to City residents. The City prepares the Consolidated Annual Annual Action Plan
OMB Control No: 2506-0117 (exp. 09/30/2021)
20 Performance Evaluation and Report (CAPER) annually, which documents progress toward implementing the strategies and meeting the goals established in the Consolidated Plan and the Annual Action Plans.
Over the past years, the City's CDBG funds were used for meeting the City's goals of providing decent housing, creating a suitable living environment, and expanding economic opportunities to low-and moderate-income persons in South Gate.
Below is a summary of the City's program accomplishments for the FY 2024-2025, the most recent completed program year:
296 people were assisted with tenant/landlord issues via fair housing services 56 people benefitted from the public services offered The Graffiti Abatement program worked in areas that benefited over 90,000
4. residents
Summary of citizen participation process and consultation process The City is committed to maximizing community participation in the CDBG and HOME planning process. To ensure that its FY 2026-2027 Annual Action Plan was based on resident needs, the City used the following approach to create participation of residents, service providers, and other interested persons and organizations:
South Gate Citizens Advisory Committee
The South Gate Citizens Advisory Committee (CAC) is an advisory board created by the City Council to ensure constant dialog exists between the City and the community. The role of the CAC is twofold. First, to ensure that the City Council is appraised of the needs, desires, and interests of City residents. Second, to review and make recommendations on CDBG funding to the City Council. The CAC is comprised of members representing the demographic and social range of residents in the City. The CAC was actively involved in the Annual Action Plan process.
The CAC reviewed and discussed the 2026-2027 Public Services applications and then made funding recommendations to the City Council for the Annual Action Plan. It is anticipated that the CAC will continue to serve in an advisory role in the CDBG process.
Annual Public Services Application Process
The annual Public Services selection process established by the City requires applicants to apply describing their proposed project or program and detailing how the project meets local and national CDBG objectives and federal requirements. City staff and the CAC review the public services applications and make a recommendation for CDBG funding to the City Council. The Annual Action Plan
OMB Control No: 2506-0117 (exp. 09/30/2021) 10
21 annual CAC recommendation and Council selection of public service grantees is based on the following criteria:
* Consistency of service activity with national objectives and federal requirements. * Consistencyofserviceactivitywiththegoals,objectives,andstrategiesofthe5-year Consolidated Plan.
* Experienceandcapacityoftheapplicant.
* Demonstrated need and lack of other sources of funding.
5. Summary of public comments
jo be added affer the Pub ac Hearin4
6. Summary of comments or views not accepted and the reasons for not accepting them Jo be added a%@l'a j§e Publ c Hearind
7. Summary
The Annual Action Plan was made available for a 30-day public review from March 26, 2026, through April 28, 2026. The City prepared a notice announcing the Draft Action Plan was available for public review in the local newspaper. The notice included the date, time, and location of the City Council public hearing, and the amount of HOME and CDBG assistance expected to be received during the Plan duration. The City held a public hearing to consider the adoption of the Annual Action Plan on April 28, 2026; however, at that meeting, the City Council continued the Public Hearing to June 9, 2026. The Annual Action plan was adopted by the City Council on June 9,2026,publichearing. Inaddition,adraftcopyoftheFiscalYear2026-2027AnnualActionPlan (AAP) and the Public Hearing Notice were posted on the City's website. The draft AAP remained available for public review and comment.
Annual Action Plan
OMB Control No: 2506-0117 (exp. 09/30/2021)
22 PR-05 Lead & Responsible Agencies - 91.200(b)
1. Describe agency/entity responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source The following are the agencies/entities responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and fundaing source.
Agency Role Name Department/Agency
CDBG Administrator SOUTH GATE Community Development Department, Housing Division
HOME Administrator SOUTH GATE Community Development Department, Housing Division
Table 1- Responsible Agencies
Narrative
The City of South Gate (City) is the Lead Agency for the CDBG and HOME entitlement programs.
The City's Community Development Department is responsible for the administration and preparation of the Consolidated Plan, Annual Action Plans and Consolidated Annual Performance Evaluation Reports (CAPER). The City contracts with consultants to assist with the preparation of regulatory reporting requirements.
Consolidated Plan Public Contact Information
Carol Averell
Housing Manager
8650 California Avenue,
South Gate, CA 90280
(323) 563-9535
Caverell2@[email protected]@
Annual Action Plan
OMB Control No: 2506-0117 (exp. 09/30/2021)
23 AP-10 Consultation - 91.100, 91.200(b), 91.215(I)
1. Introduction
Activities to enhance the coordination between public and assisted housing providers and governmental health, mental health and service agencies are conducted on a regular basis.
Activities to encourage communication with key community stakeholders include soliciting and reviewing funding applications from housing, health care, and service providers through its Annual Action Plan process. The City also participates in local and regional committees such as the Los Angeles Homeless Services Authority (LAHSA) Continuum of Care and the Southern California Council of Governments (SCAG).
Provide a concise summary of the jurisdiction's activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(1)).
Consultation for the 2026-2027 Annual Action Plan was achieved through a variety of strategies, including the CAC and conducting a public hearing. Continued coordination with City residents and local service providers, including previous CDBG subrecipients, is anticipated for planning efforts, as well as project implementation. The City Council also regularly communicates with the Community Development Department and relays resident needs so that needs are assessed and addressed throughout the implementation of the Annual Action Plan.
Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness.
The City of South Gate is within the Los Angeles Homeless Services Authority"s (LAHSA) Continuum of Care in Service Planning Area (SPA) 7. LAHSA was established in December 1993 as a Joint Powers Authority to coordinate the effective and efficient utilization of Federal and local funding in providing services to homeless people throughout Los Angeles City and County.
LAHSA coordinates and manages over 970 million dollars annually in Federal, State, County and City funds for programs that provide shelter, housing, and services to homeless people in Los Angeles City and County. The City coordinates the delivery of homeless services with LAHSA and participates in the annual LAHSA Homeless Count. Participating in these events provides staff with insight into homeless needs and services. Data from the homeless count is utilized to determine homeless service needs and levels in the City. Coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and Annual Action Plan
OMB Control No: 2506-0117 (exp. 09/30/2021)
24 persons at risk of homelessness also includes reviewing data provided by the LAHSA, consultations with the Salvation Army Bell Shelter, and People Assisting the Homeless (PATH).
Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards and evaluate outcomes, and develop funding, policies and procedures for the administration of HMIS.
South Gate does not receive or allocate Emergency Solutions Grand (ESG) funds. The City collaborates with local service providers and will generally fund agencies based in South Gate as well as in the neighboring communities to meet the needs of the homeless and provide regional coverage.
2. Describe Agencies, groups, organizations and others who participated in the process and describe the jurisdictions consultations with housing, social service agencies and other entities.
The agencies and organizations below participated in the consultation during the City's Consolidated Plan and remain active partners with the City to enhance the coordination of services to City residents.
Annual Action Plan
OMB Control No: 2506-0117 (exp. 09/30/2021)
25 Agency/ Group/
Organization
Agency/ Group
/Organization Type
What section of the
Plan was addressed
by Consultation?
How was the Agency/ Group/
Organization consulted and what are
the anticipated outcomes of the
consultation or areas for improved
coordination?
FAIR HOUSING
FOUNDATION
Services - Fair Housing * Housing Need
Assessment
Organization was contacted to provide
input on fair housing issues,
landlord/tenant complaints, fair housing
needs and priorities.
LOS ANGELES
HOMELESS SERVICES
AUTHORITY (LAHSA)
Services - Homeless * Public Housing
Needs
* Homeless Needs
- Chronically
Homeless
@ Homeless
Strategy
Information and reports from their
website were used for information
related to city homeless count,
strategies, and ongoing coordination.
SOUTH GATE HOUSING
AUTHORITY
Housing
PHA
* Housing Need
Assessment
Public Housing
Needs
* Non-Homeless
Special Needs
The City works in coordination with its
PHA throughout the year to help address
its housing needs. Continued
coordination with its PHA allows City to
identify needs and gaps in service to
improve service delivery.
SOUTH GATE CITIZEN
ADVISORY COMMITTEE
(CAC)
Civic Leaders * Other - Public
Needs and
Priorities
The CAC provided insight into
community needs, priorities, and made
recommendations on activities to fund.
LOS ANGELES COUNTY
DEPARTMENT
OF PUBLIC HEALTH
Services - Persons with
HIV/AIDS
Services - Childhood
Lead Based Paint
Poisoning
* Data on PLWA
* Lead Based Paint
Strategy
Information and reports from their
website were used for information
related to people living with aids and
lead based paint health information.
AZURE DEVELOPMENT Housing * Housing Need
Assessment
Azure is a real estate development
partner of the City. They provided
feedback on housing needs. I
Annual Action Plan g
J\ OMB Control No: 2506-0117 (exp. 09/30/2021)
26 SOUTHERN
CALIFORNIA COUNCIL
OF GOVERNMENTS
Business & Civic Leaders * Economic
Development
Was consulted via request for input via
survey; published reports on workers
and skills levels were also reviewed.
CALIFORNIA LATINO
LEADERSHIP INSTITUTE
Services - Children
Services - Education
Neighborhood
Organization
I * Non-Homeless ISpecial Needs
I
The organization provided input on the
needs or young adults.
FAMILY VIOLENCE
PREVENTION
i PROGRAM
Services - Victims of
Domestic Violence
Services - Victims
Grantee Department
I
* Homeless
Needs -
Families with
children
Homelessness
* Non-Homeless
Special Needs
The organization provided input on the
needs of victims of domestic violence.
LOS ANGELES CENTERS
FOR ALCOHOL & DRUG
ABUSE (L.A. CADA)
Services - Health
Neighborhood
Organization
@ Homeless Needs
- Veterans
* Non-Homeless
Special Needs
The organization provided input on the
needs of victims of those experiencing
substance abuse issues.
Table 2 - Agencies, groups, organizations who participated Identify any Agency Types not consulted and provide rationale for not consulting All relevant housing, social services and other entities were consulted. Other local/ regional/ state/ federal planning efforts considered when preparing the Plan are listed in the table below. No agency was deliberately excluded from the consultation process.
Annual Action Plan 10
OMB Control No: 2506-0117 (exp. 09/30/2021)
27 Other local/regional/state/federal planning efforts considered when preparing the Plan Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan?
2021-2029 Housing Element of the General Plan City of South Gate The Strategic Plan goals are based on those
included in the 2021-2029 Housing Element.
Gateway, Tweedy, and Hollydale Specific Plans,
and the
Five-Year Capital Improvement Program (CIP)
City of South Gate
Public facility and public improvement needs and
goals are based in part on those described in the specific plans and 5-year CIP.
I Los Angeles City and County CoC for Service Planning I Area 7 (SPA)
Los Angeles City and County CoC for Service Planning Area 7 (SPA)
The Housing Inventory Count Reports provide a
snapshot of the CoC's HIC and the PIT Count survey data helps to inform policymakers and service providers of the needs of the homeless population in the area.
Bureau of Labor Statistics (BLS) Bureau of Labor Statistics (BLS) The purpose of the BLS data is to collect, analyze, and disseminate essential economic information to inform decision making.
Los Angeles Continuum of Care Los Angeles Homeless Services Authority (LAHSA) The Continuum of Care identifies funding and activities assisting LA County's homeless.
The City's homeless goals and strategy support those of the Continuum of Care.
Table 3 - Other local / regional / federal planning efforts Narrative (optional):
No additional narrative.
Annual Action Plan
OMB Control No: 2506-0117 (exp. 09/30/2021)
11 28
AP-12 Participation - 91.105, 91.200(c)
1. Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal-setting.
The City of South Gate encourages citizen involvement in the planning, implementation and evaluation of its housing and community development programs. City staff continued to work with the Citizen Advisory Committee (CAC) and partner agencies to increase citizen participation.
Citizen Participation Outreach
Sort
Order
Mode of
Outreach
Target of
Outreach
Summary of
response/
attendance
' Summary of
comments received
' Summary of comments
not accepted
and reasons
I
Citizen's Advisory
Committee
February 11, 2026
Community
All interested
persons
No comments received No comments
received
No comments received
2 Citizen's Advisory
Committee
February 25, 2026
Community
All interested
persons
CAC Response: if additional
funding is received, it will
I fund the Graffiti
Abatement (GA) program.
I
If less funding is received, it
i will be removed from the
, G___Aprogram.
No comments
received regarding the
AAP public services
l_
No comments received
regarding the AAP
i public services
I
I
I
3 Public Review
Period
March 26, 2026 -
June 9, 2026
Non-target/broad
Community
All interested
persons
m
I
I
1$
I
I
[B
I
4 I
Public Hearing
April 28, 2026,
continued by City
Council to June 9,
, 2026.
Non-target/broad
Community
All interested
persons
19 I
ItB
I
m
I
Tatle 4 - Citizen Participation Outreach
Annual Action Plan
OMB Control No: 2506-0117 (exp. 09/30/2021)
29 AP-15 Expected Resources - 91.220(c%l,2)
Introduction
For FY 2026-2027, the City is anticipating receiving the following funding:
Community Development Block Grant (CDBG): With a grant allocation of Sl,153,140 twenty percent (20%) or S230,628 will be used for Program Administration which includes an allocation of 524,000 for Fair Housing Foundation. The remaining balance will be programmed for public service activities (staying within the 15% cap) and other City service projects. Additionally, the City anticipates .534,099 in unallocated funds available to carry over into the new program.
HOME Investment Partnerships (HOME): The City received a grant allocation of S486,118.63 for FY 26-27 of which ten percent(10%) of the fiscal year allocation, or .548,611, will be used for Program Administration. The remaining balance will be programmedfor CHDO Set Aside of S72,917 and the to fund the HOME: Residential Rehabilitation Program (2026).
Annual Action Plan 13
OMB Control No: 2506-0117 (exp. 09/30/2021)
30 Anticipated Resources
program Source
of Funds
Uses of Funds I Expected Amount Available Year 2 - Expected Amount
Available
Remainder
of ConPlan
S
Narrative Description -
In FY 26-27 the City's CDBG-
I allocation is Sl,153,140.
A formula-based program
that annually allocates funds
to metropolitan cities, urban
counties, & states for a wide
range of eligible housing &
community development
I
ar+ivi+ipc
Annual
Allocation:
S
Program
Income:
s
Prior Year
Resources:
IS
Total:
S
CDBG
I
Public -
Federal
I
Acquisition,
Admin & Ptanning,
Economic
Development,
Housing,
Pubpliucblmiicpsreovrveimceesnts,1
5i,isa,iao
I
§O.OO
I
I
I
S34,099
1,
Sl,187,239 !;3,299,088
HOME Public -
Federal
Acquisition,
Homebuyer
Assistance,
Homeowner Rehab
Multifamily Rental
New Construction
Multifamily Rental
Rehab
New Construction
for Ownership
TBRA
S486,118.63
SO So.oo 9486,118.63 91,515,7 47
In FY 26-27 the City's HOME
allocation is 9486,118.63
A HUD formula-based
program that annually
allocates funds to support
affordable housing programs.
Table 5 - Expected Resources - Priority Table
Annual Action Plan 14
OMB Control No: 2506-0117 (exp. 09/30/2021)
31 Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied.
Leveraqinq
The City and HUD share an interest in leveraging HUD resources to the maximum extent that it is feasible to address priority needs and associated goals. During the 5-year period of the Consolidated Plan the City will seek funds to leverage the Federal CDBG and HOME funds.
Some leveraging resources options are listed below:
Low-income Housing Tax Credit (LIHTC) - The California Tax Credit Allocation Committee (TCAC) facilitates the investment of private capital into the development of affordable rental housing for low-income Californians. TCAC allocates federal and state tax credits to the developers of these projects. Corporations provide equity to build the projects in return for the tax credits.
Affordable Housing Sustainable Communities Housing Program: AHSC directs investments to historically under-invested communities, giving more Californians access to opportunity. At least 50% of AHSC funding is required by state law to be allocated to affordable housing and projects in, or that provide a benefit to, disadvantaged communities.
Housing Choice Vouchers: The South Gate Housing Authority's Section 8 rental voucher program provides rental assistance to help very low-income families afford decent, safe, and sanitary rental housing. The Housing Authority accepts the application for rental assistance, selects the applicant for admission, and issues the selected family a rental voucher confirming the family's eligibility for assistance. The family must then find and lease a dwelling unit suitable to the family's needs and desires in the private rental market. The Housing Authority pays the owner a portion of the rent (a housing assistance payment (HAP)) on behalf of the family.
Mortgage Credit Certificate Program - Income tax credits are available to first-time homebuyers to buy new or existing single-family housing. The County of Los Angeles administers this program on behalf of jurisdictions in the County.
Matchinq Requirements
A participating jurisdiction (PJ) receiving HOME funds is required to contribute a 25% match of non-HOME funds for every dollar of HOME funds spent. The HOME statute also provides a reduction of the matching contribution under three conditions: 1) Fiscal distress, 2) severe fiscal distress, and 3) presidential disaster declarations.
Annual Action Plan
OMB Control No: 2506-0117 (exp. 09/30/2021)
32 A PJ may be entitled to a greater reduction if an increase in its poverty rate or a decrease in its per capita income causes it to be eligible for a 100% match reduction. If a PJ satisfies both distress criteria, it is determined to be in severe fiscal distress and receives a 100% reduction of match.
The City of South Gate has been identified by HUD as a fiscally distressed jurisdiction for several consecutive years, receiving at least a 50% match reduction. The City anticipates that it will continue to be classified as so through this next Annual Action Plan.
If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan.
There is currently no publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan.
Discussion
No additional discussion.
Annual Action Plan
OMB Control No: 2506-0117 (exp. 09/30/2021)
-'7,- 33
AP-20 Annual Goals and Objective
Goals Summary Information
Sort
Order
Goal Name Start
Year
' End
Year
Category Geographic
Area
Needs
Addressed
Funding Goal Outcome Indicator
I Public Services 2026 2027
Non-Housing
Community
Development
Citywide
Public Service
Programs To
Improve
Quality of Life
CDBG: S172,971
Public Service Activities Other
than Low/Moderate Income
Housing Benefit:
381 Persons ASSisted
2 Public Facilities &
Infrastructure Improvements
2026 2027
Non-Housing
Community
Development
CDBG
Census
Tracts
Public
Facilities &
Infrastructure
Maintain
Suitable Living
Environments
for Residents
CDBG: S385,820
Public Facility or Infrastructure
Activities Other than
Low/Moderate Income Housing
Benefit:
I SOD Persons ASSisted
3 Maintain Affordable Housing 2026 2027
Affordable
Housing
Citywide
Address
Substandard
Housing &
Maintain
Affordable
Housing
CDBG: 6385,820
HOME: S364,590.63
Homeowner Housing
Rehabilitated:
II Households Housing Units
4 Economic Development 2026 2027
Non-Housing
Community
Development
Citywide
ECOnOmiC
Development
Activities
CDBG: S12,000
Businesses Assisted:
1 Businesses Assisted
5 Fair Housing 2026 2027
Affordable
Housing
Citywide
Address
Housing
Discrimination
CDBG: S24,000
Other:
285 Persons Assisted
6 Planning & Administration 2026 2027 Other N/A
Planning &
Administration
CDBG: 6206,628
HOME: S48,611
Other: I
Table 6 - Goals Summary
Annual Action Plan 17
OMB Control No: 2506-0117 (exp. 09/30/2021)
34 Goal Descriptions
Goal Name Goal Description
Public Services
Improving the quantity and quality of life principally for low-and-moderate income people by funding public service activities.
I
Public Facilities & Infrastructure Improvements
Acquisition, design, construction, and installation of needed public facilities and improvements located in CDBG income eligible Target Areas where infrastructure is missing or substandard. Public facilities and improvements may include ADA- compliant ramps and sidewalk improvements, storm drains, and water and sewer lines. Improvements may facilitate pedestrian activity, eliminate flooding, and provide for safer streets within the Target Areas.
Maintain & Provide Affordable Housing
Conserving and improving housing stock through rehabilitation of units occupied by low-and-moderate income households. Activities are designed to improve existing substandard or deteriorated housing stock that does not meet building, safety.
Fair Housing The City will fund fair housing services to comply with its regulatory requirements and affirmatively further fair housing, in accordance with the Fair Housing Act.
Economic Development
The City will fund/program activities that assist for-profit businesses. Activities include, but are not limited to, direct financial assistance in the form of loans and/or grants, commercial fagade/rehabilitation assistance, technical assistance, microenterprise assistance, among others.
Planning & Administration
Overall program management, coordination, monitoring, and evaluation of projects funded by CDBG/HOME and the preparation of the Annual Action Plans, CAPERs, and other reports.
Annual Action Plan 18
OMB Control No: 2506-0117 (exp. 09/30/2021)
35 AP-35 Projects - 91.220(d)
Introduction
The City of South Gate will invest CDBG and HOME funds in projects that address the priority needs identified in the 2025-2029 Consolidated Plan.
Projects
# Project Name
I CDBG: Administration (2026)
2 CDBG: Fair Housing (2026)
3 CDBG: Police Explorers (2026)
4 CDBG: Graffiti Abatement Program (2026)
5 CDBG: Family Violence Prevention Program (2026)
6 CDBG: South Gate Home Modification Program (2026)
7 CDBG: South Gate Women's Business Center (2026)
8 CDBG: Neighborhood Revitalization Program (2026)
g CDBG: Street and Sidewalk Improvement Project (2026) 10 HOME: Administration (2026)
II HOME: CHDO Set Aside (2026)
12 HOME: Residential Rehabilitation Program (2026)
Table 7 - Project Information
Describe the reasons for allocation priorities and any obstacles to addressing underserved needs.
The primary obstacles to meeting the underserved needs of low-and moderate-income people include lack of funding from federal, state, and other local sources, the high cost of housing, and the lack of availability of home improvement financing in the private lending industry. To address these obstacles, the City is investing CDBG and HOME funds through the 2026-2027 Annual Action Plan in projects that provide deferred loans to low-and moderate-income homeowners for home improvements, projects that provide public and neighborhood services to low-and moderate-income people, and projects that prevent homelessness.
Annual Action Plan
OMB Control No: 2506-0117 (exp. 09/30/2021)
'25 36
AP-38 Project Summary
Project Summary Information
I
Project Name CDBG: ADMINISTRATION (2026)
Target Area Citywide
Goals Supported Planning & Administration
Needs Addressed Planning & Administration
Funding CDBG: S206,628
Description
The City of South Gate will use these Community Development Block Grant funds to administer, design, implement, and plan eligible CDBG activities.
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
N/A
Location Description 8650 California Ave, South Gate, CA 90280 Planned Activities
The City of South Gate will use these Community Development Block Grant funds to administer, design, implement, and plan eligible CDBG activities.
2 Project Name CDBG: FAIR HOUSING (2026)
Target Area Citywide
Goals Supported Fair Housing
Needs Addressed Address Housing Discrimination
Funding CDBG: S24,000
Description
The Fair Housing Foundation administers a comprehensive program that includes: 1) discrimination complaint intake and investigation; 2) outreach and education; 3) general housing (landlord/tenant counseling; and 4) enforcement and impact litigation.
Target Date 6/30/2027
Annual Action Plan 20
OMB Control No: 2506-0117 (exp. 09/30/2021)
37 Estimate the number and
type of families that will
benefit from the proposed
activities
285 Households Assisted
Location Description Citywide
Planned Activities
The Fair Housing Foundation administers a comprehensive program that includes: 1) discrimination complaint intake and investigation; 2) outreach and education; 3) general housing (landlord/tenant ,counseling; and 4) enforcement and impact litigation. 3i
Project Name CDBG: POLICE EXPLORERS (2026)
Target Area Citywide
Goals Supported Public Services
Needs Addressed Public Service Programs To Improve Quality of Life Funding CDBG: S23,000
Description
The South Gate Police Explorers Program will provide training, mentorship, and orientation to young adults (ages 14-21) who are interested in exploring a career in law enforcement.
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
14 Persons Assisted
Location Description Citywide
Planned Activities
The South Gate Police Explorers Program will provide training, mentorship, and orientation to young adults (ages 14-21) who are interested in exploring a career in law enforcement. 4 Project Name CDBG: GRAFFITI ABATEMENT (2026)
Target Area CDBG Eligible Census Tract
Goals Supported Public Services
Needs Addressed Public Service Programs To Improve Quality of Life Funding CDBG:S107,971 .
Annual Action Plan 21
OMB Control No: 2506-0117 (exp. 09/30/2021)
38 Description
The Graffiti Abatement Program operates in CDBG low- and moderate-income service areas throughout the city to remove graffiti from hardscape areas such as walls, sidewalks, street furniture, poles, and signs. Funds pay for labor, supplies, and material.
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
79,000 Persons Assisted
Location Description Citywide
Planned Activities
The Graffiti Abatement Program operates in CDBG low- and moderate-income service areas throughout the city to remove graffiti from hardscape areas such as walls, sidewalks, street furniture, poles, and signs. Funds pay for labor, supplies, and material.
I
I
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5 Project Name CDBG: FAMILY VIOLENCE PREVENTION PROGRAM (2026) Target Area Citywide
Goals Supported Public Services
Needs Addressed Public Service Programs To Improve Quality of Life Funding CDBG: S27,000
Description
The Family Violence Prevention Program offers empowerment 'workshops and individual counseling sessions to battered women and family members. In addition, the program promotes awareness and education on sexual assault and family violence throughout the community.
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
50 Persons Assisted
Location Description Citywide
Planned Activities The Family Violence Prevention Program offers empowerment workshops and individual counseling sessions to battered women and Annual Action Plan 22
OMB Control No: 2506-0117 (exp. 09/30/2021)
39 family members. In addition, the program promotes awareness and education on sexual assault and family violence throughout the community.
6 Project Name CDBG: SOUTH GATE HOME MODIFICATION PROGRAM (2026) Target Area Citywide
Goals Supported Public Services
Needs Addressed Public Service Programs To Improve Quality of Life Funding CDBG: S15,000
Description
The South Gate Home Modification Program aims to empower persons with disabilities to achieve their personalized goals through community education and individualized services that provide the knowledge, skills, and confidence building to maximize their quality of life.
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activitieS
10 Persons Assisted
Location Description ,Citywide
Planned Activities
The South Gate Home Modification Program provides eligible residents and people with disabilities with assistive technology equipment, such as durable medical equipment and minor home modifications. The program makes their home more accessible and increases their independence
7 I
Project Name ,CDBG: SOUTH GATE WOMEN'S BUSINESS CENTER (2026) Target Area Citywide
Goals Supported Economic Development
Needs Addressed Economic Development Activities
Funding 'CDBG: S12,000
Description Technical assistance to women entrepreneurs seeking to become small business owners.
Annual Action Plan 23
OMB Control No: 2506-0117 (exp. 09/30/2021)
40 Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposedI
activities
1 business
Location Description Citywide
Planned Activities Small business technical assistance to women entrepreneurs 8 I
I
I
Project Name CDBG: NEIGHBORHOOD REVITALIZATION PROGRAM 2026) Target Area Citywide
Goals Supported Maintain & Provide Affordable Housing Needs Addressed Address Substandard Housing & Maintain Affordable Housing Funding CDBG: S385,820
Description This program provides grants to income eligible households for home repairs.
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
6 Households Assisted
Location Description
The program will be administered by the City's Community Development Department located at 8650 California Avenue, South Gate, CA 90280.
Planned Activities This program provides grants to income eligible households for home repairs.
I
19 I
Project Name CDBG: STREET AND SIDEWALK IMPROVEMENT PROJECT (2026) Target Area CDBG Eligible Census Tracts
Goals Supported Public Facilities & Infrastructure Improvements Needs Addressed Public Facilities & Infrastructure Maintain Suitable Living Environments for Residents
Funding CDBG: S385,820
Annual Action Plan 24
OMB Control No: 2506-0117 (exp. 09/30/2021)
41 Description This project will provide sidewalk and street pavement rehabilitation for local streets within the City's HUD-CDBG target areas.
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
500 Persons Assisted
Location Description Eligible CDBG Low-Mod Census Tracts Planned Activities This project will provide sidewalk and street pavement rehabilitation for local streets within the City's HUD-CDBG target areas. 10 I
I
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I
I
Project Name HOME: ADMINISTRATION (2026)
Target Area Citywide
Goals Supported Planning & Administration
Needs Addressed Planning & Administration
Funding HOME: S48,611
Description The City of South Gate will use HOME funds to administrate, design, implement, and plan eligible HOME activities.
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
N/A
Location Description Citywide
Planned Activities The City of South Gate will use HOME funds to administrate, design, implement, and plan eligible HOME activities.I
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' II i
Project Name HOME: CHDO SET ASIDE (2026)
Target Area Citywide
,Goals Supported Maintain & Provide Affordable Housing Needs Addressed Address Substandard Housing & Maintain Affordable Housing Funding HOME: S72,917
Description Mandatory 15% set-aside
Annual Action Plan 25
OMB Control No: 2506-0117 (exp. 09/30/2021)
42 Target Date TBD
Estimate the number and
type of families that will
benefit from the proposed
activities
TBD
Location Description TBD
Planned Activities
Mandatory reservation of 15% annual HOME grant for a CHDO project (to be identified). The City plans to reach out to local CHDO's and attempt to successfully establish or research viable projects for low- moderate income households.
12 Project Name HOME: RESIDENTIAL REHABILITATION PROGRAM (2026) Target Area Citywide
Goals Supported Maintain & Provide Affordable Housing Needs Addressed Address Substandard Housing & Maintain Affordable Housing Funding HOME: S364,590.63
Description
This program provides deferred loans to qualified homeowners for rehab on their properties. The loan is due and payable when title is transferred, or property is refinanced or sold. Qualified households must have an annual income at or less that 80% of the area median income.
Target Date 6/30/2026
Estimate the number and
type of families that will
benefit from the proposed
activities
5 Households Assisted
Location Description
The program will be administered by the City's Community Development Department located at 8650 California Avenue, South Gate, CA 90280.
Planned Activities Same as description.
Annual Action Plan 26
OMB Control No: 2506-0117 (exp. 09/30/2021)
43 AP-50 Geographic Distribution - 91.220(f)
Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed.
HUD funded activities are limited to the City's low-and moderate-income areas or residents.
Areas of the City outside of the CDBG low-and moderate-income areas will benefit from activities that are limited-clientele in nature, i.e., a person/household can benefit from a federally assisted program provided they meet the program's eligibility criteria. Eligibility is typically establaished by household income and household size.
CDBG program funds will be expended based on program criteria. For example, public services are available on a citywide basis for qualified beneficiaries; fair housing and program administration activities will also be carried out on a citywide basis.
HOME funds will be utilized towards the rehabilitation of low/moderate income homes.
Geographic Distribution
Target Area Percentage of Funds
Citywide 58%
Target Areas 42%
Tible 8 - Geographic Distribution
Rationale for the priorities for allocating investments geographically When determining the geographic distribution where the City will allocate their investments, City considerations include whether the activity or program will physically be located within an already designated CDBG Target Area, and whether the program will directly benefit the low- to-moderate income population in that area. The City also takes public demand, recommendations from City departments, performance of previously CDBG-funded subrecipients, recommendations of other local entities like the County partners and local non- profits into account.
Discussion
An activity can be designated as serving either: (1) 'Citywide", or (2) 'in the CDBG Target Areas'. "Citywide' is a designation used for programs that offer services to the entire community. Many public programs provide services to the entire City, the nature of these program services is often to exclusively serve low-to-moderate income people. If a program is designated as 'CDBG Target Area' it is confined exclusively to the CDBG Target Area.
Annual Action Plan
OMB Control No: 2506-0117 (exp. 09/30/2021)
33= 44
Affordable Housing
AP-55 Affordable Housing - 91.220(g)
Introduction
One of the greatest impediments to affordable housing is the low ratio of available federal and state resources to the high need of affordable housing needs.
As there are limited opportunities and funding available to provide affordable housing opportunities, the City consistently seeks new partnerships to increase the affordable housing options in the city. Ways that the City addressed affordable housing needs include the following programs:
Housing Choice Voucher Program: The City will continue to provide rental assistance to extremely low- and low-income households through the South Gate Housing Authority's Housing Choice Voucher Program. Renter-households will be assisted, which will include elderly, single-parent, and disabled special needs households.
Fair Housing Program: The City's Fair Housing Program is administered by the Fair Housing Foundation, who provide fair housing services and landlord/tenant information to participants who request counseling, resource referral, complaint investigation, and public education on all forms of housing discrimination. Renter-households will be assisted, which will include elderly, single-parent, and disabled special needs households. However, these are not counted toward the affordable housing goals.
Homeowner Rehabilitation Programs: The City will invest in homeowner rehabilitation programs to improve substandard housing and maintain affordable housing for its residents.
One Year Goals for the Number of Households to be Supported Homeless 0
Non-Homeless 11
Special-Needs 0
Total 11
Table 9 - One Year Goals for Affordable Housing by Support Requirement Annual Action Plan
OMB Control No: 2506-0117 (exp. 09/30/2021)
45 I One Year Goals for the Number of Households Supported Through RentalAssistance 0
The Production of New Units 0
RehabofExistingUnits 11
Acquisition of Existing Units 0
Total 11
Table 10 - One Year Goals for Affordable Housing by Support Type Discussion
The Consolidated Plan identifies a high priority need to expand the supply of affordable housing and a high priority need to preserve the supply of affordable housing. In FY 2026-2027 the City will invest CDBG and HOME funds in the preservation of affordable housing units.
Annual Action Plan
OMB Control No: 2506-0117 lexp. 09/30/2021)
46 AP-60 Public Housing - 9"1.220(h)
Introduction
There is no public housing in the City of South Gate.
Actions planned during the next year to address the needs of public housing Not Applicable - The City does not have public housing.
Actions to encourage public housing residents to become more involved in management and participate in homeownership
Not Applicable - The City does not have public housing.
If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance
Not Applicable
Discussion
No additional discussion.
Annual Action Plan
OMB Control No: 2506-0117 (exp. 09/30/2021)
47 AP-65 Homeless and Other Special Needs Activities - 91.220(i) Introduction
The City is located within the Los Angeles Homeless Services Authority (LAHSA) Continuum of Care. The continuum provides oversight of federal homeless assistance dollars and collaborates with local communities to provide the best service to residents who are homeless. The Los Angeles Continuum conducts quarterly community meetings, and when appropriate the City attends and participates in these meetings.
South Gate residents who are of low-to-moderate income and at risk of experiencing homelessness will receive assistance to obtain and maintain housing stability through CDBG funded activities. Services provided may include income payments for low-income eligible residents, case management, and referrals for housing support.
Describe the jurisdictions' one-year goals and actions for reducing and ending homelessness including:
@ Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs
The Salvation Army Bell Shelter operates a homeless outreach program which consists of a mobile outreach team. In coordination with the South Gate Police Department Liaison and personnel from the Salvation Army Bell Shelter street outreach efforts by vehicle and foot are undertaken. Street outreach, case management, and referrals are provided to homeless families and individuals through this program. Homeless clients are provided with guidance identifying barriers to overcoming homelessness and developing a plan to address identified challenges. The team also addresses needs which may include accessing mainstream services, increasing income, developing self-determination, and accessing shelter and housing.
* Addressing the emergency shelter and transitional housing needs of homeless persons Locally, the Salvation Army Bell Shelter operates a comprehensive program that offers transitional care for up to 350 homeless men and women. The goal of the Bell Shelter is to meet the needs of the homeless population by addressing the myriads of reasons why people become homeless and assisting them in developing a higher quality oflife through independence. Services offered include emergency shelter, transitional housing, substance abuse rehabilitation, case management, counseling, on-site health care & medical referrals, HIV/AIDS education, ESL classes, computer training, vocational Annual Action Plan
OMB Control No: 2506-0117 (exp. 09/30/2021)
48 assistance, job referrals and life skills classes.
The South Gate Domestic Family Violence Education and Prevention program administered by the South Gate Police Department provides shelter, court advocacy, counseling, 24-hour hotline, crisis intervention, support groups and case management to domestic and sexual abuse victims.
* Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again.
The City of South Gate collaborates with different organizations to prevent the recurrence of homelessness, as much as possible. The City partners with local organizations and non- profits to offer various programs and resources for residents experiencing homelessness or who are at risk of homelessness. Locally, the Salvation Army Bell Shelter helps address the gaps in the City and the need for services to residents experiencing homelessness, unemployment, substance abuse, and other social and health resources. Available services include case management, transportation and employment services, health and mental health referrals, life skills, individual and group therapy, social and recreational activities, needs assessment, benefits advocacy, and permanent housing assistance. The Salvation Army Bell Shelter works directly with the South Gate Police Department, Community Development, Parks and Recreation, the Housing Authority, and other local organizations to promote services and reach target populations.
To help prevent the recurrence of homelessness the program helps participants search for permanent housing and seek employment to maintain housing stability. The case management team conducts workshops to assist residents with building resumes and other career preparation needed. Participants are referred to job openings and job fairs and are encouraged to participate in extracurricular activities such as attending monthly meetings, events, and volunteering at the community garden.
To combat homelessness, the City funds a comprehensive Fair Housing Program that offers education and outreach activities for tenants, landlords, and owners. Education consists of workshops, presentations, community meetings, and training. The purpose of this program is to guide all parties on their rights, laws, and responsibilities. The Fair Annual Action Plan
OMB Control No: 2506-0117 (exp. 09/30/2021)
49 Housing Program conducts rental counseling workshops for those who are concerned with evictions, rent increases and notices.
Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs.
The South Gate Police Department has different practice methods for individuals being discharged and those who are seeking support services. The Police Department links individuals to available resources and agencies in the City including People Assistaing the Homeless (PATH), which is an organization that helps individuals experiencing homelessness in the community. PATH distributes food, and clothing to residents, connects residents to permanent housing, and provides ongoing supportive services for residents in need. PATH has an outreach and prevention team that works in areas where homelessness is more prevalent and connects individuals with employment. The South Gate Police Department makes referrals to PATH forindividuals who are being discharged from jail for services like interim housing, rapid rehousing, employment, and other permanent supportive services.
There are no hospitals in the City of South Gate, therefore the City does not often have individuals who are being discharged from hospitals. However, if individuals are seeking information the Police Department reaches out to PATH staff for resources and supportive services. Additionally, if an individual is in custody and needs medical assistance, the City works with the Department of Mental Health to address their needs and until they are returned to custody after treatment. The Department currently includes these practices as part of patrol officers' duty.
Discussion
There are various agencies in the region that provide housing options and case management assistance, including for those returning from mental and physical health institutions. They provide the option of living independently in a group setting. Some of these agencies include the following:
* Rio Hondo Temporary Shelter, Norwalk - Provides emergency food and transitional shelter for families with children in the Cerritos, Downey, La Mirada, Montebello, Annual Action Plan
OMB Control No: 2506-0117 (exp. 09/30/2021)
50 Norwalk, Pico Rivera, Santa Fe Springs and Whittier areas. There are no geographical restrictions for residents.
Santa Fe Springs Transitional Living Center, Whittier - Provides shelter for homeless families in transition, most of whom are single parents or victims of domestic violence and substance abuse, in Los Angeles County.
* Birch Grove Homes, Norwalk - Provides supportive services to persons in an existing permanent housing program for persons with mental health disabilities. * Denker House/Harvest House, scattered sites - Provides supportive services in an existing permanent housing program for persons with disabilities.
Cedar Street Homes (Homes for Life Foundation), Norwalk - Provides permanent housing for eight persons with mental health disabilities in eight one-bedroom apartment style units.
@ Su Casa Domestic Violence Network, Long Beach - Provides crisis intervention service for domestic violence victims and their children, for a maximum of 30 consecutive days.
* Salvation Army, Bell Shelter - Provides emergency shelter services and transitional care for up to 350 homeless men and women.
The Southern California Rehabilitation Services - An independent living resource center in Downey offers programs to eligible South Gate residents that provide people with the tools to learn how to live independently including cooking, budgeting, reading, band finding employment. They also offer disability assistance for improvements to homes for people with disabilities.
Annual Action Plan
OMB Control No: 2506-0117 (exp. 09/30/2021)
51 AP-75 Barriers to Affordable Housing - 91.220(j) Introduction
Barriers to affordable housing, as outlined in the City's most recent Consolidated Plan, include:
* AffordabilityconcernsstemmingfromSenateBill9(SB9)andAssemblyBilll033(AB 1033)
* ExtensiveenvironmentalreviewfornewdevelopmentsrequiredbytheCalifornia Environmental Quality Act (CEQA) which can delay housing projects. * Impacts on housing supply and taxes from Proposition 13 * Impacts of Article 34 - Voter for Approval for Low-Rent Housing * Transit-Oriented Development (TOD) Guidelines
* Zoning policies
Actions planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment.
As a step to address barriers to affordable housing, the City has updated its Housing Element for the 2021-2029 planning period, identifying strategies to conserve existing affordable housing, provide adequate housing sites, assist in developing affordable housing, remove governmental constraints, and promote equal housing opportunities.
Addressing barriers to affordable housing will require ongoing collaboration between local, regional, and state entities to create a more supportive environment for affordable housing development. The City will continue to consider alternate forms of residential development, including various types of small-lot, single-family subdivisions; mobile home parks that allow owner-occupied spaces; senior citizen multifamily housing developments offering various degrees of care and assistance; mixed-use residential, and planned unit developments.
Discussion
No additional discussion.
Annual Action Plan
OMB Control No: 2506-0117 (exp. 09/30/2021)
52 AP-85 0ther Actions - 91.220(k)
Introduction
Outlined below are the actions the City will implement to address the "Other" sub-strategies of the Annual Action Plan.
Actions planned to address obstacles to meeting underserved needs The primary obstacles to meeting the underserved needs of low-and moderate-income people include lack of funding from federal, state, and other local sources, the high cost of housing that ais not affordable to low-and moderate-income people, and the lack of availability of home improvement financing in the private lending industry. To address these obstacles, the City is invests HOME funds towards the construction of affordable housing development. CDBG funds are being allocated to organizations that provide public and neighborhood services to low-and moderate-income people and those with special needs that can help offset other household costs that create financial burdens for individuals.
Actions planned to foster and maintain affordable housing City also provides rental assistance through the Housing Choice Voucher Program to very low- income households through its Housing Authority. The City certifies, when available and appropriate, Community Housing Development Organizations (CHDOs) to provide affordable housing using low HOME rents.
Actions planned to reduce lead-based paint hazards All units in a project assisted with CDBG and HOME funds must comply with the regulations found at 24 CFR Part 35. The purpose of the regulation is to identify and address lead-based paint hazards before children are exposed to lead. This requirement has been in effect since September 15, 2000.
Lead-based paint hazards are found in homes built prior to 1978. All Grantees and Participating Jurisdictions must assess homes built prior to 1978 for lead hazards and conduct interim or abatement controls as warranted. Most of the homes in South Gate were built prior to 1978 and have lead-based paint somewhere on the structure, which is typically found on windowsills, doorways or under the eaves. The hazards of lead-based paint are primarily for young children up to age 6, as they are more likely to eat peeling paint. Lead adversely affects the development of a child's brain and other organs.
The City's strategy in addressing lead-based paint hazards involves an educational component for the public, printed outreach information to those households in the "lead hot zones" as Annual Action Plan
OMB Control No: 2506-0117 (exp. 09/30/2021)
53 identified by the County, and printed information are given to participants in the City's rehabilitation loan programs.
The City offers a Residential Rehabilitation Program which focuses on rehabilitating existing housing stock throughout the City covering interior and exterior home improvement and/or repairs. In combination with the Residential Rehabilitation Program, the City offers grants to be used for termite and lead abatement. Lead assessments are conducted on all housing projects, both single family and multi-family units. Additionally, all Housing Choice Voucher participant rental units are inspected annually.
Actions planned to reduce the number of poverty-level families The implementation of CDBG and HOME activities that will help to reduce the number of poverty level families include:
* Supporting activities that expand the supply of housing that is affordable to low-and moderate-income households.
* Supportingactivitiesthatpreservethesupplyofdecenthousingthatisaffordabletolow- and moderate-income households.
* Supporting a continuum of housing and public service programs to prevent and eliminate homelessness.
Supporting housing preservation programs that assure low-income households have a safe, decent, and sanitary place to live; and
* Supporting public services for low-and moderate-income residents including those with special needs and those at risk of homelessness offered by nonprofit organizations.
In addition to these local efforts, mainstream state and federal resources also contribute to reducing the number of individuals and families in poverty. In California, the primary programs that assist families in poverty are CalWORKs, CalFresh (formerly food stamps) and MediCal.
Together, these programs provide individuals and families with employment assistance, subsidies for food, medical care, childcare, and cash payments to meet basic needs such as housing, nutrition, and transportation. Other services are available to assist persons suffering from substance abuse, domestic violence, and mental illness.
Actions planned to develop institutional structure The City has tried to develop an institutional structure that will help identify and access resources toimprovethecommunity. TheCitywillcontinuetoworkwithnonprofitentitiestodeliverpublic services. As a member of the LAHSA, the City will provide critical information to the County of Los Angeles for preparation of the County's Continuum of Care Homeless Assistance grant Annual Action Plan
OMB Control No: 2506-0117 (exp. 09/30/2021)
!3 54
applications. South Gate will provide critical information regarding mainstream funds the City will make available to serve the homeless and will also assist in identifying and prioritizing gaps and needs in the regional system of care.
Externally, the City is in direct contact with the Chamber of Commerce and the Tweedy Mile Business Association, both of which represent private industry. The City also partners with various nonprofit organizations to provide affordable housing opportunities. These nonprofits act as subrecipients to provide a variety of services to the community.
Actions planned to enhance coordination between public and private housing and social service agencies
The City of South Gate is proactive in coordinating with assisted-housing providers, particularly the City's Housing Authority, homeless assistance centers and programs, youth and family oriented social service organizations and health organizations which provide outreach and counseling.
The Community Development department is comprised of Building & Safety, Planning, Housing and Code Enforcement Divisions, who work closely together to coordinate programs with local social service providers to either meet needs directly or to make referrals to outside services, as necessary. Currently, staff make referrals based upon the available known assistance data.
Discussion
No additional discussion.
Annual Action Plan
OMB Control No: 2506-0117 (exp. 09/30/2021)
55 AP-90 Program Specific Requirements - 91.220(1) (1,2,4) Introduction
As part of the implementation of programs and activities under the 2026-2027 Annual Action Plan, the City of South Gate will follow all HUD regulations concerning the use of program income, forms of investment, overall low-and moderate-income benefit for the CDBG program and recapture requirements for the HOME program.
Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(1)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.
1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed
2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan
3, The amount of surplus funds from urban renewal settlements 4 . The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan.
5. The amount of income from float-funded activities S O.00
S O.00
S O.00
S O.00
Total Program Income
S O.00
S O.00
Other CDBG Requirements
1. The amount of urgent need activities S O.00
Annual Action Plan
OMB Control No: 2506-0117 (exp. 09/30/2021) LI';
56 HOME Investment Partnership Program (HOME)
Reference 24 CFR 91.220(1%2)
1. A description of other forms ofinvestment being used beyond those identified in Section
92.205 is as follows:
The City will not use any other forms of investment beyond those identified in Section
92.205.
2. AdescriptionoftheguidelinesthatwillbeusedforresaleorrecaptureofHOMEfunds when used for homebuyer activities as required in 92.254, is as follows:
In FY 2026-2027, the City does not plan to use HOME funds for homebuyer down payment assistance. However, some homebuyers that were assisted in prior years may decide to sell their homes during the upcoming program year. In that event, the City will enforce the resale and recapture guidelines.
3. A description of the guidelines for resale or recapture that ensures the affordability of units acquired with HOME funds? See 24 CFR 92.254(a)(4) are as follows:
Recapture is the recovery of HOME funds upon the sale or transfer, rental/lease, refinancing, or the Borrower(s) is no longer a physical occupant of the property.
RECAPTURE
The City will impose HOME recapture provisions on any property sold by a CHDO to a homebuyer when it provides a direct subsidy for down payment &/or closing costs to the homebuyer.
The balance of the loan shall be due & payable upon sale or transfer, rental or lease, refinancing, or the Borrower(s) is no longer a physical occupant of the property.
This recapture provision shall remain in force from the date legal documents are executed at loan closing until expiration of the affordability period.
Net Proceeds from Sale for the purpose of Recapture are defined as (Sales Price) (Less Sellers Closing Costs) (Less First Mortgage Balance) (Less documented Capital Improvements over §500) (Less Down payment & closing costs paid from the Homebuyer's cash at purchase) Equals Net Proceeds from Sale.
The City shall recapture from the net proceeds from sale, the remaining Development, &/or Homebuyer direct subsidy & return the recaptured funds to the HOME Investment Trust Funds remaining after Recapture shall accrue to the Homebuyer.
Annual Action Plan
OMB Control No: 2506-0117 lexp. 09/30/2021)
57 If there are no Net Proceeds from Sale, then the City shall forgive the remaining loan balance.
RESALE
The City will impose HOME resale provisions on any property sold by a CHDO or any other entity receiving a HOME development subsidy from the City to a homebuyer when it does not provide a direct subsidy for down payment and/or closing costs to the homebuyer.
Resale is the recovery of HOME funds upon the sale or transfer, rental or lease, refinancing, or the homebuyer(s) is no longer a physical occupant(s) of the property:
In instances where the home has been rented or leased, refinanced, or the Borrower(s) is no longer a physical occupant(s) of the property the total outstanding balance of the HOME loan shall be immediately due & payable to the City; In instances where the Homebuyer's home is sold to a qualified low-income buyer at an affordable price, the HOME loan balance shall be transferred to the subsequent qualified buyer & the affordability period shall remain in force; The resale provision shall remain in force from the date legal documents are executed at loan closing until the expiration of the affordability period defined in the Written Agreement.
Resale requires the homeowner to sell the home to a low-income family & at an affordable price
A low-income family is one whose income at time of purchase from homebuyer is no greater than 80% of the AMI as defined by HUD.
The contract for sale of the home must include a provision requiring the family acquiring the home to be qualified by the City prior to acquisition.
The affordable sales price of the HOME assisted property shall be determined as:
The City shall determine 80% of AMI for a family of two if unit is 1-bedroom, three if unit is 2-bedroom, four if unit is 3-bedroom, six if unit is 4-bedroom.
The applicable AMI shall be multiplied by 25% to determine the annual housing expense (HE) & divided by 12 to determine the monthly HE.
The mortgage interest rate shall be the average fixed rate 30 year mortgage interest rate as published by the FHA at time of determination.
The term shall be 30 years.
Annual Action Plan
'IJ
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58 The present value of an affordable mortgage shall be calculated utilizing the monthly HE, the determined interest rate, & the term.
The present value shall be divided by 95 & multiplied by 100. The result shall be the affordable sales price.
The homeowner must list the property at or below the City determined affordable price.
4. PIansforusingHOMEfundstorefinanceexistingdebtsecuredbymultifamilyhousingthat is rehabilitated with HOME funds along with a description of the refinancing guidelines required that will be used under 24 CFR 92.206(b), are as follows:
The City does not intend to use HOME funds under the 2026-2027 Annual Action Plan to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds.
Annual Action Plan
OMB Contro) No: 2506-0117 (exp. 09/30/2021)
59 Attachment C
,Agenda Bill 6/09/26
SOUTH GATE PRESS
1007 N SEPULVEDA BLVD STE l357, MANHATTAN BEACH, CA902e+6 Telephone (323) 556-5720 / Fax (213) 834-0584
sToi-ui-t4h%&Watet!5ai'!y'%pi,
MAR 31 2(12B
FILED
Yodit Glaze, Cily Clerk
CITY OF SOUTH GATE /CITY CLERK
8650 CALIFORNIA AVE
SOUTH GATE, CA - 90280
PROOF OF PUBLICATION
(2015.5 c.c.p.)
State of Calirornle
Coumy of LOS ANGELES
NOtiCe'%lei HRG-NOTICEOFHEARING
Ad [)escription:
CDBG and HOME Investment Partnership FY 2026-2027 Annual Action Plan (English)
I am a citizen of the United States and a resident of the State of California; I amovey the age or eighteen years, and not a paity to or interested in the aboveentltled matter. I am the prlncfpal clerk of the printer and publisher of theSOUTH GATE PRESS, a newspaper publlshed in the English language in thecity of SOUTH GATE, county of LOS ANGELES, and adjudged a newspaper ofgeneral circulation as defined by the laws of the State of California by theSuperior Court of the County oi LOS ANGELES, State of Callfomia, under date04/'19/"1929, Case No. 273415. That the notice, of which the annexed Is aprlnted copy, has been published in each regular and entlre Issue of sald newspaper and not in any supplemenf thereof on the following dates, to-wil:
03/26/2026
Executed on: 03/28/2026
At Los Angeles, California
t certiry (or declare) under penalty of perjury that the roregoing is true and correct.
Slgnature
)illllllilllllllllllllllllllllllllllllilllllll)1111)111111111111111111111 AOOOOO7356'll0
WWA#: 4026838
PUBLIC. NOTICE
CITY OF SOUTH GATE
CITY COUNCL
NOTICE OF PUBLIC HEARING
The Clly Coundl of the City or Soulh Gate willconduct a publk. heanng tycemlng the draft Flsatl Yei iFYl2028-2027 Annual Actlon Plan.
ptepa . .
Plan thsl dagiiilbes how the Ciiy will utilizeledwal mtingy durlng the neM $lscal year to meal Hearln(l Dste: Tuesday, Apnl 28, 2026Tlms : (li30 p.m. or as soon !heieslter as l'hematter may be heard Place:
City Hsll Council Chembera
Clty ol Soulh Oate
8oiiui Ciale. CA 90280
HOME Tu+ids for FY 2028-2027
The defiled budget breakdown Is svallable In IheAiitiusl Action Plan. The pttiposed budgeltidactivities niay be added, Increased, mducad. OT ellmlnahid by the Clly Coundi at % lime ol Ihe
Flsml Year 2026-2027 Annual AtiUon Plan wlll beavailable fat a 30-day publk. review and commstik peffod bsglrinlng ori March 2e, 202fl, and e.h.dlng
Ga)es's webslte athllps:{Avww.dlyofsoulhgale.otgKiovemman.tlDep Tliwday.
by telephonlng (323) 583-9535.
The of South Gale encouiagea clllzen
g::ej;l j;i 4; ::=:iPz%=.a: :sPu:cat City H!III Council Chambers.
Invllallon to be heard: All Interested peT80nS areImi)ed to the Publlc HaeSiig to be hssrd. InaddlUori, willlen ommenls may be gubmltted (o to City or South Gale, (.ommunlly Development
Department. Atln: Carol Avetell, HouslngMatiager. 8850 Callfomla Avenue, South Gste,CA90280 E-mslli [email protected]
Maillng Addreas:
CCollmyomfusnoiluylhDoGvaekelopmenl Depsmmenl
88!iO Canfomle Avehue
SOIIIII Gale. CA 90280-307(i
At.aesslbllity: It is the Intenlloii oT ths City of
Soulh Gake will auempl lo accommodate
scheduled publlti hearing io eslshlish need and todetermine It addlllonal aiicomrnodgtlori lareaslblo. spqfioi.
'p':d:ase"\ "ob:It':' (laa:n:ooas'loA2%al 56a5%'5'a
Publlshed: March 26. 2026
3126126
WWA-402!t838#
Emall
60 Hjiiiil
S : ) " i i I ,,aa ( ,, , (
PUBLIC NOTICE
CITY OF SOUTH GATE
CITY COUNCIL MAR I (l :/ii2(
NOTICE OF P{JBLIC HEARING
-:- Q 4 r"'- 1- -,,
Tlie City Council of tlie City of South Gate will conduct a public liearing conceming the draft CommunityDevelopment Block Grai'it (CDBG) and I-IOME Investment Pattnership (HOME) Fiscal Year (FY)2026-2027Annual Action Plan. As an entitlement jurisdiction, the City is required to prepare and submit to HUD an AnnualAction Plan that describes how the City will utilize federal money during tlie next fiscal year to meet the goals andobjectives approved by the City Council in the Five-Year Consolidated Plan.
Hearing Date: Tuesday, April 28, 2026
Time: 6:30 p.m. or as soon thereafter as the inatter may be heard Place: City Hall Council Chambers
City of South Gate
8650 California Avenue
South Gate, CA 90280
The City anticipates receiving approx'unately $1,100,000 in CDBG funds and $504,000 in HOME funds for FY 2026-2027.
The detailed budget breakdown is available in the Annual Action Plan. The proposed budgeted activities may beadded, increased, reduced, or eliminated by the City Council at the tiine of the hearing. This draft Annual Action Plancovers the period of July 1, 2026, through June 30, 2027, otherwise known as the 2026 program year.
Public Review and Comment Period: The Draft Fiscal Year 2026-2027 Annual Action Plan will be available for p30-day public review and comment period beginning on March 26, 2026, and ending on April 28, 2026. Thesedocuments will be available for public review ori the City of South Gates's website atlittps://www a Additionalinformationmaybe obtained from the staff of the Community Developn'ient Department, Monday through Thursday, 10:00 A. M. to2:00 P. M., or by telephoning (323) 563-9535.
The City of South Gate encourages citizen participation in the planning process. A Public Hearing will be held onApril 28, 2026, 6:30 p.m. at City Hall Council Chambers.
Invitation to be heard: All interested persons are invited to the Public Hearing to be heard. In addition, writtencomments may be submitted to the City Council prior to the hearing. Comments may be submitted in writing bymailing comments to City of South Gate, Conununity Development Department, Attn: Carol Averell, HousingManager, 8650 California Avenue, South Gate, CA 90280.
Those desiring a copy of the staff report or further infoimation related to this project should contact:
Contact:
Phone:
E-mail:
Carol Averell, Housing Manager
(323) 563-9535
[email protected]
Mailing Address: Community Development Departtnent
City of South Gate
8650 Cahfomia Avenue
South Gate, CA 90280-3075
Accessibility: It is the intention of the City of South Gate to comply with the Americans with Disabilities Act (AJ)A)in all respects. The City of South Gate will attempt to accoodate attendees in every reasonable manner. Pleasecontact at least 72 hours prior to the above scheduled public hearing to establish need and to determine if additionalaccommodation is feasible.
ESPANOL
Informaci6n en Espafiol acerca de esta junta puede ser obtenida Ilamando al (323) 563-9535 Published: March 26, 2026
'50 61
SOUTH GATE PRESS Thls spiice Lor fllkig diimli oiily 1007 N SEPULVEDA BLVD STE 1357. MANHATTAN BEACH, CA 90266 Telephone(323)556-5720 /Fax(213)834-0584
O&:e of the
8outh Gate City (,!erk
MAR 3 1 2026
FILED
Yodit Glaze, City Clerk
CITY OF SOUTH GATE /CITY CLERK
8650 CALIFORNIA AVE
SOUTH GATE, CA - 90280
PROOF OF PUBLICATION
(2015.5 c.c.p.)
State of California
County of LOS ANGELES
NOiiCeT)'Pe: HRG-NOTICEOFHEARING
Ad Descriptlon:
CDBG and Home Investment Partnership FY 2026-2027 Annuai At,tion Plan (Spanish)
I am a citizen of the United Slates and a resident of the Stale of California; I am over the age of eighteen years, and not a party to or interested in the above entitled matter. I am the prinThpal clerk of the printer and publisher of the SOUTH GATE PRESS, a newspaper published in the English language in the clty of SOUTH GATE, county of LOS ANGELES, and adjudged a newspaper of general cinculation as defined by the laws ofthe State of California by the Superior Court of the County of LOS ANGELES, State of Califomia, under date 04/19/1929, Case No. 273415. That the notk,e, ofwhlch the annexed is a printed copy, has been published in each regular and enflre issue Of 8aid newspaper and not in any supplement thereof on the followlng dates, to-wit:
03/26/2028
Executed on: 03/26/2026
At Los Angeles, California
Certih/ (Or declare) cinder penalty Of pBtJury that the foregoing is t(ue Elnd cotrect.
WWA#: 4025843
AV180 P(IBLICO
C:lUDAD OEi SOUTH GATE
AYuNTAMIENTO
AV180 DE AU))IENCIA PI:IBLICA
EI Concelo Munidpal do la Cludad do South GaleIlevaiA a eabo une audlenda p(bllca sobre el b@17ador del Plan do Accl6n Anual del aflo fls>l
2026-2027 pars los piogramas do.Subvencl6n on
Bloque para el Desatmlla Comunilario (CDBal yla qsoclacl6n da h'iversi6n HOME {HOMk VlcoSafonmda'y'aD"esa'arr%'lalo" Udi"b'anoD"da"I"o"s:'sotaddoas Uriidos (HLID), sg iequieh quti la Cludad prepare
y presenle un Plan do Acci6n Anusl que descrlba
c6mo fa Ciudad ul[llzarA los fondos hideralgs
dutsnie el pr6ximo afio fiscal pare cumplli coii las
melag y obleuvos sprobados pot el ConzloMunlhal on el Plan Consolldado do ClrimAnos.
Feiiha do la audlenalai matlss. 28 do abitl de
2028
Hora: 6:30 p.m. o tan pron!o aimo gg escuche sl
asurito
Liigari
C!lmsrsg dsl Concelo dsl Ayuntsmleiitti
Cludad da 8oulh Gsle
8660 CBllfOmla Avenue
South Gste. (.4 90280
La dudad anlklpa redbir aproxlmadamente
$1100,000 an Toridos CDBG y $!i04,000 enfondas HOME pura sl a(To fiscal 2028-2027
EPllapnrsfflslXlesAlo,ld6en!allaAdnouac, IAL:l:ponaiabll.levldeandeals piopueslas pueden ser agregadas. aumenledas,
conocldo coino sl arlo programallco 2028.
flscel 2026-2027 sstara isponlble para un
periods de ievlsl6n Y mmen[erlos pi)blk;os de 30diag que ctxnenzaia el 26 de maizo de 2026 y Tlnallzar6 el 28 de abi de 2026. Estos
Gate an
oblaner In{ormad6n adldonsl dal personal del
Deparlsmento de Desandlo Comunllarlo, de
14nes a lusves. ds 10:00 e. nn. e 2;00 p. m., o
cludadana em el proceso de planlfitiatil6n. Una
eudienda publlca se llevar6 e zbo el 28 ds sbtN
de 202fi, 6:30 p.m. en las CAmsras del Coricslodel Ayunlemlerilo. 'p'e'rs"oano4" lnatersssesrdases"'susct;aalsnvila"doa"sasa laias audlenda publlea para ser estiuchadas. Adem5s,
se pueden piesentar oomenlarios pot escilto al
Conoelo Municipal sntes de la audiencla. Loscomentailos pumen envtaise pot escrlto envlando oomentanos correo a ia cluded de
South Gate, Oepartan'ienlo do Desattollo
Comuniteno, ATTN: Carol Aveidl,
Admlnlsltadtira de Vlvlenda. 8(i50 Callfomia
Avenue. 8aulh Gate. CA !)0280.
pueden ponerse en conlaclo CO(I:
Conlacloi Carol Aveiell. Admiiiislnadore da
Vivienda
Tel6Tono: (3231 563-9535
Coireo elealr6nlai: [email protected](i
Dkee.d6n poalal:
Dspgrieme+ila de Desarrollo Comunltarlo
Cludad de South Gate
8650 Callfomia AVenue
South Gate. CA 90280-3075
Au:aeslbllldadi Ea la Intencl6n de la Cludad do
Soulh Gale cumplir con la Ley de
Slgnature
Iiillllllllllllllltlllllllllllllllllllllllllllllfflllllll!11111!11fll Emall
62 Inlenlarji acomodar ii los aslslenles de lotlas las 1oanna;gaSniiezes oonealbale:u.dCleonmclugnlpquube(gl.e apl,omge,neoms;da2 anLeilonnsnle pata eslsblettei Is nscesldad y
dtitermlnar sl ea (si.llble reallzar adaplaclones
adldonsles
ENGLISHi
In(omiollon In Spanlsh about this mgeling can be
t+blalned by calling (323) 563-9535.
Pttblk.ado: 28 de marzo de 2026
at26/26
VWVA-4025B43#
SOUTH GATE PRESS
63 AVISO PtJBLICO
CIUDAD DE SOUTH GATE
AYUNT AMIENTO MAR 1 'l 7fl2E
AVISO DE A[mIENCIA PtJBLICA FILED
EI Concejo Municipal de la Ciridad de Soutli Gate llevarA a cabo una audieicia publica sobre el boi'rador del Plan deAcci6n Anual del afio fiscal 2026-2027 para los programas de Subvenci6n en Bloque para el Desarrollo Comunitario(CDBG) y la Asociaci6n de Inversi6n HOME (HOME). Conforme las reglas del Departaniento de Vivienda yDesarrollo Urbano de los Estados Unidos (HUD), se requiere que la Ciudad prepare y presente un Plan de Acci6nAnual que describa c6n'io la Ciudad utihzarh los fondos federales durante el pr6xiino afio fiscal para cumplir con lasmetas y obietivos aprobados por el Concejo Municipal en el Plan Consolidado de Cinco Afios.
Feclia de la audiencia: n'iartes, 28 de abril de 2026 Hora: 6:30 p.m. o tan pronto como se escuche el asunto Lugar: CAmaras del Concejo del Ayuntamiento
Ciudad de South Gate
8650 California Avenue
South Gate, CA 90280
La ciudad anticipa recibir aproximadamente $1,100,000 en fondos CDBG y $504,000 en fondos HOME para el afio fiscal 2026-2027.
El presupuesto detallado estA disponible en el Plan de Acci6n Anual. Las actividades propuestas pueden ser agregadas,aumentadas, reducidas o eliminadas por el Concejo Municipal en el momento de la audiencia. Este borrador del Plande Acci6n Anual cubre el periodo del 1 de julio de 2026 al 30 de junio de 2027, tambi6n conocido como el atioprogrammico 2026.
Pertodo de revisi6n y comentarios publicos: El borrador del plan de acci6n anual del afio fiscal 2026-2027 estarAdispoible para un periodo de revisi6n y comentarios publicos de 30 dfas que comenzarA el 26 de marzo de 2026 yfinalizarA el 28 de abril de 2026. Estos documentos estarAu disponibles para revisi6n publica en el sitio web de laCiudad de South Gate en https://www.cityofsouthgate.org/Govemment/Departments/Community-Development. Sepuede obtener informaci6n adicional del personal del Departamento de Desarrollo Comunitario, de Junes a jueves, de10:00 a. m. a 2:00 p. m., o llamando al (323) 563-9535.
La Ciudad de South Gate invita la participaci6n ciudadana en el proceso de planificaci6n. Una audiencia publica seIlevarA a cabo el28 de abril de 2026, 6:30 p.m. en las Cmaras del Concejo del Ayuritamiento.
Invitaci6n a ser escuchadas: Todas las personas interesadas estAn invitadas a la audiencia publica para serescuchadas. AdemAs, se pueden presentar comentarios por escrito al Concejo Municipal antes de la audiencia, Loscomentarios pueden enviarse por escrito ettviando comentarios por correo a la ciudad de South Gate, Departamentode Desarrollo Con'iunitario, ATTN: Carol Averell, Adrninistradora de Vivienda, 8650 California Avenue, South Gate,CA 90280.
Aquellos que deseen una copia del informe u otra infonnaci6n relacionada con este proyecto pueden ponerse encontacto con:
Contacto:
Tel6fono:
Correo electr6nico:
Carol Averell, Administradora de Vivienda
(323) 563-9535
caverell2(,sogate.org
Direcci6n postal: Departamento de Desarrollo Comunitario Ciudad de South Gate
8650 Califomia Avenue
South Gate, CA 90280-3075
Accesibilidad: Es la intenci6n de la Ciudad de South Gate cumplir con la Ley de Estadounidenses conDiscapacidades (ADA) en todos los aspectos. La Ciudad de South Gate intentarA acomodar a los asistentes de todaslas maneras razonables. Comunfquese al menos 72 horas antes de la audiencia ptiblica programada anteriormente paraestablecer la necesidad y determinar si es factible realizar adaptaciones adicionales. 64 ENGLIS:[1:
Information in Spanisb about this meeting cm be obtained by calling (323) 563-9535.
Pttblicado: 26 de marzo de 2026
65 Oitice of the
Sotith Gate City Cleil.
JUN - 'l 2026 Item No. 2
.gi rFlLED Cil of South Gate
CITY COUNCIL; SOUTH GATE HOUSING AUTHORITY;
AND SUCCESSOR AGENCY TO THE CO TY
DEVELOPMENT COMMISSION OF
THE CITY OF SOUTH GATE
AGENDA BULL
For the Regular Meeting of. June 9, 2026
Originating Department: Administrative Services
DepartmentDirectm: '4-!- Ciffl Manager:
'ic9%it;(jpi(..
Luis Frausto Rob Houston
SUBJECT: CONSmERATION OF PRESF,NTATIONS ON THE PROPOSED FY 2026-27 MtJNICIPAL BUDGET AND ONE-YEAR CAPITAL IMPROVEMENT PROGRAM, AND ADOPTION OF RESOLUTIONS EST ABLISHING THE FY 2026-27 MUNICIPAL BUDGET,
INCLUDING THE FINANCIAL AND BUDGETARY POLICIF,S, THE GANN
APPROPRIATIONS LIMIT, AND THE MASTER FEES AND CHARGES SCHEDULF, FOR
THE CITY OF SOUTH GATE, THE SOUTH GATE HOUSING AUTHORITY, AND THE
SUCCESSOR AGENCY TO THE COMMUNITY DEVELOPMENT COMMISSION PURPOSE: To receive presentations on the Proposed FY 2026-27 Municipal Budget and One-Year Capital Improvement Program, and to consider adoption of resolutions establishing the FY 2026-27 Municipal Budget (including the Financial and Budgetary Policies attached as Exhibit A to that resolution), the FY 2026-27 Gann Appropriations Limit (including the recalculated FY 2025-26 limit), and the FY 2026-27 Master Fees and Charges Schedule, The budget resolution is a joint action of the City Council, the South Gate Housing Authority, and the Successor Agency to the Community Development Commission; the Gann Appropriations Limit and Master Fees and Charges Schedule are actions of the City Council.
RECOMMENDED ACTIONS: The City Council, South Gate Housing Authority, and the Successor Agency to the Community Development Cossion of the City of South Gate will consider:
a, Receive and file presentations on the Proposed FY 2026-27 Budgets and 1-Year Capital Improvement Program (CIP);
b. Adopt a Resolution approvirig the FY 2026-27 Municipal Budget in the amount of $282,102,715, including all funds and departments, and adopting the included Financial and Budgetary Policies, along with any additions or deletions the Legislative Bodies may enact; c. Adopt a Resolution recalculating the FY 2025-26 Gann Appropriations Limit in the amount of $109,371,003 and establishing the FY 2026-27 Gann Appropriations Limit in the amount of $114,853,681;
d, Adopt a Resolution establishing the FY 2026-27 Master Fees and Charges Schedule and rescinding Resolution No. 2025-26-CC,
66 FY 2026-27 PROPOSED BUDGET
PAGE20F6
FISCAL IMPACT: The Proposed FY 2026-27 Municipal Budget, including all City funds and affiliated entities, totals $282,102,715 in budgetary uses. This amount consists of $228,176,892 in expenditures and $53,925,823 in transfers out. Total revenues for all funds and entities are projected at $171,742,406. The difference between current-year revenues and budgetary uses is funded through beginning fund balances, legally available restricted funds, authorized transfers, and reserves. The $228,176,892 expenditure component corresponds to the appropriations total referenced in the City Manager's Budget Message; the $282,102,715 adopted through the Budget Resolution is the gross figure, which also reflects transfers between funds.
Within the General Fund, FY 2026-27 expenditures total $72,131,991, with projected revenues of $68,242,625, transfers out of $2,831,239, and the planned use of $2,250,000 from the Budget Stabilization Reserve. The General Fund Emergency Reserve remains fully funded at $13,000,000, and the PERS/OPEB Reserve remains at $1,737,023. The Budget Stabilization Reserve is projected to decrease from $3,768,527 to $1,518,527, and the unassigned General Fund balance is projected to end the fiscal year at $3,122,507.
The South Gate Housing Authority budget totals $5,725,349. The Successor Agency budget totals $768,615. These amounts are included in the total FY 2026-27 Municipal Budget and are adopted through the Joint Resolution.
ANALYSIS: On April 14, 2026, the Public Works, Police, and Human Resources departments provided departmental budget reduction presentations for the new fiscal year. On April 28, 2026, the Community Development, Parks and Recreation, City Manager, and City Clerk departments provided additional budget-reduction presentations. Staff also provided a detailed overview of current economic conditions, the challenges the City has faced, the challenges ahead, and a summary of the Proposed Budget for Fiscal Year 2026-27.
The Legislative Body provided feedback and recornrnendations, which were incorporated into budget development efforts. At tonight's meeting, the Legislative Bodies will be presented a comprehensive view of the Proposed Budget for Fiscal Year 2026-27 and will consider approving a Resolution adopting the Proposed Budget for Fiscal Year 2026-27 along with any adjustments discussed during these hearings. All these budget meetings are open to the public to observe and participate through the public comment section of the meeting.
The total FY 2026-27 Proposed Budget, to include all funds and entities is $282,102,715. The Proposed Budget may be further adjusted with any additions or deletions the Legislative Bodies may enact during the budget meetings.
General Fund Overview
The FY 2026-27 General Fund budget totals $72,131,991 in expenditures and is balanced using $2.25 million in one-time reserves from the City's Budget Stabilization Reserve. General Fund revenues are projected at $68,242,625.
The General Fund supports the City's core municipal services, including police, parks and recreation, public works, community development, engineering, code enforcement, facilities, and administrative operations. General Fund revenues were originally projected at approximately $70.9 million, but updated 67 FY 2026-27 PROPOSED BUDGET
PAGE30F6
estimates now total $68.2 million. The softer outlook is driven primarily by State sales tax, the local 1% transactions and use tax (Measure P), and user fee and charges-for-services revenue.
The Police Department accounts for approximately $41.9 million, or about 58% of General Fund expenditures. Other major General Fund services include Parks and Recreation, Public Works, Community Development, Human Resources, Administrative Services, City Manager, City Clerk, City Attorney, and City Council operations.
Structural Deficit & Use of Reserves
Over the past several fiscal years, the City relied on more than $18 million in one-time American Rescue Plan Act (ARPA) funds to support essential General Fund costs. Those funds helped maintain services during and after the pandemic, but they were temporary. With ARPA expended, the City must rely on increasing local revenues, ongoing expenditure controls, or both. The City's FY 2024-25 Annual Comprehensive Financial Report (ACFR) reinforces this context. Although the City ended the year with positive fund balances and an increase in net position, the accompanying Management's Discussion and Analysis notes that strong year-end financial statements do not, by themselves, indicate a structurally balanced operating budget; the relevant question is whether recurring revenues are sufficient to support recurring services over time.
Over the last two budget cycles, departments identified approximately $2.0 million in General Fund reductions for FY 2025-26 and an additional $7.3 million in FY 2026-27. The reductions are spread across departments and include a net reduction of 36 budgeted full-time positions, including 14 positions in the Police Department, as well as reductions to training, equipment, and contracted services. These reductions will affect service delivery, including longer wait times, slower response and processing times, and reduced capacity to absorb unplaru'ied workload. Taken together, these reductions close most of the approximately $11.3 million plaru'iing gap originally identified for FY 2026-27 and described to the Legislative Bodies during the budget study sessions, with the remaining gap addressed through the one-time use of reserves described below.
The Proposed Budget reduces the structural deficit but does not eliminate it. Absent additional corrective action, the City projects a recurring General Fund shortfall of roughly $4 million to $5 million in FY 2027-28. The scheduled payoff of the City's 2005 Police Pension Obligation Bond in FY 2027-28 is expected to eliminate about $2.0 million in annual debt service, but continued growth in CalPERS UAL payments, insurance, labor, maintenance, and other operating costs is expected to offset a substantial portion of that relief.
The $2.25 million transfer from the Budget Stabilization Reserve reduces that reserve from $3.77 million to $1.52 million by year-end. The Emergency Reserve remains 'fully funded at $13.O million and is not used to balance the budget. The PERS/OPEB Reserve is maintained at $1.74 million.
Fund Balance
As of July 1, 2026, the City's unassigned General Fund balance is projected to be $7,593,112. A'fter accounting for proposed revenues, expenditures, and transfers, June 30, 2027, ending unassigned balance is estimated at $3,122,507. This modest year-end balance reflects the City's constrained financial position and limited flexibility heading into FY 2027-28. 68 FY 2026-27 PROPOSED BUDGET
PAGE40F6
Capital Improvement Program
The FY 2026-27 0ne-Year Capital Improvement Program includes $19.7 million in new appropriations across 32 active projects. Most CIP funding comes from restricted special revenue funds, state and federal grants, and enterprise funds. These funds are important for infrastructure investment but generally cannot be used to solve unrestricted General Fund operating deficits unless the specific operating cost is legally eligible for that funding source.
Major CIP investments include street rehabilitation and complete-streets improvements funded by SB 1, Measure R, Measure M, Proposition A, Proposition C, and Gas Tax; water system improvements, including AMR meter replacement, PFAS treatment, and water main replacement; facility upgrades, including ADA compliance, HVAC, City Hall reroofing, and police emergency operations improvements; sanitary sewer modeling and rehabilitation; and pedestrian and traffic safety improvements. The direct General Fund contribution to CIP is limited to approximately $378,000.
Financial and Budgetary Policies - Annual Review and Update The FY 2026-27 Proposed Budget includes Financial and Budgetary Policies that establish the framework for budget adoption, appropriations control, reserves, transfers, capital project closeout, financial reporting, and long-range financial planning. The Budget Adoption Resolution also authorizes the City Manager, or designee, to approve intrafiind transfers within a fiind consistent with Section 4 of those policies. Interfund transfers and any increase to total fund appropriations continue to require City Council authorization through the adopted budget, subsequent budget amendment, or separate resolution.
The Proposed Budget includes a substantively revised set of Financial and Budgetary Policies, included in the Proposed Budget Book, and attached as Exhibit A to the Budget Adoption Resolution. The policies establish the framework the City uses to plan, manage, monitor, and report on its finances, and guide elected officials, staff, and the public on how the City develops budgets, manages reserves, handles transfers, and reports financial information. They are written to be prudent, practical, and enforceable, and reflect the recommended practices of the Goverent Finance Officers Association (GFOA), the California Society of Municipal Finance Officers (CSMFO) budget award criteria and recommended practices, and applicable provisions of California state law and the City's Municipal Code.
The revised policies replace and supersede the version adopted by the City Council on July 17, 2025.
The previous policies served the City well as a high-level framework, but did not include the specific standards, dollar thresholds, and reporting requirements that current best practice recommends. The proposed revisions add structure in the areas of reserves, transfers, capital project administration, and financial reporting; while preserving the policy commitments the City Council has made in past budget cycles.
The revisions strengthen the City's financial framework in three ways. First, they formalize the City's approach to capital project transfers, with clear procedures and reporting practices that give the City Council, the public, and the City Manager's office a consistent framework for managing CIP activity throughout the year. Second, they codify the City's longstanding practice of treating restricted revenues (i.e,, Gas Tax, SB 1, Measure R, Measure M, Propositions A and C, etc.) in accordance with their legal nexus requirements, providing a documented standard that supports compliance with state and federal 69 FY 2026-27 PROPOSED BUDGET
PAGE50F6
funding rules. Third, they align the City's reserve, reporting, and capital planning practices with current Government Finance Officers Association (GFOA) recommended practices, which supports the City's standing with rating agencies, auditors, and grantors.
The structure of the City's reserves (Emergency Reserve, Budget Stabilization Reserve, PERS/OPEB Reserve), the General Fund budgeting margin of 1% to 1.5%, the multi-year financial perspective, and the use of the master fee schedule for cost recovery all continue. The revised policies clari'fy and codi'fy these practices rather than replace them.
Housing Authority and Successor Agency Budgets
The South Gate Housing Authority budget totals $5,725,349 and supports rental assistance and administration of HUD-funded activities. The Successor Agency budget totals $768,615 and reflects scheduled debt payments and administrative costs related to the dissolution of the former Community Development Commission. The Joint Resolution adopts the respective portions of the City, Housing Authority, and Successor Agency budgets.
Gann Appropriations Limit
Article XIII B of the California Constitution requires local agencies to adopt an annual appropriations limit, commonly referred to as the Gann Appropriations Limit. The limit caps the amount of proceeds of taxes that may be appropriated in a fiscal year, after applying legally authorized exclusions and annual adjustment factors.
The attached Gann Resolution recalculates the FY 2025-26 appropriations limit at $109,371,003, with appropriations subject to the limit of $54,983,428. For FY 2026-27, the appropriations limit is $114,853,681, with appropriations subject to the limit of $53,384,506. This leaves a margin of $61,469,176, and the City remains well below the constitutional limit.
Master Fee and Charges Schedule
The City's Master Fee and Charges Schedule consolidates fees for services authorized by the Municipal Code and other applicable authorities. The attached fee resolution establishes the FY 2026-27 Master Fee and Charges Schedule and rescinds Resolution No. 2025-26-CC. The resolution states that the City last comprehensively updated its fees on September 9, 2025, and that continued increases in the cost of providing services support a further adjustment averaging approximately 7%, with selected fees revised to actual cost where the cost basis has materially changed.
The proposed fees do not exceed the actual cost of providing the related services. The new fees will become effective sixty (60) days a'fter adoption of the resolution. Fee updates alone will not close the City's structural General Fund gap, butthey help reduce unnecessary General Fund subsidies for services that primarily benefit specific users and support a broader future cost-of-service review.
BACKGROUND: A municipal budget addresses city policies, and operations, and communicates the anticipated financial activities to both the public and the legislative bodies of the impacted entities. The City held meetings on April 14th and April 28'h to review the various proposed spending reductions. The 70 FY 2026-27 PROPOSED BUDGET
PAGE60F6
City Council will review the comprehensive Proposed Budget for FY 2026-27 and consider approving a Resolution to adopt it.
Governrnent Code Section 53901 requires each local agency to file its budget with the county auditor within 60 days after the beginning of its fiscal year. If an agency does not have a "formal budget", it must file a listing of its anticipated revenues together with its expenditures for the fiscal year in progress.
Staff anticipate that the Proposed Budget for Fiscal Year 2026-27 will be adopted within the time frame of submitting the budget to the county auditor.
ATT ACHMENTS:
A. Resolution adopting FY 2026-27 Municipal Budget and Financial and Budgetary Policies B. Resolution restating FY 2025-26 and adopting FY 2026-27 Gann Appropriations Limit C. Resolution adopting FY 2026-27 Master Fee and Charges Schedule D. Proposed FY 2026-27 Municipal Budget
E. Summary of Material Changes - FY 2026-27 Proposed Budget F. Proposed FY 2026-27 Master Fee and Charges Schedule 71 Attachment A
Agenda Bill 6/09/26 Attachment A
RESOLUTION NO.
CITY OF SOUTH GATE
LOS ANGELES COUNTY, CALIFORNIA
A JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH GATE,
SOUTH GATE HOUSING AUTHORITY AND SUCCESSOR AGENCY TO THE
COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SOUTH GATE, CALIFORNIA, ADOPTING THE MUNICIPAL BUDGET FOR FISCAL YEAR 2026-27
AND THE FINANCIAL AND BUDGETARY POLICIES ATT ACHED THERETO WHEREAS, the City Manager has submitted to the City Council, South Gate Housing Authority and Successor Agency to the Community Development Commission ("Adopting Agencies") a Proposed Municipal Budget for FY 2026-27 with total expenditures and transfers for all funds totaling $282,102,715; and
WHEREAS, the City Manager has also submitted to the City Council a set of revised Financial and Budgetary Policies, attached to this Resolution as Exhibit A, that supersede the Financial and Budgetary Policies previously adopted by the City Council on July 17, 2025; and WHEREAS, the revised Financial and Budgetary Policies establish the framework the City uses to plan, manage, monitor, and report on its finances, and reflect the recommended practices of the Government Finance Officers Association (GFOA), the California Society of Municipal Finance Officers (CSMFO), and applicable provisions of California state law and the City's Municipal Code; and
WHEREAS, a meeting of the Adopting Agencies to consider the proposed Fiscal Year 2026-27 Municipal Budget was held on May 26, 2026, and a duly noticed meeting held on June 9, 2026, to consider the same; and
WHEREAS, the City Council has held budget study sessions, heard presentations, reviewed, discussed, and considered said budget during the regularly scheduled City Council meeting conducted on May 26, 2026.
NOW, THEREFORE, BE IT RESOLVED, THE CITY COUNCIL OF THE CITY OF
SOUTH GATE, CALIFORNIA, ALONG WITH THE SOUTH GATE HOUSING
AUTHORITY AND THE SUCCESSOR AGENCY TO THE COMMUNITY
DEVELOPMENT COMMISSION, JOINTLY AND SEVERALLY, HEREBY RESOLVE(S) AS FOLLOWS:
SECTION 1. The City Council hereby adopts the Municipal Budget for FY 2026-27, for a total of $282,102,715 for all funds and entities along with any additions or deletions the Legislative Bodies may enact
SECTION 2. The South Gate Housing Authority and the Successor Agency to the Community Development Commission hereby adopt their respective portions of the Municipal Budget for FY 2026-27.
72 SECTION 3. The City Council hereby adopts the Financial and Budgetary Policies attached to this Resolution as Exhibit A, which shall supersede and replace the Financial and Budgetary Policies previously adopted by the City Council on July 17, 2025. The Financial and Budgetary Policies are effective upon adoption of this Resolution and shall remain in effect until superseded by subsequent City Council action.
SECTION4. TheCityCouncilwillreservetherighttomakefurtheradjustmentstotheMunicipal Budget throughout the year at any publicly agendized meeting of the City Council/Housing Authority/Successor Agency.
SECTION 5. The City Council hereby authorizes the City Manager, or designee, to approve intra'fund transfers of appropriations within a fund, consistent with the legal level of budgetary control and the authority and limits set forth in the City's Financial and Budgetary Policies adopted as part of this budget.
SECTION 6. The City Clerk shall certify the adoption of this Resolution, which shall be effective upon its adoption.
PASSED, APPROVED and ADOPTED this 9'h day of June 2026.
CITY OF SOUTH GATE:
By:
Joshua Barron, Mayor
ATTEST:
By:
Yodit Glaze, City Clerk
(SEAL)
APPROVED AS TO FORM:
BY:
Ra52!:!a:\2 ('y
73 Attachment B
Agenda Bill 6/09/26 Attachment B
RESOLUTION NO.
CITY OF SOUTH GATE
LOS ANGELES COUNTY, CALIFORNIA
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH GATE,
CALIFORNIA, APPROVING AND ADOPTING THE ANNUAL GANN APPROPRIATIONS LIMIT RECALCULATION FOR FISCAL YEAR 2025/26 AND ANNUAL GANN APPROPRIATIONS LIMIT FOR FISCAL YEAR 2026/27 WHEREAS, the voters of the State of California onNovember 6, 1979, added Article XIII B to the Constitution of the State of California placing various limitations on the appropriations of the state and local governments;
WHEREAS, Article XIII B provides that the appropriations limit for Fiscal Year 2026/27 shall be calculated by adjusting the appropriations limit for the prior fiscal year for changes in inflation and population, except as otherwise provided for in Article XIII B and implementing state statutes;
WHEREAS, the information necessary for making such adjustments is attached as Exhibit A, which is incorporated herein and by reference made a part hereof', and WHEREAS, the City of South Gate must establish a revised Gann limit for Fiscal Year 2025/26 to reflect audited figures and finalized inflation and population factors for that year, in accordance with the provisions of Article XIII B and applicable statutory law; and WHEREAS, the City of South Gate has complied with the provisions of Article XIII B in determining the appropriations limit for Fiscal Year 2026/27.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. For the Fiscal Year 2026/27 appropriations limit, the City selects the change in California per capita personal income as the inflation factor and the change in the City of South Gate population as the population factor. The recalculated Fiscal Year 2025/26 appropriations limit reflects the change in California per capita personal income as the inflation factor and the change in the County of Los Angeles population as the population factor, consistent with the factors applied in that year's audited calculation.
SECTION 2. A recalculated appropriations limit in the total amount of $109,371,003 is hereby adopted for Fiscal Year 2025/26, with an amount subject to the limit of $54,983,428.
SECTION 3. An appropriations limit in the total amount of $114,853,681 is hereby adopted for Fiscal Year 2026/27, with an amount subject to the limit of $53,384,506. 74 SECTION 4. The City Clerk shall certify the adoption of this Resolution which shall be effective upon its adoption.
PASSED, APPROVED, and ADOPTED this 9'h day of June 2026.
CITY OF SOUTH GATE:
By:
Joshua Barron, Mayor
ATTEST:
By:
Yodit Glaze, City Clerk
(SEAL)
Raul F. Salinas, City Attorney
10 75
Attachment C
Agenda Bill 6/09/26 Attachment C
RESOLUTION N0. 2026-XX-CC
CITY OF SOUTH GATE
LOS ANGELES COtJNTY, CALIFORNIA
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA, ESTAJ3LISHING A NEW SCHEDULE OF FEES FOR SERVICES FOR FISCAL YEAR 2026-27 AND RESCINDING RESOLUTION N0. 2025-26-CC WHEREAS, the City incurs costs for providing services and is required to recover cost of providing such services through fees and charges;
WHEREAS, it is necessary to adjust and/or establish certain fees to recover the cost of providing services;
WHEREAS, continued increases in the cost of providing services since the last fee adjustment support a further adjustment averaging approximately 7%, with selected fees revised to actual cost where the cost basis has materially changed; WHEREAS, a duly noticed public hearing concerning this matter was held, as required by law, on June 9, 2026; and
WHEREAS, the proposed fees do not exceed the actual cost of providing the service.
NOW, THEREFORE, THE CITY COUNCIL FOR THE CITY OF SOUTH GATE DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The City Council does hereby declare that the recitals set forth above are true and correct and are incorporated herein by reference.
SECTION 2. The Schedule of Fees attached hereto as Exhibit A is hereby approved and adopted and shall be adjusted aru'iually for inflation and other factors, subject to City Council approval.
SECTION 3. The new fees proposed in this Schedule of Fees will be effective sixty (60) days from adoption of this Resolution.
SECTION 4. Fees and charges may be waived only by the authority and approval of the City Council, except for Facility Use Permit Fees, which may be waived by the Director of Parks and Recreation under criteria specified in the Administrative Guidelines adopted by the City Council on February 28, 2006.
SECTION 5. Penalty charges may be applied every 30-day period for nonpayment of fees as indicated in this Schedule of Fees, but may not, at any time, exceed the amount of the original fee. 76 SECTION 6. Staff are authorized to engage outside consultant services to perform any and all studies to analyze proposed development and/or land use applications. All costs for such services shall be borne by the applicant. Such fees shall be deposited prior to work being undertaken into a trust account and drawn upon by the City to pay invoices from the consultant. In addition, a 25% surcharge shall be charged to recover any staff cost associated with engaging, coordinating and/or reviewing such studies.
SECTION 7. The City Manager shall have the authority to interpret the provisions of this Resolution for purposes of resolving ambiguities.
SECTION 8. The City Clerk shall certify the adoption of this Resolution which shall be effective upon its adoption.
PASSED, APPROVED and ADOPTED this 9th day of June 2026.
CITY OF SOUTH GATE:
By:
Joshua Barron, Mayor
ATTEST:
B7:
Yodit Glaze, City Clerk
(SEAL)
APPROVED AS TO FORM:
BY:
Raul F. Salinas, City Attorney
12, 77
Attachment E
Agenda Bill 6/09/26
Attachment E
Summary of Material Changes - FY 2026-27 Proposed Budget This disclosure outlines material revisions made between the FY 2026-27 Proposed Budget introduced on May 26, 2026, and the revised version presented on June 9, 2026. All page numbers below refer to pages in the revised version. Revisions include added content, updates for accuracy based on new information, organizational chart corrections, and enhaneed narrative detail intended to improve transparency and clarity.
Purpose of This Disclosure
The following summary is provided to inform readers of what sections were modified, the nature of each change, and where updated or corrected information appears in the document.
Summary of Revisions
Introduction (pgs. 1-11):
* Added City Manager Transmittal Letter (pgs. 1-6) Guidelines (pgs. 13-36):
* Added updated Financial and Budgetary Policies (pgs. 13-24) Summaries (pgs. 37-86):
* Add Pension Obligation Bond Summary (pgs. 83-85) * GANN Appropriation Limit updated (pg. 86).
o Exhibit A. "Last Year's Limit (Audited)" was updated from $110,869,454 to $109,371,003 based on FY 25-26 Audit finding.
o Exhibit D. "This Year's Limit" (A x C) was updated from $116,427,248 to $114,853,681
City Attorney (pgs. 99-105):
* Org Chart adjusted to remove Executive Assistant to City Attorney (pg. 99) City Manager (pgs. 107-122):
@ Org Chart adjusted to show Sr. Clerk Services Coordinator and City Hall Receptionist reporting directly to the City Manager (pg. 107)
Administrative Services (pgs. 135-167):
* Org Chart adjustments (pg. 135)
o Revised Budget and Finance Manager title to Budget and Procurement Manager o Adjusted to show Customer Service Division reporting to Budget and Procurement Manager
78 o Adjusted to change Information Systems Analyst title to Information Technology Analyst
o Adjusted to change Information Systems Technician title to Information Technology Technician
Public Works (pgs. 285-338):
* Public Works - Engineering Org Chart adjustments (pg. 285) o Changed Executive Assistant to Special Projects Coordinator o Adjusted to reflect the Senior Civil Engineer to report to the Transportation & CIP Division Manager
* AdjustmenttobudgetamountinStreetsDivisionaccountlOO-710-12-610lfrom$l25,000 to $135,000 to reflect the split of the account with Facilities Maintenance Division (pg. 310)
@ Adjustment to budget amount in Streets Division account 100-710-12-6310 from $5,000 to $6,100 to reflect the split of the accoiu'it with Facilities Maintenance Division (pg. 310) * Addition of CBDG account 215-713-31-6309 Detail (pg. 311) * AdjustmenttobudgetamountinWaterDivisionaccount41l-731-71-6202from$460,689 to $366,000 to reflect the split of the account with Engineering Division (pg. 315) 79 Attachment D and F
Agenda Bill 6/09/26
Attacent D and Attachment F will be provided at the City Council Meeting and is also available now at the City of South Gate's Budgets & Financial Transparency webpage website:
Budgets & Financial Transparency City of South Gate. 80 Office of the
Socith Gate City Clerk
JUN - % 2026 Item No. 3
FILED
gl','if"
Ciffl ofSouth Gate
CITY COUNCIL
AGENDA BULL
For the Regular Meeting of. June 9, 2026
Originating Department: City Manager's Office
Rob Houston Rob L
SaUBJECT: CONSIDERATION OF UTILITY USERS' TAX RATE OF 8% OR 9% FOR THF, NOVF,MBER 3, 2026, BALLOT MEASURE, TO ADDRESS RF'C?JRRING COSTS
THAT CONTINUE TO OUTPACE GENERAL FTJND REVENUES
PURPOSE: To ask the City Council to consider setting the proposed Utility Users Tax (OUT) rate at 8% or 9%, in place of the 7% currently written into the draft Ordinance and ballot question, so the measure fully closes the General Fund structural deficit and creates capacity to rebuild reserves and restore reduced services. This report supplements the April 14, 2026, Agenda Bill on the UUT measure and the May 26, 2026, FY 2026-27 Pmposed Budget presentation.
RECOMMENDED ACTIONSi The City Council will consider:
a. Selecting a Utility Users Tax rate of 8o/o or 9%, in place of the 7% rate reflected in the documents presented on April 14, 2026;
b, Adopting the Amended and Restated Resolution, submitting the revised ballot measure to thevoters attheNovember3, 2026, General Municipal Election, bythe required two-thirds vote of the full Council under California Government Code section 53724(b); c, Approving the revised proposed Ordinance for submission to the voters; and d. Directing staff to transmit the adopted documents to the Los Angeles County Registrar- Recorder/County Clerk before the August 7, 2026, filing deadline, SUMMARY: South Gate's costs continue to grow faster than its revenues. The current ptoposal places a 7% {J[JT before voters, generatingroughly $9,O million a year. Based on the City's latest general fund forecast, that rate brings the General Futid close to balance but leaves residual operating deficits and thin reserves with little cushion for risk, An 8% rate reaches stnuctural balance by FY 2028-29. A 9% rate ptoduces a structural surplusthat would Iet the City rebuild the Budget Stabilization Reserve and restore part of the service reductions adopted for FY 2025-26 and FY 2026-27. Becausethe same election, ballot, and senior exemption apply at any ofthese rates, the choice of rate is the single largest lever the City Council holds over the City's long-term fiscal health. Staff recommends the City Council direct that the measure be set at 8% or 9%.
1 81
FISCAL IMPACT: The fiscal effect of this item is the difference in recurring General Fund revenue the measure would raise. Compared with the 7% proposal, an 8% rate raises about $1.4 million more per year and a 9% rate raises about $3.0 million more per year, at full aru'iual collection. Higher recurring revenue directly reduces the City's reliance on one-time reserves and lowers the risk of :[urther service cuts in future budget cycles.
ANALYSIS: The City has been able to sustain a high level of community services and retain quality City staff and service providers by actively pursuing and recovering "one-time" revenues to fill the City's growing structural deficit. During this time, revenues within the City's General Fund, sales tax, property tax, and Vehicle License Fees remained static, with some growth in property tax, but with limited or no growth in the other General Fund revenue sources. More recently, emerging national economic conditions, including tariff-related uncertainties and broader market volatility, present additional downside revenue risk for cities across California.
Why costs keep outpacing revenues
The deficit is structural, not a one-time gap. Since FY 2019-20, recurring costs have grown by roughly $11.5 million a year, with about $4.1 million of new pressure in FY 2026-27 alone (May 26, 2026 Proposed Budget presentation). The largest drivers are required pension contributions (CalPERS unfunded liability up about 85%, from $6.OM to $ll.lM), workers' compensation and liability insurance (up about 190%, from $2.OM to $5.8M), and health benefits (up about 42%).
Less visible costs add to the pressure each year, including contract escalators tied to inflation, energy and fuel, software subscription increases of 5 to 15 percent, and new state and federal mandates.
These pressures recur every year and rise with inflation, while the City's main revenues, property tax (constrained by Proposition 13), sales tax, and vehicle license fees, have grown slowly or remained flat. Emerging tariff-related and market uncertainty adds downside risk to those revenues. That gap between rising recurring costs and slow recurring revenue is what the UUT is meant to close.
What the 7% rate achieves, and where it falls short The FY 2026-27 budget is technically balanced but not structurally balanced; it relies on a $2.25 million draw from the Budget Stabilization Reserve, which falls to about $1.52 million as a result.
At 7%, the forecast shows the General Fund near balance but with residual operating deficits and an available fund balance that drops to about $2.5 million in FY 2027-28 before slowly recovering.
That leaves almost no margin to absorb a revenue downturn, a major claim, or a new mandate.
The table below compares the three rates using the City's adopted five-year forecast model. Dollar figures are rounded; "available 'fund balance" means the discretionary General Fund balance and excludes the policy-protected Emergency Reserve.
2 82
$9.OM $10.4M $12.OMAnnual {TUT revenue, full year (FY 2027-28)
Added recurring revenue vs. 7% +$1.4M/yr +$3.OM/yr
Recurring operating margin, FY
2028-29
+$1.7M +$3.1M +$4.8M
Available fund balance - low point
(FY 2027-28)
$2.5M $4.2M $6.2M
Available fund balance - FY 2030-
31 $9.5M $15.6M $22.5M
Structural outcome (per forecast) Near balance;
residual deficits
persist
Structural
balance by FY
2028-29
Structural
surplus;
restoration
capacity
Source.' 5-Year General Fund Forecast - UUT 7% / 8% / 9% scenarios,' HdL revenue projections.
Effect on residents
The table below uses the same illustrative household figures shown to the public in the UUT community education materials, applied to the 7%, 8%, and 9% options. The low-income senior exemption in the dra'ft Ordinance applies at any rate, so the residents least able to pay remain protected regardless of the rate the City Council selects.
Sample South Gate
household
$38.38 $43.87 $49.35
Average California
household
$560 $39.20 $44.80 $50.40
Monthly cost on a typical utility bill. Figures are illustrative estimates, consistent with the UUT community education materials. A low-income senior exemption applies at every rate.
Put in dollars, the choice between rates is modest at the household level. For a typical South Gate household, an 8% rate instead of 7% adds about $5.49 a month, or rougMy $66 a year. A 9% rate adds about $10.97 a month, or roughly $132 a year. Each of those additional dollars stays local and goes toward closing the structural deficit and protecting services.
As a further way to ease the transition, Councilmember Rios has suggested offering residents a temporary discount on their water bills, funded by the Water Fund, to partially offset the cost of 3 83
the new tax. The Water Fund holds sufficient available balance to support such a program on a short-term basis, and the Council could direct staff to return with aproposed struchire and duration.
Capacity to restore services
The FY 2026-27 budget carries about $9.3 million in cumulative reductions over two years, including frozen police positions, reduced patrol minimums, the crossing guard and crime prevention programs, seasonal park and pool closures, and slower permit and code enforcement response.
The five-year forecast does not assume the City reverses all of those cuts. It is built on a $7.0 million restoration, phased in over FY 2026-27 and FY 2027-28, which still leaves roughly $2.3 million in reductions unrestored before any allowance for future cost growth. At 7%, the forecast funds that $7.0 million restoration but leaves very little room for 'further restoration and almost no cushion to absorb the cost increases that will keep coming. At 8%, the same $7.0 million restoration holds, with some added capacity to absorb those increases as they arrive. Only at 9% does the forecast create room to restore services beyond the $7.0 million already assumed, and eventhenthe result is workable rather than comfortable. No scenario fully reverses the $9.3 million in cuts; the 9% rate is the only one that moves the City meaningfully back toward that goal while keeping a usable reserve.
Key forecast assumptions
These projections rest on assumptions the Council should keep in view: HdL revenue projections with about 3% annual property tax growth; payoff of the 2005 Police Pension Obligation Bond in FY 2027-28, saving roughly $2.O million ayear; about $1.0 million in insurance savings beginning FY 2027-28 if the City changes carriers; lo/o annual UUT growth starting FY 2028-29; and an assumed 6% salary turnover savings. These are reasonable planning assumptions, not guarantees.
If any move against the City, the higher rate provides the buffer the 7% rate does not.
Procedural Considerations and Timing
Because the 7oA rate is written into both the ballot question and the Ordinance, changing it is a substantive amendment to the measure that only the City Council can make, and only by the same two-thirds vote used to place it. Council direction alone does not change the measure; the rate takes effect only when the City Council adopts the resolution that carries it. Staff has prepared Resolutions and Ordinances at both 8% and 9%, so the Council can select a rate and adopt the matching versions at this meeting and still file with the County before the August 7, 2026 deadline.
ATTACHMENTS: A. Amended and Restated Resolution (8% version) B. Amended and Restated Resolution (9% version)
C. Revised Proposed Ordinance (8% version)
D. Revised Proposed Ordinance (9% version)
4 84
Attachment A
Agenda Bill 06/09/26
RESOLUTION NO.
CITY OF SOUTH GATE
LOS ANGELES COUNTY, CALIFORNIA
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH GATE,
CALIFORNIA, SUBMITTING BALLOT MEASURE TEXT FOR THE
UTILITYUSERS TAX MEASURE TO THE VOTERS ATTHE NOVEMBER 3, 2026, GENERAL MUNICIPAl ELECTION
WHEREAS, the City Council of the City of South Gate ("City") wishes to present a utility users tax ordinance ("Ordinance") to City voters;
WHEREAS, the Ordinance would impose a general tax on utility use to be collected by utility suppliers on utilities consumed in the City ("Utility Users Tax"), the revenues from which may 'fund public safety, street maintenance, parks, or any other lawful purpose of the City; WHEREAS, the City Council wishes to present the Ordinance to the voters in the general municipal election held on November 3, 2026;
WHEREAS, the City Council requests the services of the Los Angeles County Registrar- Recorder/County Clerk to conduct this election;
WHEREAS, the City, despite significant improvements in its fiscal accountability, is experiencing an increase in service demands from a growing population-leaving the City, like many other cities in California, with inadequate funding to address essential public safety and service needs;
WHEREAS, the City has implemented a number of cost-saving measures, having reduced the number of employees, consolidated departments and become more efficient in its operations; WHEREAS, the City of South Gate is in a Financial State of Emergency, having experienced a structural budget deficit of over $7 million in fiscal year 2025-26, which is being addressed only through the use of non-recurring reserves and one-time measures, and further projects a continuing and worsening deficit projected to exceed $9 million in 2026-27, such that General Fund reserve levels will be significantly depleted absent corrective action; WHEREAS, without an immediate source of new revenue, the City will be forced to reduce essential services to the community;
WHEREAS, maintaining public safety with a fully funded police department, continuing to provide school crossing guards, maintaining parks and recreation services, senior services, neighborhood graffiti abatement programs, maintaining responsive planning, building, and code enforcement services, and fixing streets and potholes, are essentials for our community; Page l of 5
85 WHEREAS, without the adoption and submission of a Utility Users Tax measure to the voters, the City will be required to implement immediate and significant reductions to existing service levels, including reductions affecting public safety operations, parks and recreation programming, community development services, public works maintenance activities, financial administration, and the school crossing guard program, due to the insufficiency of ongoing General Fund revenues;
WHEREAS, a Utility Users Tax measure will make it possible for the City to improve its overall cornrnunity services, for example by: hiring additional police officers to reduce emergency response times, fixing City streets to improve traffic flow and reduce congestion, fighting gangs and drugs by expanding neighborhood graffiti removal programs, supporting youth anti-gang and drug prevention programs, and after-school tutoring and mentoring programs; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Call of General Municipal Election. Pursuant to the laws of the State of California applicable to general law cities, the City Council hereby calls and notices a general municipal election to be held on November 3, 2026 (the "Election"), to consider the following measure:
[The remainder of this page purposely left blank.]
86 Measure
"SOUTH GATE FISCAL EMERGENCY STREET
MAINTENANCE, YOUTH PROGRAMS, PARKS FUNDING
PROTECTION MEASURE.ShaLLanordinancepreventingcuts
to City of South Gate services incLuding maintaining streets and sidewalks; maintaining school crossing guards, parks / recreation programs, police 911 and support services, and other General Fund uses by establishing an 8% utility user tax, exempting lowincome seniors, annually providing approximately $10,400,000 until ended by voters; requiring independent audits, public disclosure of all spending, tocaL control, to benefit South Gate residents, be adopted?" Yes
No
The full Ordinance comprising this measure is attached hereto as Exhibit A and is incorporated here by this reference. The Ordinance requires the approval of a simple majority (50% plus one) of those voting on it.
SECTION 2. Request that County Conduct Ejection. The City Council hereby asks the Los Angeles County Board of Supervisors ("Board of Supervisors") to authorize the Los Angeles County Registrar-Recorder / County Clerk ("County Elections Official") to render all services necessary to conduct the Election. The City Council hereby asks the Board of Supervisors to consolidate the Election with any other election the County Elections Official is to administer on November 3, 2026, and to order the Election to be conducted by the County Elections Official. (Elec. Code, §§ 10402, 10403.) The City Council acknowledges that the Election will be held and conducted in the manner prescribed in Elections Code section 10418. The ballots to be used in the election shall be in form and content as required by law.
The City Clerk is authorized and directed to work with the County Elections Official and to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia as needed to properly and lawfully conduct the Election. In all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections. The City of South Gate will reimburse Los Angeles County for the actual costs incurred in conducting the Election upon receipt of a bill stating the amount due.
The notice of the time and place of holding the Election is hereby given, and the City Clerk and County Elections Official are authorized to give further notice of the Election as required by law.
SECTION 3. Implementation. The City Clerk is directed to file certified copies of this Resolution with the Board of Supervisors, with a copy to the County Elections Official. (Elec. Code, § 10402.) The City Clerk is further authorized and directed to perform all other acts necessary or required by law to implement this Resolution and related to the Election.
87 SECTION 4. Ballot Arguments.
A. The City Clerk shall set the deadline for submission of arguments in favor of or against the Ordinance and provide notice of that deadline. The City Clerk may do tis in coordination with the County Elections Official, as necessary. In all respects, the process to choose these arguments shall accord with Elections Code sections 9280 et seq. and 9600 et seq.
B. The City Council hereby authorizes Councilmembers and to prepare and file the written argument in support of the measure on behalf of the City Council. (Elec.
Code,§ 9282(b).)
C. Further, the City Council hereby adopts the provisions of Elections Code section 9285(a) authorizing rebuttal argument only as to arguments for the Election. This Subdivision 4(C) is repealed, and the provisions of section 9285(a) shall not apply, thereafter.
SECTION 5. Impartial Analysis. The City Clerk is directed to transmit a copy of the Ordinance to the City Attorney, who shall prepare an impartial analysis of the Ordinance in accordance with applicable law. The impartial analysis shall indicate the measure that was placed on the ballot by the City Council.
If the entire text of the Ordinance is not printed in the voter information pamphlet, the following shall be printed immediately below the impartial analysis in no smaller than 10-point type: "The above statement is an impartial analysis of Measure. The full text of Measure can be found online at cityofsouthgate.org. If you desire the measure, please call the City Clerk's office at 323- 563-9510 and a copy will be mailed at no cost to you." SECTION 6. CEQA. The adoption of this Resolution is exempt from the California Environmental Quality Act (CEQA), Public Resources Code section 21000 et seq. and California Code of Regulations, title 14, section 15000 et seq. (CEQA Guidelines). The calling of a municipal election is not aproject within the meaning of CEQAGuidelines section 15378. Further, the general tax proposed by this Resolution is a government funding mechanism that does not involve any commitment to any specific project, which may result in a potentially significant physical impact on the environment, and thus adopting this Resolution is not a project iu'ider CEQA Guidelines section 15378(b)(4).
SECTION 7. Severability. If any section, subsection, sentence, clause, phrase or portion of this Resolution or its application to any person or circumstance 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 or its application to other persons and circumstances. The City Council hereby declares that it would have adopted this Resolution and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional and, to that end, the provisions hereof are hereby declared to be severable.
SECTION 8. Effective Date. The City Clerk shall certify the adoption of this Resolution, which shall be effective upon its adoption, and shall give notice of the measure to be voted on in the manner provided by law.
88 SECTION 9. In accordance with the provisions of Califomia Government Code Section 53724(b), this Resolution shall only be effective if passed by a two-thirds vote (4 or more votes) of the City Council.
SECTION 10. The City Clerk shall certify the adoption of this Resolution, which shall be effective upon its adoption.
PASSED, AJ'PROVED, and ADOPTED this 9'h day of June 2026.
CITY OF SOUTH GATE:
B7:
Joshua Barron, Mayor
ATTEST:
By:
Yodit Glaze, City Clerk
(SEAL)
AJ'PROVED AS TO FORM:
By:
RauPu!:\ ':E' y
89 Attachment B
Agenda Bill 06/09/26
RESOLUTION NO.
CITY OF SOUTH GATE
LOS ANGELES COUNTY, CALIFORNIA
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH GATE,
CALIFORNIA, SUBMITTING BALLOT MEASURE TEXT FOR THE
UTILITYUSERSTAXMEASURETOTHEVOTERS ATTHENOVEMBER
3, 2026, GENERAL MUNICIPAL ELECTION
WHEREAS, the City Council of the City of South Gate ("City") wishes to present a utility users tax ordinance ("Ordinance") to City voters;
WHEREAS, the Ordinance would impose a general tax on utility use to be collected by utility suppliers on utilities consumed in the City ("Utility Users Tax"), the revenues from which may fund public safety, street maintenance, parks, or any other lawful purpose of the City; WHEREAS, the City Council wishes to present the Ordinance to the voters in the general municipal election held on November 3, 2026;
WHEREAS, the City Council requests the services of the Los Angeles County Registrar- Recorder/County Clerk to conduct this election;
WHEREAS, the City, despite significant improvements in its fiscal accountability, is experiencing an increase in service demands from a growing population-leaving the City, like many other cities in California, with inadequate funding to address essential public safety and service needs;
WHEREAS, the City has implemented a number of cost-saving measures, having reduced the number of employees, consolidated departments and become more efficient in its operations; WHEREAS, the City of South Gate is in a Financial State of Emergency, having experienced a structural budget deficit of over $7 million in fiscal year 2025-26, which is being addressed only through the use of non-recurring reserves and one-time measures, and further projects a continuing and worsening deficit projected to exceed $9 million in 2026-27, such that General Fund reserve levels will be significantly depleted absent corrective action; WHEREAS, without an immediate source of new revenue, the City will be forced to reduce essential services to the community;
WHEREAS, maintaining public safety with a fully funded police department, continuing to provide school crossing guards, maintaining parks and recreation services, senior services, neighborhood graffiti abatement programs, maintaining responsive planning, building, and code enforcement services, and fixing streets and potholes, are essentials for our community; Page l of 5
It) 90
WHEREAS, without the adoption and submission of a Utility Users Tax measure to the voters, the City will be required to implement immediate and significant reductions to existing service levels, including reductions affecting public safety operations, parks and recreation programming, community development services, public works maintenance activities, financial administration, and the school crossing guard program, due to the insufficiency of ongoing General Fund revenues;
WHEREAS, a Utility Users Tax measure will make it possible for the City to improve its overall community services, for example by: hiring additional police officers to reduce emergency response times, fixing City streets to improve traffic flow and reduce congestion, fighting gangs and drugs by expanding neighborhood graffiti removal programs, supporting youth anti-gang and dnig prevention programs, and after-school tutoring and mentoring programs; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Call of General Municipal Election. Pursuant to the laws of the State of California applicable to general law cities, the City Council hereby calls and notices a general municipal election to be held on November 3, 2026 (the "Election"), to consider the following measure:
[The remainder of this page purposely left blank.]
91 Measure
"SOUTH GATE FISCAL EMERGENCY STREET
MAINTENANCE, YOUTH PROGRAMS, PARKS FUNDING
PROTECTION MEASURE. Shall an ordinance preventing cuts to City of South Gate services including maintaining streets and sidewalks; maintaining school crossing guards, parks / recreation programs, police 911 and support services, and other General Fund uses by establishing a 9o/o utility user tax, exempting lowincome seniors, annually providing
approximately $12,000,000 until ended by voters; requiring independent audits, public disclosure of all spending, local control, to benefit South Gate residents, be adopted?" Yes
No __
The full Ordinance comprising this measure is attached hereto as Exhibit A and is incorporated here by this reference. The Ordinance requires the approval of a simple majority (50% plus one) of those voting on it.
SECTION 2. Request that County Conduct Election. The City Council hereby asks the Los Angeles County Board of Supervisors ("Board of Supervisors") to authorize the Los Angeles County Registrar-Recorder / County Clerk ("County Elections Official") to render all services necessary to conduct the Election. The City Council hereby asks the Board of Supervisors to consolidate the Election with any other election the County Elections Official is to administer on November 3, 2026, and to order the Election to be conducted by the County Elections Official. (Elec. Code, §§ 10402, 10403.) The City Council acknowledges that the Election will be held and conducted in the manner prescribed in Elections Code section 10418. The ballots to be used in the election shall be in form and content as required by law.
The City Clerk is authorized and directed to work with the County Elections Official and to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia as needed to properly and lawfully conduct the Election. In all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections. The City of South Gate will reimburse Los Angeles County for the actual costs incurred in conducting the Election upon receipt of a bill stating the amount due.
The notice of the time and place of holding the Election is hereby given, and the City Clerk and County Elections Official are authorized to give further notice of the Election as required by law.
SECTION 3. Implementation. The City Clerk is directed to file certified copies of this Resolution with the Board of Supervisors, with a copy to the County Elections Official. (Elec. Code, § 10402.) The City Clerk is further authorized and directed to perform all other acts necessary or required by law to implement this Resolution and related to the Election.
12 92
SECTION 4. Ballot Arguments.
A. The City Clerk shall set the deadline for submission of arguments in favor of or against the Ordinance and provide notice of that deadline. The City Clerk may do this in coordination with the County Elections Official, as necessary. In all respects, the process to choose these arguments shall accord with Elections Code sections 9280 et seq. and 9600 et seq.
B. The City Council hereby authorizes Councilmembers and to prepare and file the written argument in support of the measure on behalf of the City Council. (Elec.
Code,§ 9282(b).)
C. Further, the City Council hereby adopts the provisions of Elections Code section 9285(a) authorizing rebuttal argument only as to arguments for the Election. This Subdivision 4(C) is repealed, and the provisions of section 9285(a) shall not apply, thereafter.
SECTION 5. Impartial Analysis. The City Clerk is directed to transmit a copy of the Ordinance to the City Attorney, who shall prepare an impartial analysis of the Ordinance in accordance with applicable law. The impartial analysis shall indicate the measure that was placed on the ballot by the City Council.
If the entire text of the Ordinance is not printed in the voter information pamphlet, the following shall be printed immediately below the impartial analysis in no smaller than 10-point type: "The above statement is an impartial analysis of Measure. The full text of Measure can be found online at cityofsouthgate.org. If you desire the measure, please call the City Clerk's office at 323- 563-9510 and a copy will be mailed at no cost to you." SECTION 6. CEQA. The adoption of this Resolution is exempt from the California Environmental Quality Act (CEQA), Public Resources Code section 21000 et seq. and California Code of Regulations, title 14, section 15000 et seq. (CEQA Guidelines). The calling of a municipal election is not aproject withinthe meaning of CEQAGuidelines sectionl5378. Further, the general tax proposed by this Resolution is a government funding mechanism that does not involve any commitment to any specific project, which may result in a potentially significant physical impact on the environment, and thus adopting this Resolution is not a project under CEQA Guidelines section 15378(b)(4).
SECTION 7. Severability. If any section, subsection, sentence, clause, phrase or portion of this Resolution or its application to any person or circumstance 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 or its application to other persons and circumstances. The City Council hereby declares that it would have adopted this Resolution and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional and, to that end, the provisions hereof are hereby declared to be severable.
SECTION 8. Effective Date. The City Clerk shall certify the adoption of this Resolution, which shall be effective upon its adoption, and shall give notice of the measure to be voted on in the manner provided by law.
93 SECTION 9. In accordance with the provisions of California Government Code Section 53724(b), this Resolution shall only be effective if passed by a two-thirds vote (4 or more votes) of the City Council.
SECTION 10. The City Clerk shall certi'Jy to the adoption of this Resolution, which shall be effective upon its adoption.
PASSED, APPROVED, and ADOPTED this 14th day of April 2026.
CITY OF SOUTH GATE:
B7:
Joshua Barron, Mayor
ATTEST:
BY:
Yodit Glaze, City Clerk
(SEAL)
APPROVED AS TO FORM:
By:
,,,,,vl S,v
Rail F. Salinas, City Attorney
94 Attachment C
Agenda Bill 06/09/26
ORDINANCE NO.
CITY OF SOUTH GATE
LOS ANGELES COUNTY, CALIFORNIA
ORDINANCE OF THE PEOPLE OF THE CITY OF
SOUTH GATE ADOPTING A UTILITY USERS TAX
WHEREAS, the City of South Gate ("City"), despite significant improvements in its fiscal accountability, is experiencing an increase in service demands from a growing population, leaving the City, like many others in California, with inadequate funding to address essential public safety and service needs;
WHEREAS, the City has implemented a number of cost-saving measures having reduced the niunber of employees, consolidated departments, and become more efficient in its operations; WHEREAS, the City is in a Financial State of Emergency, with a projected structural General Fund deficit of approximately $9.4 million in fiscal year 2026-27, following a structural imbalance in fiscal year 2025-26 that has been addressed only through the use of non-recurring reserves and one-time measures; and absent corrective action, General Fund reserves will be significantly depleted, impacting the City's ability to sustain ongoing services; WHEREAS, without an irnrnediate source of new revenue, the City will be forced to reduce essential services to the community;
WHEREAS, maintaining public safety with a fully funded police department, continuing to provide school crossing guards, maintaining parks and recreation services, senior services, neighborhood graffiti abatement programs, maintaining responsive plaru"iing, building, and code enforcement services, and fixing streets and potholes, are essentials for our community; WHEREAS, without the adoption and submission of a Utility Users Tax measure to the voters, the City will be required to implement immediate and significant reductions to existing service levels, including reductions affecting public safety operations, parks and recreation programming, community development services, public works maintenance activities, financial administration, and the school crossing guard program, due to the insufficiency of ongoing General Fund revenues;
WHEREAS, a Utility Users Tax measure will make it possible for the City to improve its overall community services, for example by: hiring additional police officers to reduce emergency response times, fixing City streets to improve traffic flow and reduce congestion, fighting gangs and drugs by expanding neighborhood graffiti removal programs, supporting youth anti-gang and drug prevention programs, and after-school tutoring and mentoring programs; and
NOW, THEREFORE, THE PEOPLE OF THE CITY OF SOUTH GATE, CALIFORNIA, DO HEREBY ORDAIN AS FOLLOWS.
SECTION 1. Chapter 2.79 (Utility Users Tax) is hereby added to Title 2 (Licenses - Business Regulations) of the City of South Gate Municipal Code to read as follows:
Section 2.79.010 Definitions
For the purposes of this chapter, the following words and phrases shall have the meanings ascribed to them unless otherwise noted:
"Ancillary telecommunication services" means services that are associated with or incidental to the provision, use or enjoyment of telecommunication services, including, but not limited to, the following services:
1. "'Conference bridging service" mearis an ancillary service that links two or more participants of an audio or video conference call and may include the provision of a telephone number. Conference bridging service does not include the telecommunication services used to reach the conference bridge.
2. "Detailed telecommunication billing service" means an ancillary service of separately stated information pertaining to individual calls on a customer's billing statement.
3. "Directory assistance" means an ancillary service of providing telephone number information, and/or address information.
4. "Vertical service" means an ancillary service that is offered in connection with one or more telecommunication services, which offers advanced calling features that allow customers to identify callers and to manage multiple calls and call connections, including conference bridging services.
5. "Voice mail service" means an ancillary service that enables the customer to store, send or receive recorded messages. Voice mail service does not include any vertical services that the customer may need to use the voice mail service. "Ancillary video services" means services that are associated with, or incidental to, the provision or delivery of video services, including, but not limited to, electronic program guide services, recording services, search functions, or other interactive services or communications that are associated with or incidental to the provision, use or enjoyment of video services. "Billing address" means the mailing address of the service user where the service supplier submits invoices or bills for payment by the customer.
"City" means the City of South Gate, a municipal corporation, or the territory within its jurisdictional boundaries, as the context requires.
"Communication services" means telecommunication services, ancillary telecornrnunication services, video services, and ancillary video services. "Electrical corporation" means as defined in Section 218 of the Public Utilities Code and shall be construed to include any entity engaged in the selling or supplying of electricity to a service user.
96 "Exempt wholesale generator" shall have the same meaning as set forth in 42 U.S.C. Sectionl6451 and the regulations thereunder.
"Gas" means natural or manufactured gas or any alternate hydrocarbon fuel, which may be substituted therefor.
"Mobile telecommunications service" shall have the same meaning and usage as set forth in 4 U.S.C. Section 124 and the regulations thereunder. "Month" means a calendar month.
"Non-utility service supplier" means:
1. A service supplier, other than a supplier of electric distribution services to all or a significant portion of the city, which generates electricity for sale to others, and shall include, but is not limited to, any publicly owned electric utility, investor-owned utility, cogenerator, distributed generation provider, exempt wholesale generator, municipal utility district, federal power marketing agency, electric rural cooperative, or other supplier or seller of electricity; or
2. A community choice aggregator, electric service provider (ESP), electricity broker, marketer, aggregator, pool operator, or other electricity supplier other than a supplier of electric distribution services to all or a significant portion of the city, which sells or supplies electricity or supplemental services to electricity users within the city; or
3. A gas service supplier, aggregator, marketer, or broker, other than a supplier of gas distribution services to all or a significant portion of the city, which sells or supplies gas or supplemental services to gas users within the city. "Paging service" means a telecommunication service that provides transmission of coded radio signals for the purpose of activating specific pagers; such transmissions may include messages and/or sounds.
"Person" means, without limitation, any natural individual, firm, trust, common law trust, estate, partnership of any kind, association, syndicate, club, joint stock company, joint venture, limited liability company, corporation (including foreign, domestic, and non-profit), municipal district, municipal corporation (other than the City of South Gate), cooperative, receiver, trustee, or guardian.
"Place of primary use" means the street address representative of where a customer's use of a service primarily occurs, which must be a customer's residential street address or primary business street address.
"Post-paid telecommunication service" means the telecornrnunication service obtained by making a payment on a communication-by-communication basis either through the use of a credit card or payment mechanism such as a bank card, travel card, credit card, or debit card, or by a charge
17 97
made to a service number which is not associated with the origination or termination of the telecommunication service.
"Prepaid telecommunication service" means the right to access telecommiu'iication services, which must be paid for in advance and which enables the origination of communications using an access number or authorization code, whether manually or electronically dialed, and that is sold in predetermined units or dollars of which the number declines with use in a known amount. "Private telecommunication service" means atelecommunication service that entitles the customer to exclusive or priority use of a communications channel or group of channels between or among termination points, regardless of the manner in which such channel or channels are connected, and includes switching capacity, extension lines, stations, and any other associated services that are provided in connection with the use of such channel or channels. "Service address" means:
1. The location of the service user's place of primary use, such as his or her residential street address or business street address, or
2. The location of the service user's communication equipment from which the communication originates or terminates, regardless of where the communication is billed or paid, or
3. For prepaid telecommunication service, the location associated with the service number. "Service supplier" means any person, including the city, who provides telephone communication, electric, gas, water, or video services to a user of such services within the city. The term shall include any person required to collect and remit a tax as imposed by this chapter, including its billing agent in the case of electric and gas service suppliers. "Service user" means a person required to pay a tax imposed by this chapter. "State" means the state of California.
"Streamlined Sales and Use Tax Agreement" means the multistate agreement commonly known and referred to as the Streamlined Sales and Use Tax Agreement, as it is amended from time to time.
"Tax administrator" means the City Manager of the City of South Gate, or his or her designee. "Telecommunication services" means the transmission, conveyance, or routing of voice, data, audio, video, or any other information or signals to a point, or between or among points, whatever the technology used. "Telecommunication services" includes such transmission, conveyance, or routing in which computer processing applications are used to act on the form, code or protocol of the content for purposes of transmission, conveyance or routing without regard to whether such services are referred to as voice over internet protocol (VoIP) services or are classified by the Federal Cornrnunications Commission as enhanced or value added, and includes video and/or data services that are functionally integrated with "telecommunication services." "Telecommunication
services" include, but are not limited to, the following services, regardless of the manner or basis on which such services are calculated or billed: intrastate, interstate, and international telecornrnunication services; ancillary telecommunication services; mobile telecornrnunications service; prepaid telecommunication service; post-paid telecommunication service; private telecommunication service; paging service; 800 service (or any other toll-free numbers designated by the Federal Communications Commission); 900 service (or any other similar numbers designated by the Federal Communications Commission for services whereby subscribers who call in to prerecorded or live service).
"Video programming" means those programming services commonly provided to subscribers by a video service supplier including, but not limited to, basic services, premium services, audio services, video games, pay-per-view services, video on demand, origination programming, or any other similar services, regardless of the content of such video programming, or the technology used to deliver such services, and regardless of the manner or basis on which such services are calculated or billed.
"Video services" means video programming and any and all services related to the providing, recording, delivering, use or enjoyment of "video prograrnrning" (including origination programming and programming using Internet Protocol, e.g., IP-TV and IP-Video) by a "video service supplier," regardless of the technology used to deliver, store or provide such services, and regardless of the manner or basis on which such services are calculated or billed, and includes ancillary video services, data services, telecommunication services, or interactive communication services that are functionally integrated with video services. "Video service supplier" means any person, company, or service which provides or sells video programming, or provides or sells the capability to receive video programming, including any communications that are ancillary, necessary or common to the provision, use or enjoyment of the video programming, to or from a business or residential address in the city, including but not limited to or from a business, home, condominium, or apartment, where some fee is paid, whether directly or included in dues or rental charges for that service, whether or not public rights-of-way are used in the delivery of the video programming or communications. A video service supplier includes, but is not limited to: multi-channel video programming distributors (as defined in 47 U.S.C. Section 522(13)); open video systems (OVS) suppliers; suppliers of cable television; master antenna television; satellite master antenna television; multichannel multipoint distribution services (MMDS); video services using internet protocol (e.g., IP-TV and IP-Video, which provide, among other things, broadcasting and video on demand), direct broadcast satellite to the extent federal law permits taxation of its video services, now or in the future; video streaming services, and other suppliers of video services (including two-way communications), whatever their technology.
"VoIP (voice over internet protocol)" means the digital process of making and receiving real-time voice transmissions over any internet protocol network. "800 service" means a "telecommunications service" that allows a caller to dial a number without incurring a charge for the call. The service is typically marketed under the name "800," "855," "866," "877," and "888" toll-free calling, and any subsequent numbers the Federal Communications Commission may designate for such services.
99 "900 service" means an inbound toll "telecommunications service" purchased by a subscriber that allows the subscriber's customers to receive the subscriber's prerecorded aru'iouncement or live service. "900 service" does not include the charge for collection services provided by the seller of the "telecommunications services" to the subscriber, or service or product sold by the subscriber to the subscriber's customer. The service is typically marketed under the name "900" service, and any subsequent numbers the Federal Communications Commission may designate for such SerVlCe0
Section 2.79.020 Communications Users Tax
A. Telecommunication Services
1. There is hereby imposed a tax upon every person using telecommunication services in the city. The tax shall be at the rate of 8 percent of all charges made for such services and shall be collected from the service user by the telecornrnunication services supplier or its billing agent. There is a rebuttable presumption that telecommunication services, which are billed to a billing or service address in the city, are used, in whole or in part, within the city, and such services are subject to taxation under this chapter. If the billing address of the service user is different from the service address, the service address of the service user shall be used to apply the tax. As used in this section, the term "charges" shall include the value of any other services, credits, property of every kind or nature, or other consideration provided by the service user in exchange for the telecommunication services.
2. As used in this section charges for "telecornrnunication services" shall include, but are not limited to, charges for: connection, reconnection, termination, movement, or change of telecommunication services; late payment fees; detailed billing; central office and custom calling features (including, but not limited to, call waiting, call forwarding, caller identification and three-way calling); voice mail and other messaging services; directory assistance; access and line charges; universal service charges; regulatory, administrative and other cost-recovery charges; local number portability charges; and text and instant messaging. "Telecommunication services" shall not include digital downloads that are not "ancillary telecommunication services," such as music, ringtones, games, and similar digital products.
B. Video Services
1. There is hereby imposed a tax upon every person using video services in the city provided by a video service supplier. The tax shall be at the rate of 8 percent of the charges made for such video services, and shall be collected from the service user by the video service supplier, or its billing agent.
2. As used in this section, "charges" shall include the value of any other services, credits, property of every kind or nature, or other consideration provided by the service user in exchange for video services. Charges for video services shall also include, but are not limited to, charges for the following:
100
a. Regulatory fees and surcharges, franchise fees, and access fees (including those to fund public, educational, and government video programming); b. Initial installation of equipment necessary for provision and receipt of video services;
c. Late fees, collection fees, bad debt recoveries, and returned-check fees; d. Activation fees, reactivation fees, and reconnection fees; e. Video programming and video services;
f. Ancillary video services (e.g., electronic program guide services, recording functions, search :tunctions, or other interactive services or communications that are ancillary, necessary or common to the use or enjoyment of video services); g. Equipment leases (e.g., remote, recording or search devices, converters, remote devices);
h. Service calls, service protection plans, name changes, changes of services, and special services;
i. Leasing of charuiel or other access.
C. Mobile telecommunications service shall be sourced in accordance with the sourcing rules set forth in the Mobile Telecommunications Sourcing Act (4 U.S.C. Section 124). The tax administrator may issue and disseminate to cornrnunication service suppliers required to collect a tax under this chapter, sourcing rules for the taxation of other cornrnunication services, including, but not limited to, post-paid communication services, prepaid communication services, and private communication services, provided that such rules are based upon custom and common practice that further administrative efficiency and minimize multijurisdictional taxation (e.g., Streamlined Sales and Use Tax Agreement).
D. The tax administrator, from time to time, may issue and disseminate to communication service suppliers required to collect a tax under this chapter, an administrative ruling identifying those communication services that are subject to the taxes levied by subsections A and B above. Further, the tax administrator, from time to time, may survey communication service suppliers to identify the components of communication services offered to customers within the city, and the charges therefor. The tax administrator, thereafter, may issue and disseminate to such communication service suppliers an administrative ruling identifying components that (1) are necessary for or common to the receipt, use or enjoyment of taxed communication service; or (2) currently are or historically have been included in a bundled rate for taxed communication service. Charges for such components shall be subject to the tax imposed by subsections A and B above.
E. To prevent actual multijurisdictional taxation of communication services subject to tax under this section, any service user, upon proof to the tax administrator that the service user has previously paid the same tax in another state or city on such communication services,
shall be allowed a credit against the tax imposed to the extent of such tax legally imposed in such other state or city; provided, however, the amount of credit shall not exceed the tax owed to the city under this section.
F. The tax on communication services imposed by this section shall be collected from the service user by the service supplier or its billing agent. In the case of video service, the purchaser of the bulk video service (e.g., an apartment owner) shall be the "service user," unless such service is resold to individual users, in which case the service user shall be the ultimate purchaser. The amount of tax collected in one month shall be remitted to the tax administrator, and must be received by the tax administrator on or before the 25th day of the following month.
Section 2.79.030 Electricity Users Tax
A. There is hereby imposed a tax upon every person using electricity in the city. The tax imposed by this section shall be at the rate of 8 percent of the charges made for such electricity, and for any supplemental services or other associated activities directly related to and / or necessary for the provision of electricity to the service user, which are provided by a service supplier or non-utility service supplier to a service user.
B. As used in this section, "charges" includes charges for all services, components, and items that (1) are necessary for or common to the receipt, use, or enjoyment of electric service, or (2) currently are or historically have been included in a single or bundled rate for electric service by a service supplier to retail customers. As used in this section, "charges" shall include the value of any other services, credits, property of every kind or nature, or other consideration provided by a service user in exchange for electricity or services related to the provision of electricity. "Charges" include, but are not limited to, the following:
1. Energy charges;
2. Distribution or transmission charges,,
3. Metering charges;
4. Stand-by, reserves, firming, ramping, voltage support, regulation, emergency, or other similar minimum charges for services;
5. Customer charges, late charges, service establishment or reestablishrnent charges, demand charges, fuel or other cost adjustments, power exchange charges, independent system operator (ISO) charges, stranded investment or competitive transition charges (CTC), public-purpose-program charges, nuclear decommissioning charges, trust transfer amounts (bond financing charges), franchise fees, franchise surcharges, annual and monthly charges, and other charges, fees or surcharges which are necessary for or common to the receipt, use, or enjoyment of electricity service; and
6. Charges, fees, or surcharges for electricity services or programs which are mandated by the California Public Utilities Commission or the Federal Energy Regulatory
102
Commission, whether or not such charges, fees, or surcharges appear on a bundled or line-item basis on a customer's bill.
C. The tax administrator, from time to time, may survey electricity service suppliers to identify the unbundled billing components of electric retail service that they commonly provide to residential and other customers in the city, and the charges therefor, including those items that are mandated by state or federal regulatory agencies as a condition of providing such electricity service. The tax administrator, thereafter, may issue and disseminate to such electricity service suppliers an administrative ruling identi:tying those components and items which (1) are necessary for or common to the receipt, use or enjoyment of electricity service; or (2) currently are or historically have been included in a single or bundled rate for electricity service by a service supplier to retail customers. Charges for such components and items shall be subject to the tax imposed by subsection A above.
D. As used in this section, "using electricity" shall not include an electrical corporation's or governmental agency's receiving of electricity for resale.
E. The tax on electricity provided by self-production or by a non-utility service supplier not required by this chapter to collect the tax shall be collected and remitted as set forth in Section 7.29.045 of this chapter. All other taxes on charges for electricity imposed by this section shall be collected from the service user by the electric service supplier or its billing agent. The amount of tax collected in one month shall be remitted to the tax administrator, and must be received by the tax administrator on or before the 25th day of the following month.
Section2.79.040 Gas Users Tax
A. There is hereby imposed a tax upon every person using gas in the city, which is transported and delivered through a pipeline distribution system. The tax imposed by this section shall be at the rate of 8 percent of the charges made for such gas, including all services related to the storage, transportation and delivery of such gas.
B. There shall be excluded from the base to which the tax imposed by this section is applied:
1. Charges made for gas which is to be resold and delivered through mains or pipes;
2. Charges made for gas to be used in the generation of electrical energy by an electrical corporation; and
3. Charges made by a gas public utility for gas used and consumed in the conduct of the gas public utility's business.
C. As used in this section, "charges" shall include charges for all services, components and items for gas service that (1) are necessary for or cornrnon to the receipt, use, or enjoyment of gas service; or (2) currently are or historically have been included in a single or bundled rate for gas service by a service supplier to retail customers. "Charges" shall include, but is not limited to, the following:
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1. The cornrnodity charges for purchased gas, or the cost of gas owned by the service user (including the achial costs attributed to drilling, production, lifting, storage, gathering, trunkline, pipeline, and other operating costs associated with the production, transmission, and delivery of such gas), which is delivered through a gas pipeline distribution system;
2. Gas transportation charges, including interstate charges to the extent not included in commodity charges;
3. Storage charges; provided, however, that a service supplier shall not be required to apply the tax to any charges for gas storage services when the service supplier cannot, as a practical matter, determine the jurisdiction in which such stored gas is ultimately used; but it shall be the obligation of the service user to self-collect the amount of tax not applied to any charge for gas storage by the service supplier and to remit the tax to the appropriate jurisdiction;
4. Capacity or demand charges, late charges, service establishment or reestablishrnent charges, transition charges, customer charges, minimum charges, annual and monthly charges, and any other charges which are necessary for or common to the receipt, use, or enjoyment of gas service; and,
5. Charges, fees, or surcharges for gas services or programs mandated by the California Public Utilities Commission or the Federal Energy Regulatory Commission, whether or not such charges, fees, or surcharges appear on a bundled or line-item basis on a customer's bill.
D. As used in this section, "charges" shall include the value of any other services, credits, property of every kind or nature, or other consideration provided by a service user in exchange for gas or services related to the delivery of gas.
E. The tax administrator, from time to time, may survey gas service suppliers to identi:ty the unbundled billing components of gas retail service that they commonly provide to residential and other customers in the city, and the charges therefor, including those items that are mandated by state or federal regulatory agencies as a condition of providing such gas service. The tax administrator may issue and disseminate to such gas service suppliers an administrative ruling identi'fying those components and items which (1) necessary for or common to the receipt, use, or enjoyment of gas service; or (2) currently are or historically have been included in a single or bundled rate for gas service by a gas service supplier to retail customers. Charges for such components and items shall be subject to the tax imposed by subsection A above.
F. The tax on gas provided by self-production or by a non-utility service supplier not required to collect a tax by this chapter shall be collected and remitted in the manner set forth in Section 7.29.045 of this chapter. All other taxes imposed on charges for gas by this section shall be collected from the service user by the gas service supplier or its billing agent. The amount of tax collected in one month shall be remitted to the tax administrator, and must be received by the tax administrator, on or before the 25th day of the following month.
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Section2.79.045 Collection of Tax from Service Users Making Direct Purchase of Gas or Electricity
A. Any service user subject to a tax imposed by Section 7.29.030 or by Section 7.29.040 of this chapter, which produces gas or electricity for self-use; wich receives gas or electricity, including any related supplemental services, directly from a non-utility service supplier not required to collect a tax imposed by this chapter; or which, for any other reason, does not have the full tax collected and remitted by its service supplier, a non-utility service supplier, or its billing agent on the use of gas or electricity in the city, including any related supplemental services, shall report that fact to the tax administrator and shall remit the tax due directly to the tax administrator within 30 days of such use.
B. The tax administrator may require such a service user to identify its non-utility service supplier and provide, subject to audit: invoices; books of account; or other satisfactory evidence documenting the quantity of gas or electricity used, including any related supplemental services, and the cost or price thereof. If the service user is unable to provide such satisfactory evidence, or if the tax administrator concludes in his or her reasonable discretionthatthe costto calculate the tax is excessive, the tax administrator may determine the tax by applying the tax rate to the equivalent charges the service user would have incurred if the gas or electricity used, including any related supplemental services, had been provided by the primary supplier of gas or electricity within the city. The tax administrator shall make available rate schedules for this purpose.
Section2.79.050 Water Users Tax
A. There is hereby imposed a tax upon every person using water in the city which is transported and delivered through a pipeline distribution system. The tax imposed by this section shall be at the rate of 8 percent of the charges made for such water and shall be collected from the service user by the water service supplier or its billing agent.
B. As used in this section, "charges" shall apply to all services, components and items that (1) are necessary for or common to the receipt, use, or enjoyment of water service; or (2) currently are or historically have been included in a single or bundled rate for water service by a service supplier to retail customers. "Charges" shall include, but is not limited to, the following:
1. Water cornrnodity charges (potable and non-potable),
2. Distribution or transmission charges,
3. Metering charges,
4. Customer charges, late c,harges, service establishment or reestablishment charges, franchise fees, franchise surcharges, annual and monthly charges, and other charges, fees and surcharges which are necessary for or common to the receipt, use, or enjoyment of water service, and
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5. Charges, fees, or surcharges for water services or programs, which are mandated by a water district or a state or federal agency, whether or not such charges, fees, or surcharges appear on a bundled or line-item basis on a customer's bill.
C. As used in this section, "charges" shall include the value of any other services, credits, property of every kind or nature, or other consideration provided by a service user in exchange for water services.
D. The tax administrator, from time to time, may survey water service suppliers to identify the unbundled billing components of water retail service that they commonly provide to residential and other customers in the city, and the charges therefor, including those items that are mandated by a wholesale or retail water supplier or a state or federal agency as a condition of providing such water service. The tax administrator, thereafter, may issue and disseminate to such water service suppliers an administrative ruling identi:tying those components and items which (1) are necessary for or common to the receipt, use, or enjoyment of water service; or (2) currently are or historically have been included in a single or bundled rate for water service by a service supplier to retail customers. Charges for such components and items shall be subject to the tax imposed by subsection A above.
E. There shall be excluded from the base to which the tax imposed in this section is applied charges for water which is to be resold and deliveredthrough a pipeline distribution system.
F. The tax on water service imposed by this section shall be collected from a service user by the water service supplier or its billing agent. The amount of tax collected in one month shall be remitted to the tax administrator, and must be received by the tax administrator on or before the 25th day of the following month.
Section 2.79.060 Effect of Comingling Taxab}e Items with Nontaxable Items If any nontaxable charges are combined with and not separately stated from taxable service charges on a customer bill or invoice, the combined charge is subject to tax unless the service supplier identifies, by reasonable and verifiable standards, the portions of the combined charge that are nontaxable and taxable through the service supplier's books and records kept in the regular course of business, and in accordance with generally accepted accounting principles, and not created and maintained for tax purposes. A service supplier has the burden to prove the proper apportionment of taxable and nontaxable charges. If the service supplier offers a combination of taxable and nontaxable services, and the charges are separately stated, then for taxation purposes, the values assigned the taxable and nontaxable services shall be based on its books and records kept in the regular course of business and in accordance with generally accepted accounting principles, and not created and maintained for tax purposes. A service supplier has the burden to prove the proper valuation of the taxable and nontaxable services.
Section2.79.070 Exemptions
A. Nothing in this chapter shall be construed as imposing a tax upon the city, or upon any person or service when imposition of such tax upon that person or service would be in violation of a federal or state statute, the Constitution of the United States or the Constitution of the State of California.
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B. The taxes imposed by this chapter, shall not apply to any person who:
1. Is 65 years of age or older;
2. Resides at the service address as his or her primary place of residence; and
3. Has a combined gross income, including all taxable and non-taxable income of all members of the household in which the person resides, that does not exceed the income threshold established by the Tax Administrator pursuant to subdivision (C) of this section; and
4. Has filed the application described in subdivision (D) of this section.
C. The Tax Administrator shall establish, by administrative nile, the household income thresholds applicable to the exemption provided in subdivision (B) of this section. In establishing such thresholds, the Tax Administrator shall use the income eligibility standards published by the California Public Utilities Commission for low-income utility assistance programs, as those standards are updated from time to time, with separate thresholds applicable to households of one or two persons and to households of three or more persons. In no event shall the threshold be set below the applicable CPUC standard in effect at the time of determination. The Tax Administrator shall update the applicable thresholds annually, consistent with any revision to the CPUC standards, and shall make the current thresholds publicly available in English and Spanish.
D. Any person claiming an exemption under subdivision (B) of this section shall apply to the Tax Administrator on a form approved by the Tax Administrator. The application shall include a declaration under penalty of perjury of the facts qualifying the applicant, including proof of age and documentation sufficient to establish the combined gross income of all household members for the prior calendar year. An approved exemption shall remain in effect unless the service user no longer meets the qualifying criteria, at which point the service user shall notify the Tax Administrator in writing within 30 days of any change in qualifying status. The Tax Administrator shall require annual re-verification of eligibility. A service user who fails to timely notify the Tax Administrator of a change in qualifying stahis shall not be entitled to a refund of taxes collected and remitted during the period of ineligibility.
E. Upon request of the Tax Administrator, a service supplier or non-utility service supplier, or its billing agent, shall provide a list of the names and addresses of those customers which, according to its billing records, are deemed exempt from the taxes imposed by this chapter.
F. The decision of the tax administrator may be appealed pursuant to Section 7.29.170 of this chapter. Application to the tax administrator and appeal to the City Council pursuant to Section 7.29.170 of this chapter are prerequisites to a suit thereon.
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Section 2.79.080 Substantial Nexus and Minimum Contacts For purposes of imposing a tax or establishing a duty to collect and remit a tax under this chapter, "substantial nexus" and "minimum contacts" shall be construed broadly in favor of the imposition, collection, and/or remittance of a tax to the fullest extent permitted by state and federal law, and as it may change from time to time by judicial interpretation or by statutory enactment. Any communication service (including VoIP) used by a person with a service address in the city, which service is capable of terminating a call to another person on the general telephone network, shall be subject to a rebuttable presumption that "substantial nexus / minimum contacts" exists for purposes of imposing a tax, or establishing a duty to collect and remit a tax, under this chapter. A service supplier shall be deemed to have sufficient activity in the city for tax collection and remittance purposes if its activities include, but are not limited to, any of the following: maintains or has within the city, directly or through an agent or subsidiary, a place of residence or business of any nature; solicits business in the city by employees, independent contractors, resellers, agents or other representatives; solicits business in the city on a continuous, regular, seasonal or systematic basis by means of advertising broadcast or relayed from a transmitter with the city or distributed from a location with the city; or advertises in newspapers or other periodicals printed and published within the city or through materials distributed in the city by means other than the United States mail; or if there are activities performed in the city on behalf of the service supplier that are significantly associated with the service supplier's ability to establish and maintain a market in the city for the provision of communication services that are subject to a tax under this chapter.
Section 2.79.090 Duty to Collect and Remit
Service suppliers shall collect and remit the taxes imposed by this chapter as follows:
A. The taxes shall be collected insofar as practicable at the same time as, and along with, the charges made in accordance with the regular billing practice of a service supplier. If a service user pays a service supplier less than the full amount of the charge and tax accrued for the billing period, a proportionate share of both the charge and the tax shall be deemed to have been paid. If a service user has notified the service supplier of refusal to pay the tax imposed on said charges, Section 7.29.130 of this chapter shall apply.
B. A service supplier's duty to collect tax from a service user shall commence with the beginning of the first regular billing period applicable to the service user in which all charges normally included in such regular billing are subject to the provisions of this chapter. Where a person receives more than one billing, one or more being for different periods than another, the duty to collect shall arise separately for each billing period.
C. Each person required by this chapter to remit a tax shall file a rehirn with the tax administrator on or before the due date, on forms approved by the tax administrator. The full gmount of the tax owed shall be included with the return. The tax administrator is authorized to require such additional information as he or she deems necessary to determine if the tax is being levied, collected, and remitted in accordance with this chapter. Returns are due immediately upon cessation of business for any reason. The tax administrator, and its agents, shall maintain such returns as confidential information.
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Section 7.29.100 Collection Penalties - Service Suppliers or Self-Collectors A. Taxes collected from a service user, or self-collected by a service user subject to Section
7.29.045 of this chapter, are delinquent if not received by the tax administrator on or before the due date. Should the due date occur on a weekend or legal holiday, the return must be received by the tax administrator on or before the first regular working day following the weekend or legal holiday. A direct deposit, including electronic fund transfers and other similar methods of electronically exchanging monies between financial accounts, made by a service supplier in satisfaction of its obligations under this subsection shall be considered timely if the transfer is initiated on or before the due date, and the transfer settles into the city's account on or before the following business day.
B. If a service supplier, or a service user subject to Section 7.29.045 of this chapter, fails to remit any tax collected on or before the due date, said person shall pay a penalty for such delinquencies at the rate of 15% of the total tax that is delinquent in the remittance, and shall pay interest at the rate of three-quarters of one (0.75) percent per month, or any fraction thereof, on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent, until paid.
C. TodiscouragefraudandcoveranticipatedcoststheCitywouldincurtoidentifyandremedy fraud, the tax administrator shall have the power to impose additional penalties upon persons required to collect and / or remit taxes pursuant to the provisions of this chapter for fraud or gross negligence in collecting, reporting, or remitting tax at the rate of 25% of the tax due.
D. For collection purposes only, every penalty imposed and such interest that is accrued under the provisions of this section shall become a part of the tax required to be paid.
E. Notwithstanding the foregoing, the tax administrator may, in his or her discretion, modify the due dates of this chapter to be consistent with any uniform standards or procedures that are mutually agreed upon by other public agencies imposing a utility users tax, or otherwise legally established, to create a central payment location or mechanism. The tax administrator may also enter into written agreements with a service provider to alter the administrative details of this ordinance as appropriate to facilitate tax collection and remittance without undue expense to the service supplier or the City provided, however that no such agreement may materially alter the amounts due to the City.
Section 7.29.110 Actions to Collect
Any tax imposed on a service user under this chapter shall be deemed a debt owed by the service user to the city. Any such tax collected from a service user which has not been remitted to the tax administrator shall be deemed a debt owed to the city by the person required to collect and remit and shall no longer be a debt of the service user. Any person owing money to the city under this chapter shall be liable to an action brought in the name of the city for the recovery of such amount, including penalties and interest as provided for in this chapter, along with any collection costs incurred by the city as a result of the person's noncompliance with this chapter, including, but not limited to, reasonable attorney fees.
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Section 7.29.120 Deficiency Determination and Assessment A. The tax administrator shall make a deficiency determination if he or she determines that any person required to collect or self-collect taxes pursuant to this chapter has failed to collect and remit the proper amount of tax, including but not limited to, by improperly applying or failing to apply the tax to one or more taxable services or charges.
B. The tax administrator shall mail a notice of such deficiency determination to the person required to pay or remit the tax, which notice shall refer briefly to the amount of the taxes owed, plus interest at the rate of three-quarters of one (0.75) percent per month, or any fraction thereof, on the tax due from the date the city should have received the tax. Within 14 calendar days a'Jter service of such notice, the person may make written request to the tax administrator for a hearing. If the person fails to request a hearing within that time, the amount of the deficiency determination shall become a final assessment, and shall immediately be due and owing to the city.
C. If the person requests a hearing, the tax administrator shall cause the matter to be set for hearing not later than 30 days a:[ter receipt of the request. The tax administrator shall mail notice of the time and place of the hearing to such person at least 10 calendar days before the hearing, and the notice may designate records that said person must produce at such hearing.
D. At the time fixed for the hearing, the tax administrator or his or her designee shall hear all relevant testimony and evidence, including that of any other interested parties. At the discretion of the tax administrator, the hearing may be continued from time to time to allow presentation of additional evidence. Within a reasonable time following the conclusion of the hearing, the tax administrator or his or her designee shall issue a final assessment confirming, modi:[ying, or rejecting the original deficiency determination, and shall mail a copy of such final assessment to the person owing the tax. The decision of the tax administrator may be appealed pursuant to Section 7.29.170 of this chapter. A hearing request to the tax administrator and an appeal to the city council pursuant to Section
7.29.170 of this chapter are prerequisites to a suit thereon.
E. Payment of the final assessment shall become delinquent if not received by the tax administrator on or before the 30th day following service of the notice of final assessment.
The penalty for delinquency shall be 15% on the assessment, along with interest at the rate of three-quarters of one (0.75) percent per month, or any fraction thereof, on the amount of the tax, exclusive of penalties, from the date of delinquency, until paid.
Section 7.29.130 Nonpaying Service Users
A. Whenever the tax administrator determines that a service user has deliberately withheld the amount of the tax from amounts remitted to a person required to collect the tax, or whenever the tax administrator deems it inthe best interest of the city, he or she may relieve such person of the obligation to collect the taxes due under this chapter from certain named service users for specific billing periods. Whenever the service user has failed to pay the amount of tax owed for a period of two or more billing periods, the service supplier shall be relieved of the obligation to collect taxes due. The service supplier shall provide the city
with the names and addresses of such service users and the amounts of taxes owed under the provisions of this chapter.
B. In addition to the tax owed, the service user shall pay a delinquency penalty at the rate of 15% ofthe tax owed, and shall pay interest atthe rate oftmee-quarters of one (0.75) percent per month, or any fraction thereof, on the amount of the tax, exclusive of penalties, from the due date, until paid.
C. The tax administrator shall notify the non-paying service user that the tax administrator has assumed the responsibility to collect the taxes due for the stated periods and demand payment of such taxes, including penalties and interest. The notice shall be served on the service user by personal delivery or by deposit of the notice in the United States mail, postage prepaid, addressed to the service user at the address to which the person required to collect the tax addressed bills; or, should the service user have a change of address, to his or her last known address.
D. If the service user fails to remit the tax to the tax administrator within 30 days of service of the notice, the tax administrator may impose an additional penalty of 15% of the tax owed.
Section 7.29.140 Additional Powers and Duties of the Tax Administrator A. The tax administrator shall have the power and duty, and is hereby directed, to enforce each and all of the provisions of this chapter.
B. The tax administrator may adopt administrative rules and regulations not inconsistent with provisions of this chapter to interpret, clarify, carry out and enforce the payment, collection and remittance of the taxes herein imposed. A copy of such administrative rules and regulations shall be available for inspection in the tax administrator's office.
C. To ensure compliance with this chapter, the tax administrator may audit any person required to collect and / or remit a tax pursuant to this chapter. The tax administrator shall noti:[y said person of such an audit in writing. In the absence of fraud or other intentional misconduct, the audit period of review shall not exceed three years next preceding the date of service of notice of audit. Upon completion of the audit, the tax administrator may make a deficiency determination pursuant to Section2.79.l20 of this chapter for all taxes, penalties and interest owed, as evidenced by information provided by such person to the tax administrator. If said person is unable or unwilling to provide sufficient records to enable the tax administrator to verify compliance with this chapter, the tax administrator may make areasonable estimate ofthe deficiency. Said reasonable estimate shall be entitled to a rebuttable presumption of correctness.
D. Upon receipt of a written request of a taxpayer or tax collector, and for good cause, the tax administrator may extend the time for any filing required by this chapter for a period of not to exceed 45 days, provided that the time for filing has not already passed when the tax administrator receives the request. No penalty or interest for delinquent payment shall accrue by reason of such extension.
E. The tax administrator shall determine the eligibility of any person who asserts a right to exemption from, or a refund of, the tax imposed by this chapter.
F. The tax administrator may compromise a claim pursuant to this chapter where the portion of the claim proposed to be released is less than $5,000. With the approval of the city council, the tax administrator may compromise larger claims.
G. Notwithstanding any provision in this chapter to the contrary, the tax administrator may waive any penalty or interest imposed upon a person required to collect and / or remit tax for failure to do so if the non-collection occurred in good faith and with reasonable diligence. In determining whether the non-collection was in good faith and reasonable diligence, the tax administrator shall consider, but need not be bound by, industry practice or other precedent.
Section 7.29.150 Records
A. It shall be the duty of every person required to collect and/ or remit any tax imposed by this chapter to keep and preserve, for a period of at least three years, all records as may be necessary to determine the tax such person may have been liable to collect and remit, which records the tax administrator shall have the right to inspect at all reasonable times.
B. The tax administrator may issue an administrative subpoena to compel a person to deliver, to the tax administrator, copies of all records deemed necessary by the tax administrator to establish compliance with this chapter, including the delivery of records in a common electronic format on readily available media if the person keeps such records electronically in the ordinary course of business. As an alternative to delivering the subpoenaed records to the tax administrator on or before the due date provided in the administrative subpoena, such person may provide access to such records outside the city on or before the due date, provided that such person shall reimburse the city for all reasonable travel expenses incurred by the city to inspect those records, including travel, lodging, meals, and other similar expenses, but excluding the normal salary or hourly wages of those who make the inspection.
C. The tax administrator is authorized to execute a non-disclosure agreement approved by the city attorney to protect the confidentiality of customer information. The tax administrator may request from a person providing transportation or distribution services of gas or electricity to service users within the city, a list of the names, billing and service addresses, quantities of gas or electricity delivered, and other pertinent information, pursuant to Section 6354(e) of the California Public Utilities Code.
D. If a service supplier uses a billing agent or billing aggregator to bill, collect, and/or remit the tax, the service supplier shall:
1. Provide to the tax administrator the name, address and telephone number of each billing agent and billing aggregator currently authorized by the service supplier to bill, collect, and/or remit the tax; and
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2. Upon request of the tax administrator, deliver, or effect the delivery of, any information or record inthe possession of such billing agent or billing aggregatorthat, inthe opinion of the tax administrator, is necessary to verify the proper application, calculation, collection and / or remittance of such tax.
E. If any person required to keep records under this section unreasonably denies the tax administrator, or the tax administrator's designee, access to such records, or fails to produce the information requested in an administrative subpoena within the time specified, the tax administrator may impose a penalty on such person of $500 for each day following the initial date that the person refuses to provide such access, or following the due date set forth in an administrative subpoena. This penalty shall be in addition to any other penalty imposed under this chapter.
Section 7.29.160 Refunds
A. Whenever any tax imposed by this chapter has been overpaid, paid more than once, or has been erroneously or illegally collected or received by the tax administrator, it may be refunded as provided in this section.
B. The tax administrator may refund such tax provided that no refund shall be paid unless the claimant or his or her guardian, conservator, executor or administrator submits a written claim, under penalty of perjury, to the tax administrator within one year of the payment or collection. Such claim must clearly establish claimant's right to the refund by written records. Nothing herein shall permit the filing of a refiind claim for a class or group of taxpayers. City council approval shall be required for any individual refund in excess of $5,000.
C. The tax administrator, or the city council, as claimed in excess of $5,000, shall act upon a refund claim within 45 days of its receipt. Said decision shall be final as to the City but subject to judicial review pursuant to Code of Civil Procedure section 1094.5. If the tax administrator or city council fails or refuses to act on a refund claim within the 45-day period, the claim shall be deemed to have been rejected on the 45th day.
D. Thefilingofawrittenclaimisaprerequisitetoanysuitthereon.Anyactionbroughtagainst the city pursuant to this section shall be subject to the provisions of Government Code section 940 et seq.
E. Notwithstanding other provisions of this section, whenever a service supplier, pursuant to an order of the California Public Utilities Commission, makes a refund to service users of charges for past utility services, the taxes paid pursuant to this chapter on the amount of such refunded charges shall also be refunded to service users, and the service supplier shall be entitled to a credit for such re:tunded taxes against tax due upon the next monthly return.
Section 7.29.170 Appeals
A. ExceptastodecisionsrelatingtoarefundpursuanttoSection7.29.160,thissectionapplies to any deficiency determination, assessment, administrative ruling, or other decision of the tax administrator concerning taxes due under this chapter. Any person aggrieved by such a
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decision of the tax administrator may appeal pursuant to this section and must do so as a prerequisite to any suit thereon. Nothing herein shall permit the filing of a claim or action on behalf of a class or group of taxpayers.
B. Such an aggrieved person may appeal that decision to the city council. Such an appeal must be submitted in writing to the city clerk within 14 days of the date of the deficiency determination, assessment, administrative ruling, or other decision at issue.
C. The city council shall fix a time and place for hearing such appeal before itself or a hearing officer. The appellant shall be served with notice of the time and place of the hearing, as well as any relevant materials, at least ten calendar days before the hearing. The city council or hearing officer may continue the hearing from time to time. At the time of the hearing, the appealing party, the tax administrator, and any other interested person may present such relevant evidence as he or she may have relating to the determination from which the appeal is taken.
D. Based upon the submission of evidence and review of the city's files, the hearing officer shall prepare for the city council's consideration, or the city council shall issue a written notice, and order upholding, modifying, or reversing the determination appealed. The city council's decision is final for the city but is subject to judicial review under Code of Civil Procedure Section 1094.6.
Section 7.29.180 Disposition of Funds
The utility users taxes collected under and pursuant to the provisions of this chapter shall be deposited and paid into the general fund of the city and expended for any lawfiil purpose of the city as the city council may determine.
Section 7.29.190 No Action to Prevent Collection of Tax No injunction, writ of mandate, or other legal or equitable process shall issue in any suit, action, or proceeding in any court against this city or against any employee or officer of the city to prevent or enjoin the collection under this chapter of any tax or any amount of tax required to be collected and/or remitted.
Section 7.29.200 Remedies Cumulative
All remedies and penalties prescribed by this chapter or which are available under any other provision of law or equity are cumulative. The use of one or more remedies by the city shall not bar the use of any other remedy for the purpose of enforcing the provisions of this chapter provided only that the city may not collect any liability under this chapter more than once.
Section 7.29.210 Notice of Changes to Ordinance
If a tax under this chapter is added, repealed, increased, reduced, or the tax base is changed, the tax administrator shall provide notice as Public Utilities Code Section 799 requires. Before the effective date of the ordinance change, each service supplier shall provide the tax administrator with a copy of any written procedures describing the information the service supplier needs to
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implement the ordinance change. If the service supplier fails to provide such written instructions, the tax administrator, or his or her agent, shall send, by first class mail, a copy of the ordinance change to all collectors and remitters of the city's utility users taxes according to the latest payment records of the tax administrator.
Section 7.29.220 Future Amendment to Cited Statute Unless specifically provided otherwise, any reference to a state or federal statute in this chapter shall mean such statute as it may be amended from time to time, provided that such reference to a statute herein shall not include any subsequent amendment thereto, or to any subsequent change of interpretation thereof, to the extent that such amendment or change of interpretation would require voter approval under California law or would result in a tax decrease (as, for example, as a result of excluding all or a part of a communication service, or charge therefor, from taxation).
Only to the extent voter approval would otherwise be required or a tax decrease would result, the prior version ofthe stahite (or interpretation) shall remain applicable to construction of this chapter for any application or situation that would not require voter approval or result in a decrease of a tax, provisions of the amended statute (or new interpretation) shall apply to the maximum possible extent.
To the extent that the city's authorization to collect or impose any tax imposed under this chapter is expanded or limited as a result of changes in state or federal law, no amendment or modification of this chapter shall be required to conform the tax to those changes, and the tax shall be imposed and collected to the full extent of the authorization up to the full amount of the tax imposed under this chapter.
SECTION 2. The City Council may amend this Ordinance without a vote of the people provided, however, that voter approval is required for any amendment that would increase a tax within the meaning of Government Code section 53750(h).
SECTION 3. This Ordinance is exempt from the California Environmental Quality Act (Pub.
Resources Code, § 21000 et seq.) ("CEQA"). It can be seen with certainty that there is no possibility that this Ordinance may have a significant effect on the environment. (14 CCR § 15061(b)(3).) Further, this Ordinance simply creates a government funding mechanism, which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (14 CCR § 15378(b)(4).) SECTION 4. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance or the application thereof is for any reason held to be invalid or unconstitutional by a court of competent jurisdiction, such decision shall not affect the validity ofthe remaining portions of this Ordinance. The People of the City of South Gate hereby declare that they would have adopted this Ordinance, and each and every section, subsection, subdivision, sentence, clause, or phrase thereof without regard to whether any other portion of the Ordinance may be declared invalid or unconstitutional.
SECTION 5. Pursuant to Elections Code section 9217, this Ordinance shall take effect 10 days after certification of its approval by a majority of the electorate voting at the general election to be held November 3, 2026. Taxes shall be collected and remitted thereafter as provided in Public Utilities Code section 799.
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SECTION 6. The Mayor shall sign, and the City Clerk shall attest to the passage of, this Ordinance upon certification by the City Council of the results of the election approving it.
We hereby certi:ty that the voters of the City of South Gate did approve this Ordinance by majority vote on November 3, 2026.
PASSED, APPROVED and ADOPTED this day of 2026.
CITY OF SOUTH GATE:
By:
Joshua Barron, Mayor
ATTEST:
BY:
Yodit Glaze, City Clerk
(SEAL)
APPROVED AS TO FORM:
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Attachment D
Agenda Bill 06/09/26
ORDINANCE NO.
CITY OF SOUTH GATE
LOS ANGELES COUNTY, CALIFORNIA
ORDINANCE OF THE PEOPLE OF THE CITY OF
SOUTH GATE ADOPTING A UTILITY USERS TAX
WHEREAS, the City of South Gate ("City"), despite significant improvements in its fiscal accountability, is experiencing an increase in service demands from a growing population, leaving the City, like many others in California, with inadequate funding to address essential public safety and service needs;
WHEREAS, the City has implemented a number of cost-saving measures having reduced the number of employees, consolidated departments, and become more efficient in its operations; WHEREAS, the City is in a Financial State of Emergency, with a projected structural General Fund deficit of approximately $9.4 million in fiscal year 2026-27, following a structural imbalance in fiscal year 2025-26 that has been addressed only through the use of non-recurring reserves and one-time measures; and absent corrective action, General Fund reserves will be significantly depleted, impacting the City's ability to sustain ongoing services; WHEREAS, without an immediate source of new revenue, the City will be forced to reduce essential services to the community;
WHEREAS, maintaining public safety with a fully funded police department, continuing to provide school crossing guards, maintaining parks and recreation services, senior services, neighborhood graffiti abatement programs, maintaining responsive planning, building, and code enforcement services, and fixing streets and potholes, are essentials for our community; WHEREAS, without the adoption and submission of a Utility Users Tax measure to the voters, the City will be required to implement immediate and significant reductions to existing service levels, including reductions affecting public safety operations, parks and recreation programming, community development services, public works maintenance activities, financial administration, and the school crossing guard program, due to the insufficiency of ongoing General Fund revenues;
WHEREAS, a Utility Users Tax measure will make it possible for the City to improve its overall community services, for example by: hiring additional police officers to reduce emergency response times, fixing City streets to improve traffic flow and reduce congestion, fighting gangs and drugs by expanding neighborhood graffiti removal programs, supporting youth anti-gang and drug prevention programs, and after-school tutoring and mentoring programs; and
NOW, THERF,FORE, THE PEOPLE OF THE CITY OF SOUTH GATE, CALIFORNIA, DO HEREBY ORDAIN AS FOLLOWS.
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SECTION 1. Chapter 2.79 (Utility Users Tax) is hereby added to Title 2 (Licenses - Business Regulations) of the City of South Gate Municipal Code to read as follows:
Section 2.79.010 Definitions
For the purposes of this chapter, the following words and phrases shall have the meanings ascribed to them unless otherwise noted:
"Ancillary telecommunication services" means services that are associated with or incidental to the provision, use or enjoyment of telecommunication services, including, but not limited to, the following services:
1. "Conference bridging service" means an ancillary service that links two or more participants of an audio or video conference call and may include the provision of a telephone number. Conference bridging service does not include the telecornrnunication services used to reach the conference bridge.
2. "Detailed telecommunication billing service" means an ancillary service of separately stated information pertaining to individual calls on a customer's billing statement.
3. "Directory assistance" means an ancillary service of providing telephone number information, and/or address information.
4. "Vertical service" means an ancillary service that is offered in connection with one or more telecommunication services, which offers advanced calling features that allow customers to identify callers and to manage multiple calls and call connections, including conference bridging services.
5. "Voice mail service" means an ancillary service that enables the customer to store, send or receive recorded messages. Voice mail service does not include any vertical services that the customer may need to use the voice mail service. "Ancillary video services" means services that are associated with, or incidental to, the provision or delivery of video services, including, but not limited to, electronic program guide services, recording services, search functions, or other interactive services or communications that are associated with or incidental to the provision, use or enjoyment of video services. "Billing address" means the mailing address of the service user where the service supplier submits invoices or bills for payment by the customer.
"City" means the City of South Gate, a municipal corporation, or the territory within its jurisdictional boundaries, as the context requires.
"Communication services" means telecommunication services, ancillary telecommunication services, video services, and ancillary video services. "Electrical corporation" means as defined in Section 218 of the Public Utilities Code and shall be construed to include any entity engaged in the selling or supplying of electricity to a service user.
"Exempt wholesale generator" shall have the same meaning as set forth in 42 U.S.C. Section 16451 and the regulations thereunder.
"Gas" means natural or manufactured gas or any alternate hydrocarbon :[uel, which may be substihited therefor.
"'Mobile telecommunications service" shall have the same meaning and usage as set forth in 4 U.S.C. Section 124 and the regulations thereunder. "Month" means a calendar month.
"Non-utility service supplier" means:
1. A service supplier, other than a supplier of electric distribution services to all or a significant portion of the city, which generates electricity for sale to others, and shall include, but is not limited to, any publicly owned electric utility, investor-owned utility, cogenerator, distributed generation provider, exempt wholesale generator, municipal utility district, federal power marketing agency, electric rural cooperative, or other supplier or seller of electricity; or
2. A community choice aggregator, electric service provider (ESP), electricity broker, marketer, aggregator, pool operator, or other electricity supplier other than a supplier of electric distribution services to all or a significant portion of the city, which sells or supplies electricity or supplemental services to electricity users within the city; or
3. A gas service supplier, aggregator, marketer, or broker, other than a supplier of gas distribution services to all or a significant portion of the city, which sells or supplies gas or supplemental services to gas users within the city. "Paging service" means a telecommunication service that provides transmission of coded radio signals for the purpose of activating specific pagers; such transmissions may include messages and/or sounds.
"Person" means, without limitation, any natural individual, firm, tnist, common law trust, estate, partnership of any kind, association, syndicate, club, joint stock company, joint venture, limited liability company, corporation (including foreign, domestic, and non-profit), municipal district, municipal corporation (other than the City of South Gate), cooperative, receiver, trustee, or guardian.
"Place of primary use" means the street address representative of where a customer's use of a service primarily occurs, which must be a customer's residential street address or primary business street address.
"Post-paid telecommunication service" means the telecornrnunication service obtained by making a payment on a communication-by-communication basis either through the use of a credit card or payment mechanism such as a bank card, travel card, credit card, or debit card, or by a charge
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made to a service number which is not associated with the origination or termination of the telecommunication service.
"Prepaid telecommunication service" means the right to access telecommunication services, which must be paid for in advance and which enables the origination of communications using an access number or authorization code, whether manually or electronically dialed, and that is sold in predetermined units or dollars of which the number declines with use in a known amount. "Private telecommunication service" means atelecornmunication service that entitles the customer to exclusive or priority use of a communications channel or group of charu'iels between or among termination points, regardless of the manner in which such channel or channels are connected, and includes switching capacity, extension lines, stations, and any other associated services that are provided in connection with the use of such channel or charu'iels. "Service address" means:
1. The location of the service user's place of primary use, such as his or her residential street address or business street address, or
2. The location of the service user's communication equipment from which the communication originates or terminates, regardless of where the communication is billed or paid, or
3. For prepaid telecommunication service, the location associated with the service number. "Service supplier" means any person, including the city, who provides telephone cornrnunication, electric, gas, water, or video services to a user of such services within the city. The term shall include any person required to collect and remit a tax as imposed by this chapter, including its billing agent in the case of electric and gas service suppliers. "Service user" means a person required to pay a tax imposed by this chapter. "State" means the state of California.
"Streamlined Sales and Use Tax Agreement" means the multistate agreement commonly known and referred to as the Streamlined Sales and Use Tax Agreement, as it is amended from time to time.
"Tax administrator" means the City Manager of the City of South Gate, or ffi or her designee. "Telecommunication services" means the transmission, conveyance, or routing of voice, data, audio, video, or any other information or signals to a point, or between or among points, whatever the technology used. "Telecornrnunication services" includes such transmission, conveyance, or routing in which computer processing applications are used to act on the form, code or protocol of the content for purposes of transmission, conveyance or routing without regard to whether such services are referred to as voice over internet protocol (VoIP) services or are classified by the Federal Communications Commission as enhanced or value added, and includes video and/or data services that are functionally integrated with "telecommunication services." "Telecommunication
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services" include, but are not limited to, the following services, regardless of the manner or basis on which such services are calculated or billed: intrastate, interstate, and international telecommunication services; ancillary telecommunication services; mobile telecommunications service; prepaid telecommunication service; post-paid telecommunication service; private telecommunication service; paging service; 800 service (or any other toll-free numbers designated by the Federal Communications Commission); 900 service (or any other similar numbers designated by the Federal Communications Commission for services whereby subscribers who call in to prerecorded or live service).
"Video programming" means those programming services cotnmonly provided to subscribers by a video service supplier including, but not limited to, basic services, premium services, audio services, video games, pay-per-view services, video on demand, origination programming, or any other similar services, regardless of the content of such video programming, or the technology used to deliver such services, and regardless of the manner or basis on which such services are calculated or billed.
"Video services" means video programming and any and all services related to the providing, recording, delivering, use or enjoyment of "video programming" (including origination programming and programming using Internet Protocol, e.g., IP-TV and IP-Video) by a "video service supplier," regardless of the technology used to deliver, store or provide such services, and regardless of the manner or basis on which such services are calculated or billed, and includes ancillary video services, data services, telecommunication services, or interactive communication services that are functionally integrated with video services. "Video service supplier" means any person, company, or service which provides or sells video programming, or provides or sells the capability to receive video programming, including any communications that are ancillary, necessary or common to the provision, use or enjoyment of the video programming, to or from a business or residential address in the city, including but not limited to or from a business, home, condominium, or apartment, where some fee is paid, whether directly or included in dues or rental charges for that service, whether or not public rights-of-way are used in the delivery of the video programming or communications. A video service supplier includes, but is not limited to: multi-channel video programming distributors (as defined in 47 U.S.C. Section 522(13)); open video systems (OVS) suppliers; suppliers of cable television; master antenna television; satellite master antenna television; multicharu'iel multipoint distribution services (MMDS); video services using internet protocol (e.g., IP-TV and IP-Video, which provide, among other things, broadcasting and video on demand), direct broadcast satellite to the extent federal law permits taxation of its video services, now or in the future; video streaming services, and other suppliers of video services (including two-way communications), whatever their technology.
"VoIP (voice over internet protocol)" means the digital process of making and receiving real-time voice transmissions over any internet protocol network. "800 service" means a "telecommunications service" that allows a caller to dial a number without incurring a charge for the call. The service is typically marketed under the name "800," "855," "866," "877," and "888" toll-free calling, and any subsequent numbers the Federal Communications Commission may designate for such services.
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"900 service" means an inbound toll "telecommiu'iications service" purchased by a subscriber that allows the subscriber's customers to receive the subscriber's prerecorded announcement or live service. "900 service" does not include the charge for collection services provided by the seller of the "telecommunications services" to the subscriber, or service or product sold by the subscriber to the subscriber's customer. The service is typically marketed under the name "900" service, and any subsequent numbers the Federal Communications Commission may designate for such SerVlCe.
Section 2.79.020 Communications Users Tax
A. Telecommunication Services
1. There is hereby imposed a tax upon every person using telecommunication services in the city. The tax shall be at the rate of 9 percent of all charges made for such services and shall be collected from the service user by the telecommunication services supplier or its billing agent. There is a rebuttable presumption that telecommunication services, which are billed to a billing or service address in the city, are used, in whole or in part, within the city, and such services are subject to taxation under this chapter. If the billing address of the service user is different from the service address, the service address of the service user shall be usedto apply the tax. As used in this section, the term "charges" shall include the value of any other services, credits, property of every kind or nature, or other consideration provided by the service user in exchange for the telecon'imunication services.
2. As used in this section charges for "telecommunication services" shall include, but are not limited to, charges for: connection, reconnection, termination, movement, or change of telecommunication services; late payment fees; detailed billing; central office and custom calling features (including, but not limited to, call waiting, call forwarding, caller identification and three-way calling); voice mail and other messaging services; directory assistance; access and line charges; universal service charges; regulatory, administrative and other cost-recovery charges; local number portability charges; and text and instant messaging. "Telecommunication services" shall not include digital downloads that are not "ancillary telecommunication services," such as music, ringtones, games, and similar digital products.
B. Video Services
1. There is hereby imposed a tax upon every person using video services in the city provided by a video service supplier. The tax shall be at the rate of 9 percent of the charges made for such video services, and shall be collected from the service user by the video service supplier, or its billing agent.
2. As used in this section, "charges" shall include the value of any other services, credits, property of every kind or nature, or other consideration provided by the service user in exchange for video services. Charges for video services shall also include, but are not limited to, charges for the following:
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a. Regulatory fees and surcharges, franchise fees, and access fees (including those to fund public, educational, and government video programming); b. Initial installation of equipment necessary for provision and receipt of video services;
c. Late fees, collection fees, bad debt recoveries, and returned-check fees; d. Activation fees, reactivation fees, and reconnection fees; e. Video programming and video services;
f. Ancillary video services (e.g., electronic progratn guide services, recording functions, search functions, or other interactive services or communications that are ancillary, necessary or common to the use or enjoyment of video services); g. Equipment leases (e.g., remote, recording or search devices, converters, remote devices);
h. Service calls, service protection plans, name changes, changes of services, and special services;
i. Leasing of channel or other access.
C. Mobile telecommunications service shall be sourced in accordance with the sourcing rules set forth in the Mobile Telecommunications Sourcing Act (4 U.S.C. Section 124). The tax administrator may issue and disseminate to communication service suppliers required to collect a tax under this chapter, sourcing rules for the taxation of other communication services, including, but not limited to, post-paid communication services, prepaid communication services, and private communication services, provided that such rules are based upon custom and common practice that further administrative efficiency and minimize multijurisdictional taxation (e.g., Streamlined Sales and Use Tax Agreement).
D. The tax administrator, from time to time, may issue and disseminate to communication service suppliers required to collect a tax under this chapter, an administrative ruling identifying those cornrnunication services that are subject to the taxes levied by subsections A and B above. Further, the tax administrator, from time to time, may survey communication service suppliers to identify the components of cornrnunication services offered to customers within the city, and the charges therefor. The tax administrator, thereafter, may issue and disseminate to such communication service suppliers an administrative ruling identifying components that (1) are necessary for or common to the receipt, use or enjoyment of taxed communication service; or (2) currently are or historically have been included in a bundled rate for taxed communication service. Charges for such components shall be subject to the tax imposed by subsections A and B above.
E. To prevent actual multijurisdictional taxation of communication services subject to tax under this section, any service user, upon proof to the tax administrator that the service user has previously paid the same tax in another state or city on such communication services,
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shall be allowed a credit against the tax imposed to the extent of such tax legally imposed in such other state or city; provided, however, the amount of credit shall not exceed the tax owed to the city under this section.
F. The tax on cornrnunication services imposed by this section shall be collected from the service user by the service supplier or its billing agent. In the case of video service, the purchaser of the bulk video service (e.g., an apartriient owner) shall be the "service user," unless such service is resold to individual users, in which case the service user shall be the ultimate purchaser. The amount of tax collected in one month shall be remitted to the tax administrator, and must be received by the tax administrator on or before the 25th day of the following month.
Section 2.79.030 Electricity Users Tax
A. There is hereby imposed a tax upon every person using electricity in the city. The tax imposed by this section shall be at the rate of 9 percent of the charges made for such electricity, and for any supplemental services or other associated activities directly related to and / or necessary for the provision of electricity to the service user, which are provided by a service supplier or non-utility service supplier to a service user.
B. As used in this section, "charges" includes charges for all services, components, and items that (l) are necessary for or common to the receipt, use, or enjoyment of electric service, or (2) currently are or historically have been included in a single or bundled rate for electric service by a service supplier to retail customers. As used in this section, "charges" shall include the value of any other services, credits, property of every kind or nature, or other consideration provided by a service user in exchange for electricity or services related to the provision of electricity. "Charges" include, but are not limited to, the following:
1. Energy charges;
2. Distribution or transmission charges;
3. Metering charges;
4. Stand-by, reserves, firming, ramping, voltage support, regulation, emergency, or other similar minimum charges for services;
5. Customer charges, late charges, service establishment or reestablishrnent charges, demand charges, fuel or other cost adjustments, power exchange charges, independent system operator (ISO) charges, stranded investment or competitive transition charges (CTC), public-purpose-program charges, nuclear decornmissioning charges, trust transfer amounts (bond financing charges), franchise fees, franchise surcharges, annual and monthly charges, and other charges, fees or surcharges which are necessary for or common to the receipt, use, or enjoyment of electricity service; and
6. Charges, fees, or surcharges for electricity services or programs which are mandated by the California Public Utilities Commission or the Federal Energy Regulatory