HomeMy WebLinkAboutAgenda Statement 1986/06/17 Item 7 COUNCIL AGENDA STATEMENT
Item 7
Meeting Date 6/17/86
ITEM TITLE: Public Hearing - Consideration of Utility User' s Tax
a. Resolution k °I' Establ i shi ng the Rate for the Utility User' s
Tax Between July 1 , 1986 and December 31 , 1986
SUBMITTED BY: Director of Finance,,
REVIEWED BY: City Manager 1(9,ty (4/5ths Vote: Yes No x )
...
On June 29, 1978, the City Council approved and adopted Ordinance 1803. This
Ordinance requires that two public hearings be held annually, one in November
and a second no later than the time the City Council schedules its public
hearing for adoption of the budget.
RECOMMENDATION: That the City Council conduct a public hearing in
consideration of the Utility User's Tax and maintain the present tax rate.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
The purpose and intent of Ordinance 1803 was to provide sufficient Utility
User's Taxes to ensure a reasonable level of revenue for the necessary
operation of the City of Chula Vista. 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.
Actual Utility User' s Taxes collected in the 1984-85 fiscal year were
$1 ,579,707. The projection for 1985-86 is $1 ,783,208. The present tax rate
on telephones is 5% and the consumption factor for electricity is .0025 and
for gas .00919.
Exhibit A, attached, summarizes the Utility User' s Tax consumption and dollar
amounts collected for the current fiscal year 1985-86.
FISCAL IMPACT: It is estimated that the Utility User's Tax will generate
$2,130,000 in General Fund revenue for FY 1986-87.
WPC 0271G
by he City Council of
Chula Vista, California
Dated 40-//t- -.. / 7/ /;74‘
Exhibit A
UTILITY USER'S TAX SUMMARY
1985-86 FISCAL YEAR
GAS & ELECTRICITY
ELECTRIC
MONTH KILOWATT GAS THERM REVENUE
July 26,342,544 1,161,113 $ 76,368
August 28,723,964 985,472 80,700
September 28,077,146 840,460 77,757
October 29,511,840 884,619 81,739
November 27,107,337 890,484 75,796
December 27,587,335 1,165,675 79,517
January 30,506,282 2,200,271 96,268
February 36,229,573 2,669,312 114,868
March 34,084,471 2,380,008 106,862
April 35,103,626 2,298,363 108,666
May 33,269,249 1,947,686 100,873
June (Est) 34,000,000 1,900,000 102,461
Total 370,543,367 19,323,463 $1,101,875
TELEPHONE
MONTH REVENUE
July $ 58,430
August 54,265
September 57,873
October 56,555
November 55,293
December 56,554
January 51,101
February 51,130
March 54,215
April 54,145
May 66,772
June (Est) 65,000
Total $681,333