HomeMy WebLinkAboutAgenda Statement 1987/01/13 Item 16 COUNCIL AGENDA STATEMENT
Item 16
Meeting Date 1A3 /87
ITEM TITLE: a) Public Hearing - Consideration of Utility User's Tax
b) Resolution /J_877 Establishing the rate for the Utility
User' s Tax between January 1 , 1987 and June 30, 1987
SUBMITTED BY: Director of Finance' (4/5ths Vote: Yes No X )
REVIEWED BY: City Manage ((
City Ordinance 1803 approved and adopted by the City Council on June 29, 1978,
requires the City Council to review the Utility User's tax rate mid-year and
also at the public hearing adopting the annual budget.
RECOMMENDATION: That the City Council conduct a public hearing in
consideration of the utility user' s tax rate and adopt resolution maintaining
the same rate.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
The purpose and intent of Ordinance 1803 was to provide sufficient utility
users taxes to ensure a reasonable level of revenue for the necessary
operation of the City. Additionally, the City Council wished to retain the
program of basing the taxation of gas and electricity on units of energy thus
protecting taxpayers from increases in the tax brought about by rate increases
granted by the Public Utilities Commission.
FISCAL IMPACT:
Utility user's tax revenue for the fiscal year 1985-86 was $1 ,773,736. The
budget estimate for 1986-87 is $2,130,540 based on the present tax rate on
telephones of 5% and consumption factors of .0025 for electricity and .00919
for gas. The budget estimate for fiscal year 1986-87 includes $382,000
attributable to the newly annexed Montgomery area and explains the increase
over fiscal year 1985-86.
Exhibit A, attached, shows the summary of utility user' s consumption and tax
revenue collections for the prior fiscal year 1985-86. The same information
is included for the first four months of the current fiscal year 1986-87.
WPC 0221G AO /
by the City Council of
Chula Vista, California
Dated /—/2" 7