City Hall-Written Ballot Title And Text For Its Sales Tax Hike to 10% Proposes To Show Voters Funding Items That Actual Tax Text Doesn't Include Or Guarantee, Adds Four Words Ensuring It's A Gen'l Tax That Council Can Spend On Anything

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(Feb. 22, 2016, 6:25 p.m.) -- The ballot text that City Hall proposes to show voters for its June measure that would raise LB's sales tax to 10% lists a number of desirable funding items that the actual tax text doesn't include or legally guarantee, and the ballot text adds four words that legally ensure it's a general tax that the current and future Councils could spend on any general fund matters they wish.

[Scroll down for further.]

The proposed ballot text drafted by the City Attorney's office would show voters the following on their ballot:

[All caps in original] "CITY OF LONG BEACH PUBLIC SAFETY, INFRASTRUCTURE REPAIR AND NEIGHBORHOOD SERVICES MEASURE. To maintain 911 emergency response services; increase police, firefighter/paramedic staffing; repair potholes/streets; improve water supplies; and maintain general services; shall the City of Long Beach establish a one cent (1%) transactions and use (sales) tax for six years, generating approximately $48 million annually, declining to one half cent for four years and then ending, requiring a citizens' advisory committee and independent audits, with all funds remaining in Long Beach?"

Under the CA Constitution (provisions added by voters under Proposition 13 and Proposition 218) a tax measure that guarantees its revenue will fund specific items requires approval by a 2/3 vote of the people. City Hall's proposed Long Beach sales tax increase doesn't provide those legal guarantees to taxpayers because it includes four words -- "and maintain general services" -- in its ballot description and doesn't include the ballot-text listed items in its actual tax text.

LBREPORT.com displays the ballot text verbiage in the graphic below.

Adding the words "and maintain general services" to the ballot text ensures the measure is a "general tax" that current and future Councils can spend on any general fund items they choose

The tax text states that the sales tax increase will take effect with approval 50%+1 of voters, legally making it a general tax ("blank check") that current and future Councils can spend on basically any general fund items they wish...which may or may not include the items shown to voters on City Hall's proposed ballot text.

The ballot text also describes the increase to voters as one cent ("1%") without indicating that it would create a 10% LB sales tax rate. Signal Hill, Lakewood and Los Angeles currently charge 9% and most OC cities charge 8%.

The tax as written would drop to 1/2 cent after six years [a date when nearly all current Council incumbents will be gone or exiting.] Ten years after enactment, the tax would end unless extended by a vote of the people.

Added on Feb. 16 at the suggestion of Councilwoman Stacy Mungo, backed by Councilman Daryl Supernaw, the tax measure includes a "Citizens' Advisory Committee" -- five persons chosen by the Mayor and confirmed by the City Council -- which "shall periodically review the City's use of revenues generated by this Tax and shall make recommendations to the City Council with regard to the use of the Tax."

The coming Council actions also include a resolution -- which acknowledges it can't legally bind future actions of future Councils -- stating that the Council "expresses its intent" if the sales tax increase [referred to as TUT or transaction and use tax] is enacted to prioritize spending of its revenue for the following purposes:

[Non-binding resolution text] A. Public Safety: Future TUT revenue may be spent on the costs of providing public safety services, consisting of: police patrol, response, investigation, apprehension and law enforcement, emergency 9-1-1 response, fire prevention and suppression services, paramedic services, and ambulance services.
B. Public Infrastructure: Future TUT revenue may also be spent on the costs of improving and maintaining streets, sidewalks and alleys, improving and upgrading the City's water system for conservation, and improving and upgrading storm water storm drain systems.

The non-binding resolution explicitly states:

The adoption of this Resolution shall not be construed, and it is not the City Council's intent, to convert the proposed TUT into a "special tax", as that term is defined Article XIIIC з1 (d) of the California Constitution, California Government Code зз 53721 and 53724, or any combination thereof. Although this Resolution expresses the intent of the current City Council to spend future TUT revenues for certain priorities, this Resolution is non-binding on any future or subsequently constituted City Council, and the TUT shall remain a "general tax" as that term is defined in Article XIIIC з1 (a) of the California Constitution, and as set forth in the proposed TUT ordinance.

These items will come to the City Council for voted approvals on Feb. 23 and March 1. To view the items in full as agendized, click here.

To the best of our knowledge, on Feb. 23 or March 1, any two Councilmembers could move and second that the Council remove the verbiage "and maintain general services" from the ballot text and add the items listed on the ballot text to the actual tax text, which would legally guarantee that the tax revenue would in fact be used for the items listed in the ballot text if the measure receives 2/3 voter approval.