TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Steve S. Charelian, Finance Director
Libby Bretthauer, Financial Services Manager
SUBJECT:Title
Consideration of Second Reading and Adoption of Ordinance No. 23-0007 Amending Section 8.20.020 of the Manhattan Beach Municipal Code to Increase the Rate of the City's Transient Occupancy Tax to 14% in Accordance with Measure A (Finance Director Charelian).
ADOPT ORDINANCE NO. 23-0007
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council adopt Ordinance No. 23-0007 amending Section 8.20.020 of the Manhattan Beach Municipal Code to increase the rate of the City's Transient Occupancy Tax (TOT) to 14% in accordance with Measure A, adopted by the Manhattan Beach electorate in 2019.
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FISCAL IMPLICATIONS:
Staff anticipates that increasing the City's TOT rate from 12% to 14% will result in approximately $1.25 million in annual revenues within the General Fund, the fund that primarily supports the City's public safety and general government activities. If the Council adopts Ordinance No. 23-0007, this rate change would take effect on July 1, 2023.
BACKGROUND:
On March 5, 2019, the Manhattan Beach voters approved Measure A at the City's 2019 General Municipal Election. Measure A authorized the City Council to increase the City's TOT rate by up to 4% to fund essential City services including police patrols and crime prevention; fire and paramedic emergency response; and other general City services. On March 21, 2023, the City Council introduced Ordinance No. 23-0007.
DISCUSSION:
As authorized by the voters in Measure A, City Council approved a 2% TOT increase and scheduled the implementation to take effect on May 1, 2020. However, in response to the COVID-19 pandemic, City Council deferred the escalation of the City's TOT rate from 10% to 12% until July 1, 2020. Based on the voter-authoriz...
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