REPORT TO COUNCIL
SUBJECT
Title
Adopt a Resolution Calling a General Municipal Election to be Held in the City of Sunnyvale on Tuesday, November 8, 2016, for the Purpose of Submitting to City Voters a Measure to Modernize the Utility Users Tax; Requesting Consolidation with the Statewide General Election and Election Services from Santa Clara County; Directing the City Attorney to Prepare an Impartial Analysis; and Setting Priorities for Ballot Arguments
Report
BACKGROUND
City Council sponsored a Study Issue to evaluate the potential of a Utility Users Tax (UUT) ballot measure (FIN 15-01) for the November 2016 election. On December 1, 2015, a Council Study Session was held to discuss the City's current UUT regulations and ways to prevent UUT revenues from declining (SS 15-0860) due the fact that significant portions of the current ordinance have not been updated for virtually four decades, during which time technology and telecommunications have changed dramatically. Staff presented a range of options for updating these outdated UUT regulations, all of which would require voter approval. It is important to note that this is an existing revenue stream and the City Council is not creating a new tax. The options for updating the existing ordinance included potential rate increases, broadening the base against which the tax is collected, and ways to address modern telecommunication services that didn't exist when the City's UUT regulations were adopted. Council comments favored staff returning with an ordinance modernizing the telecommunications UUT without broadening the base or increasing the rate. Council also supported conducting community opinion research to evaluate the public's potential interest in, and the viability of a UUT update.
The City retained the services of the Lew Edwards Group to develop draft ballot language and conduct opinion research. A draft ballot question reviewed by the City Attorney's Office was created to evaluate interest ...
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