DATE: February 23, 2016
TO: Mayor and City Council
FROM: Assistant City Manager
SUBJECT
Review of Polling and Update on Potential Ballot Measure
RECOMMENDATION
That the Council reviews the tracking poll results for renewal of the City's Utility Users Tax (UUT), receives an update on community outreach efforts surrounding the renewal, and identifies the next steps needed to place the renewal of the Utility Users Tax on the June 2016 ballot.
BACKGROUND
The Utility Users Tax (UUT) was approved by Hayward voters as part of a special election in May of 2009 as a means of protecting critical city services in the wake of the devastating impacts of the Great Recession. The UUT is a 5.5% tax on the use of electricity, natural gas, telecommunications (including traditional telephone service, long distance service and cellular phone service), and video/cable television services. The tax was initially adopted with a ten year sunset clause, meaning that the tax is set to expire in 2019, unless renewed by the voters.
The UUT currently generates about $16 million per year and is now the City's third largest General Fund revenue source behind property and sales taxes. About 75% of the revenue (roughly $12 million) is allocated to public safety operations (police and fire). The remaining $4 million generated by the UUT funds other City programs such as streets and roads maintenance, library services and economic development programs. Even with an improving economy in recent years, revenues have lagged behind the increasing demand for services and their rising cost. The City has walked a tightrope, dramatically reducing its budget while maintaining high levels of service. At the same time, employees from all bargaining groups have shouldered more of the cost of their benefits as the City has adjusted its compensation structure. Without the UUT, the City would have no choice but to enact severe service cuts in order to maintain fiscal s...
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