IMPARTIAL ANALYSIS OF MEASURE "H"

Ballot Measure "H" is a proposal to adopt an ordinance that would repeal the City’s existing utility user tax.

The utility user tax is a 6% tax on the use of electric, gas, water, telephone and cable television utilities. The tax is based on utility users’ monthly usage, collected by the utility provider and conveyed to the City for general governmental purposes. The revenue from the tax is approximately $1.8 annually, and represents approximately 12% of the City’s total annual general fund revenues.

The City has imposed a utility user tax since 1985. In 1987, the tax was increased to 10% by a vote of the people, in order to raise additional revenue to pay for acquisition of the greenbelt. Once the debt for that acquisition was retired in 1995, the tax was automatically restored to its original level of 6%.

A "yes" vote is in favor of repealing the utility user tax; a "no" vote is against repealing the tax. A majority of "yes" votes is required for the ordinance to be enacted.

Michael Jenkins
City Attorney

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