Utility Users Tax Increase Extension on Agenda

After their last meeting, the Sierra Madre City Council agreed to place the Utility Users Tax increase extension before voters in April 2012. However, a new draft of the extension has not yet been drawn up. The council must first decide what changes need to be made to the current UUT ordinance and whether an advisory measure will be attached to it.

The UUT places a tax on all utilities in Sierra Madre, with revenues going to the city's general fund. Much of the police, fire and paramedic budget comes from the general fund.

The cost of public safety is rising. So, the UUT Committee recommends the city council either cut city services or find a new source of revenue to cover expenses. Hence the council's decision to look into asking voters to extend the UUT increase.

The council isn’t required to make any decisions about the UUT tonight. They have until January 21, 2012 to submit a final draft for the ballot, though it’s suggested they submit a draft by November 21, 2011.

In 2008 voters approved Measure U, which moved to increase the UUT by two percent every year until it reached 12 percent in 2010. A "sunset clause" deemed that the UUT would fall by two percent every year beginning in 2014 until it reached six percent (the rate before Measure U). The council moved not to increase the UUT to 12 percent for 2010, and it currently remains at ten percent.

More info on the UUT:

• FAQS about the UUT