See Also: Index of all Measures

In 1995, a California Supreme Court decision held that general tax increases must be approved by a majority vote of the electorate. The following year, the City of Avalon requested special state legislation to help fund its hospital through a sales tax. The law adopted by the California State Legislature requires the City to hold a vote to confirm or deny the earlier increase in the transient occupancy tax before the sales tax for the hospital can be considered. The transient occupancy tax increase, Measure "B," must be confirmed by a majority vote.

If the measure passes, the transient occupancy tax rate which has been in place since April 1994 will continue. If the measure fails, the City's budget would be reduced by $411,000. This equals 11.4% of the City's General Fund. In order to meet this budget deficit, the City would be required to make one or more of the following budgetary changes: reduce or eliminate services such as fire, paramedics, sheriffs, harbor or public works; reduce the number of City employees; delay or eliminate repair, replacement and other improvement projects and similar budgetary actions.