State takeaways of local funding and declining local revenue are impacting the City’s ability to maintain the level of services and programs that residents expect. Stable revenue sources on which the City depends, such as revenue from sales tax, hotel tax, vehicle license fees, and others, have declined in recent years. The City is faced with budget deficits over the next several years, which could impact the city’s ability to continue to provide services, such as public safety, library services, and road maintenance, at current levels.

Stable Local Funding to Support Vital City Services

To help maintain current levels of local services, the City has taken a step to provide a stable source of local revenue that cannot be touched by the State and which can be used to protect a range of local city services.

At its meeting on Monday, July 19th, the City Council voted unanimously to place a measure on the November 2nd ballot which would update and expand the existing Utility Users Tax (UUT). Voters in Pleasant Hill will decide whether to approve the new UUT, which requires a simple majority of fifty percent plus one to pass.

If passed, the measure would provide funding to help support vital city services, including:

• Maintaining neighborhood police patrols and rapid emergency response times
• Maintaining street resurfacing and pothole repair programs
• Keeping the city clean, well maintained and free of litter and graffiti
• Maintaining library hours and services

Proposed UUT Expansion Measure

Pleasant Hill currently has a UUT that is applied to landline local telephone service at a rate of 1%. The UUT is the lowest of any Bay Area cities. The measure on the November ballot would expand the UUT to ensure all utility users are treated the same. The UUT would cover all communications (including long distance telephone and cellular phone and data services), cable TV, gas, electric, water and sewer services, and increase the rate to 1.5%. Garbage collection and satellite TV services are unaffected.

Average Cost per Household

The proposed UUT would apply equally to all businesses and households in Pleasant Hill. To estimate the average cost, business owners and residents should calculate their total monthly utility costs for telephone, cable TV, gas & electric, and water services, then multiply that number by 1.5%. This amount will be the average monthly cost of the UUT.

For example, a household with total monthly utility bill costs of:
• $400 would pay an additional $6 per month
• $600 would pay an additional $9 per month
• $800 would pay an additional $12 per month

Exemptions from the UUT

To help ensure the cost is not a burden to those living on a fixed income, the proposed UUT measure provides for specific exemptions, when available. Exemptions include the CARE program through PG&E, and Lifeline Programs available for telephone and water service users.

More information is available about the UUT at the following links listed below:

Staff Report to City Council at the July 19, 2010 Meeting regarding the UUT Ballot Measure

Powerpoint Presentation presented to City Council at the July 19, 2010 Meeting

Proposed UUT Ordinance to be approved by Pleasant Hill voters in November

If you have any questions about the proposed UUT or require more information, contact Martin Nelis at mnelis@ci.pleasant-hill.ca.us or by phone at 925-671-5229.