HomeMy WebLinkAbout7/21/2004 - STAFF REPORTS (25) RESOLUTION NO. 21063
OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS,
CALIFORNIA, CALLING AND GIVING NOTICE OF HOLDING OF
A MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 2, 2004
UTILITY USERS TAX BALLOT QUESTION
WHEREAS, under the provisions of Article VIII of the Charter of the City of Palm Springs, and
the laws relating to the conduct of municipal elections, the City Council may call a special
election consolidated with the regular statewide election to be held on Tuesday, November 2,
2004, for the purpose of permitting the voters of Palm Springs to decide whether certain
amendments to the City's municipal code should be adopted; and
WHEREAS, the City Council wishes to place a matter on the ballot for consideration by the
City's voters, to increase the City's existing utility users tax, the revenue of which shall be used
to support general operating costs for the City.
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Palm Springs, as
follows:
Section 1. There shall be a measure put to a vote of the people of Palm Springs,
consolidated with the regular statewide general election to be held November 2, 2004, which
would increase general fund revenue by increasing by three percent (3%) the existing utility
users tax within the City of Palm Springs. The text of the proposed measure is set forth in
Attachment "A" of this Resolution. The ballot question shall be:
"Shall the ordinance to permit the Council to increase the existing utility
users tax by up to three percent for a period of no more than three years,
be adopted?"
Section 2. The City Council has been facing a $4.2 million budget deficit for the coming
fiscal year caused by a number of factors, including the loss of $800,000 in vehicle license fees
and the diversion of $900,000 by the State of California in each of fiscal years 2004-2005 and
2005-2006 to fund a $15 billion borrowing of monies approved by the voters of California.
Furthermore, the State legislature is considering a reallocation of $1.8 million in City sales tax
revenue for fiscal year 2004-2005 and beyond with the promise that such funds would be
replaced with a similar amount of property tax revenue, however, such replacement is far from
certain. This is in addition to the annual diversion of$3.2 million in City property taxes and other
revenue which the State has been taking since 1992. This $4.1 ongoing loss of revenue, along
with other causes, have created an emergency within the meaning of Article XIII C § 2(b) of the
California Constitution (Proposition 218). Given the State's precarious budget situation, there is
a high possibility for additional diversions of City revenue to the State in the future.
Approximately 55% of the City's general fund budget is spent on public safety services (police
and fire), and the loss of the foregoing funds will seriously threaten public safety services, as
well as other necessary general operations which are essential to the health, safety and welfare
of the people of Palm Springs.
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Page 2
Section 3. The City Clerk of said City is hereby authorized, instructed and directed to
procured and furnish, through the Registrar of Voters for the County of Riverside or other
resource as necessary, any and all official ballots, notices, printer material and all supplies,
equipment and paraphernalia that may be necessary in order to property and lawfully conduct
said election.
Section 4. The ballots to be used at said election shall be, both as to form and matter
contained therein, such as may be required by law to be used thereat.
Section 5. The polls for said election shall be open at seven o'clock a.m. on the day of said
election and shall remain open continuously from said time until eight o'clock p.m. of the same
day when said polls shall be closed, except as provided in Section 14401 of the Elections Code
of the State of California.
Section 6. In all particulars not recited in this Resolution, said election shall be held and
conducted as provided by law for holding municipal elections in said City.
Section 7. Notice of time and place of holding said election is hereby given and the City
Clerk is hereby authorized, instructed and directed to give such further or additional notice of
said election, in time, form and manner as required by law.
Section 8. The City Clerk is authorized to reimburse said County, or other resource, for
services performed when the work is completed and upon presentation to the City of a properly
approved bill.
Section 9. Pursuant to Chapter 6, Division 15, of the Elections Code of the State of
California, the canvas of the General Municipal Election to be held in said City is hereby ordered
to be made and caused by the City Clerk.
Section 10. The City Clerk of said City shall cause to be complete the canvas of said election
and shall certify the results to the City Council in accordance with State and local law.
ADOPTED this 21st day of July, 2004.
AYES: Members Foat, McCulloch, Mills, Pougnet and Mayor Oden
NOES: None
ABSENT: None
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By
City Clerk City Manager
REVIEWED AND APPROVED:
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Page 3
ATTACHMENT "A"
TEXT OF ORDINANCE — UTILITY TAX MEASURE
SECTION 1. Chapter 3.32 of the Palm Springs Municipal Code is hereby amended to add a
new section 3.32.061, to read as follows:
"Section 3.32.061 Temporary Increase
(a) Notwithstanding subsection (a) of Sections 3.32.030, 3.32.040, 3.32.050,
and 3.32.060, the tax rate for intrastate telephone services, electrical
energy, gas, and congenerated electrical energy, may be increased by up to
an additional three percent (3%), by ordinance of the City Council adopted
pursuant hereto.
(b) The authority granted herein shall expire on January 1, 2008.
(c) The collection of the addition taxes authorized by this section shall be in the
same manner as all other taxes collected pursuant to this chapter."
SECTION 2. Severability. If any section, subsection, sentence, clause, phrase, or portion of
this Ordinance 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 measure. This measure would have been adopted, including 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 thereof may be declared
invalid or unconstitutional.
SECTION 3. Effective Date. If passed by the voters at the November 2004 election, this
measure shall take effect on January 1, 2005.
RESOLUTION NO.
OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS,
CALIFORNIA, CALLING AND GIVING NOTICE OF HOLDING OF A
SPECIAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 2,
2004, TO DETERMINE WHETHER AN ADMISSIONS TAX SHALL BE
ESTABLISHED
WHEREAS, under the provisions of Article VIII of the Charter of the City of Palm
Springs, and the laws relating to the conduct of municipal elections, the City Council may
call a special election consolidated with the regular statewide election to be held on
Tuesday, November 2, 2004, for the purpose of permitting the voters of Palm Springs to
decide whether certain amendments to the City's municipal code should be adopted;
and
WHEREAS, the City Council wishes to place a matter on the ballot for consideration by
the City's voters, to establish an admissions tax, the revenue of which shall be used to
support general operating costs for the City.
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Palm Springs,
as follows:
Section 1. There shall be a ordinance put to a vote of the people of Palm Springs,
consolidated with the regular statewide general election to be held
November 2, 2004, which would increase general fund revenue by
creation of an admissions tax for events held within the City of Palm
Springs. The text of the proposed ordinance is set forth in Attachment"A"
of this Resolution. The ballot question shall be:
MEASURE [ ]
[Alternative 1 - 3% w/ cap of$1.50]
"Shall the Palm Springs Municipal Code be amended to establish YES
a tax upon the price of admission to events within the City, which NO
tax shall be no more than three percent (3%) of the price of
admission or one dollar fifty cents ($1.50) per ticket, whichever is
less, but exempting events where the price of admission is less
than five dollars ($5.00) be adopted?"
MEASURE [ ]
[Alternative 2— Sliding scale]
"Shall an ordinance establishing a tax upon the price of admission YES
to events be adopted, which tax shall be: (a) twenty-five cents on NO
tickets costing more than five dollars, up to ten dollars; (b) fifty
cents on tickets costing more than ten dollars, up to twenty
dollars; (c) one dollar for tickets costing more than twenty dollars,
up to thirty dollars; and (d) one dollar fifty cents for tickets costing
more than thirty dollars ($30.00) be adopted?" 97
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1003/001/33047.01
Section 2. The City Council has been facing a $4.2 million budget deficit for the
coming fiscal year caused by a number of factors, including the loss of
$800,000.00 in vehicle license fees and the diversion of $900,000.00 by
the State of California to fund a $15 billion borrowing of monies approved
by the voters of California. The imminent $4.2 million aggregate loss of
funds this year, with other causes, has created an emergency within the
meaning of Article XIII C § 2(b) of the California Constitution (Proposition
218). Approximately 55% of the City's general fund budget is spent on
public safety services (police and fire), and the loss of the foregoing funds
will seriously threaten public safety services, as well as other necessary
general operations which are essential to the health, safety and welfare of
the people of Palm Springs.
Section 3. The City Clerk of said City is hereby authorized, instructed and directed to
procured and furnish, through the Registrar of Voters for the County of
Riverside or other resource as necessary, any and all official ballots,
notices, printer material and all supplies, equipment and paraphernalia
that may be necessary in order to property and lawfully conduct said
election.
Section 4. The ballots to be used at said election shall be, both as to form and
matter contained therein, such as may be required by law to be used
thereat.
Section 5. The polls for said election shall be open at seven o'clock a.m. on the day
of said election and shall remain open continuously from said time until
eight o'clock p.m. of the same day when said polls shall be closed, except
as provided in Section 14401 of the Elections Code of the State of
California.
Section 6. In all particulars not recited in this Resolution, said election shall be held
and conducted as provided by law for holding municipal elections in said
City.
Section 7. Notice of time and place of holding said election is hereby given and the
City Clerk is hereby authorized, instructed and directed to give such
further or additional notice of said election, in time, form and manner as
required by law.
Section 8. The City Clerk is authorized to reimburse said County, or other resource,
for services performed when the work is completed and upon
presentation to the City of a properly approved bill.
Section 9. Pursuant to Chapter 6, Division 15, of the Elections Code of the State of
California, the canvas of the General Municipal Election to be held in said
City is hereby ordered to be made by the City Clerk, and the Registrar of
Voters of said County.
Section 10. The City Clerk of said City shall cause to be complete the canvas of said
election and shall certify the results to the City Council in accordance with
State and local law.
1003/001/33047.01
ADOPTED this day of July, 2004.
AYES:
NOES:
ABSENT:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By
City Clerk City Manager
APPROVED:
�r 6
1003/001/33047.01
ATTACHMENT "A"
TEXT OF ORDINANCE—ADMISSIONS TAX
"SECTION 1. Establishment of Admissions Tax.
(A) [Alternative 1 - 3% w/ cap of$1.50]
[There is hereby levied and assessed a tax upon every patron who pays
an admission price for admission to or for the privilege to attend any event at any
premises in the City. Such tax shall be at the rate of three percent (3%) of the
price of admission, except that for any single admission the maximum amount of
tax collected shall be one dollar fifty cents ($1.50). This tax shall apply to any
entertainment, amusement or recreational activity for which a charge is made,
including, but not limited to shows of all types of sports and athletic events,
exhibitions, concerts, theatrical and musical performances, fairs and festivals.]
[Alternative 2— Sliding scale]
[There is hereby levied and assessed a tax upon every patron who pays
an admission price for admission to or for the privilege to attend any event at any
premises in the City. This tax shall apply to any entertainment, amusement or
recreational activity for which a charge is made, including, but not limited to
shows of all types of sports and athletic events, exhibitions, concerts, theatrical
and musical performances, fairs and festivals. The per ticket tax shall be as
follows:
TICKET PRICE TAX
1) For ticket prices of$5.01 to $10.00 $.25
2) For ticket prices of$10.01 to $20.00 $.50
3) For ticket prices of$20.01 to $30.00 $1.00
4) For ticket prices of more than $30.00 $1.501
(B) This tax shall not apply to the following:
1. Any event where the charge to attend is five dollars ($5.00) or less.
2. Any event held by a nonprofit corporation organized under Section
501(c)(3) of the Internal Revenue Code where the proceeds are used for
charitable purposes.
3. Any event sponsored by the City.
1003/001/33047.01
4. Any event for which the City Council has by resolution exempted from
payment of the admissions tax, and there is a finding that one of the following
two criteria exists:
a. There is a special hardship to the promoter of the event in
collecting this tax, different from the hardships to other similar events,
which will adversely affect how the event will be conducted or the benefit
of the event to the community, or
b. The event will generate a special economic return to the
City equivalent to or greater than the revenue produced by the collection
of the tax provided for herein.
SECTION 2. Use of Admissions Tax Revenue.
All taxes and penalties received pursuant to this ordinance shall be deposited by
the treasurer in the City's general fund to be used to pay for general operating
expenses.
SECTION 3. Payable by whom.
(A) The tax levied and assessed by or under this ordinance is imposed upon
each person or patron by or on account of whom payment is made for admission
to any premises or portion thereof, and shall be paid by or on account of such
person at the time and at the place when the charge or admission price is paid.
(B) The tax shall be collected by the operator who owns, conducts, directs,
manages, or controls the admission to any event which is subject to any tax
imposed by this ordinance. All taxes collected shall be transmitted forthwith to
the City.
SECTION 4. Inspection of records.
The City Director of Finance shall have the right at any reasonable time and
place to examine all books, records and reports of the operator responsible for
collection of admissions tax relative to the matters required by this ordinance to
be set forth in each account.
SECTION 5. Duty of performance by operator.
Any act required by this ordinance to be performed by an operator responsible
for collecting of admissions tax, shall be performed by each agent of such
operator, however, that performance by any one such person shall be deemed
performance by all such persons.
SECTION 6. Tax Deemed a debt.
The amount of any tax or any penalty imposed by this ordinance shall be
deemed a debt to the city, and any operator responsible for collection of
admissions tax violating any of the provisions of this ordinance shall be liable to
an action in the name of the city in any court of competent jurisdiction for the
1 7�,,i
1003/001/33047 01
amount of taxes and penalties imposed by this ordinance and attachment shall
issue on verified complaint without any bond or affidavit given or required on
behalf of plaintiff.
SECTION 7. Enabling Ordinance; Amendments.
The City Council shall adopt an enabling ordinance to carry out the terms of this
ordinance as enacted by the people, and may amend such ordinance from time
to time. The enabling ordinance shall govern specific procedures such as
collecting the tax, accounting, auditing, enforcement, and other procedures
consistent with this ordinance.
SECTION 8. Severability.
If any section, subsection, sentence, clause, phrase, or portion of this ordinance
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 ordinance. This ordinance would have been adopted,
including 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 thereof may be declared invalid or unconstitutional.
SECTION 9. Effective Date.
If passed by the voters at the November 2004 election, this ordinance shall take
effect upon the certification of the election results."
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1003/001/33047.01