HomeMy WebLinkAbout95-092 - ResolutionsRESOLUTION NO. 95-092
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RANCHO CUCAMONGA, CALIFORNIA, AUTHORIZING
ENACTMENT OF A FORMULA FOR ULTIMATE REDUCTION
AND ELIMINATION OF THE UTILITY USER'S TAX IN THE
CITY OF RANCHO CUCAMONGA, CALIFORNIA
WHEREAS, the City Council of the City of Rancho Cucamonga, desires the
reduction and ultimate elimination of the utility user's tax, and;
WHEREAS, the City Council of the City of Rancho Cucamonga, recognizes that a
systematic process for reduction and ultimate elimination of the utility user's tax and cap rate can
be enacted, and;
WHEREAS, the concept behind the utility tax reduction is that as the five major
general fund revenue sources increase from year to year, that a portion of this net general fund
increase shall be used to reduce the utility user's tax and cap rate.
NOW, THEREFORE, be it resolved that the City Council of the City of Rancho
Cucamonga adopt the attached formula for ultimate reduction and elimination of the utility user's
tax and cap rate in the City of Rancho Cucamonga, California
PASSED, APPROVED, AND ADOPTED this 8th day of June, 1995.
AYES: Alexander, Biane, Curatalo, Gutierrez, Williams
NOES: None
ABSENT: None
William J. P)tlexander, Mayor
Resolution No. 95-092
Page 2
ATTEST:
I, DEBRA J. ADAMS, CITY CLERK of the City of Rancho Cucamonga, California, do hereby
certify that the foregoing Resolution was duly passed, approved, and adopted by the City Council
of the City of Rancho Cucamonga, California, at an adjourned meeting of said City Council held on
the 8th day of June, 1995.
Executed this 12th day of June, 1995, at Rancho Cucamonga, California.
Resolution No. 95-092
Page 3
Utility User Fee Reduction Model Definitions:
Net Fire District General Fund Revenue Indicator shall be defined as:
Fire District Property Tax
Net City General Fund Revenue Indicators shall be defined as:
Sales Tax
Property Tax
Motor Vehicle License Fees
Franchise Fees
Any Utility User Fees in excess of the base year plus the CPI
Formula Definitions shall be defined as follows:
FRcy = Current Fiscal Year Fire District net General
Fund Revenue Indicator
FRpy = Prior Fiscal Year Fire District net General Fund
Revenue Indicator
CRcy -- Current Fiscal Year City Net General Fund Revenue
Indicators
CRpy = Prior Fiscal Year City Net General Fund Revenue
Indicators
CPI = Southern California Metropolitan CPI For Current
Year applied to Last Fiscal Year General Fund
CRG = New Net General Fund Revenue Growth
UTR '- Amount of Revenue for Utility User Fee Reduction
GFR = Amount of Reduction of City General Fund
contribution to Fire Distdct General Fund up to $ 650,000
CFD TM Annual contribution to Fire District General Fund
P = Percent Growth In revenue relative to Utility User Fee
Utility User Fee Reduction Conditions:
All revenue utilized in definitions to exclude any current or
future components of revenue or expenditure mandated by
Federal, State, or .County.
Resolution No. 95-092
Page 4
All revenue utilized in definitions to exclude revenues that are
dedicated to debt service or pledged to any public/private
economic development agreement.
3.5% is the proportion of revenue paid by those with fee caps
relative to all other utility user fee payers*
96.5% is the proportion of revenue paid by all those without fee
caps*
Cap Reduction is done straight across the board for those
payers falling into the cap category
The proportionate cap percentage is to be recalculated each
year and applied to formula
After the cap is reduced to $30,000, all revenue for utility user
fee reduction in subsequent years goes toward reduction of
utility user fee percentage rate.
Adjustments to Utility User Fee done automatically after each
year's official audit beginning with FY 1995-96 as the "last
fiscal year" (base year) and FY 1996-97 as the "current fiscal
year".
No further cuts will be made by the State
"Prior Year", will be FY 1995-96
The calculation for the first reduction will be made after the
formula defined "Current Year" (FY 1996-97)
Calculations will be made 30 days after receipt of the
completed independent financial audits.
City Council Action on any reduction 30 days thereafter
Utilities will be given 90 days notice to enact any new rates
* These percentage rates shall be recalculated each year to reflect actual proportion
Resolution No. 95-092
Page 5
Utility User Fee Reduction Model:
· FRcy- [FRp¥ (1 + CPI) ] = FR ~
= Net Rev. Growth For Fire District
General Fund
· If FRG < 0
Then there is no reduction of City General Fund Contribution
to Fire District General Fund
· If FR~
· If UTR _< 0
· If UT. > 0
Then ·
· FRo/4=GFR
(Amount of reduction of City General
Fund Contribution to Fire District
General Fund)
CRcy- [CRp¥ (1 + CPI)] = CRo = Net Revenue Growth For City
General Fund
[CRG / 4 ] + GFR = UTR = Amount of revenue available for utility user fee
reduction
Then there is no utility user fee reduction
Then:
· UT. = [ CR + R. ] Where:
· CR
· RR
= [UT.X 3.5%] = $ for Cap Reduction
= [UT. X 96.5%] = $ for Rate Reduction
P = R. / [Utility User Fee collected "current year"] X 100
P = Percent Revenue Growth Relative To Utility User Fee
4.66% - [ 4.66% X P ] = New Utility User Fee Rate