Pass: 8,211 / 65.35% Yes votes ...... 4,353 / 34.65% No votes

See Also: Index of all Measures

Impartial Analysis from City Clerk

Measure II, if approved by the voters, would reduce the City’s utility user’s tax from ten percent (10%) to nine percent (9%), and it would ratify the collection of the tax, which has been collected since 1990. Measure II also proposes to update the utility user’s tax so that it reflects modern technologies.

Measure II was placed before the voters of Lynwood by a unanimous vote of the City Council after the declaration of a fiscal emergency. (Resolution No. 2008.118) The City Council specifically made findings that the continuation of the utility user’s tax with the changes proposed in Measure II was necessary to continue providing “an acceptable level of municipal services.” Due to the housing market collapse and other recessionary indicators, other City revenue sources, such as property tax and sales tax revenue, are likely to decrease. Furthermore, given the state budget crisis and anticipated cuts in funding for local services, a continuing level of local revenue is immediately needed to fund municipal services required to protect the public health, safety, and welfare at existing levels, according to Resolution No. 2008.118.

Currently, the utility user’s tax generates approximately 20% of all general fund revenue for the City of Lynwood, according to the City’s Finance Director. The City is facing an approximately $5 million shortfall where anticipated expenditures exceed revenue, including revenue from the existing utility user’s tax.

The City’s existing utility user’s tax is a general tax, which means the funds are deposited into the City’s general fund and used for general governmental purposes. Measure II would not affect the status of the utility user’s tax as a general tax.

Historically, in Lynwood the largest expenditures from the general fund are used to contract for law enforcement services provided by Los Angeles County Sheriff’s Department and fire protection services provided by the Los Angeles County Fire Department. Other examples of typical uses for general fund revenue include street and sidewalk repair, construction and maintenance of public parks and facilities, city recreational programs, and general government operations.

Measure HH is a companion to Measure II, which asks voters if the City’s top priority for use of the utility user’s tax revenue should be law enforcement, gang suppression, crime and drug intervention, graffiti abatement, and prosecution of those engaged in prostitution.

Measure II would continue the existing utility user’s tax, but would modify the tax in three material ways. First, it would reduce the tax rate from 10% to 9%. Second, it would clarify that the tax shall apply to new technologies such as wireless telecommunications. Finally, it would provide the tax shall be applied to interstate telecommunications in addition to intrastate.

This measure would take effect if approved by a majority of voters who cast votes in connection with this measure at the election.

City of Lynwood

L.A. Wave

• Voters to decide on city utility users tax on November ballot - 8/21/08