(8)AR 042010 Ballot Measure on Utility Users' Tax

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ITEM NO. 07 STAFF REPORT .0 CRATED DATE: APRIL 20, 2010 TO: HONORABLE MAYOR AND CITY COUNCIL FROM: ROD FOSTER, CITY MANAGER PREPARED BY: BONNIE J. JOHNSON, MANAGEMENT SERVICES DIRECTOR SUBJECT: CONSIDERATION OF PLACING A BALLOT MEASURE ON THE NOVEMBER 2, 2010 GENERAL ELECTION TO EXTEND THE EXISTING UTILITY USERS' TAX RECOMMENDED ACTION Staff is presenting this item for Council consideration and is requesting direction on how to proceed. GOAL STATEMENT Consideration of this item will support the City's goal of continued fiscal responsibility and stability. BACKGROUND On March 2, 2004, the citizens of the City of Colton voted to implement a utility users' tax. The tax became effective on April 6, 2004. Per section 3.40.230 of the approved ordinance, the tax is scheduled to sunset on June 30, 2011. Further, the ordinance (specifically with respect to telecommunications) is in need of updates to address 21st Century technology, assuming there is a desire to extend the tax beyond its current sunset. ISSUES/ANALYSIS If Council chooses to move forward with a ballot measure to extend this tax it has the following options: • Place the measure on a General Election wherein members of the legislative body are also on the ballot for election/re-election. The only opportunity prior to expiration of the tax would be November 2, 2010. • Place the measure on a Special Election at an alternative date. Under California law, this option will require a unanimous vote of the Council declaring a fiscal emergency. Further, this option is generally more costly.