HomeMy WebLinkAboutRes 2018-23 - Oppose Proposed 2018 Ballot Measure RESOLUTION NO. 2018-23
STAFF REPORT
CITY OF PALM DESERT
ADMINISTRATIVE SERVICES DEPARTMENT
MEETING DATE: May 10, 2018
PREPARED BY: Stephen Y. Aryan, Risk Manager 4
REQUEST: Request for adoption of Resolution No. 2018- 23 , a resolution
of the City Council of the City of Palm Desert opposing a proposed
2018 ballot measure sponsored by the California Business
Roundtable and American Beverage Association that limits local
control.
Recommendation
By Minute Motion, waive further reading and adopt.
Committee Recommendation
The Palm Desert Legislative Review Committee recommended opposing this proposed
ballot measure sponsored by the California Business Roundtable Ballot and American
Beverage Association.
Strategic Plan
This matter is not associated with any identifiable objective within the Palm Desert Strategic
Plan.
Background Analysis
The California Business Roundtable (CBRT) and American Beverage Association (ABA) are
sponsoring a 2018 proposed ballot measure that drastically limits local revenue authority,
while making comparatively minor modifications to state authority. For cities and other local
agencies, it applies retroactively and may void any local measure approved by local voters
on or after January 1, 2018, but prior to the effective date of this act, that does not comply
with its provisions.
The ABA has numerous soda companies as its members. In 2016, they spent more than $25
million opposing local soda tax measures that required only a majority vote. The ABA has
already spent more than $3.5 million to qualify this measure. The CBRT is comprised of
some of the state's largest companies including, Wells Fargo, Albertsons, KB Home,
Blackstone Group, Chevron, Farmers Insurance, Granite Construction and others.
One of the purposes of the measure is to overturn "loopholes" created by Cannabis Coalition
v. City of Upland (concern that voters could enact special taxes via initiative by majority
vote); Chamber of Commerce v. Air Resources Board (a recent case lost by the Chamber
which alleged that the state Cap and Trade Program was an illegal tax), and Schmeer v. Los
Angeles (which held that a locally imposed-grocer retained bag fee was not a tax).
May 10, 2018 - Staff Report
Resolution No. 2018- 23
Page 2 of 2
This measure, however, has much broader impacts. In part, the ballot measure eliminates
local authority to impose a tax for general purposes by majority vote and instead requires all
local proposed tax increases subject to a two-thirds vote.
For the first time, this initiative allows referendums of fees enacted by local legislative
bodies. A referendum could qualify with signed petitions of only 5% of affected voters. This
proposal also requires two-thirds approval of all members of the local legislative body before
a tax can be placed on the ballot.
It significantly narrows the legal threshold from "reasonable" to "actual" costs for local
governments to apply fees to services, permits, licenses, etc. This action will make it more
difficult for local governments to ensure that the businesses pay to use services like building
inspections.
The measure also requires all local tax measures to appear only on a regularly scheduled
general election ballot unless an emergency is declared with a unanimous vote of the
authorizing governing body. This requirement limits a community's flexibility to fund solutions
to urgent problems and infringes upon local control.
Proponents have until June 28, 2018, to qualify this initiative for the November 2018
ballot. The League of California Cities is urging its member agencies to oppose this initiation.
The Palm Desert Legislative Review Committee also recommends such action based on the
aforementioned impacts.
Fiscal Analysis
The fiscal impact of this initiative is unknown; however, there is potential significant negative
fiscal impact to local governments from increased restrictions on opportunities to raise
revenue. The initiative would also add significant complexity to the City's process for
implementing fees.
LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW CITY MANAGER
N/A N/A
Robert W. on arne Janet Moore Lauri Aylaian �.
Hargreaves Director of Administrative Director of Finance City Manager
City Attorney Services
ATTACHMENT: Resolution No. 2018- 23
RESOLUTION NO. 2018- 23
REQUEST FOR ADOPTION OF RESOLUTION NO. 2018- 23 , A RESOLUTION
OF THE CITY COUNCIL OF THE CITY OF PALM DESERT OPPOSING A
PROPOSED 2018 BALLOT MEASURE SPONSORED BY THE CALIFORNIA
BUSINESS ROUNDTABLE AND AMERICAN BEVERAGE ASSOCIATION THAT
LIMITS LOCAL CONTROL.
WHEREAS, California's cities, counties and special districts follow strict guidelines
and existing state law regarding the establishment of reasonable fees and the
required voter approval of all local taxes; and
WHEREAS, there is a signature-gathering campaign for a state ballot measure
currently sponsored by the California Business Roundtable and American Beverage
Association that would severely harm the ability of local governments to continue to
provide quality services by imposing onerous roadblocks to raising local revenue to
address community needs, services and infrastructure improvements; and
WHEREAS, it is important for local community members, in concert with their duly-
elected officials, rather than a special interest group in Sacramento, to determine the
services and funding levels appropriate for their own cities; and
WHEREAS, the proposed ballot measure would allow businesses to escape from their
existing obligations to pay the full cost of services that they request and receive from local
agencies and benefit from; and
WHEREAS, the proposed ballot measure would then shift the burden of these
uncovered costs from business interests to local general funds supported by
taxpayers, and thereby reduce general funds available to support police, fire, park,
planning, and other vital community services.
NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF
PALM DESERT HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The City of Palm Desert hereby opposes the current ballot measure
sponsored by the California Business Roundtable on the grounds that this measure would
harm the ability of local communities to adequately fund services; and
SECTION 2. The City Manager is hereby directed to send a copy of this adopted
resolution to the City's federal and state elected legislative representatives and the
League of California Cities.
Resolution No. 2018- 23
CBRT AND ABA Proposed Ballot Measure
May 10, 2018
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Palm
Desert, California, on this 10th day of May 2018, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
SABBY JONATHAN, MAYOR
ATTEST:
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA