To: MAYOR AND CITY COUNCIL
From: EUGENE SOLOMON, CITY TREASURER
ELEANOR MANZANO, CITY CLERK
TITLE
title
DISCUSSION AND POSSIBLE ACTION ON THE PROPOSED UTILITY USERS TAX ORDINANCE LANGUAGE AND BALLOT QUESTION AND ADDING THE 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. As video service offerings have changed due to new technologies, the City’s Video Users Tax language can be modified to more appropriately align with current market offerings along with future advancements in those offerings. 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. At the November 3, 2026 City Council meeting, Council directed staff to make revisions to the ballot title and requested updates to the low-income, senior, and disability exemptions that will allow qualification criteria to keep pace with other needs-based programs. This item allows for the Council to continue its discussion of these topics and finalize preparation of the approtiate items for inclusion as part of the March 2, 2027 General Municipal Election.
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. Contemplated revisions to Ordinance could be viewed as expanding who pays the UUT, and, as such, are subject to Proposition 218 requirements (established in Article XIII C of the California Constitution) and require voter approval. Additional proposed changes update the requirements for low-income exemptions for seniors over 62 or permanently disabled residents intending to broaden access to those exemptions and removes an exemption for utilities.
Proposed UUT Ballot Measure Language:
“To maintain critical City services, such as police and fire 9-1-1 emergency response, street and pothole repair, park maintenance; and for general government use; shall the measure to update the City of Redondo Beach’s Utility Users Tax Ordinance, without increasing the current tax rate, requiring equal treatment of taxpayers regardless of the video services technology used, broadening the senior and disabled low-income exemptions, removing the exemption for utilities, and providing approximately $850,000 annually, until ended by voters, 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 24, 2026 at 5:30 PM
• Rebuttal Arguments - Due by no later than Friday, December 4, 2026 at 5:30 PM
• Impartial Analysis - Due by no later than Friday, December 4, 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 statutory 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 Resolutions by title only CC-2611-098 and CC-2611-099
4) Approve ballot title & ballot measure text (Limited to 75 words)
5) Choose ballot letter designation
6) Determine who submits Arguments For the 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 $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