AgdaPkt 2011-06-27 - Laserfiche WebLink

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6.2.C. - Page 1 REPORT To the Honorable Mayor and City Council From the City Manager June 27, 2011 SUBJECT Subject to Voter Approval, Amend Section 32.75 of the Municipal Code Increasing Transient Occupancy Tax from 10% to 12% RECOMMENDATION 1. Adopt Resolution Submitting to the Voters At The November 8, 2011 General Election A Ballot Measure Increasing the Transient Occupancy Tax; 2. By motion, authorize the Mayor and Vice Mayor to select such persons as necessary to sign the ballot arguments in favor of the proposed ordinance amending the Transient Occupancy Ta BACKGROUND On May 23, 2011, the City Council instructed staff to prepare the necessary documents to place the proposed increase to the Transient Occupancy Tax (TOT) on the ballot for the November 8, 2011 election. TOT is a form of hotel occupancy tax that supports general fund public services. Redwood City has had a TOT for many years and the tax has remained at ten percent (10 %) since 2003 and is now proposed to be increased to twelve percent (12 %). Two actions are required to implement an increase to the TOT when the tax is for general purposes and the proceeds will go to increase general fund revenues: (1) approval of an implementing resolution or ordinance by two- thirds vote of the City Council; and (2) majority voter approval. (Cal. Gov't Code Section 53723 and 53724(b)) Because the submittal deadline for a ballot measure to be included in the November 8, 2011, general municipal election is eighty -eight days in advance of the election, the last day to submit ballot measures to the County Elections Office is August 12, 2011. Here, the proposed ordinance effectuating the tax increase is placed on the ballot by adopting the attached resolution. If the voters do not approve the measure, then the ordinance is never implemented but the existing tax remains in effect. The measure would be proposed through a maximum 75 -word ballot question that states the nature of the ordinance to be adopted. With input and direction from Finance Committee ad hoc members Council Members Bain and Seybert, the following is the question proposed for the ballot measure: To preserve funding for general city services such as libraries, parks, street repairs, and public safety, and support other fundamental City services, shall an ordinance be adopted increasing the Transient Occupancy Tax ( "Hotel Tax ") charged to hotel guests in Redwood City from the current rate of 10% to a new rate of 12 %, with proceeds placed in the City's General Fund which is subject to the City's annual independent financial audit? S: \BALLOT MEASURES 2011/TRANSI ENT OCCUPANCY TAX RC 2011/ TOT STAFF REPORT 062111