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HomeMy WebLinkAbout2001-07-23 Ordinance 4710ORDINANCE NO. 4710 ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO CLARIFYING AND RESTATING CERTAIN BUDGETARY ACTIONS RELATING TO THE INTENDED REBATE OF A PORTION OF THE UTILITY USERS TAXES WHEREAS, on June 11, 2001, the City Council adopted the Budget for fiscal year 2001-02; and WHEREAS, while adopting the 2001-02 Budget, the Council deferred the question of whether or not to rebate a portion of the Utility Users Taxes (UUT) relating to the increased cost of gas and electricity; and WHEREAS, Exhibit "B" of the Budget Adoption Ordinance (No. 4706) included an item reflecting the anticipated rebate and its affect on General Fund revenues; and WHEREAS, the Utility Users Tax revenues as shown in the General Fund Summary tables Adoption Ordinance (No. 4706) incorporated taxpayers; and of $7.02 million of the Budget a rebate to WHEREAS, on July 16, 2001, the City Council formally approved the UUT rebate in the following motion: "1. 010718 cI 0032475 Approve (UUT) a General rebate to Fund gas Utility Users Tax and electricity customers as follows: a. The rebate would be a refund in of a credit on the bills of electric customers. the form gas and b. The credit will appear on bills beginning August 1, 2001 and will be equal to the UUT amount that customers would have paid as a result of the June 1, 2001 gas rate increase of 67 percent, and the July 1, 2001 electric rate increase of 43 percent. c. The rebate or credit would continue through June 30, 2002. 1 2. Direct staff to prepare an ordinance to implement this action in the General Fund Budget and present it to Council on July 23, 2001;" and WHEREAS, the Council desires to clarify that the UUT rebate will be limited for high volume users to the first threshold of five percent (5%); and WHEREAS, the Council desires to further clarify that the 2001-02 Budget, as adopted on June 11, 2001, including Exhibi t "B" thereof, reflects the effect on General Fund revenues of the Council's action of July 16, 2001, to approve the UUT rebate, and to restate that portion of the Budget so affected. NOW, THEREFORE, the Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. The Council hereby clarifies that its action of July 16, 2001 approving a UUT rebate, as stated above, will be limited for high volume users to the first threshold of five percent (5%). SECTION 2. The Council hereby clarifies that the 2001- 02 Budget, as adopted on June 11, 2001, including Exhibit "B" thereof, reflects the effect on the General Fund revenues of the Council's action of July 16, 2001, to approve the UUT rebate. SECTION 3. The Utili ty Users Tax revenues of $7,024,000, the net surplus of $1,246,000 and the projected Budget Stabilization Reserve of $22,542,000 will not change as a result of this action. SECTION 4. This is not a proj ect for purposes of the California Environmental Quality Act. II II II II II II 010718 cl 0032475 2 SECTION 5. This immediately upon adoption. ordinance INTRODUCED AND PASSED: July 23, 2001 shall AYES: BURCH, EAKINS, FAZZINO, OJAKIAN, WHEELER KLEINBERG, NOES: ABSENT: BEECHAM ABSTENTIONS: APPROVED AS TO FORM: Senior Asst. City Attorney tHIS DOCUMENT IS CERT1FIED TO BE AN ORD!i\l,1\NC~ DULV PASSED BY THE COUNCIL :,' or ".,!;: CITY OF PALO ALTO AND \1'; <. n-;;:::"U\i-fER POST~J!lfiEfOUNC1L . CH;',,'i:m:RS ON ~_ (WITHIN 11 DAYS m· ITS PASS/l/ E) .. "I certify (or decillre) under penalty of pe~jtlry that the foregoing is true gIl ~~recr~ 010718 cI 0032475 3 be effective LYTLE, MOSSAR,