AgdaPkt 2019-01-14 Joint SA PFA - Laserfiche WebLink

Browse Search

6.F. - Page 2 of 47 developers. Despite these steps, without additional revenue, the City would face significant cuts to services, including public safety, which comprises 60% of the operating budget. In early 2018, after receiving considerable research, the City Council directed staff to examine the feasibility of a half -cent sales tax measure for the November 2018 ballot that would generate approximately $8.0 million annually. For several months, City Councilmembers and City staff conducted robust outreach to residents and stakeholders, describing the City's fiscal situation and seeking input on a potential revenue measure or other options for aligning resources and services. In July 2018, staff reported to the City Council that polls of likely voters indicated support for a half -cent sales tax revenue measure that would help offset service reductions that would have significant community impacts. At that time, the City Council approved Resolution No. 15693, calling for an election to be consolidated with the General Municipal election on November 6, 2018, and submitting a measure to the voters to enact a one-half of one percent transactions and use (sales) tax in order to maintain essential city services. Redwood City voters passed Measure RR — Essential Services Protection on November 6, 2018 with a pass rate of 67.59%. San Mateo County Chief Elections Officer Mark Church certified the results of the election and provided the City with a copy of the Official Report. At the December 10, 2018 meeting, the City Council approved Resolution No. 15723 reciting the facts and declaring the results of the election which stated: "It was determined and declared that Measure RR did receive a majority of the votes cast with 19,207 votes cast in favor and 9,210 votes cast in opposition and therefore was approved by the voters of Redwood City." ANALYSIS Pursuant to California's Revenue and Taxation Code section 7265, a local sales tax is referred to as a transactions and use district tax and is scheduled to be effective on April 1, 2019. The California Department of Tax and Fee Administration (CDTFA) will be implementing this new district tax and will be responsible for collecting it and remitting it to the City. The CDTFA requires the following resolutions and agreements to be adopted or approved by the City Council: A. Ordinance of the City of Redwood City amending the Municipal Code adding Chapter 32, Article XI, Transactions and Use Tax Ordinance, Section 32.901 through Section 32.915 to impose a Transaction and Use Tax to be administered by the California Department of Tax and Fee Administration. B. Resolution authorizing the City Manager to execute the necessary agreements with the CDTFA to prepare for and to administer the local transactions and use tax. C. Resolution authorizing the examination of transactions and use tax records. This resolution authorizes: a. Specific position titles to examine the City's transactions and use tax records; City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore 78