HomeMy WebLinkAboutAgenda Statement 1984/06/26 Item 4,4a y ` COUNCIL AGENDA STATEMENT
Item 4, 4a
Meeting Date 6-26-84
I TITLE: Public Hearing - Consideration of Utility User's Tax
a. Resolutionf4.7 Establishing the Rate for the Utility User's Tax
Between July 1 , 1984 and December 31 , 1984
IITTED BY: Director of Financed (4/5ths Vote: Yes No x )
EWED BY: City Manager 0,
une 29, 1978, the City Council approved and adopted Ordinance 1803. This Ordinance
ires that two public hearings be held annually, one in November and a second no later
the time the City Council schedules its public hearing for adoption of the budget.
MMENDATION: That the City Council conduct a public hearing in consideration of
Utility User's Tax and maintain the present tax rate.
DS/COMMISSIONS RECOMMENDATION: Not Applicable.
USSION:
purpose and intent of Ordinance 1803 was to provide sufficient Utility User's Taxes
nsure a reasonable level of revenue for the necessary operation of the City of
a Vista. Additionally, the City Council wished to retain the program of basing the
tion of gas and electricity on units of energy thus protecting taxpayers from increases
he tax brought about by rate increases granted by the Public Utilities Commission.
al Utility User's Taxes collected in the 1982-83 fiscal year were $1 ,444,029. The
ection for 1983-84 is $1 ,465,000 representing an increase of $20,971 . The present
rate on telephones is 5% and the consumption factor for electricity is .0025 and
gas .00919.
divesture of "AT&T" on January 1 , 1984 has not had the negative effect that we
cipated. When we considered the Utility User's Tax on November 22, 1983, we thought
the monthly tax payments would drop about $4,000. This has not occurred. We get
eck from Pacific Bell and AT&T that together equal the one check we used to get from
fic Telephone & Telegraph. As new companies penetrate the long distance telephone
ice market in California, however, the effect will be felt unless those companies
ect and remit the tax.
e are 19 companies known to be doing business in at least some parts of California
Exhibit A) .
re planning to take the following steps to encourage collection of our Utility User's
1. Inform each company of the existence of the Utility User's Tax Ordinance
and of its duty, as the City's collection agent, to collect the tax from its
customers and remit it to the City.
A-113 (Rev. 11/79)
Page 2, Item 4, 4a
Meeting Date 6/26/84
2. Advise the company that, if it is unable to collect the tax from its
customers on an actual basis, the tax should be collected and remitted
on an estimated basis until the Automatic Number Identification System
(ANI) is accessible. The ANI System, when available, will tell the
Company where the calls originate.
The League of California Cities indicates that all companies authorized
by the P.U.C. to operate in the State will gain equal access to the ANI
System by December, 1985. The League recommends that a realistic and
probably conservative estimate of the total telephone service bill which
is attributable to intrastate calls originating within the City and which
is therefore subject to the utility users tax would be 25%.
3. Alert each company that if it fails or refuses to collect and remit the
tax as required by the City ordinance, the City will make an assessment
against the company for taxes not paid or remitted.
Exhibits B & C, attached, show the summary of Utility Users Tax consumption and
dollar amounts collected for the current fiscal year 1983-84.
FISCAL IMPACT: Not Applicable
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