01-20-1998 - Initiation of the April 28, 1998, Election for the Citywide Lighting & Maintenance District Replacement Special Tax1,
To:
From:
Subject:
Summary:
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City Manager and City Council
Patrick J. Glover
City Engineer/ Public Works Director
• City of West Covina
Memorandum
AGENDA
ITEM NO. C - 2
DATE January 20, 1998
® PRINTED ON RECYCLED PAPER
Initiation of the April 28,1998, election for the Citywide u
Lighting and Maintenance District Replacement Special Tax.
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At the December 16,1997 City Council meeting, staff was directed to prepare
the resolutions required to call an election on April 28,1998, for the approval
of a replacement special tax. The proposed special tax of $49.90 per �I
equivalent dwelling unit will replace funds that can no longer be collected
through assessments as a result of the passage of Proposition 219. If
approved by a two -third majority vote, the replacement special tax will fund
park maintenance, street landscape maintenance, graffiti removal, and the
maintenance of traffic signals throughout the community. The appropriate
resolutions have been prepared for council adoption. The City Council
meeting of January 20, 1998, is the only regularly scheduled Council meeting
at which these resolutions may be adopted for the April 28,1998, election
date. `
BACKGROUND
In 1996 California voters passed Proposition 218 which placed substantial restrictions on the
collection of fees, assessments and taxes by local governments.. Under Proposition 218, ;funding
for general benefit services, such as park maintenance, cannot be collected from assessments. A
voter approved special tax is the only property owner charge that can be collected to fund an
identified general benefit service.
With Proposition 218 now enacted as the Right to Vote on Taxes Act, the general benefit
services provided through the Citywide Lighting and Maintenance District are no longer eligible
for funding through assessments which comprised the districts' main funding source. These
general benefit services include park and facility maintenance, street median landscaping, traffic
signal maintenance, graffiti removal, and non -assessable street tree and street light maintenance.
In 1997 the Citywide Lighting and Maintenance District assessment was reconstiftaed through a
mail ballot election. Under the requirements of Proposition 218 all property owners in the City
of West Covina could vote on the reconstituted District assessment. This included all
government and school agencies. Over 70% of the weighted ballots returned were in support of
the new assessment set at the reduced rate of $38.44 per equivalent dwelling unit. The new
assessment supported those special benefit services allowed under Proposition 218 onlyi� These
special benefit services are the maintenance of assessable street trees and streetlights. he mail
ballot reduced the total assessment collected for the district by approximately $2.02 million. It is
therefore necessary to now establish a special tax to replace assessment funds that were used to
support general benefit services in West Covina. The replacement special tax will require two-
thirds voter approval to be established.
At the December 16, 1997 meeting the City Council set the rate of the proposed replacement
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special tax at $49.90 per equivalent dwelling unit and requested staff to prepare for a special
election date of Tuesday, April 28, 1998. The $49.90 rate will fund park and facility
maintenance, street median landscaping, traffic signal maintenance, graffiti removal and non -
assessable street tree maintenance.
ANALYSIS II
Election Matters
Section 9225 of the Election Code states that a special election shall be held between 103 and 88.
days after it has been called by the legislative body. The January 20, 1998 meeting of the City
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City Manager and City Council
Page 2
Council is the only regular meeting of the Council to fall within this period. The final day to call
the election is Friday, January 30, 1998.
The timetable of deadlines for the April 28, 1998 election is as follows:
DATE
January 20, 1998
January 21, 1998
February 6, 1998
February 16, 1998
March 30, 1998
March 30 — April 21, 1998
April 7, 1998
April 28, 1998
April 28, 1998 - Close of Polls
May 5, 1998
ITEM
Council to adopt resolution calling for an election
Post notice of deadline for filing arguments
Last day to file arguments
Last day to file rebuttal arguments
Last day to register to vote
Voters may request absentee ballots
Last day to mail sample ballots and polling place notices
Election Day
Last day to receive absent voter ballots
Clerk presents Certificate of Canvass to City Council
Staff is requesting the City Council appropriate $70,000 in General Fund Reserves for.the
holding of the special municipal election. The $70,000 will provide for professional election
services, services provided by Los Angeles County, election day payroll, postage, printing and
miscellaneous costs.
Four resolutions relating to the election have been prepared for City Council approval
The resolutions are:
1. A resolution calling and giving notice of the special election.
2. A resolution requesting Los Angeles County Board of Supervisors to render services relating
to the election.
3. A resolution setting priorities for written arguments.
4. A resolution providing for the filing of rebuttal arguments.
Calling the Election - The first resolution calls and gives notice of the election on April 28, 1998,
for the submission of the proposed measure.
The wording of the ballot measure is included in the resolutions to be approved. It is important
the City Council either approve or make the appropriate changes to the wording of the ballot
measure before passing the resolutions, as the measure wording in the resolution will appear
verbatim on the ballot. Election Code Section 13119 specifies the format of the ballot measure.
The ballot measure can be no more than 75 words long.
After much review the following 75 words are recommended for the ballot. //
Shall the City of West Covina, in accordance with the Right to Vote on
Taxes Act (Proposition 218), replace assessments f collected on
property tax bills, with a special tax of $49.90 per Equivalent Dwelling
yes
Unit (Single Family Home). We -special tax revenues will be restricted
to the -fog services:
Park Maintenance
Street Landscape Maintenance
Graffiti Removal
Traffic Signal Maintenance
No
Any future increases will be limited by the annual Consumer Price
Index not to exceed 2%.
a,
a
City Manager and City Council "
Page 3
Staff developed a variety of possible ballot wordings for consideration. Some of the considered
wordings are:
Should the City of West Covina, in accordance with The Right to Vote on Taxes+Act,
replace assessments formerly collected on the property tax roll, with a special tax to fund
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park and facility maintenance, street median maintenance, graffiti removal and traffic
signal maintenance at a rate of $49.90 per year per Equivalent Dwelling Unit. Any future
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rate increases will be limited by the Consumer Price Index with a 2% annual capl
Shall the City of West Covina adopt an ordinance establishing a replacement special tax,
to replace assessments formerly collected, to provide park and facility maintenance, street
median maintenance, graffiti removal and traffic signal maintenance at a rate of $49.90
per year per typical homeowner, commercial rates to be based on $49.90 per Equivalent
Dwelling Unit; future rate increases to be limited by the Consumer Price Index with a 2%
annual cap.
Los Angeles County Assistance - Los Angeles County assistance is required to aid in conducting
the election. The second resolution requests the County of Los Angeles Board of Supervisors to
direct the County elections department to provide the necessary services to the City of West
Covina.
Ballot Arguments — The City Council must allow arguments however, Section 9287 of the
Election Code established the priorities of arguments to be selected by the City Clerk should
more than one argument be submitted in favor or against a measure. The priority established by
Section 9287 of the Election Code, should more than one argument be submitted is as follows:
1. The legislative body, or member or members authorized by that legislative body l
2.. The individual voter, or bone fide association of citizens who are the bona fide sponsors
or proponents of the measure
3. A bona fide association of citizens
4. Individual voters who are eligible to vote on the measure.
The City Council has the opportunity to reserve first priority for itself as a whole or it may select
certain members of the council to author the argument. For the City Council to have first priority
in submitting arguments it is necessary for the Council to adopt the third resolution. Arguments
may not exceed 300 words. January 21, 1998 is the first day for ballot arguments to be
submitted and the City Clerk has set February 5, 1998 as the last day to submit arguments.
Rebuttal Arguments — In contrast to arguments rebuttal arguments are permitted on the sample
ballot document only if the City Council adopts a resolution providing for rebuttals. Rebuttal
arguments are optional and the discretion to provide them rests with the City Council. If the
Council does not wish to have rebuttal arguments included in the sample ballot, then the
resolution need not be adopted. Section 9287 of the Election Code establishes the priority of
rebuttal arguments should more than one rebuttal be submitted. The Election Code establishes
the order for rebuttal arguments in exactly the same order as written arguments, as shown above.
Rebuttal arguments may not exceed 250 words and the City Clerk has set February 15, 1998 as
the last day to submit rebuttal arguments.
Replacement Special Tax Rate
At the December 16, 1997 Council meeting the City Council approved a replacement special tax
rate of $49.90. If approved by 2/3 of the voters this rate combined with the current assessment
rate of $38.44 for streetlights and street tree maintenance will result in a cost of $88.34 to the
typical homeowner. This represents a saving of $22.66 over the old District Assessment rate of
$111.00 for atypical property owner with a 75-foot wide lot. The $49.90 rate will provide the
homeowner with the same services provided under the old district. It will not however,) provide
for a reserve or capital improvement component for the District.
City Manager and City Council
Page 4
This reduction of $22.66 has been achieved as a result of efficiencies developed by staff
throughout the past three years. At the January 20, 1998, City Council meeting staff is
requesting Council approval of a $236,890 reduction in the Citywide Lighting and Maintenance
District Budget. This reduction is the culmination of approximately $1 million in budget cuts
made to the District over the past three years. These cuts have come from cost changes in
service contracts, operational efficiencies, contracting out services and staff reductions.
Public Information Program
The City Council asked staff to prepare an outline of an objective public information program to
provide the community with information about the replacement special tax. Staff has developed
an informational program involving direct contact between staff, members of the community and
special interest groups and public relations activities focusing on local media outlets and city
operated media such as the City Web Site and West Covina Today.
The City of West Covina is limited to the type of information it may disseminate through the
public information campaign. The City must disseminate unbiased and impartial information if
City funds and equipment are used in the production of information materials and presentations.
Staff is requesting approval of the Public Information Program budget at the January 20, 1998,
City Council meeting. Upon approval of the budget staff will commence implementing the
public information program.
CONCLUSION
As a result of the passage of Proposition 218 the City of West Covina has lost the ability to
collect approximately $2,024,000 in revenue that was once collected through assessments for the
Citywide Lighting and Maintenance District. In order to continue providing an acceptable level
of service to the community it will be necessary to implement a replacement special tax that will
fund those services no longer eligible under Proposition 218. These services include Park,
Facility and Civic Center Maintenance, graffiti removal, street median maintenance, traffic
signal maintenance and non -assessable street trees.
In order to implement the replacement special tax it is necessary for the City to obtain a two-
thirds voter approval at a special municipal election. At the December 16, 1997 Council meeting
the City Council established a replacement special tax rate at $49.90. This rate would support all
the services that can no longer be funded under the old assessment, with a shortfall of $188,400.
This shortfall can be recovered through the implementation of additional cost cutting and
revenue raising opportunities. The City Council also requested staff to prepare the necessary
resolutions to call and give notice of an election on Tuesday, April 28, 1998.
Stan has prepared the required resolutions and proposed wording for the ballot measure. The
January 20, 1998 meeting of the City Council represents the last regular City Council meeting at
which the election can be called. Before passing the resolutions it is important for the City
Council to review and approve wording for the ballot. The wording that appears in the
resolutions will appear verbatim in the ballot. The four resolutions cover the calling and giving
notice of the election, requesting the County of Los Angeles to provide necessary election related
services, the establishment of the priority for filing of arguments and the provision for filing
rebuttal arguments to the measure.
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City Manager and City Council
Page 5
RECOADdENDATION
It is recommended that the City Council take the following action.
a) Appropriate $70,000 from General Fund Reserves for the special municipal election; and
b) Adopt the following resolutions:
A RESOLUTION OF TEE CITY COUNCIL OF THE CITY OF WEST
COVINA CALIFORNIA; CALLING AND GIVING NOTICE OF THE
HOLDING OF A SPECIAL MUNICIPAL ELECTION ON T UESDAY,
APRIL 28i 1998, FOR THE tuBNmION OF A PROPOSED MEASURE
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A RESOLUTION OF THE CITY COUNCIL OF nm CITY OF WEST
COVINA, CALIFORNIA, REQUESTING THE BOARD OF
SUPERVISORS OF TEE COUNTY OF Los ANGELES TO RENDER
SPECIFIED SERVICES TO THE CITY RELATING TO THE SPECIAL
MUNICIPAL ELECTION ON TUESDAY, APRIL 2801998
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST
COVINA, CALIFORNIA, SETTING PRIORITIES FOR FILING WRITTEN
ARGUMENTS REGARDING A CITY MEASURE AND DIRECTING THE
CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST
COVINA, CALIFORNIA, PROVIDING FOR THE FILING OF REBUTTAL
ARGUMENTS FOR A CITY MEASURE TO BE CONSIDERED ON
TUESDAY, APRI L 28,1998
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Attachments