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Santa Clara County, CA March 5, 2002 Election
Measure M
Utility Tax Extension
City of Cupertino
Initiative; Majority approval required

4,935 / 60.6% Yes votes ...... 3,215 / 39.4% No votes

See Also: Index of all Measures
Information shown below: Impartial Analysis | Arguments |

Utility Tax Initiative. Residents currently pay a 2.4% tax on utility use, specifically electric, gas and telephone. Shall the City of Cupertino extend the existing utility tax which will otherwise terminate in 2015 for an additional 15 years to 2030, for general city services and programs?

Impartial Analysis from the City Attorney
On November 6, 1990, Cupertino voters approved the enactment of an ordinance which imposed upon the users of electricity, gas and telephone utilities a general excise tax of 2.40% of the monthly bills for said utility services (subject to an exemption for senior citizens). The purpose of this tax was to enable the City, through its general fund, to acquire and preserve various properties within the City (including Blackberry Farm) for open space and park services.

Upon enactment of the tax measure in 1990, the City, through the issuance of new debt, was able to raise sufficient money to allow it to accomplish the above-described goals. The original debt issued by the City is scheduled to be retired in 2015. The 1990 tax measure provided that the utility users tax would also cease in 2015, unless extended by the voters.

The City Council of the City of Cupertino has identified public interest and support for new public works projects (the most expensive of which is the construction of a new public library). The City's Director of Finance has informed the City Council that the City's general fund will be unable to finance many of these new projects (including the library) without additional sources of revenue. If this measure were adopted, the City would be in the position to raise approximately $5,000,000 (through a combination of issuing new debt and refinancing of the existing debt) to be used by the general fund to defray some of the costs of these new projects.

This measure would not increase the current utility users tax, but it would extend the existing tax for an additional 15 years from 2015 to 2030. The current senior citizen exemption would be maintained.

Charles Kilian, Cupertino City Attorney

The above statement is an impartial analysis of Ordinance No. 1888. If you desire a copy of the ordinance or measure, please call the Cupertino City Clerk's Office at (408) 777-3223 and a copy will be mailed at no cost to you.

   Official Information

Please note
The material about this Measure has been retyped from Registrar of Voters' material. There could be errors. The official material can be obtained from the Registrar of Voters.
News and Analysis

Cupertino Courier

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Arguments For Measure M
In 1990, the voters of Cupertino approved a 2.4% utility tax to fund the capital improvement program, which included the preservation of Blackberry Farm and Creekside Park as permanent open space. These properties are now public parks for all residents to enjoy. In March 2000, Cupertino voters overwhelmingly favored a new library. In order to finance these projects we are asking you to extend the utility users tax until the year 2030 from its sunset of 2015. This is not a new tax but an extension of the current tax, and will not increase your tax liability. Moreover senior citizens will continue to be exempt from this tax.

In order to fund the city's capital improvement program, which includes the construction of the new library, it is imperative that the city preserves its existing revenue sources. The utility tax is 2.4% of electricity, gas, and telephone charges. The utility tax currently provides $2.4 million per year towards capital project financing. The measure would provide that the existing utility users tax be extended from 2015 to 2030. This would allow the city to refinance its debt to pay for capital projects. This will not raise your taxes.

A yes vote will also safeguard the revenues for future capital projects while maintaining a prudent budget reserve. Those projects may include traffic safety, enhanced parks, and the new library.

Cupertino residents have always been intelligent visionaries. Your support for past capital improvements has ensured our quality of life in a fiscally responsible manner. Please help our city maintain this vision, without increasing taxes, by voting Yes on Measure M.

Richard Lowenthal, Mayor

Michael Chang, Vice Mayor

Sandra L. James, Council Member

Patrick S. Kwok, Council Member

Dolly Sandoval, Council Member

(No arguments against Measure M were submitted)

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Created: April 19, 2002 10:58 PDT
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