Measure U: Utility User's Tax Extension

League of Women Voters of California

Los Angeles County, CA

April 9, 2002 Election

Measure U
Utility User's Tax Extension
City of South Pasadena
Ordinance

Information shown below: Impartial Analysis |

Shall an ordinance be adopted to extend the 5% Utility User's Tax for five years from August 1, 2002 until July 31, 2007?

Impartial Analysis from City Attorney

As approved by the voters in March, 1997, the City of South Pasadena currently charges a utility user's tax of 5% on the amount utility customers within the City pay for water, telephone, electricity, gas and cable television services. That tax is collected by each utility as part of the regular utility bill. The City's authority to charge that tax will end on July 31, 2002. The revenue the City receives from that tax accounts for approximately $1.8 Million Dollars (or 13%) of the City'a annual General Fund revenue and is used to pay some of the costs of the City's ongoing normal operations.

If Measure U is approved by a simple majority of the voters voting on measure, then the amount of that tax (5%) would stay the same and the term would be extended for an additional five (5) years (through July 31, 2007). Also, if Measure U is approved and the City desires, in the future, to continue to charge that tax after July 31, 2007, then that extension would also be required to be presented to the voters at the regular municipal election (when council members are elected), which would most likely be held on Tuesday, March 6, 2007.

The utility user's tax would continue to be collected by each utility as part of the regular utility bill.

If Measure U does not receive approval from a majority of the votrs voting on it, then the City would no longer receive that approximately $1.8 Million Dollars of annual general revenue.

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Created: April 19, 2002 10:59 PDT
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