To: MAYOR AND CITY COUNCIL
From: EUGENE SOLOMON, CITY TREASURER
ELEANOR MANZANO, CITY CLERK
TITLE
title
DISCUSSION AND POSSIBLE ACTION ON FINALIZING THE PROPOSED UTILITY USERS TAX ORDINANCE LANGUAGE AND BALLOT QUESTION AND ADDING THIS MEASURE TO THE MARCH 2, 2027 GENERAL MUNICIPAL ELECTION; SETTING PRIORITIES FOR FILING WRITTEN ARGUMENTS; DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS; AND TO ASSIGN A LETTER DESIGNATION
ADOPT BY TITLE ONLY RESOLUTION NO. CC-2611-098, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, ORDERING THE SUBMISSION TO THE QUALIFIED ELECTORS OF THE CITY OF A CERTAIN MEASURE RELATING TO AN UPDATE TO THE UTILITY USERS TAX (UUT) AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, MARCH 2, 2027, AS CALLED BY RESOLUTION NO. CC-2610-080
ADOPT BY TITLE ONLY RESOLUTION NO. CC-2611-099, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, SETTING PRIORITIES FOR THE FILING OF WRITTEN ARGUMENTS, REBUTTALS AND DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS REGARDING A CERTAIN MEASURE TO BE SUBMITTED TO THE GENERAL MUNICIPAL ELECTION BALLOT HELD ON TUESDAY, MARCH 2, 2027, AS CALLED BY RESOLUTION NO CC-2610-080
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EXECUTIVE SUMMARY
The City is considering updates to its Utility Users Tax (UUT) Ordinance in order to remain current with recent legal developments and maintain revenue to support critical City services. Updates to the UUT Ordinance would apply the tax equitably to video users in the City’s jurisdiction.
At the October 13, 2026 City Council meeting, staff was directed to prepare amendments to the UUT Ordinance including definitions, language, and exemptions; as well as prepare proposed ballot language for a March 2, 2027 UUT ballot measure. This item presents the revised ordinance and proposed ballot measure language for Council’s review, edits, and direction.
As video service offerings have changed due to new technologies, the City’s Video Users Tax language should be modified to more appropriately align with current market offerings along with future advancements in those offerings.
BACKGROUND
In March 2009, Redondo Beach voters approved a modernization of the City’s UUT Ordinance (Redondo Beach Municipal Code §8.9). UUT continues to be a significant source of revenue for the City’s General Fund. Staff is recommending an update to the UUT ordinance in 2027 to align the language with current and evolving technologies and to keep current with recent court decisions (Disney Platform Distribution, Inc., et al. v. City of Santa Barbara) that have affirmed the legality of these updates. Revisions to Ordinance could be viewed to expand who pays the UUT. Therefore, the proposed revisions to the ordinance are subject to Proposition 218 requirements (established in Article XIII C of the California Constitution) and require voter approval.
Proposed UUT Ballot Measure Language:
“Shall the measure to modernize the City of Redondo Beach’s existing utility users tax, adjusting exemptions but not increasing the current tax rate, funding critical City services such as street / pothole repair, emergency response / preparedness, park / landscape maintenance, senior / youth recreation programs, and other general government uses; maintaining low-income senior / disabled exemptions, generating approximately $850,000 annually until ended by voters, requiring equal treatment of taxpayers regardless of technology used, annual audits, and public expenditure reviews, be adopted?”
The City’s UUT auditor, Gold Coast Partners, projects that, if approved by voters, applying UUT to video streaming services could grow UUT revenues by approximately 10% per year through FY 2030, generating an additional $850,000 of estimated general fund revenue per year.
Arguments, Rebuttals, Impartial Analysis
Upon approval of the Ballot Measure by the City Council, the adopted Resolution will include deadlines and priorities pertaining to submittal of Arguments, Rebuttals, and directing the City Attorney to prepare an Impartial Analysis, pursuant to California Elections Code Sections 9280-9287, 9600, and 9601. The proposed deadlines are listed below:
• Arguments - Due by no later than Tuesday, November 17, 2026 at 5:30 PM
• Rebuttal Arguments - Due by no later than Monday, November 30, 2026 at 5:30 PM
• Impartial Analysis - Due by no later than Monday, November 30, 2026 at 5:30 PM
Required forms will be available from the City Clerk’s Office and upon completion, will be filed by the deadline with the City Clerk in accordance with all the requirements.
At this time, staff recommends the City Council provide:
1) Discussion and possible action to finalize the proposed updated Utility Users
Tax ordinance language
2) Discussion and possible action to finalize the proposed Utility Users Tax ballot
measure language
3) Adopt the proposed Resolutions to be added to the March 2, 2027 General
Municipal Election
4) Direct staff on a letter designation for the Measure and take other action as
related to this item
COORDINATION
This report was coordinated with the Financial Services Department, the City Treasurer’s Office, the City Clerk’s Office, and the City Attorney’s Office.
FISCAL IMPACT
If approved by the voters as part of the March 2, 2027 General Municipal Election It is estimated that applying UUT to video streaming would increase annual General Fund revenue by approximately $850,000.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
• Reso - No. 2611-098 Ordering UUT Ballot Measure Submission with Exhibit A
• Reso - No. 2611-099 For Written Arguments, Rebuttals, and Impartial Analysis
• Proposed Redondo Beach Municipal Code Ordinance RBMC - Title 8, Chapter 9