Finance Highlights 2008 0917 - Laserfiche WebLink

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Consequently, if the voters approved a .25% increase from 8.75% to 9%, San Leandro could collect approximately $5 million in additional tax revenue each year. As with the parcel tax, this measure would have to go before the voters at a general election. Revenue Option 4: Utility Users Tax The City's Utility User Tax (UUT) has been in place for many years and provides revenue for general operations in the City's General Fund. The City levies a 6% UUT on utilities that provide electric, gas, telephone and cable TV services to San Leandro residents and businesses. The UUT currently raises approximately $10 million annually. A 1% increase in the rate, (from 6% to 7%) would raise approximately $1.6 million in new revenue per year. An increase in the UUT would have to be taken to the voters at a general election. The UUT is a general tax and as such requires majority approval for adoption. Benefit Assessment Districts The next revenue category to be considered is benefit assessment districts (districts). In California there are approximately 20 statutes that authorize local agencies to impose assessments. There are several types of district including Special Assessment Districts," Mello Roos" districts, maintenance assessment districts and benefit assessment districts. The common characteristic is that assessments are levied on a defined geographic area and the funds so raised must benefit that area. A "benefit assessment" is any levy or charge upon real property to pay for public improvements and/or services that specifically benefit that property. Benefit assessment districts are voted upon by the property owners that are within the district. Property owners vote by ballot. Ballots are weighted, meaning in proportion to the benefit that each property receives. Consequently, a property owner that receives twice as much benefit as another property owner would pay twice the assessment. In tum, that property owner would have their vote count twice as much. If the votes cast determine that the weighted majority of the voting property owners do not vote against the formation of the district, then the City is authorized to proceed. Finally, property not individuals must be benefited. In practical terms, the City could consider establishing Lighting and Landscape districts, a citywide park benefit assessment district or some other combination to finance and provide services to specific areas of the City or the City as a whole. Revenue Option 5: 1972 Act Lighting and Landscape District Districts formed under this act can pay for landscaping, lighting, maintenance and other public improvements and services in defined areas. For example, several districts might be formed within the City to pay for a variety of services such as median maintenance, lighting, or park maintenance. If the City were to successfully form districts under this act, then maintenance