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HomeMy WebLinkAboutItem 8.1 Meas A Users TaxCITY CLERK FILE # 660-30 AGENDA STATEMENT CITY COUNCIL MEETING DATE: October 17, 2000 SUBJECT: Support of Alameda County Measure A-Unincorporated County Utility Users Tax Report Prepared By: Jason Behrmann, Administrative Analyst H ATTACHMENTS: 1) Resolution SuppOrting Measure A 2) Measure A Fact Sheet RECOMMENDATION: ~ Deliberate and determine whether to adopt the resolution supporting Alameda COunty Measure A. FINANCIAL STATEMENT: None DESCRIPTION: At its September 13, 2000 meeting, the Alameda County Library Advisory Commission voted to go on record in support of Alameda County Measure A. Additionally, the Council members on the Commission requested that resolutions of support for Measure A be forwarded to their respective cities on behalf of the Commission. Council Member McCormick is Dublin' s representative on the Commission and has requested that the attached resolution be placed on the agenda for consideration by the City Council. Measure A is a measure that will be on the November 7, 2000 ballot for a vote of the people of Alameda County. The measure is to approve and continue until June 30, 2009, the existing 5.5% Utility Users Tax on gas, electricity and interstate telephone service which is collected in the unincorporated areas of the County. The tax will not be imposed on residents of the City of Dublin. The tax is used to fund general county services to the unincorporated areas, including the Community Development Depaytment, Sheriff' s Department and Library services. The measure will also amend the existing ordinance to include taxation of interstate, international, and cellular or wireless telephone use with billing addresses in the unincorporated areas. For Fiscal Year 2000-2001, Alameda County has approved $1.4 million in Utility User Tax revenue to be used for the County Library, which represents 8.6 % of the County Library' s total operating budget. H/cc-forms/agdastmt.doc COPIES TO: ITEM NO. The County Library uses Utility User Tax revenues to support unincorporated library branch operations? bookmobile stops in unincorporated areas, purchase library materials and provide County Library system support. If Measure A is not approved by the voters, the County would be forced to either redirect existing revenue sources to the County Library or reduce Library services. While Utility User Tax revenues are to only be used for services in the unincorporated areas of the County, reductions in Bookmobile stops, purchase of library materials, and support to branches will affect the entire County Library system, of which the City of Dublin is a part. RECOMMENDATION: Staff recommends that the Council deliberate and determine whether to adopt the resolution supporting Alameda County Measure A. RESOLUTION NO. - O0 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN SUPPORTING ALAMEDA COUNTY MEASURE A TO PRESERVE COUNTY-WIDE SHERIFF'S DEPARTMENT AND LIBRARY SERVICES WHEREAS, voter approval of Alameda County Measure A on the November 7, 2000 ballot is required to approve and continue until June 30, 2009, the existing 5.5% Utility Users Tax which is collected only in unincorporated areas of the County and which is used to fund general County services to the unincorporated areas, and WHEREAS, voters of the City of Dublin will have the oppommity to vote on Measure A because of the legal requirements of Proposition 62 as interpreted by the County Counsel and Legislative Counsel, and WHEREAS, residents and businesses in the City of Dublin will not pay the Utility Users Tax, and WHEREAS, residents of the City of Dublin may experience adverse consequences in County-wide Sheriff s Department services and County Library services if Measure A is not approved by the voters, and WHEREAS, the Utility Users Tax currently provides 8.6% of the County Library' s operating budget and contributes to the funding of the library materials budget, the Bookmobile, and support from County Library Headquarters to all branches, as well as the operations of the libraries in the unincorporated areas, and WHEREAS, unless the County Board of Supervisors is able to identify altemative funding sources, the discontinuance of the Utility Users Tax will result in reduction in the purchase of library materials, Bookmobile stops, and Headquarters support to all branches, affecting residents of the City of Dublin as well as the unincorporated areas, and WHEREAS, the Alameda County Library Advisory Commission voted to go on record in support of Measure A at its September 13, 2000 meeting, and WHEREAS, the City Council members of the Alameda County Library Advisory Commission requested that resolutions of support for Measure A appropriate for City Council approval be forwarded to their respective cities on behalf of the Commission. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby go on record in support of the passage of Alameda County Measure A to preserve County-wide Sheriffs Department services and County Library services for residents of the City of Dublin, as well as for the unincorporated areas of the County. PASSED, APPROVED AND ADOPTED this __ day of ,20~ A' TACHMENT 1 AYES: NOES: ABSENT: ABSTAIN: ATTEST: Mayor City Clerk H: ICC-FORMSIFORM-reso. doc FA C T SHEET: : ,.. MEASUREA AND THE ALAMEDA COUNTY LIBRARY 1. ~ ~ Question: What is Measure A ? * . Answer. Measure A is a measure which will be on the November 7, 2000 ballot for a vote of the people of Alameda County. The measure is to approve and continue=until June 30,-2009 the existing 5.5% Utility Users Tax which is collected only in the unincorporated areas of the County and which is used to fund general County services to the unincorporated areas,. including but not limited to County :Library services. ~. This measure will also amend the Ordinance to include taxation of interstate, internation*al, an~l Cellular or wireless telephone 'uSe with billing addres~es in the 'unincorporated areas. 2. Question: What is the Utility UseIs Tax? Answer: This is a 5.5% tax for gas, electric and intrastate telephone service in the unincorporated areas of Alameda County. It became effective March 1, 1993 and was to sunset March 1, 1997, unless an Ordinance adopted prior to March 1, 1997, deleted or extended that date. On NovemberS~*-,.:!~.9..96, amajority of voters, voting countywide,I appr0ved County Measure .D which extended the tax until June 30, 2001 ~ 3... .. QUeStion: Who pays the Utility.Users Tax? Answer: Users of gas, electric and telephone service in the unincorporated areas of Alameda County (including Ashland, Castro Valley, Cherryland, Fairview, San Lorenzo, and Sunol) pay this tax. There is an exemption .for low income .residents. This tax is not paid by people in the cities of Alameda, Albany, Berkeley, Dublin, Emeryville, Fremont, Hayward, Livermore, Newark, Oakland, Piedmont, Pleasanton, San Leandro, or Union City. 4. ,~ Question: What services'doeS the'Utility*Users TaX provide? * ' "*~": ~"'~' ' AnsWer: Based on thee policy of the Board of Supen/isors, Utility Users Tax revenues are used to fund the cost of County services provided to the unincorporated areas. The following County · departments ·haVe been allocated Utility Users Tax revenues in the 2000-01 budget '$ .8 Million - Community Development Agency $3.5 Million - Sheriff's Department : $5'8 ·Million -Total (figures do not marc, due tO rounding) 5. Question: How' does the County Library use the current Utility Users Tax funds allocated to it? Answer: The County Library uses the Utility Users Tax revenues to extend weekly hours of service at the Castro Valley and San Lorenzo Libraries by approximately 50%; to provide Bookmobile stops in unincorporated communities and at childcare centers in the unincorporated areas; to purchase new books, magazines, newspapers and other library materials; and to provide County Library system and Main Library support to branches which serve the unincorporated areas. 6. Question: Why. will ~e Utility Users Tax be on the ballot in November? Answer: The existing Ordinance'will sunset on' :June 30, 2001 unless a new Ordinance* approved by the votersis :adopted prior to that date which deletes or extends the date. According to State law, the election to extend the tax must be consolidated with a regularly scheduled election for Board members. The only election that meets this requirement prior to the Jl~nP_ ~1') 2(')fil ~.ynir=finn the tax is November 7, 2000. ATTACHMENT 2 7. Question: What will the ballot measure say? The ballot measure will read as follows: Shall County ordinance be approved to amend and extend until June 30, 2009 the existing 5.5% Utility Users Tax, collected only in the County's unincorporated areas where such amendments add interstate, international, and cellular (wireless) telecommunications service and DOES NOT APPLY in Alameda, Albany, Berkeley, Dublin, Emeryville, Fremont, Hayward, Livermore, Newark,' Oakland, Piedmont, Pleasanton, San Leandro, or Union City. It funds County services to the unincorporated areas, including, but not limited to, Sheriff, Library, Planning and Code enforcement. 8. Question: Who will vote on this measure? and why? Answer: The vote on the continuation of ti~e Utility Users Tax must be Countywide. The County Counsel and the Legislative Counsel' have indicated that State law requires the vote to be Countywide, although only the residents 'and businesses in the unincorpomted area will pay the tax.' 9. Question: What percentage vote is required? Answer: A majority vote in favorof Measure A is needed.. ' . .. fO. 'Question: How~will the Library be affected if the Utility Users .Taxis approved and continued by the voters ? Answer: All County Library services provided by the Utility Users Tax will be continued at'the current level. -- f 1. Question: How will the Library be affected if the Utility Users Tax is not approved and is discontinued by the voters? '- Answer: If the tax is discontinued, and the County Board of Supervisors is unable to identify alternative funding sources, the County Library will 'lose $1.4 million in annual revenues, This would result in the following reductions in services: reduction of weekly hours 'of service at Castro Valley and San Lorenzo Libraries, including discontinuing Sunday hours; reduction of Bookmobile stops; reduction in the purchase of new books, magazines, newspapers and other materials; and reduction in County Library system support to all branches. The reductions in Bookmobile stops, purchase of library materials, and support to branches will affect the entire County Library system, in addition to the unincorporated areas... 12. Question: How will plans for a new Castro Valley Library be affected if the Utility Users Tax is not approved and is discontinued by the voters ? Answer: The application to the State for construction bond funds to build the new library must certify that the County has sufficient funds to operate it. It is currently anticipated that funds generated by the Utility Users Tax will be identified as part of the funds available to operate the new library. If the tax is not approved, the County may not be able to identify sufficient funds and may not be able to submit the application. LMW/pmsf 8/18/00 S:\Utility Users Tax~UUT Fact Sheet for Measure A 8 18 00. doc This info. was compiled and is distributed at public expense by the Alameda County Library. This information is presented in the public interest. It is not intended to influence or to attempt to influence the actions of the voters for or against the passage of any ballot measure. In the opinion of the agency, based upon advice of counsel, it represents a full and objective, impartial presentation of relevant information within the knowledge of the agency.