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Title:
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Presentation to City Council from the Fire Department and Public Works Department Regarding Potential Service Impacts of $3 Million Revenue Loss to General Fund if Certain Existing Utility Users’ Tax Funding Is Eliminated.
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City of Culver City, California
City Council Agenda Item Report
RECOMMENDATION:
Staff recommends the City Council receive a brief report from the Fire Department
and Public Works Department regarding the potential service impacts from a $3
million reduction in General Fund revenues.
DISCUSSION/BACKGROUND:
The City Council placed Measure W on the April, 2008 ballot to seek voters’
approval to modernize the language in Culver City’s UUT ordinance and reaffirm the
methodology used to apply it. Due to changes in technology and changes in federal
and state law, the City believes its Utility Users’ Tax (UUT) ordinance should be
updated and reauthorized by voters. First authorized almost 40 years ago, the
language of Culver City’s ordinance is not easy to apply to today’s communications
technology. Depending on the outcome of lawsuits in other jurisdictions and without
the updating and reauthorizing proposed by Measure W, parts of the ordinance
could be disallowed in the future and vital City funding could be eliminated. Many of
the other 150 California cities with a UUT ordinance face a similar challenge.
FISCAL ANALYSIS:
Last year, Culver City’s Telephone and Cable UUT provided almost $5.6 million in
revenue to fund City services, including police, fire protection and paramedics, street
and park maintenance, and tree trimming, among others Without the updating and
Meeting Date: 03/17/08 Item Number: A-1
AGENDA ITEM: Presentation to City Council from the Fire Department and Public
Works Department Regarding Potential Service Impacts of $3 Million Revenue
Loss to General Fund if Certain Existing Utility Users’ Tax Funding Is Eliminated
Contact Person/Dept.: Jeff Muir, Chief
Financial Officer
Phone Number: 310-253-6016
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [X] Attachments: []
Public Notification:
Master Notification List (03/12/08)
Department Approval:
Jeff Muir (03/11/08)
City Attorney Approval:
Carol Schwab (by H. Baker) (03/11/08)
Fiscal Impact Review:
Jeff Muir (03/11/08)
City Manager Approval:
Jerry B. Fulwood (03/12/08) City of Culver City, California
City Council Agenda Item Report
reauthorizing sought by Measure W, the City’s General Fund revenue could be
reduced by more than $3 million.
The following table shows an approximate proportional distribution of cuts to City
departments, based on each department’s share of General Fund funding, if the City
were to lose $3 million in on-going revenues:
Police Department: $1,050,000
Fire Department: $540,000
Public Works: $345,000
Parks, Recreation and Comm Svcs: $255,000
Community Development: $270,000
General Government: $540,000
TOTAL: $3,000,000
MOTION:
That the City Council:
Receive the presentation from the Fire Department and Public Works
Department of potential service impacts if budget reductions of these amounts
were required.