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HomeMy WebLinkAboutAs recommended by the Intergovernmental Relations Committee�8 Dept ID ad 15-23 Page 1 of 2 Meeting Date 7/6/2015 711gv,jove-b -7—v CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 7/6/2015 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A Wilson, City Manager PREPARED BY: Teri Baker, Assistant to the City Manager SUBJECT: As recommended by the Intergovernmental Relations Committee on June 17, 2015, Adopt Resolution No 2015-31 reaffirming support for Proposition 13 and the benefit that it provides to individual homeowners, renters, local governments, and to the State's overall economv Statement of Issue At the June 17, 2015, Intergovernmental Relations Committee meeting, the Committee recommended a resolution reaffirming support of Proposition 13 Proposition 13 was approved by the voters in 1978 to reduce property tax rates on homes, businesses, and farms and cap the rate of increase in the future Financial Impact None Recommended Action Adopt Resolution No 2015-31, "A Resolution of the City Council of the City of Huntington Beach reaffirming support for Proposition 13 and the benefit that it provides to individual homeowners, renters, local governments, and to the state's overall economy " Alternative Action(s) Do not approve the recommended actions and direct staff accordingly Analysis In the late 1970's, the Howard Jarvis Taxpayers Association brought forward an initiative known as the "Jarvis -Gann Initiative" or "Proposition 13 " Proposition 13 reduced property tax rates on homes, businesses and farms, and capped the rate of increase in the future Proposition was approved by the voters in 1978 Prior to the adoption of Proposition 13, there were assessment disparities in determining property tax rates Under Proposition 13, assessments are based on an acquisition -value system, which provides a measure of certainty with respect to property taxes Under Proposition 13 all locally assessed properties are subject to the same rules regarding the maximum assessed value and maximum tax rates In an effort to thwart attempts to impose higher taxes through so-called "split -roll" proposals that would create higher property taxes for certain businesses, the Howard Jarvis Taxpayers Association is asking Cities, Counties, and other impacted agencies to reaffirm support of Proposition 13 by adopting the attached resolution Item 13. - 1 HB -490- Dept ID ad 15-23 Page 2 of 2 Meeting Date 7/6/2015 At the June 17, 2015, Intergovernmental Relations Committee meeting, with Mayor Hardy and Mayor Pro Tern Katapodis present, the Committee recommended that the City Council approve a resolution reaffirming support of Proposition 13 Several other agencies have passed resolutions including Anaheim, Bakersfield, Fountain Valley, Fullerton, Irvine, Glendora, Laguna Niguel, La Mesa, Los Alamitos, Mission Viejo, Oakley, Rancho Santa Margarita, San Juan Capistrano, Villa Park, and the County of Orange The City Council is prohibited from taking official stances in support or opposition to ballot measures However, since Proposition 13 is already law, having been enacted as a Constitutional amendment in 1978, the City Council is not prohibited from supporting its continued protections to property taxpayers Environmental Status None Strategic Plan Goal Improve quality of life Attachment(s) Resolution No 2015-31, "A Resolution of the City Council of the City of Huntington Beach reaffirming support for Proposition 13 and the benefit that it provides to individual homeowners, renters, local governments and to the state's overall economy " xB -491- Item 13. - 2 RESOLUTION NO 2015-31 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH REAFFIRMING SUPPORT OF PROPOSITION 13 WHEREAS, on ,Tune 6, 1978, Proposition 13, officially titled the "People's Initiative to Limit Property Taxation," and popularly known as the "Jarvis -Gann Initiative," was overwhelmingly approved by California's voters, reducing property tax sates on homes, businesses and farms, and capping the rate of increase in the future, and Prior to the adoption of Proposition 13, inflation in California increased property tax bills so high that many families could not afford to pay their property taxes, and Prior to the adoption of Proposition 13, there were wide divergences in piopeity taxes, in part because the valuation system was somewhat subjective, and With the approval of Proposition 13, real property values were adjusted to a base value equal to the 1976 assessed value of that seal property, thereby introducing an objective standard upon which real property would be taxed and ending the previous subjective standard, and With the passage of Proposition 13, taxpayers were provided a new measure of certainty with respect to their property taxes, and Following the passage of Proposition 13, ienteis also benefitted as the seduction in taxes reduced upward pressure on rents; and Proposition 13 has tendered California's property taxes as a stable and predictable source of public revenue, even during economic downturns, which has provided a major benefit to local governments throughout California, and Voters intended Proposition 13 to protect all property owners, and they had rejected previous attempts to impose higher taxes on small businesses, knowing that these so-called "split roll" proposals would inflect iirepaiable harm on California's economy, and Pioposition 13 has become a nationwide example for citizens exercising control and power over their govei nance, NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby resolve as follows - In recognition of the positive impact Proposition 13 has had on the State of California, the City Council formally reaffirms its support for Proposition 13 and the benefit that it provides to individual homeowners, Centers, local governments and to the state's overall economy 15-4802/122558 doc Resolution 2015-31 PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 6 th day of JULY , 2015 Mayor Attorney ED AND ROVED ssistant City Manager 15-4802/122558 doc 2 Res. No. 2015-31 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, JOAN L FLYNN the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven, that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a Regular meeting thereof held on July 6, 2015 by the following vote AYES: Posey, O'Connell, Katapodis, Hardy, Sullivan, Delgleize, Peterson NOES: None ABSENT: None ABSTAIN: None fAJ City rk and ex-officio Merk of the City Council of the City of Huntington Beach, California