Title 3 — Revenue and Finance

§ 3.01.010 Fiscal Year

The fiscal year of the City shall begin on July 1 and end on June 30 of the following calendar year.

§ 3.01.020 Annual Budget Preparation

The City Manager shall prepare and submit to the City Council a proposed budget for the ensuing fiscal year no later than May 1 of each year. The proposed budget shall contain a complete financial plan for all City funds and activities, including estimated revenues from all sources and proposed expenditures for all departments and programs.

§ 3.01.030 Budget Adoption

The City Council shall hold one or more public hearings on the proposed budget and shall adopt the final budget by resolution before June 30. If the budget is not adopted by June 30, appropriations for the prior year shall remain in effect on a month-to-month basis pending adoption of the budget.

§ 3.01.040 Appropriation Transfers

The City Manager may authorize transfers of appropriations within departments up to twenty-five thousand dollars ($25,000). Transfers between departments or exceeding twenty-five thousand dollars require City Council approval by resolution.

§ 3.01.050 Annual Audit

The City shall commission an independent financial audit by a certified public accountant following the close of each fiscal year. The audit shall be completed and presented to the City Council no later than December 31 following the close of the fiscal year audited.

§ 3.02.010 Collection Authority

The Finance Director, or designee, shall serve as Tax Administrator for all taxes administered by the City. The Tax Administrator shall have authority to adopt regulations, conduct audits, issue assessments, and take other actions necessary for the collection and administration of City taxes, consistent with this Code and applicable state law.

§ 3.02.020 Taxpayer Records

Every person subject to a City tax shall keep complete and accurate records as required by the applicable tax chapter. Records shall be retained for a minimum of four (4) years and shall be made available for inspection by the Tax Administrator upon reasonable notice.

§ 3.02.030 Penalties and Interest

Any tax not paid when due shall be subject to a penalty of ten percent (10%) of the unpaid amount plus interest at the rate of one and one-half percent (1.5%) per month from the due date until paid in full.

§ 3.03.010 Tax Imposed

For the privilege of occupying a room or rooms in a hotel, inn, motel, bed and breakfast establishment, vacation rental, or other transient lodging facility within the City for a period of thirty (30) or fewer consecutive days, each transient is subject to and shall pay a tax equal to twelve percent (12%) of the rent charged by the operator.

§ 3.03.020 Definitions

"Hotel" means any structure, or any portion of any structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging, or sleeping purposes, including any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, vacation rental, short-term rental, apartment house, dormitory, or other similar structure or portion thereof.

"Operator" means the person who is proprietor of the hotel, whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee, or any other capacity. If the operator performs their functions through a managing agent of any type, the managing agent shall also be deemed an operator.

"Transient" means any person who exercises occupancy or is entitled to occupancy by reason of concession, permit, right of access, license, or other agreement for a period of thirty (30) consecutive calendar days or less.

§ 3.03.030 Operator Duties

Every operator shall collect the tax from the transient at the time rent is paid. Tax returns and remittances are due on the last day of the month following each calendar quarter. The operator shall be responsible for collecting, reporting, and remitting the tax.

§ 3.03.040 Exemptions

No tax shall be imposed upon: (a) any person as to whom or any occupancy as to which it is beyond the power of the City to impose the tax; (b) any federal or state officer or employee when on official business; (c) any person occupying a room in a hospital or medical care facility; or (d) any person who has entered into a written lease for a period exceeding thirty consecutive days.

§ 3.04.010 Sales Tax Imposed

There is imposed upon all retailers in the City a tax for the privilege of selling tangible personal property at retail at the rate established by the City Council by resolution, not to exceed the maximum rate permitted under state law. Such tax is imposed in addition to the state sales tax imposed pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law.

§ 3.04.020 Administration by State Board

The City elects to have the sales and use tax imposed by this chapter administered and collected by the California Department of Tax and Fee Administration pursuant to the contract between the City and the State Board of Equalization as provided in Revenue and Taxation Code § 7202.

§ 3.05.010 Authority to Establish Fees

The City Council shall adopt a comprehensive schedule of fees for all City services, permits, licenses, and other activities by resolution. Fees shall not exceed the reasonable cost of providing the service or processing the application.

§ 3.05.020 Fee Updates

The City Manager may recommend fee adjustments to the City Council annually. Fees shall be reviewed annually and may be adjusted by resolution to reflect changes in the cost of service delivery. Fee schedules shall be posted at City Hall and on the City's official website.