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HomeMy WebLinkAbout121923-05.06 ADMINISTRATIVE STAFF REPORT 5.6 TO: Mayor and Town Council December 19, 2023 SUBJECT: Resolution No. 86-2023, opposing the “Taxpayer Protection and Government Accountability Act” (State Initiative #1935) BACKGROUND On January 4, 2022, the California Business Roundtable filed the “Taxpayer Protection and Government Accountability Act” (TPGAA), or AG #21-0042A1. On February 2, 2023, the Secretary of State reported that proponents of the T PGAA submitted 1,075,585 valid signatures, thus exceeding the 997,139 valid signatures required to qualify for the November 5, 2024 ballot. Local Government revenue-raising authority is currently substantially restricted by state statute and constitutional provisions put in place by Proposition 13 passed in 1978, Proposition 218 passed in 1996, and Proposition 26 passed in 2010. The TPGAA would affect vital local and state revenue-generating methods by adding and expanding restrictions on voters and local government tax and fee authority, creating barriers for cities to provide services to communities, including local infrastructure, protecting the environment, water quality, air quality, and natural resources. DISCUSSION The TPGAA would amend the California Constitution through provisions that limit voters’ authority and input, adopt new and stricter rules for raising taxes and fees, and make it more difficult to impose fines and penalties for violators of state and local laws. If passed, this measure would establish a two-thirds voter approval requirement for any new or modified special taxes. Local increases to taxes and fees would require approval by a majority of statewide voters. Additionally, this measure would create new grounds to legally challenge governmental funding sources and would retroactively void all state and local taxes or fees adopted after January 1, 2022, if not in compliance with the restrictions of the initiative. The League of California Cities, along with a broad coalition of local governments, labor and public safety leaders, infrastructure advocates, and businesses, strongly opposes this ballot initiative. Opposing the Taxpayer Protection and 2 December 19, 2023 Government Accountability Act The Town Council Legislative Committee discussed the TPGAA at their February 28, 2023 public-noticed meeting and endorsed an oppose position for the Town on this measure. The Town Council discussed the TPGAA at their noticed study session on March 14, 2023. Following discussion, the Town Council opted to oppose the initiative and directed the matter be placed on a future Town Council agenda for formal Council action. PUBLIC CONTACT Posting the meeting agenda serves as notice to the general public. FISCAL IMPACT None associated with this action. If passed by the voters, the Taxpayer Protection and Government Accountability Act could adversely affect the Town’s ability to generate revenues necessary to fund local services, programs and improvements. RECOMMENDATION Adopt Resolution No. 86-2023, opposing the “Taxpayer Protection and Government Accountability Act” (State Initiative #1935). Prepared by: Cat Bravo Management Analyst Reviewed by: Joseph A. Calabrigo Town Manager Attachment: Resolution No. 86-2023 RESOLUTION NO. 86-2023 OPPOSING THE “TAXPAYER PROTECTION AND GOVERNMENT ACCOUNTABILITY ACT” (STATE INITIATIVE #1935) WHEREAS, the California Business Roundtable filed the Taxpayer Protection and Government Accountability Act (AG# 21-0042A1) to be considered for the November 2024 ballot; and WHEREAS, on February 2, 2023, the Secretary of State reported that proponents of the Taxpayer Protection and Government Accountability Act submitted 1,075,585 valid signatures, thus exceeding the 997,139 valid signatures required to qualify for the November 5, 2024 ballot; and WHEREAS, the measure creates barriers for cities to maintain and generate revenue to provide services to communities, including local infrastructure, protecting our environment, water quality, air quality, and natural resources; and WHEREAS, this measure would establish a two-thirds voter approval requirement for any new or modified special taxes. Local increases to taxes and fees would require approval by a majority of statewide voters; and WHEREAS, this measure would create new grounds to legally challenge governmental funding sources and would retroactively void all state and local taxes or fees adopted after January 1, 2022 if not in compliance with the restrictions of the initiative; and WHEREAS, a coalition of local government, public safety, labor, and infrastructure advocates have joined together to fight against this measure; now therefore be it RESOLVED, that the Danville Town Council hereby opposes the Taxpayer Protection and Government Accountability Act (State Initiative #1935). APPROVED by the Danville Town Council at a regular meeting on December 19, 2023 by the following vote: AYES: NOES: ABSTAINED: ABSENT: ______________________________ MAYOR APPROVED AS TO FORM: ATTEST: _______________________________ ______________________________ CITY ATTORNEY CITY CLERK DocuSign Envelope ID: 84047BF8-E7F0-42DF-9D5C-2833CB39771B