Ultimately, agenda item co-author Vice Mayor Suja Lowenthal made a substitute-substitute motion to refer the item to the Mungo-chaired Economic Development/Finance committee where it could be revised and returned to the Council within 60 days...and the Lowenthal motion passed 9-0.

Resistance to Councilwoman Mungo's proposal came quickly, initially from O'Donnell, saying he was uncomfortable with giving Mungo and the Mayor (plus a senior management staffer) access to LB business' confidential sales tax data that other Councilmembers wouldn't be allowed to see. Councilman Austin was more blunt, saying he was concerned it could invite corruption.

Councilwoman Mungo said her intention was to increase LB sales tax revenue in business categories where it's "leaking" to other cities, inviting the inference that Long Beach could offer some types of incentives to induce some types of businesses to locate or return to Long Beach but was vague on specifics. Lowenthal's motion to have Mungo bring the Council a revised version of what she said she's trying to accomplish carried 9-0. There was no Council discussion of a sales tax increase ballot measure.

The item was added to the Council agenda on Friday (Sept. 5) and would have authorized Mayor Garcia, city management's Director of Economic and Property Development (Mike Conway) and Chair of the Economic Development and Finance Committee (Councilwoman Mungo) to review consolidated sales tax data and [agendizing memo text] "to work in concert to increase sales tax for the City by strategically addressing the economic needs of the city."

The item, accompanied by an agendizing memo on the letterhead of Councilwoman Mungo, was joined by Vice Mayor Suja Lowenthal. The Mungo-Lowenthal agendizing memo stated:

Subject: Consolidate Sales Tax Authorization Ordinances

Recommendation

Request the City Attorney to prepare an Ordinance consolidating the current ordinances that allow access to sales tax and related information and to empower the Mayor, the Director of Economic and Property Development Department, and the Chair of the Economic Development and Finance Committee to review sales tax figures for the purpose of increasing the sales tax base for the City of Long Beach.

Background

Currently, there are two ordinances that exist granting authority to City representatives to review sales tax information from the County of Los Angeles. This proposed ordinance, to be drafted by the City Attorney, would consolidate these two sections. Additionally, the ordinance would grant authorization to the Mayor, the Director of Economic and Property Development Department and the Chair of the Economic Development and Finance Committee to review the sales tax data. By granting this authority, the authorized parties would be able to work in concert to increase sales tax for the City by strategically addressing the economic needs of the city.

Fiscal Impact

There is no significant fiscal impact for the delivery of this report outside the time needed for its preparation. However, by developing a strategic plan to increase sales tax revenue for the City, there could potentially be a great positive financial impact in the form of new and increased sales tax dollars.

Developing.