Visalia Municipal Code Ch. 3.40 Sales and Use Tax Accountability Measures

This chapter shall be known as the City of Visalia Sales Tax Accountability Ordinance.

(Ord. 2016-21 § 1 (part), 2016)

The provisions of this Chapter 3.40 shall apply to the proceeds of any sales and use tax that is made specifically subject to this chapter by the ordinance that enacts such sales and use tax.

(Ord. 2016-21 § 1 (part), 2016)

A. The City Council shall, prior to the imposition of a sales and use tax that is subject to the provisions of this chapter, adopt, by resolution approved by a majority of the Council, an initial spending plan specifying the uses of the proceeds of the sales or use tax. The initial expenditure plan shall cover the period between implementation of the sales and use tax and the end of the subsequent fiscal year.

B. Prior to expiration of the initial expenditure plan and as part of adoption of an annual city general fund budget, the City Council shall adopt, by resolution approved by a majority of the Council, an annual expenditure plan specifying the uses of the proceeds of the sales or use tax that is subject to the provisions of this chapter, applicable to the coming fiscal year.

C. The initial expenditure plan and any subsequent annual expenditure plan may be amended at any time by resolution adopted by a majority of the Council, following 1) submission for comment and recommendation to the Sales Tax

Oversight Board as established pursuant to Section 3.040.040, and 2) public hearing during at least two regularly scheduled and appropriately noticed meetings of the City Council.

D. Following adoption, the city shall make the initial expenditure plan, any subsequent annual expenditure plan, and any amended expenditure plan publicly accessible at all times.

E. The initial expenditure plan shall dedicate 10% of budgeted revenues for the initial year of the plan to establish an economic uncertainty fund, which may only be accessed in times of fiscal emergencies, defined as a deficit in expected revenues such that the other features of the plan are not able to be funded as planned. The Council may direct that the economic uncertainty fund be accessed in order to fund the remainder of the plan in the case of a fiscal emergency, as determined by 4/5ths vote of the City Council. Annual expenditure plans shall provide for the dedication of such budgeted funds as are necessary to maintain the economic uncertainty fund at 10% of budgeted revenues and to replenish any amounts used in the event of a fiscal emergency in the prior year.

F. Each expenditure plan shall fund 10% of the budgeted revenues in a maintenance and emerging needs fund to be used by Council for maintenance and emerging needs of the city, as determined from time to time by the City Council. Twenty percent (20%) of the ten percent (10%) (a total of two percent (2%) of all annual budgeted revenues) shall be dedicated within this fund to youth programs.

G. In no case shall any expenditure plan provide for the use of funds to pay debt service payments.

(Ord. 2016-21 § 1 (part), 2016)

The Council will appoint an eleven member standing oversight committee to constitute the Sales Tax Oversight Board (the “Board”). Each member of the Board shall be a Visalia resident. The members of the Board shall serve two year terms, and may be reappointed for up to two additional two-year terms for a total of three consecutive terms. The members of the Sales Tax Oversight Board shall be selected in the following manner:

A. Each City Council member shall select one (1) member for the Board;

B. The Citizens' Advisory Committee shall select two (2) of its members to serve as a member of the Board;

C. Four (4) members of the Board shall be appointed by the following:

1. One (1) member selected by the Visalia Economic Development Corporation.

2. One (1) member selected by the Hispanic Chamber of Commerce of Tulare/Kings County or the Visalia Chamber of Commerce. The two organizations may either jointly chose a representative or alternate service for 6 year periods. If the organizations choose alternate selections, the beginning selection shall occur by random selection.

3. One (1) member selected by the Downtown Alliance that represents the Property Based Improvement District owners or the Downtown Merchants.

4. One (1) member selected by the Home Builders Association or the Board of Realtors. The two organizations may either jointly chose a representative or alternate service for 6 year periods. If the organizations choose alternate selections, the beginning selection shall occur by random selection.

In the event any of the entities described in sections B. and C. above no longer exist, the Council shall identify replacement entities to select members, or the Council may appoint individuals directly as necessary to maintain a total of eleven (11) members for the Board.

(Ord. 2016-21 § 1 (part), 2016)

The city shall provide for an annual independent audit to account for the tax revenues received and expenditures made in relation to the tax that is subject to this chapter, and to ensure consistency with the advisory expenditure plan required by Section 3.40.030. Such audits will be provided to the Sales Tax Oversight Board as established by Section 3.40.040.

(Ord. 2016-21 § 1 (part), 2016)