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CC - ACTION ITEM: (1) Adoption of an Ordinance Authorizing the City to Conduct an All-Mail Ballot Election on August 26, 2025; (2) UNANIMOUS VOTE REQUIREMENT: Adoption of a Resolution Declaring a Fiscal Emergency Pursuant to Article XIII C of the Constitution of the State of California; Calling and Giving Notice of the Holding a Special All-Mail Municipal Election to be Held on Tuesday, August 26, 2025 for the Purpose of Submitting to the Voters One Ordinance to Enact a Local Transactions and Use Tax (Sales Tax) Measure; and Directing the City Attorney to Prepare an Impartial Analysis of the Ballot Measure; (3) Adoption of a Resolution Requesting the Board of Supervisors of the County of Los Angeles Render Specified Services Related to the Conduct of Said Election; (4) Discussion and (If Desired) Adoption of a Resolution Authorizing and Giving Priority to the City Council and/or Certain Council Members to Submit Ballot Arguments (Primary and Rebuttal) Regarding the Ballot Measure; (5) (If Desired) Creation of and Appointment of City Council Members to an Ad Hoc City Council Subcommittee to Draft and/or Submit Such Ballot Argument(s); (6) FOUR-FIFTHS VOTE REQUIREMENT: Approval of a Related Budget Amendment Appropriating $540,000 from the General Fund Unassigned Balance for Election Costs; and (7) Approval of Agreements for Election Services with Hart Intercivic in an Amount Not-to-Exceed $75,000, and ProVote Solutions in an Amount Not-to-Exceed $210,000; and (8) Authorization to the City Manager to Approve Other Election-Related Agreements as Needed within the Allocated Budget of $540,000.
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Meeting Date: April 14, 2025
Contact Person/Dept: Jeremy Bocchino, City Clerk
Phone Number: 310-253-5851
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [X] Attachments: Yes [X] No []
Public Notification: (E-Mail) Meetings and Agendas - City Council (04/10/2025)
Department Approval: Michael Bruckner, Assistant City Manager
(04/08/2025)
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RECOMMENDATION:
Staff recommends the City Council:
1. Adopt an ordinance authorizing the City to conduct a Special All-Mail Ballot Municipal Election on Tuesday, August 26, 2025; and,
2. Adopt a resolution declaring the existence of a fiscal emergency pursuant to Article XIII C of the California Constitution (a unanimous vote is required for the declaration of fiscal emergency); calling and giving notice of the holding of a Special All-Mail Ballot Municipal Election to be held on Tuesday, August 26, 2025, for purposes of submitting to the voters one Local Transactions and Use Tax ballot measure; and directing the City Attorney to prepare an impartial analysis of the ballot measure. This tax measure requires the declaration of a fiscal emergency before it can be submitted to the voters. The measure, if adopted by the voters, would implement a Local Transactions and Use Tax of one-quarter (1/4) cent; and,
3. Adopt a resolution requesting the Board of Supervisors of the County of Los Angeles render certain specified services to the City relating to the conduct of a Special All-Mail Ballot Municipal Election; and,
4. Discuss and, if desired, adopt a resolution authorizing and giving priority to the City Council and/or certain Council Members to submit ballot arguments (primary and rebuttal) regarding the ballot measure; and,
5. If desired, create and appoint City Council Members to an Ad Hoc City Council Subcommittee to draft and/or submit such ballot argument(s); and
6. Approve a related budget amendment appropriating $540,000 from the General Fund Unassigned Balance for election costs (four-fifths vote requirement); and
7. Approve agreements for election services with Hart Intercivic in an amount not-to-exceed $75,000 and ProVote Solutions in an amount not-to-exceed $210,000; and
8. Authorize the City Manager to approve other election-related agreements as needed within the allocated budget of $540,000.
BACKGROUND:
On February 24, 2025, the City Council received the Fiscal Year 2024/2025 mid-year budget update. During the presentation, the City Council was informed that based on current General Fund revenues and expenditures, the City’s 10-year forecast shows that the structural deficit first identified in the Fiscal Year 2023/2024 budget has widened. If prudent measures are not taken, General Fund reserves are projected to be reduced from $151.4 million in the current year to $10.4 million in Fiscal Year 2034/2035. To add further context to the current state of fiscal stress, the Fiscal Year 2024/2025 General Fund projected deficit is $35.5 million.
The structural imbalance in the City’s General Fund is on an unsustainable trajectory and, without action, the City will exhaust nearly all reserves within the 10-year forecast window.
While the City’s projections look to a ten-year timeframe, the City cannot wait until the November 2026 General Municipal Election to seek voter approval for the proposed tax. Any deferred income stream necessarily means lost income, as the City misses the potential revenue from sales which occur in the meantime. Further, maintaining services is much more cost effective than re-implementing services or positions which have been cut, and so to the extent that budget cuts may be necessary, it would be most prudent to do so only after implementing any potential new revenue sources.
At the March 4, 2025, City Council Meeting, the City Council unanimously requested that staff agendize a discussion item regarding the placement of a one-quarter (1/4) cent sales tax ballot measure at an upcoming election.
On March 17, 2025, the City Council, by unanimous consent, directed the City Manager to bring forward an item calling for a declaration of fiscal emergency, placing a one-quarter (1/4) cent sales (transaction and use) tax measure on a ballot and calling for a special all-mail ballot election on Tuesday, August 26, 2025, and to conduct polling on the viability of a proposed measure.
DISCUSSION
In order to place a tax measure on a ballot other than at a regularly scheduled general municipal election, a fiscal emergency must be declared by a unanimous vote of the City Council. As described above, in order to maintain the quality of life in Culver City, there is an urgent need to significantly increase general revenues.
To effectuate the placement of the proposed measure on the ballot at the Tuesday, August 26, 2025, all-mail special election, the City Council is requested to:
(1) Adopt an ordinance authorizing the City to conduct a Special All-Mail Municipal Election on Tuesday, August 26, 2025 (Attachment 1); and,
(2) Adopt a resolution declaring a fiscal emergency pursuant to Article XIII C of the California Constitution (a unanimous vote is required for the declaration of fiscal emergency), calling and giving notice of the holding of a Special All-Mail Ballot Municipal Election to be held on Tuesday, August 26, 2025, for the purpose of submitting to the voters one question relating to one tax measure, and directing the City Attorney to prepare in impartial analysis of the measure (Attachment 2). (This tax measure requires the declaration of a fiscal emergency before it can be submitted to the voters); and,
(3) Adopt a resolution requesting the Board of Supervisors of the County of Los Angeles to Render Specified Services Related to the Conduct of said Election (Attachment 3); and,
(4) Discuss and, if desired, adopt a resolution authorizing and giving priority to the City Council and/or certain Council Members to submit ballot argument(s) (primary and rebuttal) regarding the measures (Attachment 4); and,
(5) Discuss and, if desired, create and appoint Council Members to an ad hoc subcommittee to draft and/or submit such ballot argument(s); and,
(6) Approve a related budget amendment appropriating $540,000 from the General Fund Unassigned Balance for election costs (four-fifths vote requirement); and
(7) Approve agreements for election services with Hart Intercivic in an amount not-to-exceed $75,000, and ProVote Solutions in an amount not-to-exceed $210,000; and
(8) Authorize the City Manager to approve other election-related agreements as needed within the allocated budget of $540,000.
Adopting the Ordinance for an All-Mail Ballot Election
City Charter § 1505 states, “The City Council may, by ordinance, authorize the conduct of elections wholly by mail, under which all votes shall be cast in the manner of absentee ballots.” At the March 17, 2025, City Council meeting, the City Council introduced a proposed ordinance authorizing the conduct of an all-mail ballot election on Tuesday, August 26, 2025. It is recommended the City Council adopt the ordinance (see Attachment 1).
Declaring a Fiscal Emergency
California Constitution Article XIII C, section 2 (b) requires that any proposed general tax be approved by a majority of the voters at a regularly scheduled general municipal election for the City Council, “except in cases of emergency declared by a unanimous vote of the governing body.” In order to place the measure on the ballot and proceed with the special election, it is necessary to declare a fiscal emergency by adopting the proposed resolution (see Attachment 2). A unanimous vote of the Council is required for this action.
Calling of the Special Election
Should the City Council wish to proceed with the Special Municipal Election, staff recommends the City Council adopt the proposed resolution calling and giving notice of the holding of a Special Municipal Election on Tuesday, August 26, 2025 (see Attachment 2). The proposed resolution calling the Special Election also directs the City Attorney to prepare the required impartial analysis of the ballot measure.
Requesting the County to Provide Certain Specified Services Related to the Conduct the Election
In accordance with Section §10002 of the Elections Code of the State of California, the governing body of any city or district may, by resolution, request the Board of Supervisors of the county to permit the County Elections Official to render specified services to the city or district relating to the conduct of an election. In accordance with Section §1500 of the Elections Code, the next established, all-mail ballot election occurring not less than 88 days after the date of the order of election shall be held on Tuesday, August 26, 2025. Staff recommends the City Council adopt the proposed resolution which requests the Board of Supervisors render specified services to the City relating to the conduct of said election. Specified services include but are not limited to access to Los Angeles County Registrar of Voters data, signature verification, voter files, precinct consolidation, ballot drop-off box rental costs. Costs for County services are estimated to be $15,000.
Authorizing the City Council and/or Certain Council Members to Submit Arguments
The City Council, authorized members of the City Council, citizen associations and private citizens may submit arguments for or against the proposed Measure. Only one ballot argument for and one ballot argument against each measure and rebuttals to each may be printed in the sample ballot. The Elections Code gives preference to the arguments submitted by the City Council, as a body, or by Council Members authorized to submit arguments by the City Council if they have been authorized by the Council.
The City Council should decide whether it will submit initial primary arguments and if required, rebuttal arguments. If individual members are to be designated, then the City Council should make those designations at this meeting (typically, two members are authorized to write the argument on behalf of the whole Council.)
Based on the calendar for the Tuesday, August 26, 2025, special election, primary arguments are due to the City Clerk’s Office 14 days following the date calling the election pursuant to Elections Code § 9286(a). If the Council should call for the special elections at the April 14th City Council meeting, the deadline for primary arguments would be no later than the close of business (5:30 PM) on Monday April 28, 2025, and each argument shall not exceed 300 words in length.
If the City Council chooses to do so, the City Council may give priority to City Council members who wish to file a ballot argument, or to the Council as a whole, which would give those arguments priority in the event where more than one argument is filed. A proposed resolution giving such priorities to Council Members is provided as Attachment 4 to this report for City Council consideration.
Should the City Council determine that it wishes to review and approve the primary argument as a body, such review and approval would need to take place at a Special City Council meeting prior to the deadline of April 28, 2025.
California Elections Code § 9285 states that, “the author or a majority of the authors of an argument relating to a city measure may prepare and submit a rebuttal argument or may authorize in writing another person or persons to prepare, submit, or sign the rebuttal argument and…shall not exceed 250 words.”
Rebuttal arguments are limited to 250 words and are due no later than 10 days after the final filing date for primary arguments or no later than close of business (5:30 PM) on Thursday, May 8, 2025.
Approval of a Related Budget Amendment Appropriating $540,000 from the General Fund Unassigned Balance for Election Costs
The Adopted Budget for Fiscal Year 2024/2025 does not contain sufficient funding for the estimated costs of the election. A budget amendment appropriating funds from the General Fund Unassigned Balance is necessary to fund the costs (four-fifths vote requirement).
Approval of Vendor Costs and Agreements to Provide Equipment and Additional Services Required to Allow for the Conduct of an All-Mail Ballot Election
In addition to the County providing certain services, outside contractual assistance is required to print/mail ballots and envelopes for mailing, as well as the equipment and individuals required to canvass the election. Costs for outreach will also be required. Total costs for additional services are estimated to be $540,000. In this regard, staff recommends the City Council approve agreements for election-related services with Hart Intercivic in an amount not-to-exceed $75,000 and ProVote Solutions in an amount not-to-exceed $210,000 and authorize the City Manager to approve other election-related agreements as needed within the allocated budget of $540,000.
Polling Data
At the March 17, 2025, City Council meeting, the City Council directed the City Manager to conduct polling on the proposed sales tax measure to gauge voter perception and the viability of the proposed measure. The City contracted with Fairbank, Maslin, Maullin, Metz & Associates (FM3), a public opinion research firm the City has used for previous ballot measures and topics of public concern. FM3 conducted a poll from March 24-30, 2025, interviewing 411 Culver City voters.
Based on the poll results, FM3 determined that 57% of all voters initially support a quarter-cent sales tax measure. After voters are informed of the City’s current financial condition, support for the measure increases to 62%; however, support decreases to 54% when voters are presented with opposing views.
Because the City is considering an off-cycle (non-November), all-mail special election in August 2025, FM3 analyzed the perceptions of high-propensity voters-defined as individuals who voted in at least 7 of the past 8 elections or voted by mail in 5 or more of the past 8 elections. Among this subset of the voting population, initial support for the proposed sales tax measure is 62%, rising to 67% after voter education on the City’s financial condition. However, support decreases to 61% when voters are presented with opposing views.
These results suggest that the Culver City quarter-cent sales tax measure is feasible. However, in an uncertain political and economic environment, a sustained community outreach program is essential to educate the public about the measure, the City’s financial needs, and how funds would be used to maintain services that residents prioritize.
FISCAL ANALYSIS:
The cost to hold the election is estimated at $540,000. The Adopted Budget for Fiscal Year 2024/2025 does not include funding for these costs. Staff recommends a budget amendment appropriating $540,000 from the General Fund Unassigned Balance to Account No. 10111100.610600 (City Clerk - Elections Services) which requires a four-fifths vote. As of February 24, 2025, the Unassigned General Fund Balance was approximately $2.3 million. Most contracts for services would be executed in the current fiscal year, with some funding carried over to Fiscal Year 2025-2026 as needed. As per Elections Code § 13001, all expenses for the conduct of this election must be paid from the City’s General Fund.
Should the voters approve the proposed measure, an additional $5,600,000 in sales tax revenue is estimated annually.
ATTACHMENTS:
1. 2025-04-14_ATT 1_Proposed Ordinance authorizing all-mail election on Tuesday, August 26, 2025.
2. 2025-04-14_ATT 2_Proposed Resolution declaring a fiscal emergency, calling a Special Municipal Election on Tuesday, August 26, 2025, and directing the City Attorney to prepare an impartial analysis.
3. 2025-04-14_ATT 3_Proposed Resolution requesting Los Angeles County to render specified election services relating Tuesday, August 26, 2025 Special Municipal Election.
4. 2025-04-14_ATT 4_Proposed Resolution relating to submittal of ballot arguments (primary and rebuttal) for the Tuesday, August 26, 2025, Special Municipal Election.
MOTION(S):
That the City Council:
1. Adopt the proposed Ordinance authorizing the City to conduct an all-mail election on Tuesday, August 26, 2025; and,
2. Adopt the proposed Resolution declaring a fiscal emergency pursuant to Section XIII C of the California Constitution, Calling and Giving Notice of the Holding of a Special Municipal Election to be held on Tuesday, August 26, 2025, to submit one Sales Tax Measure, and directing the City Attorney to prepare an impartial analysis (Unanimous Vote Required); and,
3. Adopt the proposed Resolution requesting the Board of Supervisors of the County of Los Angeles to render specified services to the City of Culver City relating to the conduct of a special municipal election to be held in the City on Tuesday, August 26, 2025; and,
4. (If the City Council determines to designate no more than two Council Members to prepare and submit the primary and rebuttal arguments on behalf of the City Council): Adopt the proposed resolution authorizing and giving priority to the City Council and/or certain Council Members to submit primary and rebuttal arguments regarding the proposed measure, and direct the designated Council Members to file such arguments by the respective April 28 and May 8, 20225 deadlines;
OR
5. (If the City Council determines to create an ad hoc subcommittee):
Create an Ad Hoc Subcommittee and appoint Council Member ________ and Council Member __________thereto for the drafting of the primary and rebuttal arguments, and direct the Subcommittee to complete its work in time to present the City Council with a draft primary argument for approval at a special City Council Meeting prior to April 28, 2025 and a draft rebuttal Argument for approval at a special City Council Meeting prior to May 8, 2025;
AND
6. Approve a related budget amendment appropriating $540,000 from the General Fund Unassigned Balance for election costs (four-fifths vote requirement); and
7. Approve agreements for election services with Hart Intercivic in an amount not-to-exceed $75,000 and ProVote Solutions in an amount not-to-exceed $210,000; and
8. Authorize the City Manager to approve other election-related agreements as needed within the allocated budget of $540,000;
9. Authorize the City Attorney to prepare/review the necessary documents;
10. Authorize the City Manager to execute such documents on behalf of the City.