HomeMy WebLinkAboutMeasure G - City Attorney Impartial AnalysisCITY ATTORNEY'S IMPARTIAL ANALYSIS OF MEASURE G -14
In 2006, 64.77 percent of City of San Luis Obispo voters approved Measure Y -06, which adopted
Chapter 3.15 (ESSENTIAL SERVICES TRANSACTIONS (SALES) AND USE TAX) into the City's
Municipal Code. Measure Y -06 authorized an additional �/2 percent City sales tax, which is currently
included in the eight percent total sales tax rate applicable in the City. Since its effective date, April 1,
2007, the tax has generated an average of approximately $5.2 million in annual revenue to the City,
through audited fiscal year 2012 -13. Measure Y -06 approved a "general purpose tax," meaning that all
revenue raised from the tax can be used to fund any City project, operation or service approved by the
City Council.
Measure Y -06 provided: "The authority to levy the tax imposed by this chapter shall expire eight years
from the operative date of this chapter, unless extended by the voters." Unless Measure G -14 is
approved by a majority of City voters voting in the November 2014 election, the current 1/2 percent local
tax will expire after March 31, 2015 and the City will receive no further revenue from the local tax.
Measure G -14 would amend Chapter 3.15 of the City's Municipal Code to authorize the City to continue
to levy a11/2 percent local sales tax for another eight years. Measure G -14 would provide: "The authority
to levy the tax imposed by this chapter shall expire in eight years, on March 31, 2023, unless extended
by the voters."
Measure G -14 would continue the following fiscal accountability provisions included in Measure Y -06:
1) independent annual financial audit; 2) integration of the use of funds into the City's budget and goal
setting process; 3) annual citizen oversight meeting.
Measure G -14 would add the following fiscal accountability requirements to Chapter 3.15: 1) "A
citizen's commission will be established to provide transparency and maximize City accountability. The
Commission will be responsible for reviewing and making budget recommendations directly to the City
Council regarding expenditures from the essential services transactions (sales) and use tax, and reporting
annually to the community on the City's use of these tax revenues "; 2) "The funds collected through the
City of San Luis Obispo essential services transactions (sales) and use tax ordinance shall be accounted
for and tracked by the City Treasurer separately to facilitate citizen oversight."
Measure G -14 would amend the existing annual community report requirement in Chapter 3.15 to
require that "[a] written report shall be reviewed at a public hearing by the Revenue Enhancement
Oversight Commission, and a summary will be provided annually to every household in the community
detailing how much revenue is being generated by the measure and how funds are being spent."
A "yes" vote on Measure G -14 means the City will continue to levy a '/2 percent local sales tax for
another eight years. A "no" vote means that the current 1/2 percent local sales tax will expire and the
City will not collect a Jestl 1/2 percent tax after March 31, 2015.
(Christine Dietrick
City Attorney, City of San Luis Obispo