City Council

6.1 APPROVAL TO PLACE A TRANSIENT OCCUPANCY TAX MEASURE ON THE NOVEMBER 3, 2026 GENERAL MUNICIPAL ELECTION BALLOT Executive Summary: by visitors who stay in hotels, motels, and similar lodging for 30 days or less. All seven neighboring Los Angeles County cities reviewed for this report levy a TOT at rates ranging from 5 to 12 percent. To evaluate whether Lynwood should adopt a TOT, the City retained HdL Companies to benchmark Lynwood's lodging inventory against comparable cities and project potential revenue across a range of candidate rates. The analysis, dated July 16, 2026, found that each percentage point of TOT is projected to generate approximately $62,600 annually at the median estimate. A 12 percent rate is projected to generate approximately $751,315 annually, or approximately 1.69 percent of the City's General Fund. A TOT proposed for general governmental use is a general tax under California law and requires a two-thirds vote of the City Council to place the measure on the ballot, followed by approval of a simple majority of voters. Staff recommends that Council place a 12 percent TOT measure before Lynwood voters at the November 3, 2026 General Municipal Election. The recommended rate is within the range currently imposed by the comparison cities and equals the highest rate in the comparison group. The proposed measure would allow Lynwood voters to decide whether to establish a 12 percent transient occupancy tax paid by guests staying at hotels and motels in the City to generate revenue for general City services, with all revenue remaining under local control. The measure includes annual financial audits and public disclosure of spending, and would remain in effect until ended by voters. The City Council and staff recognize that residents and businesses place the greatest priority on maintaining core City services; keeping routes to school and places where children play safe; preventing crime and gang activity; maintaining 911 emergency response; keeping parks and public areas safe and clean; investing in street and pothole repairs; preventing human trafficking; addressing unsafe driving; and supporting youth and recreation programs. Like many California cities, Lynwood continues to evaluate long-term funding options to help address these issues and manage rising operational costs. The City has taken a number of steps to reduce spending, however expenditures for the cost of goods, labor, and contract services have outpaced gains. A TOT proposed for general governmental use would assist in support of these services. If the measure is approved by voters, staff would return to Council at a subsequent meeting to introduce and adopt the implementing ordinance (Attachment 1). (CM, CD, FIN) Recommendation: Staff recommends City Council: 1. INTRODUCE for first reading, read by title only, and waive further reading, the LYNWOOD, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, ADDING SECTION 6-9 ‘TRANSIENT OCCUPANCY TAX’ TO CHAPTER 6 ‘FINANCE AND TAXATION’ OF THE LYNWOOD MUNICIPAL CODE, IMPOSING A TRANSIENT OCCUPANCY TAX AT A RATE OF TWELVE PERCENT ON THE FULL AMOUNT PAID BY GUESTS FOR LODGING, AND REQUIRING ONLINE TRAVEL COMPANIES AND OTHER BOOKING INTERMEDIARIES TO COLLECT AND REMIT THE TAX”; (Attachment 1) and 2. ADOPT a resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE HOLDING OF A GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 3, 2026, FOR THE SUBMISSION TO THE VOTERS OF A MEASURE RELATING TO THE IMPOSITION OF A GENERAL TRANSIENT OCCUPANCY TAX ON THE PRIVILEGE OF OCCUPYING LODGING FOR TRANSIENT 3. ADOPT a resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD, CALIFORNIA, REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY OF LOS ANGELES TO CONSOLIDATE A GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 3, 2026, WITH THE STATEWIDE GENERAL ELECTION TO BE HELD ON THAT DATE PURSUANT TO § 10403 OF THE ELECTIONS CODE”; and 4. ADOPT a resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD APPROVING THE FORM OF THE PROPOSED ORDINANCE TO BE SUBMITTED TO VOTERS OF THE CITY AT THE NOVEMBER 3, 2026, GENERAL MUNICIPAL ELECTION ESTABLISHING A TRANSIENT OCCUPANCY TAX,” and 5. ADOPT a resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE WRITTEN ARGUMENTS AND REBUTTALS REGARDING A MEASURE FOR THE NOVEMBER 3, 2026, LYNWOOD GENERAL MUNICIPAL ELECTION AND DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS”; and 6. AUTHORIZE the City Clerk to take all actions necessary to place the measure on the November 3, 2026 ballot, including filing the required documents with the Los Angeles County Registrar-Recorder/County Clerk.