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HomeMy WebLinkAbout1979-06-05; Notices Proofs (3)CARLSBAD ORDINANCE NO. 6059, CITY ATTORNEY'S ANALYSIS, AND ARGUMENTS FOR AND AGAINST CITY MEASURE SPECIAL MUNICIPAL ELECTION CITY OF CARLSBAD TUESDAY, JUNE 5,1979 The following arguments for and against the city measure have been filed with the City Clerk pursuant to Article 4, Chapter 3, Division 5 (Sections 5010 to 5016, inclusive) of the Elections Code of the State of California. Arguments in support or opposition of the proposed laws are the opinions of the authors. Under requirements of the 1 975 amendments to the Federal Voting Rights Act, the City has arranged to provide translation of these ballot materials into the Spanish language. A trans- lation of these ballot materials may be obtained in person at the City Clerk's office in the City Hall or, if requested by letter or telephone, a translation will be promptly mailed. Bajo los requisites de los enmendamientos de 1975 al Acto Federal de Dcrechos de Vota- cion. la Ciudad ha heclio arrealos para proporcionar traduccion del texto de la balota al idioma I-'spanol. Una traduccion del texto de la balota se puede obtener en persona en la oficina del Secretario Municipal situada en la Alcaldi'a, o si es solicitada por carta o por teletono, una traduccion se cnviara por correo prontamente. ALETHA L. RAUTENKRANZ, City Clerk City Hall, 1200 Elm Avenue Carlsbad, California- 92008 Phone: 729-1181 ORDINANCE NO. 6059 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA AMENDING TITLE 5 OF THE CARLSBAD MUNICIPAL CODE BY THE ADDITION OF CHAPTER 5.09 TO PROVIDE FOR THE PAYMENT OF TAXES ON NEW CONSTRUCTION AND FOR THE USE OF SUCH TAXES FOR PUBLIC FACILITIES. THE PEOPLE OF THE CITY OF CARLSBAD DO ORDAIN AS FOLLOWS. SECTION 1: That Title 5 of the Carlsbad Municipal Code is amended by the addition of Chapter 5.09 to read as follows: "Chapter 5.09 ADDITIONAL LICENSE TAX ON NEW CONSTRUCTION Sections: 5.09.010 Purpose and intent. 5.09.020 Definitions. 5.09.030 Imposition of tax—amount. 5.09.040 Credit. 5.09.050 Time and place of payment. 5.09.060 Refunds. 5.09.070 Disposition of proceeds; fund created. 5.09.080 Exceptions. 5.09.090 Exemptions. 5.09.100 Construction prohibited. 5.09.110 Tax liability; enforcement. 5.09.120 Effective date. 5.09.010 Purpose and intent. The City Council hereby declares-that the license taxes required to be paid hereby are assessed pursuant to Section 37101 of the Government Code of the State of California and the taxing power of the City and solely for the purpose of producing revenue. This chapter is not adopted for regulatory purposes. The continued development of the City, with the consequent increase in population and in the use of public facilities, has imposed increased requirements for such facilities, in- cluding but not limited to parks, major streets, traffic signals, storm drains, bridges and public buildings (such as fire stations, police facilities, maintenance facilities, libraries and general offices). The necessity for such facilities results directly from new construction and the need cannot be met from ordinary City revenues. The most practical and equitable method of paying for such facilities is to impose a tax upon new construction in the City. 5.09.020 Definitions. For the purposes of this chapter the following words and phrases shall have the meanings respectively ascribed to them by this section. (1) "Mobilehome space" means each space, area or building, in a trailer park or mobilehome park or other place, designed or intended as a place to accommodate any mobilehome, trailer, van, bus, or other vehicle or mobile structure, at a time when the same is being used as living or sleeping quarters for human beings. (2) "Person" includes every individual, firm, partnership, joint ven- ture, association, trust, corporation or any other group engaging in construc- tion activities itself or through the services of any employee, agent or in- dependent contractor. 5.09.030 Imposition of tax—amount, (a) In addition to any other fee, license or tax required by this Code, every person constructing or causing to be constructed or erected any building or structure in the City of Carlsbad for which a building permit is required, shall pay a license tax in the amount of 3% percent of the valuation of the building or structure established pursuant to this Code for determining the building permit fee. (b) The developer of a mobilehome park shall pay a license tax fee of §1,750.00 for each mobilehome space. The license tax for mobilehome spaces shall be automatically increased or decreased on January 1 of each year by the same percentage as the percentage of increase or decrease in construction costs between December 1 of each of the two immediately preceding years, for which purpose construction costs and the increase or decrease therein shall be based on the Engineering News-Record Construction Cost Index. (c) For the alteration of Residential structures, or mobilehome parks the license tax shall be computed only on the square footage of additional dwell- ing units or mobilehome spaces, if any, resulting from the alteration, and for the alteration of other buildings or structures, the license tax shall be com- puted only upon the additional square footage, if any, resulting from the alteration. 5.09.040 Credit. A credit toward the license tax imposed by this chapter shall be given for land which has been dedicated for park purposes or for any fees paid in lieu thereof pursuant to Chapter 20.44 of this Code. The credit shall be applied to the fee for a building permit for construction on a lot which was part of a subdivision which was subjected to satisfy the require- ments of Chapter 20.44. If land was dedicated, the fees which would have been required in lieu of such land at the time it was dedicated shall be deter- mined. Such amount or the actual amount of fees paid shall then be appor- tioned to each of the lots in the subdivision. The part of such amount at- tributed to the lot in question shall be a credit against the fee imposed by this chapter. 5.09.050 Time and place of payment. The license taxes imposed pur- suant to Section 5.09.030 shall be due and payable at the Office of the Building Director, City Hall, Carlsbad, California, upon issuance of the building permit. The tax for a mobilehome space shall be paid prior to the is- suance of the first permit for the construction of such space or if such con- struction is performed without a permit, at the time when construction is commenced. No permit shall issue until the tax is paid. 5.09.060 Refunds. If a permit for construction work expires or if such permit is revoked and if during the one hundred-twenty days following the expiration or revocation date of the permit the permittee files written ap- plication for a refund in the office of the City Clerk, there shall be a refund of the entire tax paid. There shall be no refund if any construction work has been performed nor shall there be any partial refund. In the event of a re- fund, it shall be unlawful for any person to proceed in any way with further construction without first applying for another building permit and paying the tax imposed by this chapter. If no refund is made and a permit expires after work has been performed, a new building permit shall be required and the tax imposed by this chapter shall be paid provided, however, a credit shall be given not to exceed the tax paid in connection with the expired per- mit. 5.09.070 Disposition of proceeds; fund created, (a) All proceeds from the tax collected pursuant to this chapter shall be paid into a special capital out- lay fund of the City entitled "Public Facilities Fund" which fund is hereby created. The fund shall be used only for the purpose of acquiring, building, improving, expanding and equipping public property, and public improve- ments and facilities including but not limited to the following types of capital projects: Public buildings (such as fire stations, police facilities, maintenance and yard facilities, libraries and general city offices) parks, major streets, traf- fic signals, storm drains, bridges and other similar projects as the Council may deem necessary and appropriate. (b) Designation of expenditures of funds available from the Public Facilities Fund shall be made by the City Council in the context of approval of the City's annual operating and capital improvements budget or at such other time as the Council may direct. At the discretion of the City Council, funds may be accumulated in unlimited amounts for expected future capital improvement costs. (c) The City Council may loan general funds or other funds to the Public Facilities Fund and use the proceeds from the tax imposed by this chapter to repay such loans. 5.09.080 Exceptions. There is excepted from the tax imposed by this chapter, the following: (1) The construction of a building or structure or mobilehome space which is a replacement for a building or space being removed from the same lot or parcel of land. The exception shall equal but not exceed the tax which would be payable hereunder if the building being replaced were being newly constructed. If the tax imposed on the new building exceeds the amount of this exception, such excess shall be paid. (2) Accessory buildings or structures in mobilehome parks, such as a club house, swimming pool, or laundry facilities. (3) Buildings or structures which are clearly accessory to an existing use such as fences, pools, patios and automobile garages. (4) The City Council may grant an exception for a low cost housing project where the City Council finds such project consistent with the Hous- ing Element of the General Plan and that such exception is necessary. In ap- proving an exception for low cost housing the City Council may attach condi- tions, including limitations on rent or income levels of tenants. If the City Council finds a project is not being operated as a low cost housing project in accordance with all applicable conditions, the tax, which would otherwise be imposed by this chapter, shall immediately become due and payable. 5.09.090 Exemptions. There is excluded from the tax imposed by this chapter: 1. Any person when imposition of such tax upon that person would be in violation of the Constitution and laws of the United States or the State of California. 2. The construction of any building by a nonprofit corporation exclusive- ly for religious, educational, hospital or charitable purposes. 3. The construction of any building by the City of Carlsbad, the United States or any department or agency thereof or by the State of California or any department, agency or political subdivision thereof. 5.09.100 Construction prohibited. It shall be unlawful for any person to erect, construct, enlarge, alter, repair, move, improve, make, put together or convert any building or structure in the City, or attempt to do so, or cause the same to be done, without first paying the tax imposed by this chapter. 5.09.110 Tax liability; enforcement. The taxes imposed by this chapter are due from the person by or on behalf of whom a residential, industrial or commercial building or mobilehome space is constructed, whether such person is the owner or a lessee of the land upon which the construction is to occur. The Building Director shall collect the tax due hereunder. The full amount due under this chapter shall constitute a debt to the City of Carlsbad. An action for the collection thereof may be commenced in the name of the City in any court having jurisdiction of the cause. The City Manager shall be responsible for the administration and en- forcement of this chapter. His decisions may be appealed to the City Council whose decision shall be final. 5.09.120 Effective date. The taxes imposed by this Chapter shall be ap- plicable with respect to building permits for construction activities, issued on or after April 1, 1979. Any person constructing one or more dwelling units, or otherwise engaging in construction taxable hereunder, pursuant to a building permit applied for on or after said date, or applied for before said date but not actually issued until on or after said date, shall be liable for payment of said tax irrespective of whether said tax was collected at the time of building permit application or issuance. No occupancy permit shall be issued with respect to any completed structure or construction taxable hereunder, unless and until the proper tax due has been paid. SECTION 2: Severability. If any section, subsection, sentence, clause,or phrase of this ordinance is for any reason held to be invalid or uncon- stitutional by the decision of a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the ordinance. The City Council of the City of Carlsbad hereby declares that it would have pas- sed this ordinance, and each section, subsection, clause or phrase thereof, irrespective of the fact that any one or more other sections, subsections, clauses or phrases may be declared invalid or unconstitutional. SECTION 3: The City Council may amend this ordinance from time to time to add exceptions or adjust the rate or application of tax or make such other changes as they determine to be necessary provided, the rate of the tax to be imposed by this ordinance shall not be increased and the purposes for which the funds can be expended shall not be changed. SECTION 4: This ordinance, being an ordinance relating to taxes for usual and current expenses of the City, pursuant to Section 36937(d) of the Government Code shall take effect immediately upon its passage. Before the expiration of fifteen days after its passage, this ordinance shall be published once in the Carlsbad Journal, a newspaper of general circulation printed and published in the City of Carlsbad. CITY ATTORNEY'S ANALYSIS This Ordinance amends the Carlsbad Municipal Code by the addition of Chapter 5.09 which would impose a license tax on new construction in the City. The tax is set forth in this Ordinance as 3% of the valuation of new buildings as determined for purposes of the Building Permit Fee. The tax for each new mobilehome space is $1750 subject to annual adjustment based on changes in the cost of construction. The tax does not apply to construction by a nonprofit corporation for religious, educational, hospital or charitable pur- poses. The tax imposed by the Ordinance may not be increased by the City Council but the Ordinance may be amended as the City Council considers appropriate. The proceeds from the tax must be placed in a separate Public Facilities Fund. Use of the proceeds is restricted to capital projects including but not limited to public buildings (such as police facilities, fire stations, maintenance facilities and administration buildings), major streets, bridges, traffic signals, parks, libraries and storm drains. This is a new tax in addition to all other fees, charges and taxes applicable to new construction and it must be paid prior to issuance of the building or other permit. Approval of this measure will constitute authorization by the voters for the imposition of the tax pursuant to Section 4 of Article XIII(A) of the California Constitution (Proposition 13). ARGUMENT IN FAVOR OF THE MEASURE The Public Facilities Tax will require new industrial, commercial, and residential development to pay its share of facilities, such as storm drains, major streets, police and fire stations, library buildings, and other public buildings. Existing residents and taxpayers have already paid to provide ex- isting public facilities. The Public Facilities Tax would require new develop- ment to pay its fair share. Under current California law, many of the traditional methods of financing public facilities are no longer available. Increasing budget con- straints at the state and federal levels of government means that we will have to develop local sources of funds to finance required facilities. The City of Carlsbad faces a critical need for additional facilities. This need cannot be met from ordinary City revenues. The tax on new construction will enable all residents of Carlsbad to obtain necessary public facilities. The tax will be imposed on new industrial, commercial, and residential construction only. Since the need for additional public facilities is due to new development, a tax imposed on such development is the most fair and equitable way to pay for such facilities. Without the tax, existing residential and business taxpayers may have to help pay for the additional facilities required to serve new development. The Public Facilities Tax is a fair and equitable way to finance required public facilities and we urge all Carlsbad voters to vote yes on June 5th. RONALD C. PACKARD ANTHONY J. SKOTNICKI MARK H. CASLER GIRARD W. ANEAR CLAUDE A. LEWIS ARGUMENT AGAINST THE MEASURE (None Filed)