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ORDINANCE NO. 2083
AN ORDINANCE OF THE PEOPLE OF THE CITY OF
ARCADIA, CALIFORNIA, AMENDING ARCADIA
MUNICIPAL CODE SECTION 2671.6 INCREASING
THE UTILITY USER TAX RATE FROM FIVE PERCENT
(5%) TO SEVEN PERCENT (7%) TO REVERT TO FIVE
PERCENT (5%) ON APRIL 15,2002 AND AUTHORIZ G
THE CITY COUNCIL TO LOWER THE SEVEN PER NT
(7%)TAXRATEAT ANYTIME
WHEREAS, there is currently in effect in the City of Arca la a Utility User Tax Rate
of five percent (5%), which rate superseded a prior Arcadia te of seven percent (7%); and
WHEREAS, pursuant to State Proposition 218 ( acted by the voters of the State in
November 1996) a City Council can no longer raise revenues by City Council legislation.
Such legislation must be enacted by the peopl t a general municipal election held every
two (2) years; and
WHEREAS, this Ordinance is ecessary to afford the people the opportunity at the
general municipal election to c sider raising revenue for general fund purposes by
increasing the Utility User T
WHEREAS, the C' of Arcadia provides a high level of service without fees, charges
or taxes that many ci . s around charge on top of property tax; and
, "General Fund" money pays for most municipal services including
police, fire recreation, senior citizen, community development, maintenance and
WHEREAS, in light of the City's declining revenue and resulting budget shortfall,
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programs and services were reduced or cut to match expenditures to income; and
WHEREAS, an increase in the "General Fund" revenues of the City is necessary to
restore services and to enhance or create new services for all ages of Arcadia residents; and
WHEREAS, new programs or services are not feasible if a new long-term source of
revenue is not obtained.
NOW, THEREFORE, THE PEOPLE OF THE CITY OF ARCADIA, CALIFORNIA
DO HEREBY FIND, DETERMINE AND ORDAIN AS FOLLOWS:
SECTION 1. Arcadia Municipal Code Section 2671.6 as it currently reads is
repealed.
SECTION 2. Arcadia Municipal Code Section is 2671.6 shall read as follows:
2671.6. ELll\lINATION OF SUSPENSION OF A PORTION OF THE UTILITY
USER TAX RATE AND ESTABLISHMENT OF A SEVEN PERCENT (7%) RATE TO
TERMINATE AS OF APRIL 15, 2002 SUBJECT TO DECREASES BY CITY COUNCIL
ORDINANCE AMENDMENTS PRIOR TO THAT DATE.
The utility user tax rates set forth in Subsections 2671(a), 2671.1(a) and 2671.2(a)
shall be as set forth in those sections, i.e. seven percent (7%). The suspension of said rate
as previously set forth in this section is no longer effective. The seven percent (7%) rate as
referred to herein and the referred to code sections shall terminate as of April 15, 2002. At
that time the five percent (5%) rate shall become effective and shall be the applicable rate
with reference to the above referred to Subsections.
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Nothing set forth herein shall preclude the Arcadia City Council from enacting an
ordinance to amend this section by decreasing the utility user tax rate at any time prior to the
termination date for the seven percent (7%) rate as set forth above.
Pursuant to this Section and State Proposition 218 no additional increase to the tax
rate set forth herein shall become effective unless approved by a majority of the voters at a
general municipal election for City Council members.
SECTION 3. This Ordinance shall be considered as adopted upon the date that the
vote is declared by the City Council and shall go into effect ten (10) days after that date; to
wit, May I, 1998.
SECTION 4. The City Clerk shall certify to the adoption of this Ordinance and shall
cause a copy of same to be published in the official newspaper of said City within fifteen
(15) days upon its adoption.
Passed, approved and adopted this
day of
,1998.
Mayor of the City of Arcadia
ATTEST:
City Clerk
APPROVED AS TO FORM:
City Attorney
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