CLEARLAKE, Calif. – The Clearlake City Council has taken the next steps needed to set up collection of its new sales tax for road improvements.
At its Jan. 12 meeting, the council discussed Measure V, the one-cent sales tax voters approved by a supermajority vote in November.
Finance Director Chris Becnel presented to the council a preparatory agreement with the State Board of Equalization to prepare to administer and operate the transaction and use tax's ordinance, along with an administrative agreement for the Board of Equalization to administer the tax.
Becnel told the council that the preparatory agreement also includes the city's promise to reimburse the state for the costs of setting up the process to collect the tax.
That amount is estimated at a one-time cost of up to $175,000. Becnel said he actually expected it to be less, as he believed the state had added plenty of cushion to that estimated amount.
The council also considered two resolutions, one authorizing the city manager to execute agreements with the Board of Equalization to implement Measure V and the second to authorize the examination of transactions and use tax records.
There are still more steps ahead as the city works to implements the new sales tax, Becnel said.
Becnel said those steps include forwarding the approved agreements to the Board of Equalization, along with a series of other documents that don't need the council's approval, by Feb. 1.
At the council's next meeting, it also will appoint members of the Measure V Oversight Committee, he said.
Other work Becnel said the city has to do is develop a plan for grading dirt roads and select paved road projects.
Becnel said the tax will start to be collected on April 1, with the city expecting to receive its first payment from the state in July.
While previously Becnel had estimated the city would receive $1.6 million annually from Measure V, he said he's revised that estimate upward to $1.7 million based on a review of the last fiscal year's revenue numbers.
He also explained during the discussion with the council that Measure V, a transaction and use tax, “is a little more complicated than just a regular sales tax,” as it applies to people outside of the city. Specifically, he said that people who make large out-of-county purchases would have to pay it.
In four separate motions, the council unanimously approved the two agreements and two resolutions.
Mayor Russell Perdock congratulated the residents of Clearlake for approving Measure V, adding they are now going to get resurfaced streets.
In other business at the Jan. 12 meeting, the council held an orientation and review of norms and procedures, updated the authorization for check signing and other financial transactions, and appointed Becnel as city treasurer, an elected position which actually hasn't had anyone run for it in nearly a decade.
The council also selected members as representatives to the League of California Cities Redwood Empire Division and approved Perdock's 2017 appointments.
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Clearlake City Council approves agreements and resolutions for Measure V implementation
- Elizabeth Larson
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