Honorable Mayor and Members of the Hermosa Beach City Council
Regular Meeting of November 3, 2022
Title
CONSIDER WHETHER THE CITY SHOULD ESTABLISH A
COMMUNITY ADVISORY COMMITTEE FOR THE TRANSACTIONS
AND USE TAX SHOULD MEASURE B BE ENACTED BY THE VOTERS
(Deputy City Manager Angela Crespi)
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Recommended Action:
Recommendation
Staff recommends City Council:
1. Discuss whether the City should consider the establishment of a community advisory committee for the Transactions and Use Tax revenue should Measure B be enacted by the voters in the November 8, 2022 General Municipal Election; and
2. If so desired, direct the City Manager to return to City Council with details regarding a Transactions and Use Tax committee should Measure B be passed by the electorate.
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Executive Summary:
At the October 25, 2022 City Council meeting, Mayor Detoy requested and Councilmember Armato supported directing staff to bring an item forward on a future agenda regarding the possible establishment of a community advisory committee for the Transactions and Use Tax (Sales Tax or TUT) should Measure B be enacted by the voters in the November 8, 2022 General Municipal Election.
Background:
At its March 3, 2022 meeting, City Council held a Revenue Study Session. At the end of the study session, an adjourned meeting was held wherein the City Council directed staff to bring back an item regarding placement of a general Transactions and Use Tax (Sales Tax or TUT) at the rate of three quarters of one cent (3/4¢) on the November 8, 2022 General Municipal Election ballot.
At its July 26, 2022 regular City Council meeting, City Council voted unanimously to place Measure B on the November 8, 2022 General Municipal Election ballot asking voters to approve a General Transactions and Use Tax at the rate of three quarter cent (3/4¢).
At its October 25, 2022 regular City Council meeting, Mayor Detoy requested, and Councilmember Armato supported, directing staff to bring an item forward on a future agenda regarding the possible establishment of a community advisory committee for the Transactions and Use Tax (Sales Tax or TUT) should Measure B be enacted by the voters in the November 8, 2022 General Municipal Election.
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Meeting Date |
Description |
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March 3, 2022 |
Council held a Revenue Study Session where Council directed staff directed staff to bring back an item regarding placement of a general Transactions and Use Tax on the General Municipal Election ballot. |
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July 26, 2022 |
Council unanimously adopted a resolution placing a Local Control City Services Measure on the November 8, 2022 General Municipal Election ballot asking the voters to approve a general Transactions and Use Tax at the rate of three quarter cent (3/4¢). |
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October 25, 2022 |
Under Future Agenda Items, Mayor Detoy requested, and Councilmember Armato supported, directing staff to return to Council with an item regarding the possible establishment of a community advisory committee for the Sales Tax or TUT should it be enacted by the voters. |
Discussion:
If enacted, the City’s sales tax consultant estimates that Measure B could result in $3,000,000 in additional annual General Fund revenue. By law, all funds raised by this measure are legally required to be used in Hermosa Beach, ensuring local control of Hermosa Beach tax dollars and a guaranteed source of funding for essential City services. The additional General Funds could be used to maintain the level of service expected by residents, ensure the City’s long-term fiscal sustainability, and to make progress toward funding of deferred capital needs.
While an advisory committee is not required and the funds cannot be specifically allocated without a 2/3 vote of the electorate, Council may consider creation of a voluntary community advisory committee. Should the Council wish to consider this option, staff would return to City Council with guidelines regarding the committee including: name; defined purpose; method of appointment; and committee duration. Should the committee be created by the City Council, its activities would be required to comply with the Ralph M. Brown Act.
The discussion at hand is whether the City Council should direct the establishment of a community advisory committee for the Transactions and Use Tax (Sales Tax or TUT) should Measure B be enacted by the voters. Based on the outcome of Council’s discussion, staff would take next steps as appropriate such as bringing an item back to City Council to formally establish the community advisory committee.
General Plan Consistency:
This report and associated recommendation have been evaluated for their consistency with the City’s General Plan. Relevant Policies are listed below:
Governance Element
Goal 1. A High degree of transparency and integrity in the decision-making process.
Policies:
• 1.1 Open Meetings. Maintain the community’s trust by holding meeting in which decisions are being made, that are open and available for all community members to attend, participate, or view remotely.
• 1.6 Long-term considerations. Prioritize decisions that provide long-term community benefit and discourage decisions that provide short-term community benefit but reduce long-term opportunities.
• 1.7 Diversity of representation. Strive to reflect a comprehensive cross-section of the community in appointments to Commissions and Advisory Committees.
Goal 2. The Community is active and engaged in decision-making processes.
Policy:
• 2.3 Public participation guidelines. Establish parameters and guidelines to ensure public participation in promoted through diverse methods.
Fiscal Impact:
There is no fiscal impact associated with the recommended action.
Attachments:
1. Link to March 3, 2022 Revenue Study Session Staff Report
2. Link to July 26, 2022 City Council Staff Report
3. Link to October 25, 2022 Tentative Future Agenda
Respectfully Submitted by: Dave Wilson, Management Analyst
Concur: Angela Crespi, Deputy City Manager
Noted for Fiscal Impact: Viki Copeland, Finance Director
Legal Review: Mike Jenkins, City Attorney
Approved: Suja Lowenthal, City Manager