HomeMy WebLinkAboutAgenda Report - June 20, 2018 H-01CITY OF LODI
COUNCIL COMMUNICATION
AGENDA ITEM
H -I
AGENDA TITLE: Introduce Ordinance Enacting On -Going General Retail Transactions and Use Tax
of One -Half Cent (0.50) Per Dollar to Protect Lodi's Essential City Services, to be
Collected and Administered by the California Department of Tax and Fee
Administration, Subject to Adoption by the Electorate
MEETING DATE: June 20, 2018
PREPARED BY: City Manager and City Attorney
RECOMMENDED ACTION: Introduce an ordinance for an on-going general retail transactions
and use tax of one-half cent (0.50) per dollar to protect Lodi's
essential city services, to be collected and administered by the
California Department of Tax and Fee Administration, subject to
majority vote of the electorate.
BACKGROUND INFORMATION: The City of Lodi has worked hard in recent years to maintain critical
services such as police, fire, emergency response, street
maintenance and repaving, and parks and recreation facilities.
Fiscal realities of the past decade have forced the City to eliminate personnel and funding from every
department, which has impacted city services. At the same time, the demand for services continues to
increase as the City's population grows.
The City of Lodi faces serious long-term threats to its ability to provide the level of services its citizens
have the right to expect and to its ability to maintain public infrastructure at the standard its citizens have
the right to expect. A quick review of our five-year budget forecast puts the problem in stark relief.
Notwithstanding an expanding economy and expanding revenues, costs are expanding at a much faster
rate.
The table below briefly summarizes the results of the forecast. It shows the City running out of local
reserves in Fiscal Year 2021/22 and on the brink of financial insolvency in FY 2023/24, despite continued
cost containment and strong revenue assumptions. The good news is the City has time to plan and is
taking measures to both enhance revenues and contain costs. However, cost containment can only go
so far. Absent new revenues, dramatic service cuts will be necessary to balance the budget in the 2-5
year time frame that will make the City service insolvent.
FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24
YE Est. Proposed Projected Projected Projected Projected Projected
Rerenues
Expensese
51,190,776 51,300,380 52,296,000 53,494,000 54,739,000 55,989,000 57,258,000
48,367,270 51,132,010 53,810,762 56,220,323 58,564,005 60,838,023 62,917,738
Retenues less Expenses 2,823,506 168,370 (1,514,762) (2,726,323) (3,825,005) (4,849,023) (5,659,738)
Ending Reserves* 17,431,975 19,303,122 19,182,591 17,189,268 14,140,263 9,870,000.._.. 4,468,000.
* Includes both local and Pension Stabilization Reserves. Also includes investment earnings not shown in revenues.
1/4.410
APPROVED: Iqp
Stephen wabauer,
anager
Knowing this reality, staff and Council have been engaged in a long term effort to communicate with our
citizens and get an understanding of their needs and concerns. The City conducted a scientific poll of
voters in February 2018, has reached out to dozens of stakeholder groups and residents, and sent an
informational mailer and survey to all registered voters in May 2018. All told, City staff has reached out
to every voter in Lodi about a possible sales tax measure, and has heard direct feedback from
nearly 2,000 residents, including community feedback through mail, online, and polling.
Resident's Priorities
In both February's scientific poll and May's general survey, Lodi residents and voters prioritized the City's
needs into three priority tiers:
Tier 1
• Reduce crime and provide gang violence intervention and prevention services.
• Maintain and improve rapid response times for fire, police, and medical emergencies
• Fix potholes and maintain city streets.
Tier 2:
• Repair and upgrade Lodi Lake Park and other recreation facilities.
• Provide homelessness intervention programs.
Tier 3:
• Keep Lodi Public Library open and maintain hours.
Among the more than 1,500 community survey responses the City received in May and June, many
residents wrote additional comments that were focused on police response times, enforcement of speed
limits, and the negative secondary effects of homelessness. Many of our citizens consider all of our
services as a critical priority.
The estimated revenue to be generated by the tax measure and the proposed spending plan is set forth
in detail below.
Current sales tax rates within San Joaquin County are as follows:
Agency
Cit of Stockton
Cit of Lathrop
Cit of Manteca
of Trac
Cit
Cit of RI • on
Cit of
Escalon
Sales Tax Rate
9.00%
8.75%
Count of
8.25%
8.25%
7.75%
7.75%
San Joaquin (unincorporated) 7.75%
City of Lodi j 7.75%
Should the voters approve the sales tax increases in November, Lodi's sales tax rate would increase
from 7.75 cents per dollar to 8.25 cents per dollar. For example, the sales tax for every $100 of
purchased taxable merchandise would increase from $7.75 to $8.25, a 50 -cent increase and raise an
estimated $5.4 million dollars annually. The City's sales tax consultant HdL estimates that nearly 25% of
this amount would be paid by people who shop in Lodi but do not live here insuring that visitors pay their
fair share for the use of our roads, parks and emergency services. This provides a meaningful
advantage of a sales tax over a property tax, which is entirely paid by Lodi property owners.
Council has indicated that any tax measure must include establishment of citizen oversight committees to
oversee expenditures of the additional sales tax revenue. As drafted the tax measure calls for the
establishment of a citizen oversight committee to be charged with meeting annually to review the
previous year's expenditure of the increased tax revenues. In addition, staff has included a provision in
the measure requiring that an independent auditor audit the collection, management, and expenditure of
the increased tax revenue. The independent audit report would be in addition to the City's
Comprehensive Annual Financial Report (CAFR) that is reviewed annually and approved by the Council
following public comment and discussion. The committee would review the independent audit report and
then the committee would make its own report to the Council stating how the funds were spent. The
report would be presented at a regularly scheduled meeting of the Council and subject to public comment
and discussion.
Pursuant to Government Code section 36937(d), ordinances related to taxes shall take effect
immediately, and Government Code section 36937 allows ordinances related to taxes to be passed
immediately upon introduction. Consequently, the ordinances will be effective immediately upon
adoption by a 2/3 vote of all members of the City Council, subject to majority voter approval at the
November 6, 2018 general election.
Expenditure Plan:
As a general revenue measure, the option before council does not carry a detailed expenditure plan.
However, Lodi has received significant input from our citizens about what is most important to them to
preserve. As such the Council, Staff and Oversight Committee are compelled to ensure that any funds
raised by the measure are spent to meet those priorities. As we have heard from both the scientific poll,
our discussions with community groups and leaders, and and from our more recent survey, those
priorities are as follows: To make neighborhoods safer, maintain/ improve essential City of Lodi services
including: reducing crime; maintaining neighborhood police patrols/ gang violence intervention/
prevention; fixing potholes/ city streets; maintaining neighborhood fire stations; enhancing rapid police/
fire response times by restoring firefighter and adding police positions; maintaining recreation facilities/
programs.
The ordinance has been reviewed and approved by the California Department of Tax and Fee
Administration and is attached to this council communication.
FISCAL IMPACT: Annual revenue generated from the additional sales taxes is estimated to be
$5,400,000. Revenue from the measure will be separately accounted for, and
expenditures will be overseen by designated citizen oversight committees.
Step
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suer, CI `Meager
Attachments:
1. General Retail Transactions and Use Tax Ordinance
Janice D] Magdich, City Attorney
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LODI
AMENDING LODI MUNICIPAL CODE TITLE 3 - REVENUE AND
FINANCE BY ADDING CHAPTER 3.30 "2018 GENERAL RETAIL
TRANSACTIONS AND USE TAX" BY IMPOSING AN ONGONING
ONE-HALF (0.50) CENT PER DOLLAR TRANSACTIONS AND USE
TAX FOR UNRESTRICTED GENERAL REVENUE PURPOSES, TO
REMAIN IN EFFECT UNTIL THE VOTERS AMEND OR REPEAL IT,
TO BE COLLECTED AND ADMINISTERED BY THE CALIFORNIA
DEPARTMENT OF TAX AND FEE ADMINISTRATION, SUBJECT TO
VOTER APPROVAL
The City Council of the City of Lodi hereby finds as follows:
A. The City is a full service city that provides vital municipal services and facilities;
however, additional revenue is necessary to fund these services, including:
1. Maintaining and enhancing rapid police and fire response times by restoring
firefighter and adding police positions;
2. Maintaining neighborhood police patrols and fire stations;
3. Maintaining library hours;
4. Repairing potholes and local streets;
5. Maintaining recreation facilities and programs;
6. Addressing homelessness; and
7. Other essential services.
B. The City's current and projected revenues are insufficient to fully provide these
municipal services and facilities at the level our residents need and expect.
C. This tax measure provides local funding for local needs, cannot be taken by the
State of California or Washington, D.C., and includes strict accountability requirements,
including independent oversight by a citizen's committee that must meet in public, full disclosure
of public spending available on the City's website and at other public locations in the City;
annual financial audits; and a requirement that all funds raised be spent locally.
D. This tax measure invests in our community. Enhancing rapid police and fire
response times by restoring firefighter and adding police positions and maintaining
neighborhood police patrols and fire stations are an investment in public safety that strengthen
local property values and make our community a more desirable place to live, do business and
raise a family.
E. Approximately 25% of the City's sales tax dollars are paid by tourists and visitors
from the surrounding area. This tax measure will help to make sure that tourists and visitors are
paying their fair share to maintain our community and not place the cost exclusively on City
residents.
F. The funding made available by this measure will enable the City to restore and
improve its general municipal services and facilities, including public safety. Nothing in this
measure allows tax revenue to be directed into a special fund or for a special purpose.
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G. The tax revenue generated by this measure can be spent for unrestricted general
revenue purposes.
G. November 6, 2018 is the date of the statewide general election, and is the next
election date eligible for inclusion of this general tax measure.
NOW, THEREFORE, BE IT ENACTED BY THE CITY COUNCIL OF THE CITY OF LODI:
Section 1. Lodi Municipal Code Title 3 - Revenue and Finance is hereby amended by
adding Chapter 3.30 "2018 General Retail Transactions and Use Tax" and shall read as follows:
CHAPTER 3.30
2018 GENERAL RETAIL TRANSACTIONS AND USE TAX
Sections:
3.30.010 Title
3.30 020 Operative Date
3.30.030 Purpose
3.30.040 Contract with State
3.30.050 Transactions Tax Rate
3.30.060 Place of Sale
3.30.070 Use Tax Rate
3.30.080 Adoption of Provisions of State Law
3.30.090 Limitations on Adoption of State Law and Collection of Use Taxes
3.30.100 Permit Not Required
3.30.110 Exemptions and Exclusions
3.30.120 Amendments to State Law
3.30.130 Enjoining Collection Forbidden
3.30.140 Annual Accountability Report
3.30.150 Establishment of Citizens' Oversight Committee
3.30.160 Annual Audit and Report
3.30.010 Title. This ordinance shall be known as the City of Lodi 2018 General Retail
Transactions and Use Tax Ordinance. The City of Lodi hereinafter shall be called "City." This
ordinance shall be applicable in the incorporated territory of the City.
3.30.020 Operative Date. "Operative date" means the first day of the first calendar quarter
commencing more than 110 days after the adoption of this ordinance, the date of such adoption
being as set forth below.
3.30.030 Purpose. This ordinance 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 impose a retail transactions and use tax 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 tax ordinance
which shall be operative if a majority of the electors voting on the measure vote to approve the
imposition of the tax at an election called for that purpose.
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B. To adopt a retail transactions and use tax ordinance 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 ordinance that imposes a tax and
provides a measure therefore that can be administered and collected by California Department
of Tax and Fee Administration 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 California Department of Tax and Fee Administration in administering and
collecting the California State Sales and Use Taxes.
D. To adopt a retail transactions and use tax ordinance 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 record keeping upon persons
subject to taxation under the provisions of this ordinance.
E. To adopt a retail transactions and use tax for unrestricted general revenue
purposes, to remain in effect until the voters amend or repeal it.
3.40.040 Contract with State. Prior to the operative date, the City shall contract with the
California Department of Tax and Fee Administration to perform all functions incident to the
administration and operation of this transactions and use tax ordinance; provided, that if the City
shall not have contracted with the California Department of Tax and Fee Administration 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.
3.30.050 Transactions 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 (0.50%) 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 ordinance.
3.30.060 Place of Sale. For the purposes of this ordinance, 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 California Department of Tax and Fee Administration.
3.30.070 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 ordinance for storage, use or other consumption in said territory at the
rate of one-half cent (0.50%) 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.
3.30.080 Adoption of Provisions of State Law. Except as otherwise provided in this
ordinance 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
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6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of
this ordinance as though fully set forth herein.
3.30.090. 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 therefore. However, the substitution shall not be made
when:
1. The word "State" is used as a part of the title of the State Controller, State
Treasurer, 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
California Department of tax and Fee Administration, in performing the functions incident
to the administration or operation of this ordinance.
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.
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.
3.30.100. 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 ordinance.
3.30.110. Exemptions and Exclusions.
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 levied by the State of California or by any city, city and
county, or county pursuant to the 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:
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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 purposes of this paragraph, 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 Chapter 2 of 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 ordinance.
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 ordinance.
5. For the purposes of subsections (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 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 levied by this ordinance, 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.
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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 ordinance.
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 ordinance_
5. For the purposes of subsections (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 subparagraph (7), 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 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 Chapter 2 of 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 ordinance 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.
3.30.120. Amendments to State Law. All amendments subsequent to the effective date of this
ordinance 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 ordinance, provided however, that no
such amendment shall operate so as to affect the rate of tax imposed by this ordinance.
3.30.130 Enioininq 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 ordinance, 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.
3.30.140 Annual Accountablity Report. The City Council shall cause preparation of an
annual accountability report for the benefit of the citizens of the City and in order to assure
accountability in the expenditure of tax revenues received pursuant to this ordinance. The
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annual accountability performance report shall be posted on the City's website and shall include
the following information:
A. The amount of revenue collected pursuant to the transactions and use tax
imposed by this ordinance;
B. The amount and general purposes of the expenditures made possible by this
ordinance including, where feasible, a categorization of the nature and purpose of the
expenditures. These categories may include, among other things:
1. A listing of general fund service expenditures (such as police, fire, parks and
recreation, library, youth and senior programs, and other general fund
services).
2. A listing of capital facility expenditures (such as streets, police and fire
facilities, emergency communication systems, and other general fund capital
expenditures).
3. Such other categories of general fund services or capital expenditures as the
City Council may from time to time deem necessary and desirable.
3.30.150 Establishment of Citizens' Oversight Committee.
A. Committee Established. A Citizens' Oversight Committee is hereby established in
the City of Lodi which shall have the duty and responsibility to review the annual accountability
performance report and report its findings to the City Council and the citizens of the City.
B. Selection of Members. Members of the Citizens' Oversight Committee shall be
appointed by the City Council. The Committee shall consist of five members. Members of the
Citizens' Oversight Committee shall not be current City of Lodi employees, officials, contractors,
or vendors of the City. Past employees, officials, contractors, and vendors shall be eligible to
serve on the Committee, provided that there are no conflicts of interest as determined by the
City Attorney. Of the members of the Committee first appointed, three members shall be
appointed for terms of two years and two members shall be appointed for terms of three years.
Their successors shall be appointed for terms of three years. No member may serve more than
two consecutive three-year terms. The City Council shall solicit members of the Citizens'
Oversight Committee, through an open application process that is promoted through the City's
recruiting process for boards and commissions. Any resident of the City is eligible to apply for
Committee membership, subject to the restrictions specified above. All applications will be
reviewed by the City Council, which will have the authority to make final decisions regarding
Committee composition, subject to the guidelines in this ordinance.
C. Purposes and Jurisdiction. The Citizens' Oversight Committee shall conduct an
annual review of expenditures of revenue collected pursuant to this ordinance to determine
whether such funds are expended for the purposes set forth in this ordinance. Committee
members may review the annual financial audit performed by an independent auditor during the
review process. The Citizens' Oversight Committee shall issue an annual report on their findings
to the City Council and to the People. The Citizens' Oversight Committee annual report is
subject to review and approval of the City Council. The Committee shall confine its review
specifically to revenues generated pursuant to this ordinance and the expenditure of those
revenues. The Committee shall serve in an advisory -only role to the City Council. Committee
members shall not play a formal or informal role in the expenditure of the funds raised by this
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ordinance. The Committee is not charged with decision-making on spending priorities;
schedules; project details; funding source decisions; financing plans, including changes or
revisions to the Parks Expenditure Plan; or tax rate assumptions. The Committee shall have no
jurisdiction other than that delegated to it by the People pursuant to this ordinance. The Lodi
City Manager or the City Manager's designee shall provide reasonable administrative or
technical assistance required by the Committee to fulfill its responsibilities or publicize its
findings.
D. Meetings. The Citizens' Oversight Committee shall meet annually with specific
meeting dates to be determined by Committee members. Citizens' Oversight Committee
meetings are subject to the Brown Act. Meetings must be noticed and open to the public.
Committee minutes and reports are a matter of public record, and must be posted on the City's
web site. Additional meetings may be scheduled by the Committee as necessary. All Committee
members shall attend a training and orientation session prior to the first regular Committee
meeting. Committee members are expected to attend all regular meetings. Failure to attend two
consecutive meetings may result in removal from the Committee at the discretion of the City
Council.
E. Committee Operations, The Citizens' Oversight Committee will select members
to serve as Chair and Vice Chair of the Committee. A City staff person will be appointed by the
City Manager, or the City Manager's designee, to serve as Secretary. The Secretary will be
responsible for preparing, posting and distributing agendas and taking minutes at each meeting.
Approved minutes shall be made available to the public. Committee decisions, positions,
findings and procedures shall require a simple majority vote of those Committee members in
attendance. The quorum requirement for any meeting shall be a minimum of three (3) members.
F. Vacancies. Committee members may be removed from the Committee only by
the City Council for repeated absences at committee meetings, malfeasance, failure to meet the
qualifications set forth in this Section, or for inability or unwillingness to fulfill the duties of a
Committee member. In the event of removal, resignation, or death, the City Council shall
appoint a person to fill the vacant seat.
G. Miscellaneous. Subject to the restrictions specifically addressed in this Section,
the Committee may draft and adopt its own standard procedures and by-laws by majority vote.
All Citizens' Oversight Committee procedures and by-laws remain subject to review and
approval of the City Council.
3.40.160 Annual Audit and Review. The revenue from the tax imposed by this ordinance,
as well as the expenditure thereof, shall be subject to the annual audit performed by the City's
independent auditor of the City's books, records, accounts, and fiscal procedures and which is
reported in the City's Comprehensive Annual Financial Report. The audit results may be
combined with the audit of other City funds, so long as the proceeds from this ordinance are
reported separately. The City Council shall discuss the results of such audit at a meeting of the
City Council that is open to the public. The report of such audit shall be posted on the City's
website.
Section 2. No Mandatory Duty of Care. This ordinance is not intended to and shall not be
construed or given effect in a manner which imposes upon the City, or any officer or employee
thereof, a mandatory duty of care towards persons or property within the City or outside of the
City so as to provide a basis of civil liability for damages, except as otherwise imposed by law.
Section 3. Severability. If any provision of this ordinance or the application thereof to any
person or circumstance is held invalid by a court of competent jurisdiction, the remainder of the
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ordinance and the application of such provision to other persons or circumstances shall not be
affected thereby. The City Council of the City of Lodi hereby declares that they would have
adopted each and every provision of this ordinance regardless of the invalidity of any other
provision.
Section 4. Conflicts. All ordinances and parts of ordinances in conflict herewith are
repealed insofar as such conflict may exist.
Section 5. Compliance with the California Environmental Quality Act. The approval of this
ordinance is exempt from the California Environmental Quality Act (Public Resources Code
Sections 21000, et seq., "CEQA" and 14 Cal. Code of Regs. Sections 15000 et seq., "CEQA
Guidelines"). This ordinance imposes a general sales tax that can be used for unrestricted
general revenue purposes as specified in this ordinance. It is not a commitment to any specific
project that may result in a potentially significant physical impact on the environment.
Section 6. Codification. Subject to the voter approval, the City Clerk, in consultation with
the City Attorney, is hereby authorized and directed to codify this ordinance in the Lodi
Municipal Code.
Section 7. Effective Date and Submission to Voters. If this ordinance related to the levying
and collecting of the City transactions and use tax and shall take effect immediately upon the
approval of a majority the voters of the City as required by Section 2(b) of Article XIIIC of the
California Constitution and applicable law.
Section 8. Termination, Amendment, Repeal. The authority to levy the tax imposed by this
ordinance shall be in effect until and unless this ordinance is amended or repealed.
Section 9. Certification and Publication. The City Clerk shall certify the final approval of this
ordinance, publish the same as required by law, and forward a certified copy of the adopted
ordinance to the California Department of Tax and Fee Administration.
Approved this day of July , 2018
ALAN NAKANISHI
Mayor
ATTEST:
JENNIFER M. FERRAIOLO
City Clerk
State of California
County of San Joaquin, ss.
I, Jennifer M. Ferraiolo, City Clerk of the City of Lodi, do hereby certify that Ordinance No.
was introduced at a regular meeting of the City Council of the City of Lodi held July _, 2018,
and was thereafter passed, adopted, and ordered to print at a regular meeting of said Council
held July , 2018, by the following vote:
9
AYES: COUNCIL MEMBERS —
NOES: COUNCIL MEMBERS —
ABSENT: COUNCIL MEMBERS —
ABSTAIN: COUNCIL MEMBERS —
I further certify that Ordinance No. was approved and signed by the Mayor on the date of
its passage and the same has been published pursuant to law.
Approved to Form:
JANICE D. MAGDICH
City Attorney
10
JENNIFER M. FERRAIOLO
City Clerk
2018 City Services Revenue Measure
Overview Presentation
Presented by: Steve Schwabauer, City Manager
June 20, 2018
Introduction
• Community demand to
MAINTAIN essential city services
has reached a critical point in the
City of Lodi.
• Residents deserve the
opportunity to consider a local
revenue measure on the
November 2018 ballot to address
that need.
• Tonight we will review the
components of such a proposal.
Five Year Budget Forecast
3
4,666,006
2,000, 000
C
2,000,000
4,000,00 0
5,000,000
Net Revenues vs. Expenses
Fiscal Years 2017/18 through 2023/24
FY 17/16 FY 18119 FY 19/20 FY 20/21 FY 21/22
FY22f23
2,823,506
1'8,3
2,726,323
3,825,0 05
4,849,023
FY 23/24
5,65 ,738
On the Horizon
1. Continuing public information &
engagement process
2. City Council Action on a
recommended City services local
revenue measure proposal
(July 18)
3. Then an 88 -day campaign
window beginning on Aug 10.
* If City Council takes action to place a measure on
the ballot, after taking such action, City employees
cannot advocate for or against the measure on City
time or using City resources.
Approach
Feasibility
5
We are
Here
rallel Process: Plan-Inpu
Council
Action
Ju1418
0 •
Election Pre CAMPAIGN
Election Day
November 6
Post Election
Pursuing a revenue measure is a STRATEGIC
"People support what they help create."
0%
ail, i; II II II
1 .011#
PIA 1111011P
Approach
Track 1
City Staff Due Diligence
City Departments, Facilities, Finance, Legal, Logistics, etc.
/
Track 2
[ouncil Engagement
NEED, Process, Info/Data/Research, Consensus, etc.
Track 3
Stakeholder & Opinion Leader Engagement
"People Support What They Help Create."
Approach
GOAL: Align City Needs with Voter Support
City of Lodi
Facility and
Service
NEEDS
Public Engagement
LODI RESIDENTS:
Tell us what you think!
SURVEY INCLUDED
Weare LISTENING!
May 2018 Mailer
16,897 mailers sent
AND... in recent months:
• Stakeholder Meetings
• Citizen Poll
• Opinion Leader Conversations
Public Engagement
CITY SURVEY
Your Input is Important to Us.
Please rank these City of Lodi priorities in order of their
importance to you (1 = most important, 6 = least important).
REDUCE crime and provide gang violence
intervention and prevention services.
MAINTAIN AND IMPROVE rapid response for
fire, police and medical emergencies.
FIX potholes and maintain city streets.
REPAIR AND UPGRADE Lodi Lake Park and
other recreation facilities.
PROVIDE homelessness intervention programs.
KEEP Lodi Public Library open and
maintain hours.
WE ARE LISTENING!
Exchange in progress...
Input Opportunities:
• Online — City website
• Return postcard
So far, 1,500+ responses
received in one month.
The public can continue to weigh in at
www.Lodi.gov/survey
Public Comments
• "I strongly support the proposed tax increase, providing the
majority of the funds go towards the police and fire. Road
maintenance after that." — M.L.
• "Vandalism & petty theft are getting way too common.
would like to see more police patrols." — S.N.
• "I love living in this town. Crime is going up a lot. There are
homeless people everywhere. It's starting to get out of
hand." —Anonymous
• "Stick with the basics. A safe city with clean streets and
parks." — Ben
10
Public Comments
• "Lodi Lake and the nature area should be a high priority. It's
one of the selling points of the community."—PH.
• "Potholes on city streets are awful." —Anonymous
• "Lodi Public Library Foundation, Friends and the library staff
have worked hard to provide a safe place for youth,
encourage lifelong learning and offer community
programs.... Don't destroy a gem of Lodi." —J.T.
• "None of these issues are more important than the
other." — C.B.
• "I will not vote for any taxes until I see a new pension fund
system in place for new hires." — M.H.
11
Ballot Package
KEY Components:
1. Financials
- Sales Tax Amount: 1A -cent
- $5.4M Annually for Essential City Services
2. 75 -Word Ballot Question
3. Legal Considerations
and the RESOLUTION
4. Community Alignment
12
Ballot Package
The
Project List
These needs resonate most -
City of Lodi
Facility and
Service
NEEDS
What Lodi
Voters Will
SUPPORT
13
City of Lodi SIGNIFICANT NEEDS Include:
• Police: Maintaining response times and
neighborhood police patrols to reduce crime.
• Fire and Emergency Medical:
Maintaining and improving rapid response times
for fire and medical emergency situations.
• Road Maintenance: Fixing potholes and
maintaining city streets.
• Homelessness: Providing homelessness
intervention programs.
• Parks and Recreation: Repairing and
upgrading Lodi Lake Park and other recreation
facilities.
• Library: Keeping Lodi Public Library open and
maintain hours.
Ballot Package
PROPOSED BALLOT QUESTION Draft
To make neighborhoods safer, maintain/improve essential City of
Lodi services including: reducing crime; maintaining neighborhood
police patrols/gang violence intervention/ prevention; fixing
potholes/city streets; maintaining neighborhood fire stations;
enhancing rapid police/fire response times by restoring firefighter
and adding police positions; maintaining recreation facilities/
programs; and unrestricted general fund purposes; shall the City of
Lodi measure enacting an ongoing half cent local sales tax,
providing $5,400,000 annually, with independent citizen oversight,
and funds spent locally, be adopted?
Ballot Package
Legal Framework:
Resolution
- Conditions
- Provisions
- Ballot Question
15
RESOTROrmo-7_
A RESOLUTION OF THE CITY COUNCIL OF __O
E
ASKCIN OF LODITO FFW
ELECTOR TO
WE AN
THE VOTERS OF TEE
ONGOI�L TRANSACTIONS
TAX OF ONE-HALF
*NO CENT
DOLLAR
UNRESTRICTED
ES, VO ROOM IN EFFECT UNTIL THE VOTERS MIELE OR
t�
IT, I C TO BE REVIEWED
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THE ELECTION ON
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Key Dates
NEXT:
Action Item: JUIy 18
Council Action Calling for an Election and
Adopting the Ordinance
Filing Deadline: August 10
Paperwork MUST be Filed with San Joaquin
County Registrar of Voters
Campaign Window:
August 10 — November 6
• Election Day: November 6
16
r
YOUR NEEDS
YOUR PLAN
VOTER
SUPPORT
OPTIMAL
MEASURE
Council Q&A / Discussion
REMINDER:
Once a measure is FILED...
City staff and City Council members can
inform/provide factual information to
the public on the ballot measure.
City staff cannot spend resources to
advocate (up or down) on the ballot
measure.
Paid employees of the City of Lodi
CANNOT advocate for/against the
measure on "City time." They may
volunteer on their own time.
Council Q&A / Discussion
17
2018 City Services Revenue Measure
Overview Presentation
Presented by: Steve Schwabauer, City Manager
June 20, 2018
Please immediately confirm receipt
of this fax by calling 333-6702
CITY OF LODI
P. O. BOX 3006
LODI, CALIFORNIA 95241-1910
ADVERTISING INSTRUCTIONS
SUBJECT: SUMMARY OF ORDINANCE NOS. 1953 AND 1954
PUBLISH DATE: SATURDAY, JUNE 23, 2018
LEGAL AD
TEAR SHEETS WANTED: One (1) please
SEND AFFIDAVIT AND BILL TO:
LNS ACCT. #0510052
JENNIFER M. FERRAIOLO, CITY CLERK
City of Lodi
P.O. Box 3006
Lodi, CA 95241-1910
DATED: THURSDAY, JUNE 21, 2018
ORDERED BY: JENNIFER M. FERRAIOLO
CITY CLERK
1-21/7/1-e.(An_a `i' I ■
PAMELA M. FARRIS
DEPUTY CITY CLERK
ELIZABETH BURGOS
ADMINISTRATIVE CLERK
Verify Appearance of this Legal in the Newspaper — Copy to File
SEND PROOF OF ADVERTISEMENT. THANK YOU!!
Emailed to the Sentinel at classified)@lodinews.com at Se (time) on , , « (date)
LNS Phoned to confirm receipt of all pages at (time) PM ES (initials)
N:\Admin istration\CLERK\Ord Summaries\Advins. doc
CITY OF LODI
ORDINANCE NO. 1953
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LODI AMENDING LODI
MUNICIPAL CODE TITLE 3 — REVENUE AND FINANCE — BY ADDING CHAPTER 3.30,
"2018 GENERAL RETAIL TRANSACTIONS AND USE TAX," BY IMPOSING AN ONGOING
ONE-HALF (0.50) CENT PER DOLLAR TRANSACTIONS AND USE TAX FOR
UNRESTRICTED GENERAL REVENUE PURPOSES, TO REMAIN IN EFFECT UNTIL THE
VOTERS AMEND OR REPEAL IT, TO BE COLLECTED AND ADMINISTERED BY THE
CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION, SUBJECT TO VOTER
APPROVAL. The purpose of this ordinance is to raise revenue for City services, including
public safety, streets, and parks. Introduced June 20, 2018. Adoption to be considered July 18,
2018. AYES: Chandler, Johnson, Kuehne, Mounce, and Mayor Nakanishi; NOES: None;
ABSENT: None.
ORDINANCE NO. 1954
AN ORDINANCE OF THE LODI CITY COUNCIL AMENDING LODI MUNICIPAL CODE
TITLE 12 — STREETS, SIDEWALKS AND PUBLIC PLACES — BY REPEALING AND
RE-ENACTING CHAPTER 12.12.170, "BEACH STRUCTURES," IN ITS ENTIRETY; AND
FURTHER REPEALING AND RE-ENACTING CHAPTER 12.16.100, "ACTIVITY REQUIRING
A PARK PERMIT," IN ITS ENTIRETY. The purpose of this ordinance is to ban erecting tents or
similar structures throughout the City's recreational areas, requiring an unobstructed view from
at least three sides of a shelter, while allowing an exception to the no -tent or enclosed shelter
rule for City -sponsored events or events that have a permit from the Parks, Recreation and
Cultural Services Department. Introduced June 20, 2018. Adoption to be considered
July 18. 2018. AYES: Chandler, Johnson, Kuehne, Mounce, and Mayor Nakanishi; NOES:
None; ABSENT: None.
Jennifer M. Ferraiolo, City Clerk
City of Lodi
June 20, 2018
Certified copies of the full text of these ordinances are available in the office of the
Lodi City Clerk.
DECLARATION OF POSTING
ORDINANCE NO. 1953
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LODI AMENDING LODI
MUNICIPAL CODE TITLE 3 — REVENUE AND FINANCE — BY ADDING
CHAPTER 3.30, "2018 GENERAL RETAIL TRANSACTIONS AND USE TAX," BY
IMPOSING AN ONGOING ONE-HALF (0.50) CENT PER DOLLAR TRANSACTION
AND USE TAX FOR UNRESTRICTED GENERAL REVENUE PURPOSES, TO
REMAIN IN EFFECT UNTIL THE VOTERS AMEND OR REPEAL IT, TO BE
COLLECTED AND ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX
AND FEE ADMINISTRATION, SUBJECT TO VOTER APPROVAL
On Monday, June 25, 2018, in the City of Lodi, San Joaquin County, California, a
certified copy of Ordinance No. 1953 (attached hereto, marked Exhibit "A") was posted
in the Lodi City Clerk's Office.
I declare under penalty of perjury that the foregoing is true and correct.
Executed on June 25, 2018, at Lodi, California.
Pamela M. Farris
ORDERED BY:
JENNIFER M. FERRAIOLO
CITY CLERK
Elizabeth Burgos
Deputy City Clerk Administrative Clerk
ordsummaries\aaDecPost.doc
ORDINANCE NO. 1953
IEXHIBIT A
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LODI
AMENDING LODI MUNICIPAL CODE TITLE 3 - REVENUE AND FINANCE
BY ADDING CHAPTER 3.30 "2018 GENERAL RETAIL TRANSACTIONS
AND USE TAX" BY IMPOSING AN ONGONING ONE-HALF (0.50) CENT
PER DOLLAR TRANSACTIONS AND USE TAX FOR UNRESTRICTED
GENERAL REVENUE PURPOSES, TO REMAIN IN EFFECT UNTIL THE
VOTERS AMEND OR REPEAL IT, TO BE COLLECTED AND
ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX AND FEE
ADMINISTRATION, SUBJECT TO VOTER APPROVAL
The City Council of the City of Lodi hereby finds as follows:
A. The City is a full service city that provides vital municipal services and facilities;
however, additional revenue is necessary to fund these services, including:
1. Maintaining and enhancing rapid police and fire response times by restoring
firefighter and adding police positions;
2. Maintaining neighborhood police patrols and fire stations;
3. Maintaining library hours;
4. Repairing potholes and local streets;
5. Maintaining recreation facilities and programs;
6. Addressing homelessness; and
7. Other essential services.
B. The City's current and projected revenues are insufficient to fully provide these
municipal services and facilities at the level our residents need and expect.
C. This tax measure provides local funding for local needs, cannot be taken by the
State of California or Washington, D.C., and includes strict accountability requirements,
including independent oversight by a citizens' committee that must meet in public, full disclosure
of public spending available on the City's website and at other public locations in the City;
annual financial audits; and a requirement that all funds raised be spent locally.
D. This tax measure invests in our community. Enhancing rapid police and fire
response times by restoring firefighter and adding police positions and maintaining
neighborhood police patrols and fire stations are an investment in public safety that strengthen
local property values and make our community a more desirable place to live, do business and
raise a family.
E. Approximately 25% of the City's sales tax dollars are paid by tourists and visitors
from the surrounding area. This tax measure will help to make sure that tourists and visitors are
paying their fair share to maintain our community and not place the cost exclusively on City
residents.
F. The funding made available by this measure will enable the City to restore and
improve its general municipal services and facilities, including public safety. Nothing in this
measure allows tax revenue to be directed into a special fund or for a special purpose.
G. The tax revenue generated by this measure can be spent for unrestricted general
revenue purposes.
1
H. November 6, 2018 is the date of the statewide general election, and is the next
election date eligible for inclusion of this general tax measure.
NOW, THEREFORE, BE IT ENACTED BY THE CITY COUNCIL OF THE CITY OF LODI:
Section 1, Lodi Municipal Code Title 3 - Revenue and Finance is hereby amended by
adding Chapter 3.30 "2018 General Retail Transactions and Use Tax" and shall read as follows:
CHAPTER 3.30
2018 GENERAL RETAIL TRANSACTIONS AND USE TAX
Sections:
3.30.010 Title
3.30.020 Operative Date
3.30.030 Purpose
3.30.040 Contract with State
3.30.050 Transactions Tax Rate
3.30.060 Place of Sale
3.30.070 Use Tax Rate
3.30.080 Adoption of Provisions of State Law
3.30.090 Limitations on Adoption of State Law and Collection of Use Taxes
3.30.100 Permit Not Required
3.30.110 Exemptions and Exclusions
3.30.120 Amendments to State Law
3.30.130 Enjoining Collection Forbidden
3.30.140 Annual Accountability Report
3.30.150 Establishment of Citizens' Oversight Committee
3.30.160 Annual Audit and Report
3.30.010 Title. This ordinance shall be known as the City of Lodi 2018 General Retail
Transactions and Use Tax Ordinance. The City of Lodi hereinafter shall be called "City." This
ordinance shall be applicable in the incorporated territory of the City.
3.30.020 Operative Date. "Operative date" means the first day of the first calendar quarter
commencing more than 110 days after the adoption of this ordinance, the date of such adoption
being as set forth below.
3.30.030 Purpose. This ordinance 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 impose a retail transactions and use tax 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 tax ordinance
which shall be operative if a majority of the electors voting on the measure vote to approve the
imposition of the tax at an election called for that purpose.
B. To adopt a retail transactions and use tax ordinance that incorporates provisions
identical to those of the Sales and Use Tax Law of the State of California insofar as those
2
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 ordinance that imposes a tax and
provides a measure therefore that can be administered and collected by California Department
of Tax and Fee Administration 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 California Department of Tax and Fee Administration in administering and
collecting the California State Sales and Use Taxes.
D. To adopt a retail transactions and use tax ordinance 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 record keeping upon persons
subject to taxation under the provisions of this ordinance.
E. To adopt a retail transactions and use tax for unrestricted general revenue
purposes, to remain in effect until the voters amend or repeal it.
3.40.040 Contract with State. Prior to the operative date, the City shall contract with the
California Department of Tax and Fee Administration to perform all functions incident to the
administration and operation of this transactions and use tax ordinance; provided, that if the City
shall not have contracted with the California Department of Tax and Fee Administration 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.
3.30.050 Transactions 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 (0.50%) 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 ordinance.
3.30.060 Place of Sale. For the purposes of this ordinance, all retail sales are
consummated at the placeof 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 California Department of Tax and Fee Administration.
3.30.070 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 ordinance for storage, use or other consumption in said territory at the
rate of one-half cent (0.50%) 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.
3.30.080 Adoption of Provisions of State Law. Except as otherwise provided in this
ordinance 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 ordinance as though fully set forth herein.
3
3.30.090. 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 therefore. However, the substitution shall not be made
when:
1. The word "State" is used as a part of the title of the State Controller, State
Treasurer, 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
California Department of Tax and Fee Administration, in performing the functions
incident to the administration or operation of this ordinance.
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.
3.30.100. 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 ordinance.
3.30.110. Exemptions and Exclusions.
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 levied by the State of California or by any city, city and
county, or county pursuant to the 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
4
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 purposes of this paragraph, 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 Chapter 2 of 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 ordinance.
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 ordinance.
5. For the purposes of subsections (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 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 levied by this ordinance, 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 ordinance.
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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 ordinance.
5. For the purposes of subsections (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 subparagraph (7), 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 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 Chapter 2 of 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 ordinance 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.
3.30.120. Amendments to State Law. All amendments subsequent to the effective date of this
ordinance 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 ordinance, provided however, that no
such amendment shall operate so as to affect the rate of tax imposed by this ordinance.
3.30.130 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 ordinance, 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.
3.30.140 Annual Accountablity Report, The City Council shall cause preparation of an
annual accountability report for the benefit of the citizens of the City and in order to assure
accountability in the expenditure of tax revenues received pursuant to this ordinance. The
annual accountability performance report shall be posted on the City's website and shall include
the following information:
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A. The amount of revenue collected pursuant to the transactions and use tax
imposed by this ordinance;
B. The amount and general purposes of the expenditures made possible by this
ordinance including, where feasible, a categorization of the nature and purpose of the
expenditures. These categories may include, among other things:
1. A listing of general fund service expenditures (such as police, fire, parks and
recreation, library, youth and senior programs, and other general fund
services).
2. A listing of capital facility expenditures (such as streets, police and fire
facilities, emergency communication systems, and other general fund capital
expenditures).
3. Such other categories of general fund services or capital expenditures as the
City Council may from time to time deem necessary and desirable.
3.30.150 Establishment of Citizens' Oversight Committee.
A. Committee Established. A Citizens' Oversight Committee is hereby established in
the City of Lodi which shall have the duty and responsibility to review the annual accountability
performance report and report its findings to the City Council and the citizens of the City.
B. Selection of Members. Members of the Citizens' Oversight Committee shall be
appointed by the City Council. The Committee shall consist of five members. Members of the
Citizens' Oversight Committee shall not be current City of Lodi employees, officials, contractors,
or vendors of the City. Past employees, officials, contractors, and vendors shall be eligible to
serve on the Committee, provided that there are no conflicts of interest as determined by the
City Attorney. To the extent possible at least two members of the Committee shall be certified
public accountants or equivalent. Of the members of the Committee first appointed, three
members shall be appointed for terms of two years and two members shall be appointed for
terms of three years. Their successors shall be appointed for terms of three years. No member
may serve more than two consecutive three-year terms. The City Council shall solicit members
of the Citizens' Oversight Committee, through an open application process that is promoted
through the City's recruiting process for boards and commissions. Any resident of the City is
eligible to apply for Committee membership, subject to the restrictions specified above. All
applications will be reviewed by the City Council, which will have the authority to make final
decisions regarding Committee composition, subject to the guidelines in this ordinance.
C. Purposes and Jurisdiction. The Citizens' Oversight Committee shall meet a
minimum of three times per year, including conducting an annual review of expenditures of
revenue collected pursuant to this ordinance to determine whether such funds are expended for
the purposes set forth in this ordinance. Committee members may review the annual financial
audit performed by an independent auditor during the review process. The Citizens' Oversight
Committee shall issue an annual report on their findings to the City Council and to the citizens of
Lodi. The Citizens' Oversight Committee annual report is subject to review and approval of the
City Council. The Committee shall confine its review specifically to revenues generated
pursuant to this ordinance and the expenditure of those revenues. The Committee shall serve in
an advisory -only role to the City Council. Committee members shall not play a formal or informal
role in the expenditure of the funds raised by this ordinance. The Committee is not charged with
decision-making on spending priorities; schedules; project details; funding source decisions;
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financing plans; or tax rate assumptions. The Committee shall have no jurisdiction other than
that delegated to it by the People pursuant to this ordinance. The Lodi City Manager or the City
Manager's designee shall provide reasonable administrative or technical assistance required by
the Committee to fulfill its responsibilities or publicize its findings.
D. Meetings. The Citizens' Oversight Committee shall meet a minimum of three
times per year with specific meeting dates to be determined by Committee members. Citizens'
Oversight Committee meetings are subject to the Brown Act. Meetings must be noticed and
open to the public. Committee minutes and reports are a matter of public record, and must be
posted on the City's web site. Additional meetings may be scheduled by the Committee as
necessary. All Committee members shall attend a training and orientation session prior to the
first regular Committee meeting. Committee members are expected to attend all regular
meetings. Failure to attend two consecutive meetings may result in removal from the Committee
at the discretion of the City Council.
E. Committee Operations_ The Citizens' Oversight Committee will select members
to serve as Chair and Vice Chair of the Committee. A City staff person will be appointed by the
City Manager, or the City Manager's designee, to serve as Secretary. The Secretary will be
responsible for preparing, posting, and distributing agendas and taking minutes at each
meeting. Approved minutes shall be made available to the public. Committee decisions,
positions, findings, and procedures shall require a simple majority vote of those Committee
members in attendance. The quorum requirement for any meeting shall be a minimum of three
(3) members.
F. Vacancies. Committee members may be removed from the Committee only by
the City Council for repeated absences at committee meetings, malfeasance, failure to meet the
qualifications set forth in this Section, or for inability or unwillingness to fulfill the duties of a
Committee member. In the event of removal, resignation, or death, the City Council shall
appoint a person to fill the vacant seat.
G. Miscellaneous. Subject to the restrictions specifically addressed in this Section,
the Committee may draft and adopt its own standard procedures and by-laws by majority vote.
All Citizens' Oversight Committee procedures and by-laws remain subject to review and
approval of the City Council.
3.40.160 Annual Audit and Review. The revenue from the tax imposed by this ordinance,
as well as the expenditure thereof, shall be subject to the annual audit performed by the City's
independent auditor of the City's books, records, accounts, and fiscal procedures and which is
reported in the City's Comprehensive Annual Financial Report. The audit results may be
combined with the audit of other City funds, so long as the proceeds from this ordinance are
reported separately. The City Council shall discuss the results of such audit at a meeting of the
City Council that is open to the public. The report of such audit shall be posted on the City's
website.
Section 2. No Mandatory Duty of Care. This ordinance is not intended to and shall not be
construed or given effect in a manner which imposes upon the City, or any officer or employee
thereof, a mandatory duty of care towards persons or property within the City or outside of the
City so as to provide a basis of civil liability for damages, except as otherwise imposed by law.
Section 3. Severability. If any provision of this ordinance or the application thereof to any
person or circumstance is held invalid by a court of competent jurisdiction, the remainder of the
ordinance and the application of such provision to other persons or circumstances shall not be
affected thereby. The City Council of the City of Lodi hereby declares that they would have
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adopted each and every provision of this ordinance regardless of the invalidity of any other
provision.
Section 4. Conflicts. All ordinances and parts of ordinances in conflict herewith are
repealed insofar as such conflict may exist.
Section 5. Compliance with the California Environmental Quality Act. The approval of this
ordinance is exempt from the California Environmental Quality Act (Public Resources Code
Sections 21000, et seq., "CEQA" and 14 Cal. Code of Regs. Sections 15000 et seq., "CEQA
Guidelines"). This ordinance imposes a general sales tax that can be used for unrestricted
general revenue purposes as specified in this ordinance. It is not a commitment to any specific
project that may result in a potentially significant physical impact on the environment.
Section 6. Codification. Subject to the voter approval, the City Clerk, in consultation with
the City Attorney, is hereby authorized and directed to codify this ordinance in the Lodi
Municipal Code.
Section 7. Effective Date and Submission to Voters. This ordinance relates to the levying
and collecting of the City transactions and use tax and shall take effect immediately upon the
approval of a majority the voters of the City as required by Section 2(b) of Article XIIIC of the
California Constitution and applicable law.
Section 8. Termination, Amendment, Repeal. The authority to levy the tax imposed by this
ordinance shall be in effect until and unless this ordinance is amended or repealed,
Section 9. Certification and Publication. The City Clerk shall certify the final approval of this
ordinance, publish the same as required by law, and forward a certified copy of the adopted
ordinance to the California Department of Tax and Fee Administration.
Approved this day of July , 2018
ALAN NAKANISHI
Mayor
ATTEST:
JENNIFER M. FERRAIOLO
City Clerk
State of California
County of San Joaquin, ss.
I, Jennifer M. Ferraiolo, City Clerk of the City of Lodi, do hereby certify that Ordinance No. 1953
was introduced at a regular meeting of the City Council of the City of Lodi held June 20, 2018,
and was thereafter passed, adopted, and ordered to print at a regular meeting of said Council
held July _, 2018, by the following vote:
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AYES: COUNCIL MEMBERS —
NOES: COUNCIL MEMBERS —
ABSENT: COUNCIL MEMBERS —
ABSTAIN: COUNCIL MEMBERS —
I further certify that Ordinance No. 1953 was approved and signed by the Mayor on the date of
its passage and the same has been published pursuant to law.
Approved to Form:
JANICE D. MAGDICH
City Attorney
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JENNIFER M. FERRAIOLO
City Clerk