Fail: 5147 / 47.4% Yes votes ...... 5701 / 52.6% No votes

See Also: Index of all Measures

The Utility Users' Tax provides just over $ 4.6 million of the City's general fund revenue, or approximately 14% of the City's general fund operating budget, which is used primarily for provision of the City's basic services such as public safety, transportation, parks and other general services.

A "yes" vote on this Measure would reduce the tax from 6% to 4.5% on all utilities, maintain a 4.5% rate on electricity, effective July 1, 2006. Approval of the Measure would also extend the tax at the rate of 4.5% for all utilities beyond the current termination date of December 31, 2007. If the Measure is approved, the tax will also be updated to include language applicable to current technology with respect to telecommunication services, to clarify the definition of telecommunications services, modify certain exemptions, and provide for application of subsequently enacted state law defining telecommunication services. Existing provisions of the tax relating to exemption of low income seniors and the disabled would remain unchanged, as would the requirement that an annual audit of the tax revenue and expenditures continue to be conducted. These provisions cannot be changed without a vote of the people.

A "no" vote on this Measure would allow the City to continue collecting the Utility Users' Tax at the current rate of 4.5% on electricity and 6% of all other utilities until the expiration of the tax on December 31, 2007. Until expiration of the tax, existing provisions relating to low income seniors and the disabled being exempt from the tax would remain unchanged, as would the requirement that an annual audit of the tax revenue and expenditures continue to be conducted. After December 31, 2007, collection of the utility users' tax would cease, and the City's general fund revenue would be reduced by 14%. Reductions in expenditures would then have to be made accordingly by the City Council, which could include employee lay offs, consolidation of employee positions and City programs, elimination and/or reduction of funding for City programs.

THE ABOVE STATEMENT IS AN IMPARTIAL ANALYSIS OF MEASURE __. IF YOU DESIRE A COPY OF THE MEASURE, THE PROPOSED ORDINANCE, OR THE EXISTING UTILITY USERS' TAX ORDINANCE, PLEASE CALL THE CITY CLERK'S OFFICE AT (562) 905-9707, AND A COPY WILL BE MAILED AT NO COST TO YOU.

Dated: August 2, 2005 Richard D. Jones, City Attorney

Orange County Register
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• La Habra puts tax measure on ballot - 8/3/2005

Debate on Measure G - Saturday, October 22, 5 p.m., La Habra City Hall, 201 E. La Habra Blvd. Moderated by the League of Women Voters, North Orange County.

Recent years have seen improved roads, parks, retail centers and capital improvements.

Many of you recently purchased a home or re-invested in your current home as a result of tremendous La Habra real estate values. After making this investment, would you want your City unable to provide the same level of services you have come to enjoy? No!

Protect your investment, vote YES on Measure G.

There have been unanticipated challenges which make progress difficult without reliable revenue sources. State takeaways, unfunded programs imposed by State and Federal governments, increased PERS costs and closures and delays of major sales tax producers have all contributed to a serious fiscal situation.

Although we continue to make progress, there is still much more work to be done.

Please consider these important facts:

• This measure REDUCES the tax rate starting in July of 2006 and continues to exempt low income seniors and disabled persons.
• The measure will cost you no more than you pay today. A yes vote ensures you pay less!
• Without the tax the City will cut nearly $5,000,000 in services, programs and funding for sorely needed capital improvements. The tax accounts for 14% of the City's General Fund and is the 3rd largest revenue source.
• It is the only revenue source that cannot be touched by the State.

• Dramatically increased property values
• Outstanding enhanced public safety services
• Millions of dollars in street and sidewalk repairs
• Construction of La Bonita Park sports and recreation complex Restoration of Las Lomas, Lorna Verde, Lama Norte and other parks New youth recreation opportunities
• Senior Transportation
• New local shopping and dining opportunities

/s Steve Anderson, Mayor
/s John D'Angelo, Local Businessman
/s Dawn Stille, Local Businesswoman
/s Juan Guerrero. Concerned resident

(No arguments against Measure G were submitted)

Funds from the tax are to continue to be collected for general city services and programs. An annual audit is to continue to be conducted regarding the revenue and expenditures relating to the tax. Exemptions are to remain in effect for low income seniors and the disabled. The tax rate for all utilities covered by the ordinance shall be permanently reduced from 6% to 4.5% for all utilities except electricity, to be maintained at the current rate of 4.5%, effective July 1, 2006. The termination date of December 31, 2007 shall be revoked, and the tax shall become permanent at 4.5% for all utilities. Clarifying revisions to the telephone communications tax are made to eliminate the Land Mobile exemption, modify the non-regulated utility exemption, specifically include voice over internet protocol, modify the definition of telephone communication services to include ancillary services, and provide that future adoption of any statewide definition of telecommunications services shall apply.