TITLE
Recommendation to adopt resolution Calling for the Placement of a General Tax Measure on the Ballot of the November 3, 2020 General Municipal Election for submission to the qualified voters of the City of Long Beach an ordinance amending Long Beach Municipal Code section 3.80.221, to increase the rate of the general purpose Oil Barrel Production Tax (Barrel Tax) from 15 cents per barrel to 30 cents per barrel, with annual CPI adjustments and suspension limits to the general tax;
DISCUSSION
Pursuant to your request of July 7, 2020, this office, in consultation with the Departments of Financial Management and Energy Resources, has prepared and now submits the above-described Resolutions for your consideration.
1) Resolution Calling for the Placement of a General Tax Measure on the Ballot of the November 3, 2020 General Municipal Election: This Resolution presents a ballot question for submission to the qualified voters of the City of Long Beach relating to an ordinance amending Long Beach Municipal Code section 3.80.221, increasing the rate of the general purpose Oil Barrel Production (Barrel) Tax by 15 cents from 15 cents per barrel to 30 cents per barrel.
At the July 7, 2020 City Council meeting, the Council directed the City Manager and the City Attorney's office to explore the possibility of an increase to City's general Barrel Tax as a means of providing additional general fund revenue. As part of that exploration, City Council also directed that staff engage stakeholders including the State Lands Commission and local oil producers.
Current Barrel Tax Structure: The City currently has a two-part Barrel Tax structure: a flat 15 cent per oil Barrel Tax (the general tax) and a 33 cent per oil barrel tax (the special tax, Proposition H for Public Safety approved in 2007) that is adjusted annually according to the Consumer Price Index (CPI) on June 1. The total Barrel Tax for the City is currently at 48 cents per barrel of oil produced. For compariso...
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