CITY OF NEWARK MEASURE PP
CITY ATTORNEY’S IMPARTIAL ANALYSIS
The City Council of the City of Newark is submitting to the voters the question of whether to approve an ordinance that would extend an existing three and one-quarter percent (3.25%) Utility Users Tax (“UUT”) on telecommunication (including landline telephone and cell phone services), video (including cable television), and electricity and gas services within the City. The UUT is based upon the amount charged by each service provider for the services used.
If approved, Measure __ would continue the existing UUT first approved by voters in 2010, and extended by voters at a decreased rate in 2014, for an additional nine years until December 31, 2029, without a tax rate increase.
Because Measure __ does not limit the use of UUT revenue, it is a “general tax,” and the funds provided are available for any legitimate governmental purpose. As noted in the ballot question, examples of uses of revenue from the UUT include 911 emergency services, fire protection services, public safety services, streets and pothole repair, parks and recreation programs, neighborhood police patrols, drug and gang-prevention programs, and other city services. Measure PP would generate approximately $2.75 million in funds annually that are legally required to be used in Newark for local city services that cannot be taken by the State of California or Alameda County.
Measure PP would continue to provide approved applicants with an exemption from payment of the UUT for senior citizens who are seventy (70) years or older and low-income persons of any age who are enrolled in the Pacific Gas & Electric Company CARE Program (“California Alternate Rates for Energy”).
Measure PP includes a requirement for annual financial audits of UUT collection and expenditures to be performed by a qualified and independent third party. The results of the annual audits will be available to the public.
A “Yes” vote is a vote to approve the extension of the voter-approved UUT for nine years at the current rate. A “No” vote is a vote to not extend the UUT and the UUT would no longer be levied after December 31, 2020. Measure PP will be approved if it receives a simple majority of “Yes” votes of those voting on the Measure.
The above statement is an impartial analysis of Measure PP. If you desire a copy of the proposed ordinance, please call the City Clerk’s office at (510) 578-4278 and a copy will be mailed at no cost to you.
DATED: August 6, 2020
3567398.1
/s/ Kristopher J. Kokotaylo, Interim City Attorney