HomeMy WebLinkAboutCC 07-21-2026 Item No. 9 Utility Users Tax Ballot Measure_Supplemental ReportCC - 07-21- 2026
#9
Utility Users Tax
Ballot Measure
Supplemental Report
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FINANCE DEPARTMENT
CITY HALL
10300 TORRE AVENUE • CUPERTINO, CA 95014-3255
TELEPHONE: (408) 777-3220
CUPERTINO.GOV
CITY COUNCIL STAFF REPORT
SUPPLEMENTAL 1
Meeting: July 21, 2026
Agenda Item #9
Subject
Approval of a Resolution submitting an Ordinance to the voters to Extend the Current Utility Users
Tax and Telecommunications Tax by 10 Years after its Expiration Date, placing this Measure on
the ballot for the November 3, 2026 General Municipal Election and consolidating it with the
statewide election.
Recommended Action
Adopt Resolution No. 26-XXX submitting an Ordinance (measure) to the voters for extending the
current Utility Users Tax and Telecommunications Tax by 10 years after its expiration date.
Background:
Staff’s responses to questions received from councilmembers are shown in italics.
Q1: My understanding of the UUT is per Council action, the status quo will continue for
another ten years at the existing rate of 2.4%. From a budget standpoint, will this not result
in diminishing revenues from year to year? Here's an example: my PGE bill used to be in
the $300 range, and city share of UUT was 2.4% of $300. We have installed solar panels in
the last six months and switched to induction cooking from gas. My PGE bill is now in the
$10 range. The city will therefore collect 2.4 percent of $10. How will this help our budget
situation?
Staff Response: Extending the existing 2.4% Utility Users Tax (UUT) preserves a significant
ongoing revenue source that would otherwise expire in 2030. However, because the measure does
not increase the tax rate or expand the tax to include additional services, it does not guarantee that
revenues will keep pace with inflation or future budget needs. As utility consumption patterns
evolve, such as through increased adoption of rooftop solar and other energy-efficient technologies,
portions of the tax base may decline over time. Staff will continue to monitor these trends and
incorporate them into future financial forecasts.
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Attachments Provided with Original Staff Report:
A – Draft Resolution