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MAJOR GENERAL FUND REVENUES <br /> <br />UTILITY USERS TAX <br /> <br />Utility Users Tax (UUT) has generally been a steady and reliable source of General Fund <br />revenue for most governmental entities, and is the third largest source of General Fund <br />revenue for San Leandro. Effective March 1, 2009, the City imposed a 6% UUT on <br />electric and gas services; and a 5.7% UUT for telecommunication and cable services. On <br />September 8, 2015, in compliance with the Local Prepaid Mobile Telephony Services <br />Collection Act (AB1717), the City of San Leandro was authorized to collect UUT for Mobile <br />Telephony Services and UUT for Prepaid Wireless at point of sale. The tax is not <br />applicable to State, County, or City agencies, or to insurance companies and banks. <br /> <br />Analysis <br />Factors that affect the revenue generated by UUT are: <br /> Consumption/use of gas, electricity, telecommunication services, cable, and <br />cellular; <br /> Regulatory actions, including deregulation and re-regulation; <br /> PUC rate changes; <br /> Market forces including prepaid devices and point of service sales; <br /> Evolution of technology; and <br /> Legislative actions at State and Federal levels <br /> <br />About 69% of UUT revenues are generated from gas and electric services and 23% from <br />telecommunications. <br /> <br />Forecast <br />UUT is expected to increase approximately 2.9% in 2019-20 and decreasing to a range <br />from .85% to 1.8% in subsequent years. Projections are based on current trend analysis, <br />rate changes and are fairly conservative. <br /> <br /> <br />Actual Projected <br />2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 <br />Cable $0.8 $0.8 $0.8 $0.8 $0.8 $0.8 $0.8 $0.9 $0.9 $0.9 $0.9 $0.9 <br />Gas/Electricity 7.1 7.1 7.4 7.5 7.6 7.8 7.9 8.0 8.1 8.2 8.4 8.5 <br />Telecommunications 2.6 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 <br />Total Collections 10.5$ 10.4$ 10.7$ 10.8$ 10.9$ 11.1$ 11.2$ 11.4$ 11.5$ 11.6$ 11.8$ 11.9$ <br />$ Change (0.3) (0.1) 0.3 0.1 0.1 0.2 0.1 0.2 0.1 0.1 0.2 0.1 <br />% Change -2.8% -1.0% 2.9% 0.9% 0.9% 1.8% 0.9% 1.8% 0.9% 0.9% 1.7% 0.8% <br />Proposed Projected Revenue <br />(Dollars in Millions) <br />UTILITY <br />USERS TAX <br />58 <br />80