TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
George Gabriel, Assistant to the City Manager
SUBJECT:Title
Consideration of Resolutions:
a) Placing a Ballot Measure on the November 5, 2024, General Municipal Election to be Conducted by the Los Angeles County Registrar - Recorder/County Clerk that Would Establish a One-Half Cent Sales Tax;
b) Providing for the Filing of Rebuttal Arguments for the City Measure; and
c) Selection of a Ballot Letter Designation for the City’s Ballot Measure Establishing a One-Half Cent Sales Tax (City Manager Moe).
(Estimated Time: 1 Hr.)
A) CONSIDER ADOPTING RESOLUTION NO. 24-0089
B) CONSIDER ADOPTING RESOLUTION NO. 24-0090
C) SELECT BALLOT LETTER DESIGNATION
Body
_________________________________________________________
RECOMMENDATION:
Staff recommends that the City Council consider the following actions:
1. Adopt Resolution No. 24-0089 approving an Ordinance and ordering that a Measure be submitted to the voters of the City at the General Municipal Election to be held on November 5, 2024, to consider a local one-half cent (0.5%) Transactions And Use Tax (i.e. sales tax) to be administered by the California Department of Tax and Fee Administration;
2. Adopt Resolution No. 24-0090 providing for the filing of rebuttal arguments for a City Measure submitted at the November 5, 2024, General Municipal Election; and
3. Direct the City Clerk to inform the County its preferences for a ballot letter designation for the City’s ballot measure.
FISCAL IMPLICATIONS:
Sufficient funds are currently budgeted in the Fiscal Year 2024-2025 City Clerk budget to conduct the election and include a ballot measure. Based on approximate costs provided by the Los Angeles County Registrar-Recorder/County Clerk, including the ballot measure adds approximately $14,000 to our total election cost.
Additionally, should the voters approve the measure at the November 5, 2024, General Municipal Election, the estimated additional revenue to the City may amount to $5.23 million annually.
BACKGROUND:
At the May 21, 2024, meeting, City Council discussed and approved the proposed 5-Year Capital Improvement Program (CIP) for Fiscal Year 2024-2025 through Fiscal Year 2028-2029. During the discussion, the issue was raised as to the necessity of generating more revenue to address capital infrastructure and other needs, by potentially raising the City’s sales tax rate.
Following the meeting, staff sought the professional services of True North Research Inc., to design and conduct a statistically reliable survey of voters to assess the feasibility of a potential sales tax measure.
At the July 16, 2024, meeting, City Council Received a report (attached) regarding the results of a Sales Tax Feasibility Survey and took the following actions:
1. Directed staff to return at the August 6, 2024, City Council Meeting with the required resolutions to place a ballot measure establishing a one-half cent sales tax at the November 5, 2024, General Municipal Election; and
2. Established a subcommittee of Mayor Pro Tem Howorth and Councilmember Montgomery to help with the development of a community-led public outreach campaign regarding the measure.
DISCUSSION:
Consistent with Council direction, staff has drafted resolutions to place a ballot measure that proposes a one-half cent sales tax at the November 5, 2024, General Municipal Election to voters.
Attached to Resolution No. 24-0089 is the Ordinance for the voters to consider to establish a Transactions And Use Tax (i.e. sales tax). The Resolution also specifies the proposed ballot language:
“To provide funding for general city services in Manhattan Beach, including keeping local streets, sidewalks, infrastructure, and parks safe, clean, and well-maintained; repairing/upgrading aging community facilities; fixing potholes; and improving parking availability and traffic safety, shall City of Manhattan Beach's ordinance establishing a 0.5¢ sales tax be adopted, providing $5,000,000 annually until ended by voters for general government use that can't be taken by the State, with citizen oversight, independent audits, and all money locally controlled, be adopted?”
Additionally, it should be noted that Section 6 of Resolution No. 24-0089 provides that the City Council may authorize up to five Councilmembers to file arguments for and against the measure. Staff will seek direction at the Council meeting if any Councilmembers would like to file an argument in accordance with the attached form.
Ballot Measure Letter Designation
The City Council may request the Los Angeles County Registrar-Recorder to assign a particular letter to the City-initiated ballot. The attached form allows the Council to choose a first, second, and third letter designation as well as letter choices that the Council does not want assigned to its measure.
The Sales Tax Measure Ad hoc Subcommittee discussed ideas for designating ballot measure letter(s) and settled on three primary options with slogans for Council consideration. These are:
1. KFL - Keep Funding Local
2. PMB - Protect MB
3. MMB - Move MB Forward
Staff recommends the Council direct the City Clerk to inform the County its preferences for a ballot letter designation (by August 14) for the City’s ballot measure and specify which options are preferred as first, second and third. Also, the Council should decide which ballot letter designations they do not want.
Community-Led Public Outreach Campaign
Consistent with Council direction, Mayor Pro Tem Howorth and Councilmember Montgomery are assisting with the development of a community-led public outreach campaign regarding the measure. Both Councilmembers may report on this at the City Council meeting but should they find supporters of the measure, they will need to file an argument of support for the measure by August 16, so they can be listed on the ballot as an official supporter.
CONCLUSION:
Staff recommends that the City Council consider the following actions:
1. Adopt Resolution No. 24-0089 approving an Ordinance and ordering that a Measure be submitted to the voters of the City at the General Municipal Election to be held on November 5, 2024 to consider a local one-half cent (0.5%) Transactions And Use Tax (i.e. sales tax) to be administered by the California Department of Tax and Fee Administration;
2. Adopt Resolution No. 24-0090 providing for the filing of rebuttal arguments for a City Measure submitted at the November 5, 2024 General Municipal Election; and
3. Direct the City Clerk to inform the County its preferences for a ballot letter designation for the City’s ballot measure.
ENVIRONMENTAL REVIEW:
The City Council's consideration of a sales tax ballot measure is not a “project” as defined under Section 15378 of the State California Environmental Quality Act (CEQA) Guidelines because it does not have a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA, and no environmental review is necessary.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENTS:
1. Resolution No. 24-0089 - Ballot Measure Submission
2. Resolution No. 24-0090 - Filing of Rebuttal Arguments
3. Ballot Letter Designation Form
4. Arguments and Rebuttals Form
5. Staff Report - July 16, 2024. City Council Regular Meeting