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HomeMy WebLinkAbout07-15-2014 C12 Establishing the Citizens Revenue Enhancement Oversight Commission Ordinance AdoptionCity of San Luis Obispo, Council Agenda Report, Meeting Date, Item Number FROM: Katie Lichtig, City Manager Prepared By: Michael Codron, Assistant City Manager SUBJECT: SECOND READING OF AN ORDINANCE ESTABLISHING THE CITIZENS’ REVENUE ENHANCEMENT OVERSIGHT COMMISSION (REOC) RECOMMENDATION Adopt Ordinance No. 1605 entitled “An Ordinance of the City of San Luis Obispo establishing the citizens’ Revenue Enhancement Oversight Commission (REOC).” DISCUSSION Background On July 1, 2014, the Council voted 4-1 (with Council Member Carpenter voting no) to introduce Ordinance No. 1605 (2014 Series) to create the Revenue Enhancement Oversight Commission (REOC), which will meet a minimum of four times per year to review revenues and expenditures from the City’s Essential Services Measure, a half-percent local sales tax that is projected to produce over $6.5 million annually. The Commission will review proposed expenditures and make recommendations to the City Council as part of the budget process. In addition, the REOC shall conduct a public hearing annually to review and take public testimony on the Essential Services Measure Annual Report. Members of the five person commission will be appointed through a public application and appointment process. This ordinance will go into effect following the passage of a ballot measure to extend the Essential Services Measure, and will not take effect if the measure is not approved by the voters. 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 for training, advertising, compensation, printing, and other anticipated costs. ATTACHMENT 1. Ordinance 1605 (2014 Series) t:\council agenda reports\2014\2014-07-15\second reading reoc ordinance\car - 2nd read reoc.docx 7/15/14 C12 C12 - 1 ATTACHMENT 1 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 C12 - 2 Ordinance No. (2014 Series) ATTACHMENT 7 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 whole City Council through a public application and appointment process. When recruiting members, the City will seek members that have experience with finance, budgeting, or municipal accounting. 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 Oversight Meeting, the purpose of the Essential Services Measure, the Major City C12 - 3 Ordinance No. (2014 Series) ATTACHMENT 7 Page 3 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 will be voted on by the voters of the City of San Luis Obispo during the November 2014 General Election. In the event the revenue extension measure is not approved by the voters, this ordinance shall not take effect. SECTION 3. This ordinance shall 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 as it now exists or may hereafter be amended by the voters of the City of San Luis Obispo. 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 C12 - 4