Why A Tax Measure?
- In June 2015, the City Council appointed 14 resident volunteers to the Advisory Committee to evaluate the City's current and long term financial position.
- The City Council sought review and feedback from the Committee to address and mitigate recent fiscal decisions beyond the City's control, such as dissolution of redevelopment agencies and the projected sharp increase in police services costs. The Advisory Committee's 2016 Final Report described the impacts on the City as a "serious financial quandary."
- After reviewing the City's 2015/16 adopted budget, Comprehensive Annual Financial Report (CAFR), and other critical documents, the Committee determined the City would have a $50 million deficit under the current 10-year projection period (Fiscal Years 2017 - 2026).
- On May 2 and May 17, 2016, the City Council unanimously approved an ordinance and resolutions approving a 1%sales tax rate increase, subject to voter approval by measure to be placed on the November 8, 2016 General Election ballot.
- State can NOT reallocate the proceeds of the 1% for their own use.
- FACT: Article XIII, Section 24(b) of the State Constitution, enacted by Proposition 22, provides, "The Legislature may not reallocate, transfer, borrow, appropriate, restrict the use of, or otherwise use the proceeds of any tax imposed or levied by a local government solely for the local government's purposes."
Tax Revenue vs. Public Safety
Revenue comparisons of residents, non-residents and public safety costs for the City of La Quinta.