With limited exceptions, every person who uses electric, gas, telephone, water, or cable television service in the City pays a utility users tax (UUT) of 1% of utility charges for these services. The UUT is collected via utility bills. The UUT accounts for 2.8% of the City’s ongoing General Fund revenues. The City uses UUT proceeds to provide police and fire protection, recreation, street rehabilitation and other community services funded through the City’s General Fund.

In 1991, the City imposed a UUT without voter approval based on California court findings that voter approval was not required. However, the California Supreme Court subsequently overturned earlier court decisions and upheld Proposition 62, which required voter approval of local general taxes. Measure O-04 is therefore now on the November 2, 2004 ballot in order to validate the 1991 UUT ordinance.

The Measure would validate and readopt the UUT ordinance and validate taxes previously collected under that ordinance. Measure O-04 would not increase the rate of the UUT or make any changes to the existing UUT. The City Council would be authorized to repeal or reduce the UUT or to amend the ordinance in other ways that do not increase taxes. However, any future increase in the UUT would require voter approval.

The full text of Measure O-04 will be in your sample ballot, is available on the City’s website at www.grover.org/election.htm, and is also available at City Hall.