1997 AGN AUG 05 I25 - Laserfiche WebLink

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Agenda Report Meeting of August 5, 199'7 Page 2 The utility users tax structure, in contrast, has been validated as a simple and dire�t method of generating revenues. Residents in Colton are already familiar with this structure, and, as proposed, the Public �afety Utility Users Tax would in effe�t constitute a reduction f�om 6% to approximately 1% after April of 1998 when the current utility users tax expires. Cost to tl�e Taxpayer The average monthly cost for the proposed Public Safety Utility Users Tax will range from approximately $2.20 per month in 1998 to approximately $4.25 per month in the year 20Q0. It is proposed that the Public Safety Utility Tax rernain in effect th�ough fiscal year 2005 to assure continued revenue to cover the incremental increase in police and fire safety personnel salaries and benefits. That date, however, is flexible, and the City Council has the authority under the proposed ordinance to reduce or terminate the Public Safety Utility Users Tax at any time. The City Council also has the authority ut�der the ordinance as proposed to extend the Public Safety Utility Users Tax, but the Council has no authority to increa.se the tax beyond the amount speciii�d for calendar year 2000 without a vote of the people. The praposed tax measure also authorizes the creation of certain exemptions by the City Council after adoption of the Public Safety Utility Users Tax. Under the existing Utility Users Tax, an exemptian has been established for very low income families. A similar exemption could be enacted by resolution of the City Council should the proposed rneasure pass. Fiscal Effect If approved, the Public Safety Utility Users Tax will generate approximately $389,6�6 in calendar year 1998, $602,196 in 1999, and $708,465 ari�ually thereafter until the tax is repealed or sunsets according to the terms of the ordinance. If the measure fails, the City will need to find alternative means of sustaining the four percent (4 %) increase which has been authorized for 1997-98 beyond the 1997-9$ fiscal yea.r and implementation of the additional three percent (3 %) proposed salary and related benefits will be dependent upon the City finding those additional revenue sources beginning in fiscal year 1998-99 and thereafter. Recommendation Staff makes no recornmendation regarding this rnatter as it is fundamentally a palicy decision af the City Council as to whether the proposed ordinance should be placed on the November 1997 ballot. By doing so, the City will be giving the citizens of Golton the vpportunity to decide whether they wish to suppart the authorized and prop4sed salary and related benefit increases for public safety personnel. If the Council wishes to direct that this