City of Glendale Utility Users Taxes UUT Historical

City of Glendale Utility Users Taxes (UUT)

Historical Perspective of the Glendale UUT Slide 2 § Established in 1969 § City Councils made several times over the years • Prop 218 removes discretion from local government to establish without voter approval (1996) § Reaffirmed on ballot in 2009 • Sought voter approval to reduce tax rates on certain utilities and add a Communications Users Tax to the UUT tax base • 66. 6% of voters approved the proposed changes

Slide 3 General Fund Revenues § Approximately 73. 7% of the City’s major revenues consist of four revenue sources for FY 2015 -16 budget: % $ Property Taxes 26. 8 49, 740, 000 Sales Taxes 20. 3 37, 700, 000 UUT 15. 2 28, 250, 000 Transfer from Utilities 11. 4 21, 257, 000

FY 2015 -16 General Fund Slide 4 Resources vs Appropriations $ 200, 000 $ 180, 000 $ 160, 000 PROPERTY TAXES $49, 740, 000 26. 8% $ 140, 000 $ 120, 000 POLICE $70, 301, 071 38. 4% SALES TAXES $37, 700, 000 20. 3% $ 100, 000 $ 80, 000 UTILITY USERS TAXES $28, 250, 000 15. 2% $ 60, 000 TRANSFER FROM OTHER FUNDS $21, 257, 000 11. 4% $ 40, 000 INTERFUND REVENUE $15, 090, 577 8. 1% $ 20, 000 OTHER LICENSES, PERMITS & TAXES $19, 105, 000 - 10. 3% FIRE $45, 027, 061 24. 6% PUBLIC WORKS $17, 964, 870 9. 8% CDD $9, 845, 834 - 5. 4% C. S. & PARKS $10, 499, 841 - 5. 7% LIBRARY $8, 488, 883 - 4. 6% OTHER RESOURCES $14, 523, 983 - 7. 8% INTERNAL SERVICE DEPARTMENTS $20, 763, 374 - 11. 4% Resources $185, 666, 560 Appropriations $182, 890, 934 $-

Slide 5 FY 2015 -16 UUT Rate Breakdown UUT FY 2015 -16 Budget Electricity (GMC 4. 36. 030) Water (GMC 4. 36. 050) Gas (GMC 4. 36. 040) Communication (GMC 4. 38. 020) TOTAL Rates $12, 000 7. 0% 2, 950, 000 7. 0% 2, 550, 000 7. 0% 10, 750, 000 6. 5% $28, 250, 000

General Fund Revenues Utility Users Tax Slide 6

Slide 7 UUT Rate Comparison Glendale Burbank Pasadena Los Angeles Electricity 7. 00% 7. 67% 10. 00% Water 7. 00% - 7. 67% - Gas 7. 00% 7. 90% 10. 00% Communication 6. 50% 7. 00% 8. 28% - 9. 40% 9. 00% • In 2009 Glendale voters approved a rate reduction for Telecommunications and Video (reduced from 7% to 6. 5%)

Slide 8 UUT Cost per Capita Comparison FY 2015 -16 Budget Annual Per Capita Monthly Per Capita Weekly Per Capita UUT Category Budget Population* Electricity $12, 000 199, 182 $60. 25 $5. 02 $1. 16 Water 2, 950, 000 199, 182 $14. 81 $1. 23 $0. 28 Gas 2, 550, 000 199, 182 $12. 80 $1. 07 $0. 25 Communication 10, 750, 000 199, 182 $53. 97 $4. 49 $1. 04 TOTAL $28, 250, 000 $141. 83 $11. 81 $2. 73 * Population is based on Department of Finance estimates

City of Glendale Organizational Profile Post-Great Recession Slide 9 § Structural Balance • 1, 568 Full-time positions in FY 2016; down from a high of 1, 996 positions in FY 2006 and 1, 842 in FY 2012 • Pioneer in pension and compensation reform savins hundreds of millions of dollars two-tier, cost-sharing, OPEB • Adherence to “soft caps” on salaries < 35% and < 25% management ratios § Excellence in Service* • 89% rate Glendale as a “excellent” or “good” place to live • 93% are either “satisfied” or “very satisfied” with city services • Resident satisfaction ratings with City Departments § Fire 94% § Police 90% § Community Service and Parks 87% § Library, Arts, and Culture 85% 2016 Resident Satisfaction Survey*

City of Glendale Organizational Profile UUT Elimination Impacts Slide 10 § Total elimination of the Library, Arts & Culture and Community Services & Parks Department; or § Contract out Police and Fire services to LA County Sheriffs and LA County Fire; and § Reduction in level of service in both Police and Fire departments

Glendale UUT Education www. Glendale. UUTEducation. com Slide 11

Slide 12 Questions & Comments