Voters Say No to Utility Users Tax Increase Extension

Sierra Madre voters chose not to extend the Utility Users Tax increase and its accompanying advisory measure (Measures 12-1 and 12-2) during the city's municipal election on Tuesday night.

Uncertified election results are as follows:

• Measure 12-1 in favor: 1008 (39%)
  
• Measure 12-1 opposed: 1553 (61%)
  

• Measure 12-2 in favor: 1067 (43%)
  
• Measure 12-2 opposed: 1413 (57%)
  

Money from the UUT goes into the city's general fund, and has historically been used to fund public safety (police, fire and paramedics).

Many public figures had been campaigning for an extension of the UUT increase, including former Chief of Police Marilyn Diaz, city council candidates Gene Goss, John Harabedian and Colin Braudrick, plus now-former Mayor John Buchanan, who to the UUT increase extension.

The maximum UUT collection rate will remain at 12 percent until July 2014. After that, the UUT will start to “sunset” by 2 percent per year until it falls back down to 6 percent in 2016 ... unless voters approve a new increase.

The UUT is currently collected at 10 percent, which is below its maximum approved rate. The council has the option of setting a lower UUT collection rate before August 1 of any fiscal year. The city has collected a 10 percent UUT for fiscal years 2010, 2011 and 2012.

The UUT was first collected in 1993 at 6 percent. In April 2008, voters approved Measure U, an ordinance that enacted temporary increase of the UUT.