HomeMy WebLinkAbout02-26-1985 City Council Minutes TIME: Tuesday, February 26, 1985 - 7:30 p.m.
PIACE: Community Center Meeting Room, 19655 Allendale Avenue
TYPE: Adjourned Regular Meeting
The meeting was called to order at 7:34 p.m. Councilmembers Callon, Clevenger,
Hlava, Moyles and ~yor Fanelli were present.
1. Proposed Revenue M~xres
a. Ordinance l~mposing Transient Occupancy Tax (first
b. Ordinance ~djusting Business License Fees (first reea~.g)
c. Ordinance Imposing Utility Users Tax (first reading)
City Manager introduced Bud Oimoen and Pepe Tarango, representatives of Pacific Gas
end Electric Company, who were present to provide data and information about prooe-
dures in connection with the utility users tax.
Mr. Ta~ango provided a list of average gas and electric consumption figures for each
month of 1984, together with revenue figures for December. Finance Director ex-
plained that governmental bodies, which would be exempt from the tax, had been
removed from the revenue figures. In answer to Councilmember Moyles, Finance
Director stated that 50% of the median income for the County was about $11,000 as of
1979 and that 825 Saratoga families were at that level and thus could apply for
exemption from the tax.
Councilmember discussed the value of a sunset clause for the utility users tax.
Councilmember Clevenger pointed out that the Council had the power to continue or
end the tax in any case, but Councilmember Gallon noted that the clause would assure
the citizens that the Council was not attempting to establish an endless source of
funds.
The proposed $100 cap on the utility users tax was then discussed. Councilmember
Gallon favored the cap because she felt the Council had made a good faith agreement
with the public that the tax would be $100, and the majority of the voters had
approved the $100. Moreover, she noted, inflation would increase the amount of the
tax by an unpredictable amount over the years. Councilmember Hlava opposed the cap
for equity reasons; she felt those using more energy should be charged more so that
the tax would be progressive rather than regressive. As to the wishes of the
voters concerning the cap, she believed that it could not be assumed that the Voters
had favored that or any particular provision, since the measure had been voted on as
a whole. Councilmembers Clevenger and Moyles agreed, noting also that the cap would
be very difficult to administer.
Finance Director stated that each percentage point of tax would raise approximately
$150,000 at current rates so that a 3 1/2% tax would raise $525,000. Councilmembers
discussed the amount to be raised by each of the three taxes. Councilmember Hlava
suggested that the tax could be reduced if the sale or lease of City property
provided enough funds; Councilmember Clevenger noted that a proposed State gas tax
may provide more funds for City streets. The public hearing was opened at 8:15 p.m.
Col. F~ T. Barco expressed doubt concerning the figures for the average monthly PG&E
bill, which was said to be $108; he believed it to be about $200. He suggested that
the Council make it clear that the tax revenues were to be used for street mainte-
nance and would be reviewed yearly. He recommended passing the utility user tax
ordinance but not the other two ordinances.
An unidentified member of the audience stated that the Council needed to improve
communications with the community and provide a better microphone system. He
opposed the $100 cap and suggested that the Cit. y budget be trimmed.
Jack Mallory, 12258 Kirkdale Drive, asked whether the the scope of the pavement
management program on the amount of revenues to be raised or vice versa. Mayor
Fanelli replied that the Council would provide as extensive a program as possible
without exceeding a $100 tax. She noted that the fends might be short of $900,000
per year initially, but that inflation would increase them. Mr. Mallory stated that
his street was decaying, and that it would cost more to repair if it decayed beyond
a certain point. He urged the Council to make a decision on the pavement main-
tenance program.
2-2/26/85
The public hearing was continued to March 6.
Mayor Fanelli summarized the changes to the utility users tax ordinance as follows:
add an annual review; confine the tax to gas and electric charges only; remove the
$100 cap. Councilmembers discussed setting a definite number for revenue to be
produced for the ~vement managemeat program; there was consensus to request the
City Attorney to draft a resolution in which the number would be set rather than
placing it in the ordinance.
Councilmember Callon then stated that for the next meeting she wished to see the
total PG&E utility bill revenue figures for 1984 with the governmental agencies
omitted. When Mr. Tarango stated that it would be very time-consuming to prepare
the figures, she r6quested the figures for a month very different from D6cember,
such as August. Councilmember Moyles requested County median income fi~ures for
1984.
Joy Drinker, repres~mting the Good Government Group, asked when the utility user tax
ordinance would be in place. After discussion, there was consensus to make the
effective date July 1, with the annual review to be on a fiscal year hasis.
The meeting was adjourned at 8:47 p.m.
Respectfully submitted,
Grace E. Gory
Deputy City Clerk