HomeMy WebLinkAbout06-10-2014 B3 Ordinance Intro Revenue Enhancement Oversight Commission & Ballott MeasureCity of San Luis Obispo, Council Agenda Report, Meeting Date, Item Number
FROM: Katie Lichtig, City Manager
Prepared By: Michael Codron, Assistant City Manager
SUBJECT: ORDINANCE CREATING THE REVENUE ENHANCEMENT OVERSIGHT
COMMISSION AND REVIEW OF BALLOT MEASURE LANGUAGE TO
EXTEND THE HALF-PERCENT ESSENTIAL SERVICES SALES AND USE
TAX.
RECOMMENDATION
1. Introduce an ordinance establishing the Revenue Enhancement Oversight Commission.
2. Review recommended ballot measure language to extend the local half-percent sales tax
and provide staff with direction on any final changes needed.
DISCUSSION
Background
On July 1, 2014, the City Council is scheduled to consider introducing an ordinance to place an
extension of the Essential Services Measure before the voters on the November general election
ballot. The City Council received a report and recommendation from the Local Revenue Measure
Advisory Committee on April 1, and met on May 6 and May 20 to discuss related items.
Additional meetings are planned for June 10 and June 17 to resolve remaining issues before a
final action is recommended on July 1. The following is a brief overview of the items before the
Council.
Item Status Decision Date
Ballot Measure Language Revised draft attached for
Council review and additional
direction if necessary
July 1: Resolution submitting
the ballot measure to the
voters
Amendments to SLOMC 3.15 Direction regarding new
accountability provisions
provided on May 20
July 1: Introduction of
ordinance
July 15: Council adoption of
ordinance subject to approval
by the Voters during the
General Election
Establish Revenue
Enhancement Oversight
Commission (REOC)
Direction provided on May 20 June 10: Introduce Ordinance
establishing REOC
July 1: Council adoption of
ordinance
Fiscal Responsibility
Philosophy
Under development June 17: Concepts to be
presented to Council for
discussion and direction
Enhanced Financial and
Performance Reporting
(Dashboards)
Under development June 17: Concepts to be
presented to Council for
discussion and direction
June 10, 2014
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Essential Services Measure Check-In #3 Page 2
Extension of the Essential Services Measure
1. Revised Ballot Measure Language
Attachment 1 includes the language proposed to be placed on the ballot to extend the current
half-percent local sales tax. The latest revision incorporates new language proposed by Mayor
Marx, and discussed by the City Council on May 20. In addition, staff is proposing to use the
phrase “bike lanes and sidewalks” in place of traffic congestion relief for clarity. Council is
being asked to discuss and provide staff with any additional direction needed to finalize the
language.
2. Ordinance Revisions
The Essential Services Measure is codified as Chapter 3.15 of the City’s Municipal Code. The
ballot measure ordinance proposed to the voters, if approved, will amend this Municipal Code
chapter to extend the effective date of the ordinance for an additional eight years (to March 31,
2023), and incorporate other changes directed by Council. Attachment 2 includes a legislative
draft version of Municipal Code Chapter 3.15, as it would be amended by the voters if a renewal
measure consistent with current Council direction were approved. The changes include two
additional accountability provisions. One adds the requirement for the City to establish the
REOC. The second requires the City to track and account for local sales tax revenue and
expenditure in a sub-fund, which will improve transparency and increase the speed of reporting
(See Attachment 2, Sections 3.15.040.A and 3.15.040.B).
Revenue Enhancement Oversight Commission (REOC)
On May 20, the City Council discussed the responsibilities, jurisdiction and criteria for
appointment to the REOC. A majority of the Council appeared to support the following:
Members: Five, members may serve on another advisory
body
City Residency: Required
Experience: Applicants with financial/government
accounting experience encouraged
Terms: Staggered
Compensation: $60/meeting consistent with Planning
Commission compensation
Appointments: Similar to other advisory bodies. Applications
reviewed by Council subcommittee,
recommendation approved by City Council.
Responsibilities: Reviewing, reporting on, recommending uses
of voter approved sales tax revenues (i.e. make
budget recommendations to Council, and
review/report on expenditures)
Frequency of Meetings: Minimum four per year
Chair: Selected by commission members
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Essential Services Measure Check-In #3 Page 3
Attachment 3 includes a draft ordinance creating the REOC. If the Council is satisfied with the
ordinance, it may move forward with introducing the ordinance on June 10. Final adoption can
occur as soon at July 1. If the Council would like to provide staff with additional direction, or
make substantive changes to the items above, staff will return with a revised ordinance at a
future meeting.
REOC Integration with the Budget Process – Expenditure Recommendations
The City has an established process for public engagement that it follows during the two-year
financial planning process. Attachment 4 shows the City’s process on a chart, sometimes called
the “spider chart” because it has eight legs. There are two ways that the REOC can be integrated
in the process in a meaningful and effective way.
The first would be for the REOC to meet to review the preliminary Capital Improvement Plan
(CIP) and operating expenditures supported by the revenue measure. This would occur as part of
the normal process of gathering Advisory Body input to City Council goal-setting. In this case,
the REOC would focus on developing a recommendation for capital improvement projects and
essential services supported by departmental operating costs that they recommend for funding
through the local sales tax.
The second place where the REOC can provide input into the process is prior to Strategic Budget
Direction. The REOC can meet to review the proposed revenue measure expenditures and further
its recommendations to the City Council for consideration and direction of those items to include
in the preliminary budget.
Attachment 4 identifies how the REOC workflow will fit into the budget process. During the
mid-cycle years when the Budget Supplement is being developed (called Supplement Years) the
REOC will meet to ensure that the revenue measure expenditures identified during the financial
plan process are still relevant and that expenditures are proceeding as anticipated. In addition, the
REOC will have the ability to meet during Supplement Years to recommend allocation of
carryover available from prior years. It is normal for the City to have additional revenue due to
changes in the budget forecast in the prior and current year, and also because prior year expenses
may be less than estimated.
For example, a few expenditures that are proposed to be funded by revenue measure carry-over
during this year’s supplement include those identified by the City Council during the mid-year
budget review, such as the $1.7 million contingency, $220,000 for street paving, $80,000 for
Sinsheimer parking lot paving, and $20,600 for Quickest Route (software used by dispatchers to
improve emergency response). In the future, the REOC would review and recommend such
expenditures to the City Council.
REOC Reviewing and Reporting
The REOC will have the opportunity to review and report on revenue measure expenditures at
least twice per year. The first would be following the publication of the Comprehensive Annual
Financial Report (CAFR), which includes the revenue measure audit. This occurs at the end of
each calendar year. According to the City’s Charter, the CAFR must be published within six
months of the fiscal year end. The second time would be prior to the revenue measure
community forum, where the City reports out to the community on prior year expenditures, and
takes feedback. Attachment 3 includes the draft ordinance establishing the REOC, which B3 - 3
Essential Services Measure Check-In #3 Page 4
includes additional detail about the Commission’s scope and responsibilities. One of the first
items that will be taken up by the Commission is to establish its by-laws, which will give
Commissioners the ability to have a direct say in the workings of this new advisory body, subject
to Council approval.
Organization, Attendance and Rules of Order
The following items are listed for Council to discuss and consider. If the Council is supportive of
the policies below, then these items can be incorporated into the by-laws of the REOC. The by-
laws will be developed by the Commission during its first meeting, and are subject to City
Council approval.
1. Officers. At the first regular meeting of the REOC, a Chairperson and Vice-Chairperson
shall be selected from among its appointed members, each for a term of one year.
2. Meeting. The REOC shall meet at least four times per year, as needed at the time and
place as they may fix by resolution, subject to City Council approval. Special meetings
may be called at any time by a majority of the members of the REOC, or as directed by a
majority of the City Council.
3. Commission Policy on Meetings, Organizational Form and Rules of Order. Subject to
approval by the City Council, the REOC shall adopt rules of order or bylaws for the
transaction of business, ordering meetings, holding public hearings, and forwarding
recommendations to the City Council.
4. Minutes. Written minutes of meetings shall be kept and filed by the City Clerk, and shall
be posted on the City’s website.
5. Expenditures. Expenditures shall be made consistent with the budget established by the
City Council for the conduct of public meetings, workshops, forums, or other outreach
efforts undertaken by the Commission.
6. Mandatory Attendance. Duly appointed members of the REOC shall be required to attend
all meetings of the REOC unless specifically excused by the Chairperson and said
excused absences noted in the meeting minutes. Unexcused absences from two
consecutive meetings of the REOC shall be considered formal notice of resignation from
the Commission.
7. Staff for the Commission. The City Manager shall designate staff to provide primary
support for the REOC, including properly noticing all meetings and attending
Commission meetings to provide information and facilitate the conduct of the
Commission. City staff may provide the REOC with information as may be requested by
Commissioners. The City Clerk or its designee may perform secretarial duties for the
REOC, such as keeping minutes, and may be responsible for the keeping of records.
FISCAL IMPACT
If the City Council creates a new commission, a budget will have to be created to support its
operations beginning in the 2014-15 fiscal year. At this time, annual costs are anticipated to be
$15,250, as detailed in the following table.
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Essential Services Measure Check-In #3 Page 5
Item Cost
Display Advertisements $4,500
Compensation $2,000
Public Service Announcements and Outreach
Materials
$1,750
Commissioner Training (2014 League of
California Cities Municipal Finance Institute)
$5,000
Facility Rental Fees $1,250
Miscellaneous Supplies/Meeting Refreshments $500
Printing $1,000
Total $15,250
ALTERNATIVES
The draft ballot language and other items presented as part of this report are subject to the
Council’s full discretion. Any changes desired should be communicated clearly to staff so that
the final package of items presented on July 1 are complete and consistent with the expectations
of the Council.
ATTACHMENTS
1. Draft ballot measure language
2. Legislative draft of Municipal Code Chapter 3.15
3. Draft Ordinance Establishing the REOC
4. REOC and the Budget Process
t:\council agenda reports\2014\2014-06-10\measure y update (codron)\measureycheckin3-(car).docx
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Attachment 1
Draft 2014 San Luis Obispo Essential Services Measure Extension:
To protect and maintain essential services – such as open space
preservation; bike lanes and sidewalks; public safety; neighborhood street
paving and code enforcement; flood protection; senior programs; and other
capital improvement projects and vital services – shall the City’s Municipal
Code be amended to extend the current one-half percent local sales tax for
eight years, with independent annual audits, public goal-setting and
budgeting, and a Citizens’ Oversight Commission?
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San Luis Obispo Municipal Code Chapter 3.15 – Draft Amendments Attachment 2
1
Chapter 3.15
ESSENTIAL SERVICES TRANSACTIONS (SALES) AND USE TAX
Sections:
3.15.010 Title.
3.15.020 Purpose.
3.15.030 Eight-year sunset.
3.15.040 Fiscal accountability provisions—Citizen oversight and independent annual financial
audits.
3.15.050 Transactions (sales) tax rate.
3.15.060 Use tax rate.
3.15.070 Operative date.
3.15.080 Contract with state.
3.15.090 Place of sale.
3.15.100 Adoption of provisions of state law.
3.15.110 Limitations on adoption of state law and collection of use taxes.
3.15.120 Permit not required.
3.15.130 Exemptions and exclusions.
3.15.140 Amendments.
3.15.150 Enjoining collection forbidden.
3.15.010 Title.
This chapter shall be known as the “city of San Luis Obispo essential services transactions (sales) and use tax
ordinance.” The city of San Luis Obispo hereinafter shall be called the “city.” This chapter shall be applicable in
the incorporated territory of the city. (Ord. 1495 § 1, 2006)
3.15.020 Purpose.
This chapter is adopted to achieve the following, among other purposes, and directs that the provisions hereof
be interpreted in order to accomplish those purposes:
A. To protect and maintain essential services— such as open space preservation; bike lanes, sidewalks and
other neighborhood street paving and pothole repair; traffic congestion relief projects; public safety, including
restoring eliminated traffic patrol, fire marshal and fire/paramedic training positions; neighborhood street paving
and code enforcement; flood protection; senior citizen programs including services and facilities; neighborhood
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San Luis Obispo Municipal Code Chapter 3.15 – Draft Amendments Attachment 2
2
code enforcement; open space preservation; and other capital improvement projects and vital general purpose
services—by establishing a general purpose retail transactions and use tax of one-half percent in accordance
with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation
Code and Section 7285.9 of Part 1.7 of Division 2, which authorizes the city to adopt this general purpose tax
chapter, which shall be operative if two-thirds of the council and a majority vote of the electors voting on the
measure, vote to approve the extension of the establishment of this new general purpose revenue source at an
election called for that purpose.
B. To adopt a retail transactions and use tax chapter that incorporates provisions identical to those of the sales
and use tax law of the state of California insofar as those provisions are not inconsistent with the requirements
and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code.
C. To adopt a retail transactions and use tax chapter that imposes a tax and provides a measure therefor that
can be administered and collected by the State Board of Equalization in a manner that adapts itself as fully as
practicable to, and requires the least possible deviation from, the existing statutory and administrative
procedures followed by the State Board of Equalization in administering and collecting the California State
sales and use taxes.
D. To adopt a retail transactions and use tax chapter that can be administered in a manner that will be, to the
greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation
Code, minimize the cost of collecting the transactions and use taxes, and at the same time minimize the burden
of recordkeeping upon persons subject to taxation under the provisions of this chapter. (Ord. 1495 § 2, 2006)
3.15.030 Eight-year sunset.
The authority to levy the tax imposed by this chapter shall expire in eight years, on (March 31, 2023) from the
operative date of this chapter, unless extended by the voters. (Ord. 1495 § 3, 2006)
3.15.040 Fiscal accountability provisions—Citizen oversight and independent annual
financial audits.
Along with the city’s ongoing commitment to citizen involvement as a fundamental principle of good
government, specific citizen oversight and fiscal accountability provisions are hereby established as follows:
A. Revenue Enhancement Oversight Commission. 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
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San Luis Obispo Municipal Code Chapter 3.15 – Draft Amendments Attachment 2
3
from the essential services transactions (sales) and use tax, and reporting annually to the community
on the City’s use of these tax revenues.
B. Accounting and Tracking Expenditures. 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.
A.C. Independent Annual Financial Audit. The amount generated by this new general
purpose revenue source and how it was used shall be included in the annual audit of the city’s
financial operations by an independent certified public accountant.
B.D. Integration of the Use of Funds into the City’s Budget and Goal-Setting Process. The
estimated revenue and proposed use of funds generated by this measure shall be an integral part of
the city’s budget and goal-setting process, and significant opportunities will be provided for meaningful
participation by citizens in determining priority uses of these funds.
C.E. Annual Community Report. 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.
D.F.Annual Citizen Oversight Meeting. An invitation will be extended each year to the entire community
inviting them to participate in a forum to review and discuss the use of the revenue generated by this
measure. City staff will also be available to meet with any group that requests a specific briefing with
their members to discuss and answer questions about the revenues generated by the measure and
their uses. (Ord. 1495 § 4, 2006)
3.15.050 Transactions (sales) tax rate.
For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the
incorporated territory of the city at the rate of one-half percent of the gross receipts of any retailer from the sale
of all tangible personal property sold at retail in said territory on and after the operative date of this chapter.
(Ord. 1495 § 5, 2006)
3.15.060 Use tax rate.
An excise tax is hereby imposed on the storage, use or other consumption in the city of tangible personal
property purchased from any retailer on and after the operative date of this chapter for storage, use or other
consumption in said territory at the rate of one-half percent of the sales price of the property. The sales price
shall include delivery charges when such charges are subject to state sales or use tax regardless of the place
to which delivery is made. (Ord. 1495 § 6, 2006)
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San Luis Obispo Municipal Code Chapter 3.15 – Draft Amendments Attachment 2
4
3.15.070 Operative date.
“Operative date” means the first day of the first calendar quarter commencing more than one hundred ten days
after the adoption of the ordinance codified in this chapter: April 1, 2007. (Ord. 1495 § 7, 2006)
3.15.080 Contract with state.
Prior to the operative date, the city shall contract with the State Board of Equalization to perform all functions
incident to the administration and operation of this transactions and use tax chapter; provided, that if the city
shall not have contracted with the State Board of Equalization prior to the operative date, it shall nevertheless
so contract and in such a case the operative date shall be the first day of the first calendar quarter following the
execution of such a contract. (Ord. 1495 § 8, 2006)
3.15.090 Place of sale.
For the purposes of this chapter, all retail sales are consummated at the place of business of the retailer unless
the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a
common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include
delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to
which delivery is made. In the event a retailer has no permanent place of business in the state or has more
than one place of business, the place or places at which the retail sales are consummated shall be determined
under rules and regulations to be prescribed and adopted by the State Board of Equalization. (Ord. 1495 § 9,
2006)
3.15.100 Adoption of provisions of state law.
Except as otherwise provided in this chapter and except insofar as they are inconsistent with the provisions of
Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with
Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this
chapter as though fully set forth herein. (Ord. 1495 § 10, 2006)
3.15.110 Limitations on adoption of state law and collection of use taxes.
In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code:
A. Wherever the state of California is named or referred to as the taxing agency, the name of this city shall be
substituted therefor. However, the substitution shall not be made when:
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San Luis Obispo Municipal Code Chapter 3.15 – Draft Amendments Attachment 2
5
1. The word “state” is used as a part of the title of the State Controller, State Treasurer, State
Board of Control, State Board of Equalization, State Treasury, or the Constitution of the State of
California.
2. The result of that substitution would require action to be taken by or against this city or any
agency, officer, or employee thereof rather than by or against the State Board of Equalization, in
performing the functions incident to the administration or operation of this chapter.
3. In those sections, including, but not necessarily limited to, sections referring to the exterior
boundaries of the state of California, where the result of the substitution would be to:
a. Provide an exemption from this tax with respect to certain sales, storage, use or other
consumption of tangible personal property which would not otherwise be exempt from this
tax while such sales, storage, use or other consumption remain subject to tax by the state
under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code; or
b. Impose this tax with respect to certain sales, storage, use or other consumption of
tangible personal property, which would not be subject to tax by the state under the said
provision of that code.
4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828
of the Revenue and Taxation Code.
B. The word “city” shall be substituted for the word “state” in the phrase “retailer engaged in business in this
state” in Section 6203 and in the definition of that phrase in Section 6203. (Ord. 1495 § 11, 2006)
3.15.120 Permit not required.
If a seller’s permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an
additional transactor’s permit shall not be required by this chapter. (Ord. 1495 § 12, 2006)
3.15.130 Exemptions and exclusions.
The following transactions shall be exempted and excluded:
A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales
tax or use tax imposed by the state of California or by any city, city and county, or county pursuant to the
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San Luis Obispo Municipal Code Chapter 3.15 – Draft Amendments Attachment 2
6
Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state-administered transactions or
use tax.
B. There are exempted from the computation of the amount of transactions tax the gross receipts from:
1. Sales of tangible personal property, other than fuel or petroleum products, to operators of
aircraft to be used or consumed principally outside the county in which the sale is made and
directly and exclusively in the use of such aircraft as common carriers of persons or property
under the authority of the laws of this state, the United States, or any foreign government.
2. Sales of property to be used outside the city which is shipped to a point outside the city,
pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by
delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes
of this section, delivery to a point outside the city shall be satisfied:
a. With respect to vehicles (other than commercial vehicles) subject to registration
pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code,
aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and
undocumented vessels registered under Division 3.5 (commencing with Section 9840) of
the Vehicle Code by registration to an out-of-city address and by a declaration under
penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her
principal place of residence; and
b. With respect to commercial vehicles, by registration to a place of business out-of-city
and declaration under penalty of perjury, signed by the buyer, that the vehicle will be
operated from that address.
3. The sale of tangible personal property if the seller is obligated to furnish the property for a
fixed price pursuant to a contract entered into prior to the operative date of this chapter.
4. A lease of tangible personal property, which is a continuing sale of such property, for any
period of time for which the lessor is obligated to lease the property for an amount fixed by the
lease prior to the operative date of this chapter.
5. For the purposes of subsections (B)(3) and (4) of this section, the sale or lease of tangible
personal property shall be deemed not to be obligated pursuant to a contract or lease for any
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San Luis Obispo Municipal Code Chapter 3.15 – Draft Amendments Attachment 2
7
period of time for which any party to the contract or lease has the unconditional right to
terminate the contract or lease upon notice, whether or not such right is exercised.
C. There are exempted from the use tax imposed by this chapter, the storage, use or other consumption in this
city of tangible personal property:
1. The gross receipts from the sale of which have been subject to a transactions tax under any
state-administered transactions and use tax ordinance.
2. Other than fuel or petroleum products purchased by operators of aircraft and used or
consumed by such operators directly and exclusively in the use of such aircraft as common
carriers of persons or property for hire or compensation under a certificate of public
convenience and necessity issued pursuant to the laws of this state, the United States, or any
foreign government. This exemption is in addition to the exemptions provided in Sections 6366
and 6366.1 of the Revenue and Taxation Code of the State of California.
3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract
entered into prior to the operative date of this chapter.
4. If the possession of, or the exercise of any right or power over, the tangible personal property
arises under a lease which is a continuing purchase of such property for any period of time for
which the lessee is obligated to lease the property for an amount fixed by a lease prior to the
operative date of this chapter.
5. For the purposes of subsections (C)(3) and (4) of this section, storage, use, or other
consumption, or possession of, or exercise of any right or power over, tangible personal
property shall be deemed not to be obligated pursuant to a contract or lease for any period of
time for which any party to the contract or lease has the unconditional right to terminate the
contract or lease upon notice, whether or not such right is exercised.
6. Except as provided in subsection (C)(7) of this section, a retailer engaged in business in the
city shall not be required to collect use tax from the purchaser of tangible personal property,
unless the retailer ships or delivers the property into the city or participates within the city in
making the sale of the property, including, but not limited to, soliciting or receiving the order,
either directly or indirectly, at a place of business of the retailer in the city or through any
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San Luis Obispo Municipal Code Chapter 3.15 – Draft Amendments Attachment 2
8
representative, agent, canvasser, solicitor, subsidiary, or person in the city under the authority of
the retailer.
7. A retailer engaged in business in the city shall also include any retailer of any of the following:
vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of
Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public
Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with
Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any
purchaser who registers or licenses the vehicle, vessel or aircraft at an address in the city.
D. Any person subject to use tax under this chapter may credit against that tax any transactions tax or
reimbursement for transactions tax paid to a district imposing, or retailer liable for, a transactions tax pursuant
to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the
property the storage, use or other consumption of which is subject to the use tax. (Ord. 1495 § 13, 2006)
3.15.140 Amendments.
All amendments subsequent to the effective date of this chapter to Part 1 of Division 2 of the Revenue and
Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of
Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the
Revenue and Taxation Code, shall automatically become a part of this chapter; provided, however, that no
such amendment shall operate so as to affect the rate of tax imposed by this chapter. (Ord. 1495 § 14, 2006)
3.15.150 Enjoining collection forbidden.
No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding
in any court against the state or the city, or against any officer of the state or the city, to prevent or enjoin the
collection under this chapter, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any
amount of tax required to be collected. (Ord. 1495 § 15, 2006)
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ATTACHMENT 3
O _____
ORDINANCE NO. (2014 Series)
AN ORDINANCE OF THE CITY OF SAN LUIS OBISPO ESTABLISHING THE
CITIZENS’ REVENUE ENHANCEMENT OVERSIGHT COMMISSION (REOC)
WHEREAS, the voters of the City of San Luis Obispo approved a half-percent sales tax
in 2006, which is now codified as Municipal Code Chapter 3.15 Essential Services Transactions
(Sales) and Use Tax (Essential Services Tax); and
WHEREAS, the Essential Services Tax is a general purpose tax and was established to
protect and maintain essential services; and
WHEREAS, Municipal Code Chapter 3.15.040 includes a number of accountability
provisions to ensure citizen oversight and transparency of the revenues and expenditures
collected through this general purpose tax; and
WHEREAS, the Essential Services Tax will expire in March 2015 if it is not extended
by the voters of San Luis Obispo during the November 2014 General Election; and
WHEREAS, the City Council of the City of San Luis Obispo plans to submit a ballot
measure to the voters of San Luis Obispo to extend the Essential Services Tax for an additional
eight years; and
WHEREAS, the City Council wishes to enhance City accountability for the use of voter
approved revenues and, therefore, is proposing to establish the Revenue Enhancement Oversight
Commission (REOC) for the purpose of reviewing revenues and expenditures from the Essential
Services Tax, reporting to the community and the City Council about the City’s stewardship of
these revenues, and recommending expenditures to the City Council that are consistent with the
purpose of Municipal Code Chapter 3.15 and the preferences of City residents; and
WHEREAS, Article XII of the City’s Charter gives the City Council authority to
establish new Commissions by ordinance as the Council deems necessary to give it advice or
assistance.
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. New Chapter 2.14 (Revenue Enhancement Oversight Commission) is
hereby added to the San Luis Obispo Municipal Code to read as follows:
Chapter 2.14
Revenue Enhancement Oversight Commission
2.14.010 Commission Established and Purpose
The Revenue Enhancement Oversight Commission (REOC) is hereby established to review,
report, and make recommendations regarding the use of revenues collected through the City’s
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Ordinance No. (2014 Series) ATTACHMENT 3 Page 2
voter-approved general purpose, half-percent sales tax authorized by Section 3.15 of the
Municipal Code. The REOC is authorized to review these tax revenues and expenditures, report
on the City’s stewardship of this general purpose tax, and provide recommendations directly to
the City Council regarding expenditures of these tax revenues as an integral part of the budget
process. The establishment of the REOC shall be effective upon voter approval of a revenue
enhancement measure to be proposed in November 2014 and shall continue in existence as long
as Municipal Code Chapter 3.15, adopted by such measure, is in effect.
2.14.020 Membership and appointment.
The REOC shall consist of five (5) members who are residents of the City. Members shall be
appointed by the City Council through the same application and selection process used to appoint
other City advisory body members. When recruiting members, the City will seek members that
have experience with municipal accounting, finance, or budgeting, but such experience is not
required.
2.14.030 Term of office and Compensation.
A. Terms. Of the members first appointed, three shall be appointed for the term of
three years, and two shall be appointed for two year terms. Subsequent
appointments to the REOC shall be for three years. Vacancies during the term
shall be filled by the City Council for the unexpired portion of the term. Members
may be removed by the City Council with or without cause by a majority vote of
the City Council.
B. Compensation. Members shall earn a stipend equal to that earned by the
Planning Commission. The amount of the stipend shall be indicated in the
Commission’s by-laws.
2.14.040 Powers and duties.
The REOC shall meet a minimum of four times per year to perform its duties, as follows:
A. Generally. The REOC shall have the authority to conduct public hearings as
directed by the City Council or city policy. The REOC shall exercise the duties
conferred upon it by this ordinance, and as necessary to achieve its purpose.
B. Annual Community Report. The REOC shall conduct a public hearing annually
to review and take public testimony on the Essential Services Measure Annual
Report.
C. Annual Audit. The REOC shall meet annually to review the audited financial
statements contained in the Comprehensive Annual Financial Report for the
Essential Services Measure.
D. Annual Citizen Oversight Meeting. The REOC shall hold an annual Essential
Services Measure Community Forum for the purpose of taking input from
residents and community members on preferences for the use of the revenues
generated by the Essential Services Tax.
E. Budget Recommendations. The REOC shall meet for the purpose of making
recommendations to the City Council regarding the uses of revenue generated by
the Essential Services Measure. The REOC shall take into consideration the input
provided by residents and community members during the Annual Citizen
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Ordinance No. (2014 Series) ATTACHMENT 3 Page 3
Oversight Meeting, the purpose of the Essential Services Measure, the Major City
Goals established by the City Council, and the amount of revenue available from
past fiscal years, and projected to be available during the next fiscal year, in
making its budget recommendations to the Council.
F. Outreach and Education. The REOC shall be authorized to perform outreach
and educational activities so that residents and community members are informed
about the costs and benefits associated with the collection and use of revenue
generated by the Essential Services Measure.
SECTION 2. Effective Date. This ordinance will become effective following the passage
of an extension to the Essential Services Measure, San Luis Obispo Municipal Code Chapter
3.15, which may be voted on by the voters of the City of San Luis Obispo during the November
2014 General Election. This ordinance will expire with the City’s authority to levy the tax
imposed by Municipal Code Chapter 3.15, consistent with Section 3.15.030 of said chapter.
SECTION 3. A summary of this ordinance, together with the names of Council
members voting for and against, shall be published at least five (5) days prior to its final passage,
in The Tribune, a newspaper published and circulated in this City. This ordinance shall go into
effect at the expiration of thirty (30) days after its final passage.
INTRODUCED on the 10th day of June 2014, AND FINALLY ADOPTED by the
Council of the City of San Luis Obispo on the ____ day of _____ 2014, on the following roll call
vote:
AYES:
NOES:
ABSENT:
Mayor Jan Marx
ATTEST:
Anthony Mejia
City Clerk
APPROVED AS TO FORM:
J. Christine Dietrick
City Attorney
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Goal-Setting Input
Advisory Bodies
Goal-Setting and the Budget Process
2013-15 Financial Plan
Community Surveys
Community Forum
January 8, 2013
Letters from
Individuals
Current 2-Year
Goals **
Letters from
Community Groups
Fiscal Forecast *
Council Goal-Setting
Workshop
January 26, 2013
Major City Goal Work Programs & Strategic Budget Direction: April 9
Preliminary Budget: May 24
Budget Workshops: June 10, 11, 12
Adopted Budget: June 17, 2013
Long-Term Plans,
Goals & Policies *
** November 13, 2012
“Setting the Table”
Workshop
City of San Luis Obispo
Staff Budget Preparation
* December 18, 2012
“Budget Foundation”
Workshop
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ATTACHMENT 4
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