Chapter 4.109 — LIBRARY SPECIAL TAX

Prior ordinance history—Ords. 6574 and 6708.

This chapter shall be known and may be cited as the "city of Pasadena library special tax ordinance."

(Ord. 7091, § 1, 2007; Ord. No. 7408, § 1, approved by voters 11-8-2022)

The following words and phrases whenever used in this chapter shall be construed as defined in this section:

A.

"Condominium project" means a common interest development as defined in Section 1351 of the Civil Code.

B.

"Library" means the Pasadena library system and each of the branches thereof as the same may exist from time to time, together with any additions or betterments thereto, or improvements, extensions or expansions thereof.

C.

"Library services fund" means the special fund in which money collected pursuant to this chapter shall be deposited.

D.

"Maintenance and operations costs of the library" means:

(1)

All reasonable and necessary costs spent or incurred by the city for maintaining and operating the library, calculated in accordance with generally accepted accounting principles including, but not limited to, all amounts paid or payable from time to time for books, periodicals, reference materials, research materials, subscription services or other information sources, the reasonable expenses of management and repair and other expenses necessary to maintain and preserve the library in good repair and working order, benefits, salaries and wages of employees, payments to employees' retirement systems, taxes, if any, fees of auditors, accountants, attorneys or engineers and insurance premiums;

(2)

Depreciation, replacement and obsolescence charges or reserves therefor;

(3)

Costs of capital additions, replacements, betterments, extensions or improvements to the library, which under generally accepted accounting principles are chargeable to a capital account or to a reserve for depreciation;

(4)

But shall not be construed to mean costs to provide support services to the library by any other department of the city.

E.

"Parcel" means a unit of real property as shown on the last equalized assessment roll of Los Angeles County.

F.

"Required threshold amount from the general fund" means the minimum amount which must be budgeted in a fiscal year as maintenance and operating costs for the library in order to levy a special tax in a fiscal year.

(Ord. 7091, § 1, 2007; Ord. No. 7408, § 1, approved by voters 11-8-2022)

A.

Nothing in this chapter shall be construed as imposing a tax upon any person when imposition of such tax upon that person would be in violation of either the Constitution of the United States or the Constitution of the State of California.

B.

The tax imposed by this chapter shall not be levied upon the federal government, the state government, any state agency, or any local governmental agency.

C.

The tax imposed by this chapter shall not be levied upon a parcel of property or improvement to property which is owned by a religious facility or community service organization which qualifies for an exemption from ad valorem taxation under California law.

D.

The tax imposed by this chapter shall not be levied upon any owner if such owner receives a senior citizen or disability exemption from the utility user's tax imposed by Chapter 4.56 of the Pasadena Municipal Code.

E.

The tax imposed by this chapter shall not be imposed upon any owner if such owner is a person who meets the following qualifications: The claimant's annual household income shall not exceed the U.S. Department of Housing and Urban

Development (HUD) Very Low (50%) Income Limit for Los Angeles-Long Beach-Glendale at the start of the calendar year for which the exemption is claimed.

(Ord. 7091, § 1, 2007; Ord. No. 7408, § 1, approved by voters 11-8-2022)

A.

There is hereby imposed a special tax on each residential dwelling unit or non-residential parcel within the city of Pasadena for the purposes set forth in this chapter at the rate specified herein.

B.

This tax is enacted under the authority of Section 301 of the Charter of the city of Pasadena, other authority held as a charter city, and, independently thereof, under the authority of California Government Code Sections 50075—50077.5.

(Ord. 7091, § 1, 2007; Ord. No. 7408, § 1, approved by voters 11-8-2022)

The city council and the people of the city of Pasadena make the following findings with respect to the library special tax:

A.

Importance of the library to the quality of life for Pasadena residents.

The library of the city of Pasadena pre-dates the incorporation of the city itself, and since 1926, Pasadena has maintained an excellent library which has attained a unique position as a very highly regarded educational and cultural resource. The library is an essential partner in the educational, social and recreational well-being of Pasadena's residents.

The library has a strong connection to the maintenance of a healthy family community due to its tangible presence in Pasadena's neighborhoods through the branch libraries, designed and laid out in such a way that no Pasadenan is more than 1 mile from a library, and residents can walk to their neighborhood library. The presence of branch libraries adds a special quality to the neighborhoods of Pasadena and makes a visible statement regarding the importance of reading and learning. In addition to fulfilling their traditional library role, they serve as meeting places for community groups, gathering places for families and provide valuable support to other community institutions such as schools, and business and cultural associations. The branch libraries provide a unique perspective on the neighborhood in which they are located. The languages spoken in the neighborhood are reflected in the branch library collections, the needs of the neighborhood are recognized in the special materials and programming offered at the branch libraries, and the quality of life in the neighborhood is enhanced because of the branch library's presence. The branch libraries represent a safe haven in our neighborhoods. The library works steadfastly with neighborhood schools to raise the level of literacy in the community.

For these reasons, the city council and the people of the city of Pasadena find that the continuing vitality and viability of the entire library system, including all branch libraries, must be assured through a funding mechanism which provides a stable source of funding for the entire system.

In the first 5 years of the library special tax, full hours of operation were restored to the entire library system and a new collection and basic library services were established at the Villa-Parke Community Center, which serves a predominately Hispanic community, and outreach programs throughout Pasadena.

Pasadena residents support quality library services as evidenced by high levels of utilization of library services ranging from adult literacy to children's book programs, and city-wide surveys ranking the library among the top municipal services valued most by residents.

B.

Validity of funding mechanism—Background and rationale.

The results of a management audit conducted in 1993 clearly demonstrated that the library is being managed very efficiently, and the quality of services provided is high, particularly in terms of the branch libraries. Each of these findings was reconfirmed by previous citizen surveys in the time since 1993. On the basis that the goal is a funding program which would preserve the high level of service to which Pasadena has been accustomed, the target level of service for which funding is sought is that which is currently provided. In terms of operations, the current level of service can be generally described as 7 days a week service at the central library, and a minimum of 5 days a week service at the branch libraries, except to the extent any particular library is closed for public safety purposes or for improvements; a materials budget for acquisitions and preservation of the library collection no less than 9% of the total adopted budget; and other programs designed to meet the needs of the community. The cost of providing this level of service was $7.1 million in 1993, the first year of the special tax, indexed for cost of living increases each subsequent year. In the time since the library special tax has been in place, the level of service has been maintained as planned, and the general fund commitment embodied in the provisions of this chapter has been met.

A significant reduction in library funding (such as the loss of approximately 20% of the budget should the library special tax expire without some form of replacement) would likely result in a drastic and unacceptable reduction in library services.

The library continues to be particularly well suited for a separate dedicated source of funding due to the nature of its operations - a clearly defined physical plant and a series of core programs and services which are relatively stable and enduring from year to year.

Before enacting this special tax, various alternative sources of funding were explored including sales tax, construction tax, utility tax, business license tax, transient occupancy (hotel) tax, library users fees, an endowment, general fund expenditure, formation of a community facilities district, benefit assessment, residential parcel or unit tax and a non-residential parcel tax. Selection of the current special library tax came after examining these options and library tax ordinances from the cities of San Jose and Oakland.

The rationale for adopting the specific tax rates for dwelling units and non-residential parcels contained in the "Recommendations of the Pasadena Public Library Future Funding Task Force" dated October 20, 2006, is well thought-out and the city council and people of the city of Pasadena hereby ratify such rationale, as refined by the public hearing process conducted in connection therewith, and incorporate it as if fully set forth herein. Such rationale provides a rational basis for the tax rate classification system adopted in this chapter, and appropriately meets the objective of designing a taxing scheme which relates the amount of the tax to the benefits received from the library by the person paying the tax, and incorporates the element of ability to pay into the tax rates.

The library commission found, and the Board of the Friends of the Pasadena Public Library found, and the council affirms, that the library special tax continues to best meet the needs of the city for financing the library system.

(Ord. 7091, § 1, 2007; Ord. No. 7408, § 1, approved by voters 11-8-2022)

A.

The purpose of this special tax is to provide funds to the city to pay:

Maintenance and operations costs of the library; and

The costs of enforcement and administration of the special tax, including refunds.

B.

The city council may provide for the collection of the special tax in the same manner and subject to the same penalty as, or with, other charges and taxes fixed and collected by the city, or by the county of Los Angeles on behalf of the city of Pasadena. If the special tax is collected by the county on behalf of the city, the county may deduct its reasonable costs incurred for such service.

C.

City costs of enforcement and administration of the tax, including refunds, shall be paid from the special tax revenue.

(Ord. 7091, § 1, 2007; Ord. No. 7408, § 1, approved by voters 11-8-2022)

A.

There is hereby established a special fund entitled "Library Special Tax Fund" (hereinafter the "special fund"). Money collected pursuant to this chapter shall be deposited into said special fund and shall be used exclusively as provided in this chapter for the purposes for which the tax is imposed, and for no other purposes. Nothing in this section shall prevent disbursements from this special fund to reimburse the general fund if, and only if, money has been advanced from the general fund to pay for the uses provided for in this chapter.

B.

Any money raised by the special tax, including any interest accrued thereon, that remains unencumbered at the end of any fiscal year may only be used in a succeeding fiscal year for the purposes stated in this chapter.

C.

The director of finance shall annually provide a report on the receipt of revenue under this chapter and the expenditure of those revenues as required by Government Code Sections 50075.1(d) and 50075.3.

(Ord. 7091, § 1, 2007; Ord. No. 7408, § 1, approved by voters 11-8-2022)

A.

In fiscal year 2024, the following special tax rates shall apply:

For each single-family or residential unit in a residential condominium project, the annual special tax shall be equal to: a) the special tax in fiscal year 2023 adjusted in accordance with Section 1.08.060 of the Pasadena Municipal Code.

For each residential unit of a multi-unit building which is not a condominium project, the annual special tax shall be equal to: a) the special tax in fiscal year 2023 adjusted in accordance with Section 1.08.060 of the Pasadena Municipal Code.

For each nonresidential parcel, the annual special tax shall be equal to: a) the special tax in fiscal year 2023 adjusted in accordance with Section 1.08.060 of the Pasadena Municipal Code.

B.

For each fiscal year from fiscal year 2024 through fiscal year 2037, the special tax rates shall be adjusted annually in accordance with Section 1.08.060 of the Pasadena Municipal Code.

C.

The library special tax cannot be levied in any year in which the city has not appropriated 100% of the required threshold amount from the general fund.

D.

If at any time following the levy of a library special tax for a fiscal year, the amount finally budgeted and appropriated as maintenance and operations costs for the library for such fiscal year shall be less than the required threshold amount from the general fund for such fiscal year, then no annual special tax shall be levied in the immediately following fiscal year. In no event shall the inability to levy the library special tax extend the library special tax beyond the stated expiration date herein.

E.

For any fiscal year the city council may, by ordinance, adjust the tax rate below the maximum amounts stated in this chapter, provided that all of the rates on each category are all adjusted proportionately, so that the relationship among categories remains constant. Such a reduction shall not prevent a subsequent levy of taxes for any succeeding fiscal year up to the limits set forth in this section or require renewed voter approval for such a subsequent levy. However, in no case shall the amount of the tax rate to be levied exceed the maximum amount established by this chapter without the approval of two- thirds of voters voting upon such change in the tax rate maximum.

(Ord. 7091, § 1, 2007; Ord. No. 7408, § 1, approved by voters 11-8-2022)

A.

The required threshold amount from the general fund in fiscal year 2024 shall be equal to 80% of the total amount necessary to fund the entire operations of the information services department (library) at the level of service described in this chapter.

B.

For each fiscal year from fiscal year 2024 through fiscal year 2037, the dollar amount of the required threshold amount from the general fund shall be adjusted annually by multiplying the prior fiscal year's minimum threshold amount from the general fund by a factor equal to one plus the change in the Consumer Price Index (CPI) in accordance with Section 1.08.060 of the Pasadena Municipal Code.

C.

An ending balance in the library services fund for any fiscal year may be credited the following fiscal year towards the minimum threshold amount from the general fund.

(Ord. 7091, § 1, 2007; Ord. No. 7408, § 1, approved by voters 11-8-2022)

This annual special tax provided for herein may be levied in each of 15 consecutive fiscal years, commencing with the first fiscal year (2024) in which there is a levy pursuant to this chapter. Such levy may only be extended with the approval of the voters by two-thirds of the votes cast by voters voting upon such a change at a municipal election called for that purpose, unless the applicable law at the time of such election authorizes a lesser number of votes to do so.

(Ord. 7091, § 1, 2007; Ord. No. 7408, § 1, approved by voters 11-8-2022)

A.

Requests for adjustments of this tax may be filed with the director of finance. Upon sufficient evidence of error in the computation of the tax as to any taxpayer, the director of finance or his/her designee shall cause the tax to be recalculated as to that taxpayer, and shall so advise the Los Angeles County tax collector or other appropriate official.

B.

Whenever it is alleged that the amount of any tax has been overpaid or paid more than once or has been erroneously or illegally collected or received by the city under this chapter, the refund procedure shall be as follows:

No claim for refund of tax payment shall be allowed in whole or in part unless filed with the city clerk within a period of three years from the date of the claimed overpayment, and signed by the taxpayer on behalf of whom it is filed; no class or representative claim shall be permitted. All such claims for refund of the amount of the overpayment must be filed on forms furnished, and in the manner prescribed by the finance department. Refunds may be made solely from the library special tax fund.

In the event the director of finance denies a claim for a refund, he/she shall notify the claimant pursuant to California Government Code Section 913.

(Ord. 7091, § 1, 2007; Ord. No. 7408, § 1, approved by voters 11-8-2022)

The city council is hereby authorized to amend the provisions of this chapter without voter approval in any manner which does not extend the special tax to a taxpayer who would otherwise not pay it or increase the amount of the tax beyond the amount authorized by this chapter. Any amendment to this chapter which extends the special tax to a taxpayer who would otherwise not pay it or increases the amount of the tax beyond the maximum tax rates authorized by this chapter may be approved only by a vote of the people of Pasadena.

(Ord. 7091, § 1, 2007; Ord. No. 7408, § 1, approved by voters 11-8-2022)

If any section, subsection, paragraph, subparagraph or item of this chapter or the application thereof is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, the validity of the remaining portions of the chapter, the application thereof, and the tax imposed shall not be affected thereby but shall remain in full force and effect, it being the intention of the city council and the voters to adopt each and every section, subsection, paragraph,

subparagraph or item regardless of whether any other section, subsection, paragraph, subparagraph or item or the application thereof is held to be invalid or unconstitutional.

(Ord. 7091, § 1, 2007; Ord. No. 7408, § 1, approved by voters 11-8-2022)

This chapter as amended, which amends and extends the library special tax (P.M.C. Chapter 4.109) and levies the special tax described therein shall be submitted to the voters of the city of Pasadena at a general municipal election to be held on November 8, 2022. The taxes determined and proposed by amendments to this chapter shall be levied only if the amendments to this chapter are approved by a vote of not less than two-thirds of the votes cast by the voters voting on the special tax proposal set forth in this chapter. If the amendments to this chapter are approved by the requisite number of votes, Chapter 4.109 as amended, shall thereafter be considered a part of the Pasadena Municipal Code, effective at the expiration of the current library special tax.

(Ord. 7091, § 1, 2007; Ord. No. 7408, § 1, approved by voters 11-8-2022)