Westminster City Council
SUBJECT
Title
Second Reading and Adoption of Ordinance No. 2609, Adding Chapter 3.10 (Transaction and Use Tax of 2024) to Title 3 (Revenue and Finance) of the Westminster Municipal Code.
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publichearing
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From: Christian Bettenhausen, City Attorney
Requested by: Administration
Prepared by: Christian Bettenhausen, City Attorney
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RECOMMENDED ACTION
Recommendation
Conduct a second reading and adopt Ordinance No. 2609 entitled, “AN ORDINANCE OF THE CITY OF WESTMINSTER, CALIFORNIA ADDING CHAPTER 3.10 (TRANSACTION AND USE TAX OF 2024) TO TITLE 3 (REVENUE AND FINANCE) OF THE WESTMINSTER MUNICIPAL CODE,” read by title only and waive further reading.
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BACKGROUND
At a Special City Council meeting held on December 8, 2023, the City Council, by a two-thirds vote, introduced and conducted the first reading of Ordinance No. 2609 relating to the imposition of a Transactions and Use Tax.
At the same Special Council Meeting, the Council adopted Resolution No. 5226, placing a Transaction and Use Tax Measure on the March 5, 2024, Special Municipal Election. This tax measure subsequently presented Ordinance No. 2609 to the voters as ‘Measure E’. The election was held, and, as of the date this staff report was prepared, it was apparent Measure E will pass with approximately 62% “yes” votes.
In order for Measure E to take effect, Revenue & Taxation Code Section 7285.9 requires both that Ordinance No. 2609 be adopted by a majority vote of the electorate, and separately by a two-thirds vote of the City Council. As previously stated, the first reading has already occurred. Therefore, the final steps in order for the tax to take effect require that the City Council must (1) Conduct a second reading of Ordinance No. 2609 by a two-thirds vote; and separately (2) Certify the results of the election once the official results have been received from the Registrar of Voters.
The Ordinance is being presented tonight for its second reading and adoption by the Council. The City will then wait until the Registrar provides the City with its official canvas of the results of the election, which is anticipated to be received in early April. A resolution will then be presented to the Council to certify the results of the election. Certification serves as the official recognition that the voters approved the transaction and use tax Ordinance at the March election.
Under state law, the tax will start being applied by the California Department of Tax & Fee Administration on the first day of the first calendar quarter that begins no less than 110 days after the later of (i) certification of the results by the Council and (ii) second reading/adoption of the ordinance by the Council. At this time, it is anticipated that the tax will begin on October 1, 2024.
FISCAL IMPACT
The fiscal impact of the recommended actions is minimal, and funds have been budgeted in Fiscal Year 2023-2024 in Account No. 100-12000-44070 (Advertising) and 100-12000-43090 (Contracts - Quality Code) to cover costs for publication and the Westminster Municipal Code amendment(s).
LEGAL REVIEW
The City Attorney’s Office has reviewed as to form.
CONCLUSION
The City Council previously introduced the Ordinance for first reading. In order to finalize the recommended changes, the City Council must approve the Ordinance for its second reading and adoption.
ATTACHMENTS
1. Ordinance No. 2609
REVIEWED BY
Erin Backs, Finance Director
Christian Bettenhausen, City Attorney
Christine Cordon, City Manager