CC RESOLUTION 4668RESOLUTION NO. 4668
A RESOLUTION PLACING AN INITIATIVE ON THE NOVEMBER 2,
2010 BALLOT PURSUANT TO ARTICLE XIIIC, § 2(B), OF THE
CALIFORNIA CONSTITUTION; ELECTIONS CODE § 9222; AND
REVENUE & TAXATION CODE § 53724(C) REGARDING UTILITY
USER TAXES.
The City Council of the city of El Segundo resolves as follows:
SECTION 1: Pursuant to Article XIIIC, § 2(b), of the California Constitution; Elections
Code § 9222; and Revenue & Taxation Code § 53724(c), the City Council places an
ordinance on the ballot for a special municipal election to be held in the city of El
Segundo on Tuesday, November 2, 2010.
SECTION 2: A copy of the ordinance to be considered by the voters is attached as
Exhibit 'A" and incorporated by reference, and is approved by the City Council through
adoption of this Resolution. The ballot measure will be designated as Measure O on
the ballot, unless provided a different designation by the Los Angeles County Elections
Division.
SECTION 3: The City Council finds that an emergency exists as that term is used in
Article XIIIC of the California Constitution based upon the following facts and
circumstances, as well as the written and oral information presented at the Council
Meeting before the time the Council approved this Resolution:
A. The City's fiscal condition is negatively impacted by the unprecedented
challenges in the worldwide and national financial markets and the chronic
economic recession in the national, state, regional and local economies.
B. The City's general fund expenditures exceeded the City's incoming
general fund revenues by approximately $6.9 million in fiscal year
2008/2009. The on -going economic recession has significantly decreased
the City's revenue sources and negatively impacted expenses requiring
the City to institute various austerity measures including a flexible hiring
freeze and expenditure curtailments for critical equipment and capital
projects.
C. The City is advised to expect a major increase to its mandated
contribution to the Public Employees Retirement System in fiscal year
2011 -12.
D. The City's general fund expenditures exceeded the City's incoming
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general fund revenues by approximately $6.9 million in fiscal year
2008/2009 which necessitated that the City tap various reserve funds and
cancel numerous expenditures to balance its budget for fiscal year
2008/2009.
E. The City's general fund expenditures are anticipated to exceed the City's
incoming general fund revenues by approximately $10.4 million for fiscal
year 2009/2010, requiring that the City again utilize dwindling reserve
funds and cancel numerous expenditures (programs and services) to
balance its budget for fiscal year 2009/2010. Additionally during the
course of the year the City did not fill 31 vacant positions including critical
public safety positions.
F. The City is forecasting that its general fund expenditures will exceed the
City's incoming general fund revenues by approximately $ 9.2 million for
fiscal year 2010/2011. The City anticipates again tapping various reserve
funds, not filling 31 vacant positions and cancelling numerous
expenditures (programs and services) and implementing measures to
further reduce its personnel costs to balance its budget for fiscal year
2010/2011.
G. The City has decreased its full -time workforce by 10% since fiscal year
2008/2009.
H. The City has decreased its unreserved /undesignated General Fund
balance by 25% and has decreased its Equipment Replacement Fund
balance by 10% since fiscal year 2008/2009.
The negative impacts of the current economic downturn are expect to take
several more years before the economy begins to strengthen enough
before local government agencies will see any significant restoration of
revenues.
J. The California Constitution prohibits the City from enacting new taxes
without voter approval which prevents the City from generating new
revenues to offset losses.
K. The City Manager recommended comprehensive action to increase
selected revenues including transient occupancy and utility user taxes,
while controlling expenditures by reducing employee compensation,
reducing full -time positions, modifying staffing schedules for municipal
services, modifying terms and conditions of employment; reorganizing
departmental functions, reducing equipment expenditures, and curtailing
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various capital projects to eliminate an anticipated $9.2 million deficit in
the General Fund.
SECTION 4: Pursuant to Elections Code §§ 9222 and 13119 the exact form of the
question to be voted on at the election as it should appear on the ballot is as follows:
SHALL THE ORDINANCE AMENDING EL SEGUNDO MUNICIPAL CODE Yes ❑
CHAPTER 3 -7 TO TEMPORARILY INCREASE THE UTILITY USER
TAXES BY 1% TO FUND GENERAL MUNICIPAL SERVICES No ❑
INCLUDING, WITHOUT LIMITATION, POLICE PROTECTION AND CRIME
SUPPRESSION SERVICES, FIRE PREVENTION AND SUPPRESSION
SERVICES, AND PARK AND RECREATION FACILITIES AND SERVICES
BE ADOPTED?
SECTION 5: In accordance with California Constitution Article XIIIC, § 2(b), this
Resolution must be adopted upon a unanimous vote of the entire City Council and will
become effective immediately upon adoption.
PASSED AND ADOPTED this 3rd day of August, 2010.
ATTEST:
Cindy M6ftesen, City Clerk
APPROVED AS TO FORM:
MARS ENSLEY, City Att ney
By.
Mark D Hensley,
City Attorney
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Eric Busch, Mayor
ORDINANCE NO. 1445
AN INITIATIVE MEASURE AMENDING EL SEGUNDO MUNICIPAL CODE
§ §3- 7 -3(A), 3- 7 -4(A), 3- 7 -5(A), 3- 7 -6(A) AND 3- 7 -7(A) TO INCREASE THE
UTILITY USERS TAX TO FUND GENERAL MUNICIPAL SERVICES
INCLUDING, WITHOUT LIMITATION, POLICE PROTECTION AND CRIME
SUPPRESSION SERVICES, FIRE PREVENTION AND SUPPRESSION
SERVICES, AND PARK AND RECREATION FACILITIES AND SERVICES.
The people of the city of El Segundo do hereby ordain as follows:
SECTION 1: El Segundo Municipal Code ( "ESMC ") § 3- 7 -3(A) (Electricity Users
Tax) is amended to read as follows:
"A. Tax Imposed: There is hereby imposed a tax upon every commercial or
industrial utility user in the city using electrical energy in the city. The tax imposed
by this section shall be at the rate of four percent (4 %) of the charges made for
such energy and shall be paid by the commercial or industrial utility user paying for
such energy. The four percent (4 %) rate shall be reduced to three percent (3 %)
effective June 1, 2013. "Charges ", as used in this section, shall include charges
made for: 1) metered energy; and 2) minimum charges for service, including
customer charges, services charges, demand charges, standby charges and
annual and monthly charges, fuel cost adjustments, etc."
SECTION 2: ESMC § 3- 7 -4(A) (Tax on Cogenerated Electricity) is amended in
its entirety to read as follows:
"A. Tax Imposed: There is hereby imposed a tax upon every commercial or
industrial utility user in the city using cogenerated electrical energy in the city. The
tax imposed by this section shall be at the rate of four percent (4 %) of the value of
the cogenerated energy. The four percent (4 %) rate shall be reduced to three
percent (3 %) effective June 1, 2013. The value shall be equal to the price an
electrical corporation, serving the city, would pay to purchase electrical energy from
a cogenerator. The cogenerator shall install and maintain an appropriate utility -type
metering system which will enable compliance with this Section."
SECTION 3: ESMC § 3- 7 -5(A) (Gas Users Tax) is amended in its entirety to
read as follows:
"A. Tax Imposed: There is hereby imposed a tax upon every commercial or
industrial utility user in the City other than a gas corporation, using in the City, gas
which is delivered through mains or pipes. The tax imposed by this Section shall be
at the rate of four percent (4 %) of the charges made for such gas and shall be
paid by the commercial or industrial utility user paying for such gas. The four
percent (4 %) rate shall be reduced to three percent (3 %) effective June 1, 2013.
"Charges ", as used in this Section, shall include: 1) gas which is delivered through
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mains of pipes; and 2) minimum charges for services, including customer charges,
service charges, and annual and monthly charges."
SECTION 4: ESMC § 3- 7 -6(A) (Water Users Tax) is amended in its entirety to
read as follows:
"A. Tax Imposed: There is hereby imposed a tax upon every commercial or
industrial utility user in the City using water which is delivered though mains or
pipes. The tax imposed by this Section shall be at the rate of four percent (4 %) of
the charges made for such water and shall be paid by the commercial or industrial
utility user paying for such water." The four percent (4 %) rate shall be reduced to
three percent (3 %) effective June 1, 2013.
SECTION 5: ESMC § 3- 7 -7(A) (Communication Services User Tax) is amended
in its entirety to read as follows:
"A. A tax is imposed upon every service user in the City using communication
services. The maximum tax imposed by this Section is three percent (3 %) of the
charges made for such services and must be collected from the service user by the
communication services supplier or its billing agent. The three percent (3 %) rate
shall be reduced to two percent (2 %) effective June 1, 2013. There is a rebuttable
presumption that communication services billed to a billing or service address in
the City are used, in whole or in part, within the City's boundaries and such
services are taxable under this Chapter. If the billing address of the service user is
different from the service address, the service address of the service user must be
used for purposes of imposing the tax. As used in this Section, the term "charges"
include the value of any other services, credits, property of every kind or nature, or
other consideration provided by the service user in exchange for the
communication services."
SECTION 6. INTERPRETATION. This Initiative must be interpreted so as to be
consistent with all federal and state laws, rules, and regulations. If any section, sub-
section, sentence, clause, phrase, part, or portion of this Initiative is held to be invalid
or unconstitutional by a final judgment of a court of competent jurisdiction, such
decision does not affect the validity of the remaining portions of this Initiative. The
voters declare that this Initiative, and each section, sub - section, sentence, clause,
phrase, part, or portion thereof, would have been adopted or passed irrespective of the
fact that any one or more sections, sub - sections, sentences, clauses, phrases, part, or
portion is found to be invalid. If any provision of this Initiative is held invalid as applied
to any person or circumstance, such invalidity does not affect any application of this
Initiative that can be given effect without the invalid application.
SECTION 7. SEVERABILITY. If any portion of this Initiative is held by a court of
competent jurisdiction to be invalid, the remainder of the initiative and the application
of such provision to other persons or circumstances shall not be affected thereby. We
the People indicate our strong desire that: (i) the City Council use its best efforts to
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sustain and reenact that portion, and (ii) the City Council implement this Initiative by
taking all steps possible to cure any inadequacies or deficiencies identified by the court
in a manner consistent with the express and implied intent of this Initiative, and then
adopting or reenacting such portion as necessary or desirable to permit the planning
and development of the Project.
SECTION &CONSTRUCTION. This Initiative must be broadly construed in order to
achieve the purposes stated in this Initiative. It is the intent of the voters that the
provisions of this Initiative be interpreted or implemented by the City and others in a
manner that facilitates the purposes set forth in this Initiative.
SECTION 9: ENFORCEABILITY. Repeal of any provision of the El Segundo Municipal
Code does not affect any penalty, forfeiture, or liability incurred before, or preclude
prosecution and imposition of penalties for any violation occurring before this
Ordinance's effective date. Any such repealed part will remain in full force and effect
for sustaining action or prosecuting violations occurring before the effective date of this
Ordinance.
SECTION 10: VALIDITY OF PREVIOUS CODE SECTIONS. If this entire Ordinance or
its application is deemed invalid by a court of competent jurisdiction, any repeal or
amendment of the ESMC or other city ordinance by this Ordinance will be rendered
void and cause such previous ESMC provision or other the city ordinance to remain in
full force and effect for all purposes.
SECTION 11: EFFECTIVE DATE. This Initiative will enact and impose a general tax.
Accordingly, it will be submitted to a general election on November 2, 2010 for voter
approval. If a majority of voters vote in favor of this Initiative, it will become valid and
binding ten days after the date that the City Council certifies the election results in
accordance with Elections Code § 9217.
SECTION 12. The Mayor will sign this Initiative and the City Clerk will attest and certify
to the passage and adoption of this Ordinance if a majority of the voters voting in the
City's general election on November 2, 2010 approve the proposition asking whether
the voters approve this Initiative.
PASSED AND ADOPTED this day of , 2010.
ATTEST:
Cindy Mortesen, City Clerk
APPROVED AS TO FORM:
Mark D. Hensley, City Attorney
Eric Busch, Mayor
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