6,799 / 64.48% Yes votes ...... 3,745 / 35.52% No votes

See Also: Index of all Measures

This measure seeks voter approval of Ordinance No. 984 which ratifies and continues the Utility Users Tax enacted by the City Council on July 20, 1992, by Ordinance No. 820, as amended. The current tax rate set by resolution under Ordinance 820 is 5% on the use of utilities in the City of Pico Rivera. The utilities upon which the tax is imposed are telephone services, including cellular, electricity, cable television and gas. The tax does not apply to water usage.

The Ordinance also contains provisions relating to calculation and payment of the tax, administration of the tax, request for refunds, termination or suspension of the tax, and an annual review of the tax.

If passed, this measure keeps the current tax rate at 5%. The tax rate can only be changed by a vote of the people.

This measure also provides an exemption from the tax for low-income persons eligible to participate in utility discount programs, as well as school districts, government agencies and water corporations.

During fiscal year 2001-2002, the Utility Users Tax provided approximately $3.06 million of the City's general fund revenue, or about 17.38% of the City's general fund operating budget.

A "yes" vote on this measure would ratify the current Utility Users Tax, as enacted and subsequently amended, from its date of adoption. In addition, the current 5% tax rate and aforementioned exemptions would continue in full force and effect and could not be modified without a vote of the people.

A "no" vote on this measure would require the City to stop collecting the Utility Users Tax and would result in a $3,060,000 reduction in the City's general fund revenue. This reduction in revenue would require the City Council to cut programs or services, which may include public safety, public works and/or recreation.

The above statement is an impartial analysis of Measure "P." If you desire a copy of the measure, please call the City of Pico Rivera's City Clerk's Office at (562) 801-4389 and a copy will be mailed to you at no cost.

City of Pico Rivera Brochure (pdf format)

The utility tax generates $3 million a year, or 16% of the City's General Fund budget. This equals half the annual cost of Sheriff's services or nearly the entire operation of the Parks & Recreation Department. Homeowners pay an average of $12 per month for the utility tax. Without the utility tax, many current programs and services could be in jeopardy. Economic development will stop, property values will drop, and community spirit and pride will be compromised. A YES vote ensures the maintenance of vital programs and services for the City of Pico Rivera.

The General Fund supports public safety, parks and recreational programs, youth and senior services, community beautification efforts, and street repairs. The investment of tax back into the community is essential for protecting and promoting the high quality of life Pico Rivera residents expect and deserve. This investment also contributes to increased home and property values. And, this funding is a key element in the City's ongoing efforts to encourage the economic development that has brought new shopping, entertainment, and housing opportunities residents have long desired.

During the economic decline of the 1990's, the City of Pico Rivera was forced to cut services. At the same time, the City lost revenues previously generated by the former Northrop-Grumman plant. Faced with mounting budget deficits, the City introduced the utility tax in 1992 to avoid further reductions in vital public services, including public safety. The tax was implemented in complete compliance with the law. Still, voter approval of the utility tax will solidify our collective commitment to the further progress of Pico Rivera.

We urge a Yes vote.

GREGORY SALCIDO
Mayor

(No arguments against Measure P were submitted)