Desk Item
PREPARED BY : ROBERT SCHULTZ
Town Attorney
Reviewed by: Town Manager, Assistant Town Manager and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● 40 8 -354 -68 32
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 6 /5 /2018
ITEM NO: 17
DESK ITEM
D ATE : JUNE 4 , 2018
TO : MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
ROBERT SCHULTZ, TOWN ATTORNEY
SUBJECT: ADOPTION OF A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN
OF LOS GATOS, CALIFORNIA, SUBMITTING A LOCAL GENERAL REVENUE
TAX MEASURE TO THE VOTERS AT THE TUESDAY, NOVEMBER 6, 2018
GENERAL MUNICPAL ELECTION AND INTRODUCTION OF AN ORDINANCE
OF THE TOWN OF LOS GATOS, CALIFORNIA IMPOSING A GENERAL
TRANSACTIONS AND USE TAX
REMARKS :
The Tax Fairness, Transparency and Accountability Act of 2018 is a n initiative which is currently
gathering signatures for the November ballot. The initiative would increase the threshold for
passing any new tax or tax hike to two -thirds of voters or an elected body. If the measure
qualifies for the November ballot it would greatly interfere with local control and limit the
Town’s ability to pass taxes; or even raise fees without elections. The League of California Cities
is opp osed to the initiative and the Town has written a letter in opposition.
The Tax Fairness, Transparency and Accountability Act of 2018 states that i f the revenue from a
tax can be spent for unrestricted general revenue purposes, then a statement that the t ax
revenue can be spent for "unrestricted general revenue purposes" shall be included in the
ballot question presented to voters.
The Town has consulted with outside legal counsel with expertise in elections and taxes and
suggests that the Town use the fo llowing additional language in the ballot question :
PAGE 2 of 2
SUBJECT: ADOPTION OF A RESOLUTION SUBMITTING A LOCAL GENERAL REVENUE TAX
MEASURE TO THE VOTERS AND INTRODUCTION OF AN ORDINANCE OF THE
TOWN OF LOS GATOS, CALIFORNIA IMPOSING A GENERAL TRANSACTIONS
AND USE TAX
JUNE 4, 2018
S:\COUNCIL REPORTS \2018 \06 -05 -18 \17 Sales Tax Ordinance \Desk Item.FINAL.docx
“Shall the measure to fund essential Town services such as
maintaining neighborhood police patrols; improving traffic flow to
reduce congestion; repairing potholes and fixing neighborhood
streets, and maintaining the Town’s long -term financial stability an d
other unrestricted general revenue purposes , shall a one -eighth cent
($0.125%) sales tax for 20 years, providing about $800,000 annually,
requiring Independent Citizens Oversight with public review of
spending, and all revenues controlled locally be adop ted?”
YES
NO
Staff recommends that when you move for adoption of the Resolution you include the language
“unrestricted general revenue purposes ” referenced above. Adding this additional language
will provide the Town with a be st possible legal position should The Tax Fairness, Transparency
and Accountability Act of 2018 pass in November.