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Reso 2019-001 PFA
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Reso 2019-001 PFA
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CM City Clerk-City Council
CM City Clerk-City Council - Document Type
Resolution
Document Date (6)
6/3/2019
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58 <br /> MAJOR GENERAL FUND REVENUES <br /> UTILITY USERS TAX <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(AB 1717), 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 /> 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 /> About 69% of UUT revenues are generated from gas and electric services and 23% from <br /> telecommunications. <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 /> (Dollars in Millions) <br /> UTILITY Actual Projected Proposed Projected Revenue <br /> USERS TAX <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 /> GaslElectricit 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 /> Telecommunicatio 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%1 0.9% 1.8% 0.9% 1.8%1 0.9% 0.9% 1.7% 0.8% <br /> M + <br /> w � m <br /> whn , <br />
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