Elimination of Utility Tax Threatens City Services

Residents will vote on a 7.5 percent utility tax Nov. 8 that represents $3.6 million—or 17 percent—of the City's operating budget.

If Measure UT is not passed, South Pas would have no choice but to significantly cut municipal services, according to the City's website.

The services include: "...police officers and firefighters—potentially increasing 9-1-1 response times, eliminating certain senior services and reducing street and road repair and maintenance."

The Backstory

This tax comes on the heels of the finance committee's recommendation presented to the council June 1 to combine two taxes—a 3 percent one expiring in 2013 and a 5 percent one expiring in 2015—both slated to sunset in November.

And because of the , this new 10-year tax has been reduced from 8 to 7.5 percent, says Carrie Adrian, Chairwoman of the Finance Committee.

"People understand given that our revenues are not sufficient to pay for this level of services, we have a choice," Adrian said. "Either we vote in the tax, or we lose services."

But the tax does not come without opposition. A rebuttal filed against the tax specifically questions the 10-year timespan stating that utility costs are no longer predictable—also mentioning it restricts voters from casting a timely vote on the necessity of the funds. 

"Council has the legal authority not to spend any utility tax on infrastructure," the rebuttal states.

Contracting Police & Fire

In 2005, the city created a Quality of Life Committee to discuss whether cost savings of $500,000 could be acheived and sustained by contracting out fire services. 

The answer was no, and in March 2007, South Pas voted in favor of a 5 percent renewal utility tax. And then in a November 2007 special election, South Pas passed a 3 percent increase with no less than 65 percent to be spent on infrastructure and no more than 35 percent on employee salaries.

While the Quality of Life Committee noted that firefighter morale—at the time—was deteriorating because of compensation levels and the "extreme" turnover rate, South Pasadena's firefighter salaries seem to currently fall in line with surrounding communities, according to the California State Controller's Office 2009 reports.

Salaries

In South Pasadena, the maximum salary a firefighter can earn annually is $75,084—compared to $84,504 in San Marino and $71,232 in San Gabriel. (Surrounding communities that contract police and fire include La Cañada and San Dimas.)

City Council candidate David Margrave is one of the community members behind the UT rebuttal. He believes stopping it would be a positive step towards South Pasadena becoming a contract city.

"The most important thing for the community of South Pasadena—as all residents in the state of California and United States—is to pull back on the grossly overpaid wages, benefit packages, retirement packages, medical packages, dental packages that employees don't pay a penny towards," he said. "We need to stop that—or we're going to go broke."

November Elections

The UT would exempt low-income seniors and needs 51 percent of the votes in November to be passed. It would go into effect July 1, 2012.

If the 7.5 percent tax doesn't pass in November, the city will continue collecting the 8 percent UUT until March, 2013. At that time, the tax will be reduced to 5 percent and collected until July 2015.

While advocates of the tax think its important to keep this money local, opponents say City Council should focus on bringing pensions and benefits in line with the private sector.

Where do you stand on Measure UT?

Click here to view all Measure UT ballot arguments, rebuttals and an impartial analysis.

Click here to View South Pasadena's Measure UT FAQ.

Click here to view the UUT Presentation from the June 1 Council meeting.