1. ADOPTION OF RESOLUTIONS RELATED TO THE CALLING OF A GENERAL MUNICIPAL ELECTION CONSOLIDATED WITH THE STATEWIDE GENERAL ELECTION HELD ON TUESDAY, NOVEMBER 6, 2018, TO SUBMIT A ¾ CENT LOCAL SALES TAX BALLOT MEASURE TO MAINTAIN CITY INFRASTRUCTURE AND ESSENTIAL COMMUNITY SERVICES, AND A RELATED ADVISORY BALLOT MEASURE TO SUPPORT PASADENA PUBLIC SCHOOLS
July 16, 2018
Item 16

2. Background Pasadena provides a high quality of life
City provides a wide variety of essential services
Fire
Police
Emergency Medical response with Advanced Life Support
Youth programming and after-school services
Classes for seniors and dial-a-ride services
Increasingly difficult to maintain these services
Over $20 million in General Fund reductions
Loss of $130,000,000 in redevelopment
Elimination of more than 130 staff positions
23 police officer positions with 5 more defunded this year
Funding source shown on a later slide

3. Major Challenges
The City is 132 years old and our streets, sidewalks and other infrastructure are deteriorating
Approximately 670,000 square-feet of damaged sidewalk ($9m)
High-voltage street light system is failing ($21m)
Our aging fire stations don’t meet today’s current standards
Need to replace five stations and upgrade two others ($120m)
911 emergency radio communication equipment needs replacement ($8m)
Funding source shown on a later slide

4. Major Challenges
Pasadena has one of the largest homeless populations in the San Gabriel Valley
18% increase from 2017 to 2018
Pasadena is receiving little funding from Measure H
More than 2,100 Pasadena youth rely on the City-run after school and summer programs
Further budget reductions would place these programs in jeopardy
Without additional revenues, the City must cut millions of dollars over the next few years to balance its budget
Resulting in significant service reductions
Funding source shown on a later slide

5. Establishing a local revenue source
Local (transaction) sales tax is the preferred option
Spread across large tax base
Paid by all shoppers, not just residents
Over 110,000 people come to Pasadena each day
Generate significant additional revenues with small incremental increase in transaction costs - 75 cents for every $100
Numerous cities have established local sales taxes
Glendale and Burbank are taking action tomorrow night
Cannot be shifted to County or State Government

6. Pasadena’s Fair Share?

7. The window of opportunity
State limit of 2% for locally assessed sales/transactions taxes
L.A. County agencies have existing taxes that equal 1.25%
Therefore, there is only 0.75% remaining
Other taxing agencies are likely to pursue voter approval for new or increased taxes
AQMD pursuing 0.25% sales tax
Los Angeles County
Based on past history Pasadena would not receive its fair share
Eliminate the ability of Pasadena residents to decide for themselves

8. Resident feedback
Residents want to maintain essential services and reinvest in infrastructure
The proposed action does not impose any tax, it merely authorizes asking voters to decide

9. PUSD Advisory Vote Separate non-binding advisory measure
A strong public school system benefits the City
Maintains measure as a General revenue 50%+1
Opportunity for voters to indicate priority preference
City Council maintains decision making

10. Recommendations It is recommended that the City Council:
Conduct first reading and approve by 2/3rds (six members of the Council) agenda item 20 – Transactions & Use Tax Ordinance (second reading scheduled for July 23)
Find that the proposed action is not a project subject to California Environmental Quality Act (CEQA) as defined in Section and Section of the State CEQA Guidelines and, as such, no environmental document pursuant to CEQA is required for the project;
Adopt a resolution of the City Council of the City of Pasadena calling and giving notice of a General Municipal Election of the City of Pasadena on Tuesday, November 6, 2018, for the submission of a 0.75 percent sales tax ballot measure and related advisory ballot measure to support Pasadena public schools;
Adopt a resolution of the City Council of the City of Pasadena requesting the Board of Supervisors of the County of Los Angeles authorize and order the consolidation of the City of Pasadena General Municipal Election with the Statewide General Election to be held on Tuesday, November 6, 2018, and requesting the Los Angeles County Registrar-Recorder/County Clerk to administer said election on behalf of the City;
Adopt a resolution of the City Council of the City of Pasadena setting priorities for filing written arguments pertaining to a proposed sales tax measure and related advisory ballot measure; and directing the City Attorney to prepare an impartial analysis; and
Adopt a resolution of the City Council of the City of Pasadena providing for the filing of rebuttal arguments with respect to the City of Pasadena’s proposed sales tax.

12. Current Los Angeles County tax rates
State General Fund 1
3.9375%
City/County General Fund (Bradley Burns) 1
1.0000%
Public Safety (Prop 172) 1
0.5000%
County Realignment (Mental Health/Welfare/Public Safety) 1
1.5625%
Countywide Transportation Fund 1
0.2500%
Los Angeles County Transportation Commission (Prop A) 2
Los Angeles County Transportation Commission (Prop C) 2
Los Angeles County Metro Transportation Authority (Measure R) 3
Los Angeles County Metro Transportation Authority (Measure M) 3
County of Los Angeles (Measure H) 2
Total Rate
9.5000%

13. Use Tax Rules - Vehicles
Exclusions and Exemptions ( B.2) – Vehicles
Sales and Use tax is charged based on the registration address of a vehicle.
Vehicles purchased with a registration address in Pasadena will pay the tax, regardless where they are purchased.
Vehicles purchased in Pasadena with a registration address outside of Pasadena won’t pay the tax.

14. Use Tax Rules - Vehicles
Examples
A person purchases a car from a dealer in Pasadena, but will register their car with a Monrovia address. This person will not pay the tax.
A person purchases a car from a dealer in Pasadena and registers the car with their Pasadena address. This person will pay the tax.
A person purchases a car in Monrovia and registers the car with a Pasadena address. This person will pay the tax.

15. Year Approved by Voters
LA County Tax Rates
City
Local Tax %
Year Approved by Voters
Commerce
0.5
2012
Compton
1.0
2016
Culver City
Downey
El Monte
2008, 2013, 2017
Inglewood
2006
La Mirada
Long Beach
Lynwood
Pico Rivera
2008
San Fernando
2013
Santa Monica
2010, 2016
South El Monte
2010
Southgate

16. General Fund Forecast
As of 7/16/18