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to Proposition 218, however, they must be voted on by property owners. In addition, benefit assessment districts must meet certain procedural requirements which are not insignificant. Specific Revenue Options, including benefit assessment districts are discussed in the following sections. Revenue Option 1: Increase to the Property Tax Rate When Proposition 13 was approved by California voters in 1973, the ad valorem property tax rate was frozen at 1% of a property's assessed value. The law allows for that rate to be adjusted upwards for any debt service that existed when the proposition was passed. There is an argument that if a governmental entity had an unfunded pension liability at the time Proposition 13 was approved, then that obligation meets the definition of "debt" under Proposition 13. If that argument were to prevail, then the 1% rate could be adjusted upwards to collect additional property tax revenue sufficient to pay the "debt service". There are significant legal and implementation issues to be resolved, should the Committee decide to pursue this revenue option. If that is the case, staff will return at a later date with additional information and analysis. Revenue Option 2: Citywide Public Safety Parcel Tax/General Parcel Tax A parcel tax can be for general governmental activities or for a special purpose, such as public safety. A 2/3 approval vote of the electorate is required to adopt the tax. The tax is not an ad valorem (value based) tax, but rather, is an excise tax levied on the availability and use of services. A public safety parcel tax proposed earlier would have raised $2.1 million from residential users and $1.4 million from commercial/industrial properties totaling $3.5 million. The residential rates were proposed at approximately $47.00 for mobile homes, duplexes, triplexes, and apartment complexes. The rate for single-family homes, condominiums, and townhomes was $78.00 per year. Commercial/industrial property was based on square footage and was generally $.016 per square foot. If Council decided to go forward with a parcel tax, it would have to be placed before the voters at a City general election. Revenue Option 3: (General or Special purpose) Sales and Use Tax This tax can be a general or, special purpose tax. If it is for general purposes, majority approval is required. If the tax is a special tax for a specific purpose, then a 2/3 approval of the voters is required. The tax is collected in the same manner as the existing sales and uses tax and must be imposed in .25% increments. The combined rate in a county cannot exceed 9.25%.