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Adoption of the charter will change the current legal form of the City government. Under the California constitution, cities are either general law cities, or charter cities. General law cities must follow procedures set by State law, and may only exercise powers granted to them by the State. Charter cities have full authority over their own "municipal affairs," but remain subject to State law on matters of "statewide importance." Charter cities must also comply with California and Federal Constitutional requirements.

Passage of the Measure will change Signal Hill from a general law to a charter city. Over 20 percent of the cities in the State are charter cities, including all of the larger cities of the State as well as Long Beach and many other surrounding cities.

Examples of "municipal affairs" Signal Hill could regulate as a charter city include municipal utilities; procedures for bidding and contracting; regulation of parks, libraries and other facilities; salaries of officers and employees; parking regulations; franchise and other fees; taxation; zoning; and election procedures. Although a general law city can regulate these matters, as a charter city, Signal Hill's regulations would govern even if the State adopted contrary laws. As municipal finance is a municipal affair, if the State Legislature adopts one of the existing, or future proposals to eliminate or reduce the Bradley– Burns 1% sales tax, charter city status may exempt the City from such legislation.

Examples of "matters of state-wide importance," on which Signal Hill would be bound by State law, include environmental regulations, General Plan requirements, open meeting laws, public records, and redevelopment. The State Legislature has attempted to narrow the authority of charter cities, but ultimately, the courts determine the constitutional authority of charter cities.

The charter may only be adopted or amended where initiated by the Council or citizen petition and approved by the voters of the City. A charter makes the ultimate structure of the City's government subject to the voters. For example, the courts have held a charter city may adopt term limits for councilmembers and other elected officials while a general law city cannot. The charter does not propose any change in the existing structure of City government, nor any significant change in the laws of the City. Once a charter city, the Council could adopt ordinances to avoid mandated state programs where they interfere with the City's "municipal affairs." The government structure could later be changed through charter amendments.

It is difficult to accurately estimate the fiscal impact to the City of this Measure. The City's Finance Department predicts the adoption of the charter will not result in any significant cost savings or increases. Some minor expenses may be incurred in conforming some procedural ordinances to the charter.

/s/ David Aleshire, City Attorney

The above statement is an impartial analysis. Copies of the measure are available at the Library and on the City's Home Page. If you have any questions, please call the City Clerk at (562) 989– 7305.

Community Forum on Proposed City Charter

October 12, 7:00pm, Signal Hill City Hall, 2175 Cherry Ave. / More info from City Clerk 562/989-7305