2024-05-07 CC Agenda Packet - ITEM D14 - California Business Roundtable (CBRT) OverviewLEAGUE OF
CALIFORNIA
CITIES
Strengthening California Cities
through Advocacy and Education
Cal Cities Update:
Taxpayer Deception Act Ballot Measure
Impacts on Local Governments
Presentation to El Segundo City Council
Initiative 1935
Soonored by the League of Califgrnia Cities. Ad Committee's Top Funder:_
League of California Cities
Since 1898, Cal Cities has fought to protect and enhance
local control.
• Cal Cities harnesses the voice and collective power of its
member cities, representing thousands of city officials
and the millions of California residents they serve.
Our mission is to expand and protect local control for
cities through education and advocacy to enhance the
quality of life for all Californians.
CITIES
Background
• Proponent: California Business
Roundtable (CBRT)
Comprised of major corporations
including developers, oil, insurance,
pharmaceutical companies and
more.
• Eligible for November 2024 statewide
ballot.
Cal
Cities and the
coalition to
oppose
this
measure
have
refra
med
it
as the
Taxpayer Deception Act
THE TAXPAYER
DECEPTION ACT
PROTECT LOCAL SERVICES
1% LEAGUE OF
CALIFORNIA
CITIES
Overview of Taxpayer Deception Measure
• Significantly threatens local control.
Reduces state and local government funding by
billions annually.
Upends local government tax and fee authority.
Opens the door to countless lawsuits against cities.
LEAGUE OF
CALIFORNIA
CITIES
Threatens Local Control
• Taxes and fees adopted after January 1, 2022, that do
not comply with the new rules are void.
Including El Segundo's Measure BT approved by voters in 2022
• Increases vote threshold for voters to approve funding
for local services to 2/3rds.
• Very specific requirements for future taxes:
Must contain a sunset.
General tax measures will also require the phrase "for
general government use" and advisory questions no
longer allowed.
• City charters may not be amended to include a tax or
LEAGUE OF
Citiesg California . -s W @coicities @ @calcifies.org CALIFORNIA
CITIES
Threatens Local Control
• All fee increases need to be approved by two-thirds of
local legislative body.
■ Fees and charges may not exceed the "actual cost" of
providing service.
"Actual cost" defined in the measure as the "minimum
amount necessary"
• Fees and charges for corporations to use or lease
government property can no longer be market -based.
'%LEAGUE OF
CALIFORNIA
CITIES
Threatens Local Control
■ Rate schedule revisions and regular adjustments to city fees
and charges subject to higher passage thresholds and
potential voter approval.
Examples of Impacted Fees and Charges
o Property development application processing
fees
o Plan review
o Gas and electricity service charges
o Parks and Recreation classes and lessons
o Childcare services
o Jail booking fees
o Copies of police reports
o Emergency services fee
o Building permit fees
o Sales tax audits
o Abatement of weeds on private property
o Conducting inspections of rental housing
o Fire inspections
o Fines and penalties for administrative Code
enforcement
o Charges for specific health care services
o Lease of city museum to non-profit organization
o Use of Council Chambers by private groups
o Use/lease of city -owned convention center
o Use/lease of city -owned park or other
recreation area
o Charges imposed as a condition of property
development
LEAGUE OF
CALIFORNIA
CITIES
Fiscal Impact:
Cities Analysis
J Over $20 billion of local
government revenues over 10
ears at risk.
Ei $2 billion each year from fees
and charges adopted after
January 1, 2022, at risk.
Li Hundreds of millions of dollars of
annual revenues from tax and
bond measures approved by
voters after January 1, 2022,
cancelled.
LEAGUE OF
CALIFORNIA
CITI ES
Upends State
All state taxes require
majority voter approval.
Requires two-thirds
legislative approval of
certain state fees.
Authori
.-
{ "VORMA REPUBLIC
.7.
Changes legal standards
Y
for proving a state charge
is a fee and not a tax.
T_ 9A%
LEAGUE OF
CALIFORNIA
CITIES
Groups Opposed to Measure
• League of California Cities
• Alliance for a Better California
California Alliance for Jobs
Rebuild SoCal Partnership
California State Association of
Counties
LEAGUE OF
44%N.
CALIFORNIA
CITIES
ALLIANCE
1/M i � I -AI t4l��,ylA
California Special Districts
Association
California Contract Cities
Association
• And 250+ individual cities,
counties and districts
CALIFORNIA
ALLIANCE
FOR JOBS �.
California Special
Districts Association
(a E3 M Districts SmWer Together
4kLEAGUE
CALIFORNIA
CITIES
What can cities, community groups
individuals CEO? GET ENGAGED TODAY!
■ Pass a resolution in opposition
■ Submit a letter in opposition
■ Join the growing list of elected officials in
opposition
■ Educate constituents about measure
Advocate on personal, private, non -
government time
Learn more or join the coalition at
www.StopTaxpayerDeceptionAct.com
M
1%%
ri MI THE TAXPAYER
DECEPTION ACT
PROTECT LOCAL SERVICES
LEAGUE OF
CALIFORNIA
CITIES
Jeff Kiernan
Regional Public Affairs Manager
Las Virgenes-Malibu, South Bay, & Westside Cities
Los Angeles County Division
jkiernan@calcities.org
LEAGUE OF
CALIFORNIA
CITI ES
Use this QR Code to visit
StopTaxpayerDeceptionAct.com
Ad Paid for by Protecting Local Democracy and Vita
Services, a Committee Opposed to Initiative 1935
Sponsored by the League of California Cities. Ad
Committee's Top Funder:
League of California Cities