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2010/02/23 City Council Resolution 2010-19RESOLUTION NO. 2010-19 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK CALLING AN ELECTION TO ASK THE VOTERS OF THE CITY OF ROHNERT PARK TO APPROVE A FIVE YEAR GENERAL TRANSACTIONS AND USE TAX OF ONE -HALF CENT; REQUESTING THAT THE BOARD OF SUPERVISORS OF THE COUNTY OF SONOMA CONSOLIDATE THE ELECTION WITH THE ESTABLISHED ELECTION TO BE HELD ON JUNE 8,2010; AND DIRECTING THE COUNTY ELECTIONS DEPARTMENT TO CONDUCT THE ELECTION ON THE CITY'S BEHALF RECITALS WHEREAS, Rohnert Park was founded in 1962 to create a safe, middle -class community with easy access to neighborhood parks and pools, and recreational activities, and it is our goal to maintain our quality of life and that vision; WHEREAS, by the adoption of Resolution No. 2010 -18, the City Council unanimously found and declared that the City of Rohnert Park's current financial situation presents a dire, imminent, and unexpected threat to the health, safety, and general welfare of the residents and businesses in the City. The Council further found and declared that the threat constitutes an emergency, as that term is used in article XIIIC, section 2(b) of the California Constitution. To address that emergency, the Council resolved to seek voter approval of a one -half cent general transactions and use tax (also known as a "sales tax ") to generate additional revenue to fund already significantly reduced levels of general municipal services; WHEREAS, the City has seen dramatic decreases in revenue because of a declining economy and continued takeaways by the State; WHEREAS, the State, facing another over $20 billion dollar deficit, will likely again take funds from cities, including Rohnert Park, in order to balance the State budget; WHEREAS, the Rohnert Park Police and Fire Departments have already substantially reduced their number of full -time police officers and firefighters protecting the City; WHEREAS, the City is facing potentially more drastic cuts to public safety services, impacting 911 emergency and medical response times, and the City's ability to prevent crime; WHEREAS, while the City has already made budget cuts to address its deficit to all departments, including significantly reducing the total number of City employees, the City still faces more cuts to essential City services, street paving and pothole repair, and park maintenance; WHEREAS, the community has expressed a clear interest in supporting the City in order to maintain 911 emergency and medical response services, preserve the safety of Rohnert Park, 1288522v1 80078/0012 maintain gang and sex offender enforcement, and maintain and protect vital police and fire services provided by the City's Police and Fire Departments; WHEREAS, this temporary emergency measure would create a guaranteed source of local funding for our vital City services that cannot be taken by Sacramento, ensuring our tax dollars are spent locally for Rohnert Park residents; WHEREAS, when a City seeks voter approval of a new tax, article XIIIC, section 2(b) of the California Constitution requires the election to be consolidated with the general municipal election for city councilmembers, except in cases in which a City Council has unanimously declared that there is an emergency. The next general municipal election is not scheduled until November 2010. The City would not begin to receive revenue from a transactions and use tax approved at that election until July 2011, too late to address the emergency caused by the City's financial condition. An election earlier than November 2010 is therefore required and is permitted under Article XIIIC, section 2(b) based on the findings and declarations of the Council made in Resolution No. 2010 -18; WHEREAS, the City has unanimously declared that a fiscal emergency exists in accordance with article XIIIC, section 2(b) of the California Constitution; WHEREAS, the City Council held a noticed public meeting on February 23, 2010 to consider calling a special election to seek voter approval of a proposed general transactions (sales) and use tax as authorized by Revenue and Taxation Code section 7285.9; WHEREAS, at the conclusion of that meeting; the City Council concluded that all of the information presented indicated that an emergency existed in the City and that the Council should call an election as soon as possible to ask the voters of the City to approve a five (5) year increase in the local transactions and use tax, the revenue from which could be used to support general municipal services; WHEREAS, the tax to be submitted to the voters, if approved, would be imposed on retail transactions involving, and use of, personal property. The tax rate would be one -half of one percent (0.5 %) of the sales price of the property. The tax revenue would be collected by the State Board of Equalization and remitted to the City. The tax would be in effect for five (5) years, and would then expire automatically, unless extended by the voters. The tax shall be approved if the measure receives at least a majority of affirmative votes; WHEREAS, Elections Code sections 9280 et seq. set forth the procedures for arguments in favor of or in opposition to any City measure and the procedures for rebuttal arguments; WHEREAS, based on all of the information presented at the February 23, 2010 meeting, both written and oral, including the staff reports, minutes, and other relevant materials, the City Council finds that under CEQA Guidelines 15060(c)(2) and 15378(b)(2) and (4), this tax does not constitute a project under CEQA and therefore review under CEQA is not required. 1288522vl80078/0012 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rohnert Park that the foregoing Recitals are true and correct and are hereby adopted by the City Council. Based on those Recitals, the Council unanimously finds and declares as follows: SECTION 1. As declared by Resolution 2010 -18, duly adopted on February 23, 2010, an emergency exists due to the City's impending budget deficit of approximately $6 million, which threatens to cause severe reductions in City programs and services posing an immediate threat to the public health, welfare and safety of residents of the City of Rohnert Park. SECTION 2. Pursuant to California Constitution article XIIIC, Section 2, subsection (b); Government Code section 53724; and Elections Code section 9222, the City Council of the City of Rohnert Park hereby calls an election at which it shall submit to the qualified voters of the City, a measure relating to the adoption of a transactions and use tax. This measure shall be designated by letter by the Sonoma County Elections Department. Pursuant to Election Code section 10400 et seq., the election for this measure shall be consolidated with the established consolidated primary election to be conducted on June 8, 2010. SECTION 3. The ordinance authorizing the general transactions and use tax to be approved by the voters pursuant to Section 2, is as set forth in Exhibit A hereto. The City Council hereby approves the ordinance, the form thereof, and its submission to the voters of the City at the June 8, 2010 consolidated primary election, as required by Revenue and Taxation Code section 7285.9, subject to the approval of a majority of the voters voting on the measure at the election called by the adoption of this resolution. The ordinance specifies that the rate of the transactions tax shall be one -half of one percent (0.5 %) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in the City; it specifies that the rate of the use tax shall be one -half of one percent (0.5 %) of the sales price of tangible personal property stored, used or otherwise consumed in the City. The State Board of Equalization shall collect the tax from retailers subject to the tax and remit the funds to the City. SECTION 4. In accordance with Section 12111 of the Elections Code and Section 6061 of the Government Code, the City Clerk is hereby authorized and directed to cause notice of the measure to be published once in The Community Voice, a newspaper of general circulation, printed, published, and circulated in the City of Rohnert Park and hereby designated for that purpose by the City Council of the City of Rohnert Park. The City Clerk may request that the County of Sonoma Elections Department prepare and publish the required notice. SECTION 5. Pursuant to the requirements of the laws of the State of California relating to cities within said State, the following proposed measure shall be added to the ballot for the June 8, 2010 election and thereby submitted to the voters of the City: Rohnert Park Essential City Services Temporary Funding Measure. To preserve the safety and character of Rohnert Park, and maintain and protect general City services, including essential services such as neighborhood police patrols; fire protection; 9 -1 -1 emergency response; gang and sex offender enforcement; disaster preparedness street paving and pothole repair; park maintenance; and other essential services shall the City of Rohnert Park enact a 1288522v1 80078/0012 one -half cent transaction (sales) and use tax for five years, subject to annual audits and public review, with no money for Sacramento? SECTION 6. The official ballot to be used at said election shall conform to the laws of the State of California with relation thereto. SECTION 7. The City Council authorizes the Registrar of Voters to consolidate this election with the established election on June 8, 2010, for the ease and convenience of the registered voters and to take advantage of any cost savings possible by such consolidation. SECTION 8. The City Clerk may request the assistance of the County of Sonoma Election Department in regard to said General Municipal Election, as the City Clerk deems necessary. SECTION 9. The City shall reimburse the County for services performed when the work is completed and upon presentation to the City of a properly approved bill. SECTION 10. The election shall be held and conducted as provided by law for holding municipal elections. SECTION 11. The notice of the time and place of holding the election is given and the City Clerk is directed to give further or additional notice of the election in the time, form and manner as required by law. SECTION 12. The City Clerk is hereby directed to submit to the City Attorney a certified copy of the measure. The City Attorney is hereby authorized and directed to prepare an impartial analysis of the ballot measure showing the effect of the measure on the existing law and operation of the measure, said analysis to be submitted by the City Attorney to the Registrar of Voters, or other appropriate office of the County of Sonoma, for printing by the date set by the City Clerk for the filing of arguments for and against the measure. The analysis shall not exceed 500 words in length and shall otherwise comply in all respects with the applicable provisions of the Elections Code of the State of California. SECTION 13. The City Clerk shall fix and determine a date for submission of arguments for or against said Measure, and said date shall be posted in the Office of the City Clerk. SECTION 14. The election on the measure set forth in sections 3 and 5 of this resolution shall be held and conducted, the votes canvassed and the returns made, and the results ascertained and determined as provided for herein. In all particulars not prescribed in this resolution, the election shall be held as prescribed in the Elections Code of the State of California. The Board of Supervisors of the County of Sonoma is authorized to canvas the returns of that election with respect to the votes cast in the City of Rohnert Park and certify the results to the City Council. At the next regular meeting of the City Council occurring after the returns of the election have been canvassed and the certification of the results to the City Council, the City Council shall cause to be entered in its minutes a statement of the results of the election. 1288522v1 80078/0012 SECTION 15. This resolution shall be forthwith entered upon the minutes of this Council and kept and maintained by the City Clerk of the City of Rohnert Park. SECTION 16. The Interim City Manager is hereby authorized and directed to expend the necessary funds to pay for the City's cost of placing the measure on the election ballot. SECTION 17. The City Clerk is hereby ordered to certify to the adoption of this resolution, notice and proclamation, and to file copies hereof, so certified, with the Clerk of the Board of supervisors of the County of Sonoma and with the Registrar of Voters of the County of Sonoma, and to enter it into the book of original resolutions. PASSED AND ADOPTED this 23rd day of February, 2010 by the following vote: AYES: Five (5) Council Members Belforte, Breeze, Callinan, Mackenzie and NOES: Mayor Stafford None (0) ABSENT: None (0) ABSTAIN: None (0) CITY OF ROHNERT PARK 12885220 80078/0012 I_&NOU11 i 4 r.� ORDINANCE NO. AN ORDINANCE OF THE CITY OF ROHNERT PARK, CALIFORNIA, IMPOSING A TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF EQUALIZATION WHEREAS, the City is experiencing an existing and immediate funding crisis, which is the result of factors largely outside of its control, including national economic trends, rapid increases in the cost of employee retirement and health insurance benefits, decreases in revenue from existing taxes and fees, increases in charges by the County of Sonoma, and unpredictable State takeaways of local revenue. WHEREAS, the City has taken significant steps to reduce its operational costs including: cutting service positions, including public safety officers, negotiated salary reductions with all staff members, and implemented cost saving and efficiencies by consolidating services and eliminating unnecessary overhead. WHEREAS, because of changes in State law, particularly the approval of Propositions 62 and 218, the City has very few means available for increasing General Fund revenue. WHEREAS, absent a new source of General Fund revenue, the City's ability to maintain staff and service levels is uncertain. Despite the budget cuts made by the City, and the significant reduction in the number of City service providers and employees, the City still faces a severe budget deficit of close to $6 million annually with currently only $6 million left in emergency reserves. WHEREAS, unless staff and service levels are at least partially restored, public facilities and property will not be properly maintained, public safety standards will degrade, crime and violence will increase, the community will not have adequate and safe recreational opportunities, businesses and families will be discouraged from moving to or remaining in Rohnert Park, and the health, safety, and welfare of the residents of Rohnert Park will be endangered. WHEREAS, because of that threat to the public health, safety, and welfare, an emergency exists in the City, as the term "emergency" is used in Article XII1C, section 2(b) of the California Constitution. The City must immediately address that emergency by ensuring that the City has the resources necessary to preserve the public health, safety, and welfare. WHEREAS, the identified emergency necessitates that the City Council submit a an essential services temporary funding measure to the voters of Rohnert Park at the June 8, 2010 election, even though such an election would not be consolidated with a general election for a member of the Council. Page 1 of 8 1288663vi 80078/0012 WHEREAS, article XIIIC, section 2(b) of the California Constitution permits the City, in an emergency situation declared by a unanimous vote of the Council, to seek voter approval for a general tax at an election that is not consolidated with an election for a member of the Council. NOW, THEREFORE, the City of Rohnert Park does hereby ordain as follows: SECTION 1: "Chapter 3.21 Transactions and Use Tax" shall be added to the Rohnert Park Municipal Code and shall read as follows: "Chapter 3.21 TRANSACTIONS AND USE TAX" Sections: 3.21.010 Short Title 3.21.020 Operative Date 3.21.030 Purpose 3.21.040 Contract with State 3.21.050 Transactions Tax Rate 3.21.060 Place of Sale 3.21.070 Use Tax Rate 3.21.080 Adoption of Provisions of State Law 3.21.090 Limitations on Adoption of State Law and Collection of Use Taxes 3.21.100 Permit Not Required 3.21.110 Exemptions and Exclusions 3.21.120 Amendments 3.21.130 Enjoining Collection Forbidden 3.21.140 Annual Audit and Public Report 3.21.150 Termination Date 3.21.010 Short Title This ordinance shall be known as the City of Rohnert Park Transactions and Use Tax Ordinance. The City of Rohnert Park hereinafter shall be called "City." This ordinance shall be applicable in the incorporated territory of the City. 3.21.020 Operative Date "Operative Date" means the first day of the first calendar quarter commencing more than 110 days after the adoption of this ordinance, the date of such adoption being as set forth below. 3.21.030 Purpose This ordinance is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes: A. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 725 1) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose. Page 2 of 8 1288663v1 80078/0012 B. To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code. C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the State Board of Equalization in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the State Board of Equalization in administering and collecting the California State Sales and Use Taxes. D. To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this ordinance. 3.21.040 Contract with State Prior to the operative date, the City shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the City shall not have contracted with the State Board of Equalization prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract. 3.21.050 Transactions Tax Rate For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of .5% of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this ordinance. 3.21.060 Place of Sale For the purposes of this ordinance, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out - of -state destination or to a common carrier for delivery to an out -of -state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the State Board of Equalization. 3.21.070 Use Tax Rate An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the operative date of this ordinance for storage, use or other consumption in said territory at the rate of .5% of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made. 3.21.080 Adoption of Provisions of State Law Except as otherwise provided in this ordinance and except insofar as they are inconsistent with the Page 3 of 8 1288663v1 80078/0012 provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this ordinance as though fully set forth herein. 3.21.090 Limitations on Adoption of State Law and Collection of Use Taxes In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code: A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefore. However, the substitution shall not be made when: 1. The word "State" is used as a part of the title of the State Controller, State Treasurer, State Board of Control, State Board of Equalization, State Treasury, or the Constitution of the State of California. 2. The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this Ordinance. 3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to: a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division.2 of the Revenue and Taxation Code, or; b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code. 4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code. B. The word "City" shall be substituted for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 and in the definition of that phrase in Section 6203. 3.21.100 Permit Not Required If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor's permit shall not be required by this ordinance. 3.21.110 Exemptions and Exclusions A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley -Burns Uniform Local Sales and Use Tax Law or the amount of any state - administered transactions or use tax. Page 4 of 8 1288663v1 80078/0012 B. There are exempted from the computation of the amount of transactions tax the gross receipts from: 1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government. 2. Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the City shall be satisfied: a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out -of- City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and b. With respect to commercial vehicles, by registration to a place of business out -of -City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address. 3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance. 4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this ordinance. 5. For the purposes of subparagraphs (3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. C. There are exempted from the use tax imposed by this ordinance, the storage, use or other consumption in this City of tangible personal property: 1. The gross receipts from the sale of which have been subject to a transactions tax under any state - administered transactions and use tax ordinance. 2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any Page 5 of 8 12886630 80078/0012 foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California. 3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance. 4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this ordinance. 5. For the purposes of subparagraphs (3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. 6. Except as provided in subparagraph (7), a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer. 7. "A retailer engaged in business in the City" shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City. D. Any person subject to use tax under this ordinance may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax. 3.21.120 Amendments All amendments subsequent to the effective date of this ordinance to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this ordinance, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance. The foregoing amendments shall not require voter approval. Page 6 of 8 1288663v1 80078/0012 The following amendments to this ordinance must be approved by the voters of the City of Rohnert Park: increasing the tax rate or revising the methodology for calculating the tax such that a tax increase would result; imposing the tax on transactions and uses not previously subject to the tax (unless such amendment occurs automatically by operation of the preceding paragraph); or extending the tax beyond the fifth anniversary of the operative date. The City Council may otherwise amend this ordinance without submitting the amendment to the voters for approval. 3.21.130 Enjoining Collection Forbidden No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or, the City, to prevent or enjoin the collection under this ordinance, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected. 3.21.140 Annual Audit and Public Report Annually the City Council retains an independent auditor to conduct an audit of and provide audited financial statements for all of the City's financial activities. The auditor shall include an accounting of the revenue received from the tax and expenditures thereof in the audited financial statements. The auditor's report shall be presented to the Council and made available to the public. Additionally, the Director of Administrative Services shall annually prepare and present to the Council and the public a report in conjunction with the audit that reviews the status and performance of the programs and services funded wholly or partially with proceeds of the tax. 3.21.150 Termination Date The authority to levy the tax imposed by this ordinance shall expire on the fifth anniversary of the operative date, unless extended by a majority vote of the voters of the City. SECTION 2: SEVERABILITY. The City Council hereby declares that every section, paragraph, sentence, clause, and phrase of this ordinance is severable. If any section, paragraph, sentence, clause, or phrase of this ordinance is for any reason found to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining sections, paragraphs, sentences, clauses, or phrases. SECTION 3: EFFECTIVE DATE. This ordinance relating to the levying and collection of the City transactions and use taxes and shall take effect immediately. SECTION 4: PUBLICATION. The Clerk of the City of Rohnert Park is hereby directed to cause the following summary of the ordinance to be published by a newspaper of general circulation, published and circulated in the City of Rohnert Park: Contingent upon majority voter approval, this ordinance adopts a one -half cent (0.5 %) transactions and use tax on the sale or consumption of tangible personal property within the City of Rohnert Park. The tax shall terminate automatically upon the fifth anniversary of the State beginning to collect it, unless extended by the voters. Page 7 of 8 1288663v1 80078/0012 This ordinance was introduced by the City Council of the City of Rohnert Park on February 23, 2010 and adopted on February _, 2010 by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: CITY OF ROHNERT PARK Mayor ATTEST: City Clerk APPROVED AS TO FORM: City Attorney Page 8 of 8 12886630 80078/0012