HomeMy WebLinkAbout65C - SALES TAX MEASUREREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
JUNE 5, 2018
TITLE:
APPROVE SUBMISSION TO THE
VOTERS AT THE NOVEMBER 6, 2018
MUNICIPAL ELECTION: A SALES
TAX MEASURE FOR MUNICIPAL
SERVICES
(STRATEGIC PLAN NOS. 4.3.)
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CITY f ANAGER
CLERK OF COUNCIL USE ONLY:
APPROVED
❑ As Recommended
❑ As Amended
❑ Ordinance on 1B1 Reading
❑ Ordinance on 2nd Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
1. Discuss placing on the November 6, 2018 General Municipal Election ballot a measure asking
voters to consider the adoption of a sales tax; and
2. Authorize and direct staff to prepare all required documents necessary to proceed with a
ballot measure, including, but not limited to, all of the following:
a) a resolution giving notice of the City's General Municipal Election to be held in the City
of Santa Ana on November 6, 2018 for the submission of questions to the voters
relating to a sales tax measure.
b) a resolution containing the ballot question and related to the sales tax measure;
c) a resolution authorizing Councilmembers to file written arguments for or against the
amendments; and
d) guidelines for preparation of arguments for/against the proposed amendments;
e) all other documents required to proceed with a sales tax measure.
DISCUSSION
On March 20, 2018, the Mayor and City Council authorized staff to evaluate revenue generation
opportunities to meet the city's needs to address the projected deficient for the current fiscal year
and for future fiscal years. Staff identified a structural deficit in the City's General Fund budget
that would require a combination of cuts, transformational changes, and revenue enhancements,
in order to continue to provide service to the community.
Staff is recommending that the City Council provide direction to staff to finalize the necessary
documentation to propose to the voters of the community a sales tax increase that would
generate the requisite funds to maintain and in some cases enhance current services to the
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Discussion and Direction to Propose a Sales Tax Measure on the November 6, 2018 Ballot
June 5, 2018
Page 2
community. At this time, staff is evaluating sales tax rates and will then prepare a staff
recommendation for City Council consideration on the rate and the estimated revenue that may
be generated by such an initiative if successful. As a general purpose tax measure, it would
require a simple majority of the voters (50% plus 1) to implement such a tax.
The California Election Code requires the adoption of certain resolutions to call the election and
place the proposed question to the City's voters. The Orange County Registrar of Voters
requires that these resolutions be submitted generally before the end of July 2018. Staff is
seeking Council's authority and direction to prepare the necessary documents which must be
presented to the City Council for approval. Staff anticipates presenting the documents for
approval in early July 2018.
STRATEGIC PLAN ALIGNMENT
Approval of this item allows the City's to meet Goal #4- City Financial Stability, Objective #3,
(Maintain a structurally balance budget with appropriate reserve levels).
FISCAL IMPACT
There is no fiscal impact associated with this action.
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