HomeMy WebLinkAboutO-1688 amending Municipal Code Sections 2.14.010, 2.14.020, and 2.14.040 (Revenue Enhancement Oversight Commission)O 1688
ORDINANCE NO. 1688 (2020 SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AMENDING SECTIONS 2.14.010, 2.14.020, AND
2.14.040 AND CHAPTER 2.14 OF THE SAN LUIS OBISPO MUNICIPAL
CODE
WHEREAS, the City of San Luis Obispo (City) is a municipal corporation duly organized
under the California Constitution and laws of the State of California; and
WHEREAS, on July 21, 2020, the City Council adopted Resolution No. 11145, submitting
to the voters a question whether to extend the existing, voter-approved local transaction (sales) and
use tax at a 1.5¢ rate, until ended by voters. The resolution also stated that any extension and
enhancement of existing, voter-approved funding will continue to require a citizen revenue
enhancement oversight commission (REOC) to ensure funds are spent consistent with the
community’s priorities; and
WHEREAS, the REOC reviews revenues and expenditures from the local transaction
(sales) and use tax, reports to the community and the City Council about the City’s stewardship of
these revenues, and recommends expenditures to the City Council that are consistent with the
purpose of the general purpose tax and the preferences of the City residents; and
WHEREAS, the City Council desires to expand the qualifications of candidates to be
appointed on the REOC to broaden the views and representation of the community; and
WHEREAS, the City's voter-approved local transaction (sales) and use tax includes
substantial accountability measures including: requirements for independent annual financial
audits; integration of use of funds into the City's budget and goal-setting process; annual
community reports; and annual citizen engagement meetings; and
WHEREAS, the City recognizes the importance of periodically reviewing the long-term
community services and investment priorities to align with the community’s priorities; and
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis
Obispo, as follows:
SECTION 1. Chapter 2.14 of the City's Municipal Code is hereby amended and re-enacted
in full to read as follows:
Ordinance No. 1688 (2020 Series) Page 2
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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
voter-approved general purpose, one and a half-percent sales tax authorized by Chapter 3.15. 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 2020 and shall continue in existence as long as Chapter 3.15, adopted by
such measure, is in effect.
2.14.020 Membership and appointment.
The REOC shall consist of five 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, municipal
accounting or represent a sales tax generating business.
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.
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
chapter, 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 community services and investment 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 community services and
investment measure.
Ordinance No. 1688 (2020 Series) Page 3
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D. Annual Citizen Oversight Meeting. The REOC shall hold an annual community services
and investment 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
community services and investment 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
community services and investment 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 community services and investment, 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
community services and investment.
Ordinance No. 1688 (2020 Series) Page 4
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G. Long-Term Community Services and Investment Priorities. Every eight years, the City
will incorporate a long-term priority setting exercise into the Financial Plan development
process to determine the long-term community services and investment priorities for the
use of Local Revenue Measure funds. This exercise shall include receiving input from
residents, community members, and the REOC regarding spending priorities with priorities
being set by the City Council as a part of the development of the Financial Plan.
INTRODUCED on the 1st day of September 2020 AND FINALLY ADOPTED on the
1st day of December 2020 by the Council of the City of San Luis Obispo on the following vote:
AYES: Council Member Christianson, Pease, Stewart, Vice Mayor Gomez, and
Mayor Harmon
NOES: None
ABSENT: None
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, on ____________________________.
____________________________________
Teresa Purrington
City Clerk