BOOK 26_1955-11-28 to 1957-06-17

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398 this is done he feels that they should check with the City Attorney and take this matter up at a study meeting. Councilman Spillers talked on the raising of the building permits and he did not believe this would solve the probem - they would only be getting the money in another manner. INDRODUCE SALES AND USE TAX ORDINANCE The Mayor asked those wishing to speak to please give their names to the Clerk. Mr. Chester Lebsack asked the Council to have the matter made clear on what they were being asked to vote on. The City Attorney briefed the ordinance. The first ordinance is the sales tax ona local basis; second, use tax on the local basis; third, uniform sales and use tax; and fourth, ordinance governing the disposition of revenues. The Mayor outlined the allocation of the use tax. The main fact .:Ls that the $1.00 tax limitation would be logered to 75¢. The City Attorney, in answer to a question, stated that the Tax Collector would be the collector of the sales and use taxp Mr. John Quinn asked if the Council adopted the sales tax and lowered the tax limitation of $1.00 to 75¢ what -assurance did the people have that the Council wouldn't raise the tax limitation if they found out that the sales tax wouldn't bring in sufficient funds.' It is the intent of the Council to reduce themaximum tax levey from $1.00 to 75¢ and if further intended that the Council will provide the people with an opportunity to insure allocations and tax reduction by submitting a measure establishing the reduction and allocations to a vote of the people at the next general elction of the City. There was considerable discussion in regard to the amount (1%) that can be collected under the uniform sales tax. It was explained that with respect to the uniform county wide ordinance this percentage is set by the State Legislature and can only be changed by them. Councilman Stout was of the opinion that the people present in the audience would like to know some of the history behind the sales and use tax and where and how it got started. Many cities and counties have adopted the uniform sales tax. The matter was first brought to the League of California Cities Convention in October, 1954s by the Retailer's Association asking for a resolution to ask the Legislature to pass enabling legislature of the sales and use tax. The Resolution was adopted and brought before the State Legislature where it was eventually adopted by this body. Councilman Stout then proceeded to read excerpts from the March los 1955 Uniform Sales Tax Program. He also read a few other excerpts from other bulletins. The Mayor requested the City Attorney to read the Disposition Ordinance. There was considerable dis- cussion after the reading of the proposed ordinance. Councilman Weiss endeavored to explain the ordinance in a way the people would understand. He stated that 60% will be returned to the general fund for general purposes, 25% of the proceeds will be allocated to Capital project fund, 10% to be allocated to bond redemption and interest on General Obligation Bonds, and 5% will go into the General Reserve Fund. Councilman Stout asked that they change a section of the ordinance (Section 1, subsection B) to have the priority list checked every 60 days and this list to be made within 60 days. This was followed by discussion after which Councilman Stout agreed to change the wording to "such priority list to be established within 90 days after adoption and reveiwed-periodically thereafter every 60 days". The Council agreed to the change. There was considerable discussion in regard to possibility of raising the assessed valuation. City Assessor Brophy explained property was assessed at full cash value as precribed by law. Also under discussion was the matter of the section in the ordinance referring to the limitation_ established which would be suspended and would not apply during any period of public calamity or major castastrophe. Mrs. Reinhard asked that they explain what constituted a mjor calamity or catastrophe. The City Attorney stated that this was in the Charter, however, it would have to be determined by a court of law. James Hemmel, representative of C -O -S -T, asked about the constitutionality of the+ordinance. He C J AT