Click here to Read the UUT FACT SHEET on the City Website
Some Facts
Analysis
City Attorney Sandra J. Levin wrote an impartial analysis of Measure U. (full text here)
The key points of her analysis are:
- Temporarily increase the UUT rate from 6% to 12% over a period of three years to raise additional general fund revenues. Unless approved anew by the voters, the rate will decrease over time beginning in 2014, reverting back to the current 6% rate by 2016.
- Increase the scope of the UUT to include video, water, sewer/wastewater and solid waste disposal services.
- Expand the existing exemption for very low income senior citizens to include all low-income households.
- Update the definitions in the UUT, so that the tax applies equally to customers using older telephone technology as well as those using newer telecommunications technology, such as wireless or VOIP
- Establish a citizen oversight committee to review and provide recommendations concerning the expenditure of the additional revenues generated by the measure
The Ad Hoc Finance Committee
Following is an excerpt from the Ad Hoc Finance Committees' final report. Click here to download the full report:
"In order to support operation needs in public safety, the committee recommends the following:
- Raise the Utility Tax ("UUT") limit from 6% to 12%.
- The Council should consider the political necessity of a sunset clause, although the public safety needs are not expected to subside.(note, the Council did put the sunset clause in place)
- The UUT should be reviewed yearly at a City Council meeting to determine and explain what level of UUT will be needed (0-12%). The City should not collect above actual need.
- The City should add to any ballot proposal a companion advisory measure, as legally appropriate, to guide an increase in taxes to be spent on public safety. (note, the Council added Measure UA as the recommended companion advisory measure.)
- The Council should appoint a Citizen's budget oversight and advisory committee.
- The Council should appoint a committee to evaluate whether City services can be delivered more economically and efficiently by changes in current City operations.
- The Council should take immediate steps to coordinate public education of city finances and a possible ballot measure.