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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JANUARY 21, 2014 <br />TITLE: <br />AUTHORIZE STAFF TO PREPARE DOCUMENTS <br />TO SUBMIT TO VOTERS AT THE NOVEMBER 4, 2014 <br />MUNICIPAL ELECTION: ORDINANCE <br />MODERNIZING THE UTILITY USER TAX <br />0 <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ <br />As Recommended <br />❑ <br />As Amended <br />❑ <br />Ordinance on 15' Reading <br />❑ <br />Ordinance on Z' Reading <br />❑ <br />Implementing Resolution <br />❑ <br />Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Authorize and direct staff to prepare all required documents necessary to proceed with a ballot <br />measure to modernize the Utility Users Tax Code (UUT), including, but not limited to, all of the <br />following: <br />a) a resolution giving notice of the City's General Municipal Election to be held in the <br />City of Santa Ana on November 4, 2014 for the submission of questions to the <br />voters relating to changes in the City's UUT; <br />b) a resolution containing the ballot question and related proposed UUT ordinance; <br />c) a resolution authorizing Councilmembers to file written arguments for or against the <br />amendments; <br />d) guidelines for preparation of arguments for or against the proposed amendments; <br />e) all other documents required to proceed with the UUT modernization. <br />DISCUSSION <br />The City currently receives approximately $24 million in UUT revenue which constitutes the third <br />largest revenue source for the City. This request for Council action is to modernize the City's <br />Utility Users Tax Code in order to protect and ensure ongoing receipt of UUT revenue. <br />Modernization of the code will reflect current and anticipated utility services for existing UUT <br />categories and will expand Telephone UUT services to cover current and anticipated tele- <br />communication (Telecom) services, as well as ensure conformity with all Federal and State <br />legislation. <br />The City first adopted the UUT in 1975 in order to support the City's efforts in public safety. The <br />rate was initially established at 3% and subsequently raised to the current rate of 6% (with an <br />established maximum cap of $11,000 on total UUT remittances by a single service user). The rate <br />has remained the same since 1994. Overall the Utility Users Tax is applied to four categories: <br />65A -1 <br />