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Measure P
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Analysis of Measure
P |
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Shall Chapter 3.29 of the Santa Cruz Municipal Code which levies a Utility Users Tax upon persons in the City of Santa Cruz be repealed?
Full Text of Ballot Measure
P |
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City Attorney Impartial Analysis
Repeal of City of Santa Cruz Currently the City of Santa Cruz imposes a utility users tax. The City’s Utility Users Tax Ordinance which authorizes the tax was originally adopted by the City Council on May 8, 1984 and went into effect on July 1, 1984. Since that time the City has continuously levied this tax. The current tax rate, which has been in effect since October 1, 1991, is 7 percent. The utility payments which are taxed pursuant to the ordinance currently include payments for electricity, gas, cable television, telephone, water, refuse collection and sewer. This initiative, if adopted by the voters, would serve to immediately repeal the City’s Utility Users Tax Ordinance thereby prohibiting the City from continuing to collect utility users taxes from its residents and automatically terminating the City’s receipt of utility user tax revenue. Utility users tax revenues are deposited in the General Fund, the City’s general operating fund. The tax revenue is used to support the City’s daily operations including many public services provided by various City departments including the Police Department, the Fire Department, the Public Works Department, the Parks and Recreation Department, the Planning and Community Development Department and the City/County Library. In addition, the tax revenue is used to support administrative services necessary to the City’s operation including services provided by the City’s Personnel Department, Finance Department, City Manager’s Department and City Attorney’s office. General tax revenues are also used to support community-based nonprofit social service providers. Utility user tax budget estimates for the 2001/2002 fiscal year totaled $8.285 million and accounted for 17.5 percent of budgeted General Fund operating expenditures. Detailed information concerning the City’s budget is a matter of public record and is available at City Hall and at the Library. The City’s budgeted utility tax revenue has increased from $6.1 million to $8.285 million over the past five fiscal years. This year $8.5 million in utility tax revenue is budgeted. If the utility tax is repealed, the City will permanently lose this revenue. Unless a replacement revenue source is identified, the repeal of the utility tax will therefore require the City to cut future annual budgets by at least $8.5 million on a permanent basis. s/ John Barisone June 17, 2002 |
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Fiscal
Analysis by Director of Finance The utility tax is expected to produce $8.4 million this year, almost 20% of the City’s tax receipts and general revenues. Nearly half of the City’s tax receipts and general revenues are spent for police and fire. Just over one quarter of the City’s tax receipts and general revenues are spent for parks and recreation and public works. The final quarter is spent for a variety of purposes including land use planning; maintenance of public buildings; contributions to community programs such as senior meals and child care; animal control; visitor promotion; and administration including finance, data processing, human resources, city clerk, city manager, city attorney, and city council. If the utility tax is repealed, the City must cut annual spending by $8.4 million. If police and fire were not cut, this could be accomplished by cutting all other services listed above by 40%. If all services including police and fire were cut the same, the cut would be 20%. s/ David Culver Director of Finance City of Santa Cruz |
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The statements contained on this page are the fiscal and impartial analyses of Measure P. If you desire a copy of the measure, please call the Santa Cruz County Elections Department at 454-2060 or the City Clerk's Office at 420-5030 and a copy will be mailed at no cost to you, or visit www.votescount.com |
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