City Mgm't Uses 90 Minute Council "Study Session" To Offer "Infrastructure Investment Plan" Listing Items Not Mentioned Or Legally Guaranteed In Mayor/Council-Sought Sales Tax Hike

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(May 4, 2016, 9:30 a.m.) -- City management used a ninety minute City Council "study session" (scheduled for 5:00 p.m., delaying the start of regular Council business until after 6:30 p.m.) to present an "Infrastructure Investment Plan" listing various infrastructure items -- not mentioned in or legally guaranteed by a Mayor/Council-sought sales tax increase measure on the June 7 ballot that would let the current and future Councils spend the revenue on any general fund items.

In Power Point slide show items now listed on this link but unavailable for public review on the internet prior to the "study session," senior city management listed roughly $150 million in infrastructure items, accompanied by a map, that management said it would recommend for Council approval if "new revenue" appeared...but didn't say from where. Mayor Garcia and Councilmembers likewise recited the phrase "new revenue" without citing the pending ballot measure (although Councilwoman Stacy Mungo at one point referred to voter approval.)

The May 3 "study session" was scheduled less than a week before vote by mail ballots are scheduled to be sent out on May 9 (source: L.A. County Registrar.)

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When Mayor Garcia opened the proceedings to public comment, a number of public speakers lined up at the Council's public speakers' podium from groups that could receive funding under the "infrastructure plan" (some of which indicated that the City had worked with them in devising its "plan") and they spoke in its support. They included representatives of LB's two Ranchos and the LB Library Foundation.

A representative of the LB group of the Angeles Chapter of the Sierra Club spoke in favor of infrastructure improvements that could help clean stormwater runoff.

The sole speaker in opposition was LB Taxpayers Association co-founder Tom Stout, who said the City wants more money from taxpayers because it currently costs too much to run the City of Long Beach.

After a city's legislative body votes to put a measure on the ballot (as the LB Council did on Feb. 23 and March 1), the city's electeds, management and/or staff aren't supposed to advocate the measure on taxpayer paid time or using taxpayer paid resources. Cities have only a narrow, limited exception in which they can use taxpayer resources to provide neutral, factual information about the pending city measure if it's presented in a neutral non-advocacy manner.

Although city officials didn't explicitly mention their pending ballot measure during the "study session," Mayor Robert Garcia indicated two months earlier (Mar. 5) at a Saturday public meeting that management would be presenting (he said in 30 days) a "plan" (he said $100 million) that ought to convince voters to support the measure.

[Garcia, Mar. 5]...This is general tax and so I think what you're saying is something that I hear by the way from a lot of folks, saying well, OK, a general tax is a 50%+1 tax...We believe that this [general sales tax increase enabling passage with 50%+1 votes] has a strong chance of getting support. The concern, and I think the main concern for some residents is going to be, "well how do we know you're going to spend it on police and fire and infrastructure."...
We're going to put forward in the next 30 days what we're calling a $100 million plan, or the first $100 million of infrastructure that we would basically spend on this measure, coming from the City Manager's office, that is dollars that are on our CIP book [Capital Improvement Project] that are the needs, so that we're accountable...

Propositions 13 and 218, put into CA's Constitution by initiative actions of CA voters, require 2/3 voter approval for a proposed tax increase for specific items. The LB City Council could have included, and thus legally guaranteed, the infrastructure items it's citing now or other specifics, but it didn't do so, leaving the proposed sales tax hike a general tax that current and future Councils could spend on any general fund items they wish.

A City Council resolution expresses the Council's "intent" to prioritize spending for specific purposes including infrastructure but also includes the following verbiage:

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 XII1C з1(a) of the California Constitution, and as set forth in the proposed TUT ordinance. [Source: LB City Council Resolution 16-0018, Paragraph 3.]

The Council voted on Feb. 23 (8-0, Austin absent for entire meeting) to approve showing LB voters the following ballot title and label, and adding four words -- "and maintain general services"-- that indicate the ballot measure is effectively a "blank check" for spending items future Councils may desire. (See Council resolution, with key words highlighted in red, below.)

The ballot measure would increase LB's sales tax to 10% (while it's 9% in Signal Hill/Lakewood and 8% in most OC cities). The major financial backers to date of a political committee supporting the sales tax increase have been LB's police and firefighter unions (collectively over $150,000 to date) who are preparing to negotiate new contracts with the City in the coming months.