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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />APRIL 15, 2014 <br />TITLE: <br />RESOLUTIONS AND RELATED DOCUMENTS <br />REQUIRED TO SUBMIT TO VOTERS AT THE <br />NOVEMBER 4, 2014 MUNICIPAL ELECTION: <br />AN ORDINANCE MODERNIZING THE UTILITY <br />USERS'TAX <br />CITY MANAGER <br />10 1WRA►1�7rT_C«il <br />CLERK OF COUNCIL USE ONLY: <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 15' Reading <br />❑ Ordinance on 2ntl Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />On January 21, 2014, the City Council unanimously voted to direct the City Manager and staff to <br />prepare the required resolutions, documents, and guidelines necessary to proceed with a ballot <br />measure to modernize the Utility Users' Tax (UUT), including, but not limited to, all of the 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 of Santa Ana currently receives approximately $24 million in UUT revenue which <br />constitutes the third largest revenue source for the City. The UUT is applied to four categories: <br />electricity, telephone, water, and gas. Electricity represents 44% ($10.5 million) of the total <br />revenue received while telephone represents 37% ($9 million), with water and gas at 11% ($2.6 <br />million) and 8% ($1.9 million) respectively. <br />In 1975, the City adopted the UUT to support public safety efforts. Currently the UUT is applied to <br />electricity, gas, telephone and water utilities at the rate of 6 percent. In addition, the tax places a <br />maximum UUT cap of $11,000 on total UUT remittances by a single service user. <br />50A -1 <br />