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HomeMy WebLinkAbout557ORDINANCE NO. 557 AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF IRWINDALE TEMPORARILY REDUCING THE ELECTRICITY AND GAS TAX RATE UNDER SECTIONS 3.16.030 AND 3.16.040 OF THE IRWINDALE MUNICIPAL CODE TO TEMPORARILY OFFSET INCREASED TAX PAYMENTS MADE BY UTILITY USERS IN THE CITY OF IRWINDALE WHEREAS, on February 10, 1977, by Ordinance No. 309, the City Council of the City of Irwindale adopted the utilities user tax ordinance, as codified under Chapter 3.16 of the Irwindale Municipal Code, including imposing a 5% tax under Section 3.16.030 for use of electricity services and a 5% tax under Section 3.16.040 for use of gas services within the City of Irwindale; and WHEREAS, on July 3, 1991, by Ordinance No. 451, the City Council amended Sections 3.16.030 and 3.16.040 of the Irwindale Municipal Code to increase the electricity tax rate and gas tax rate, respectively, to 7.5%; and WHEREAS, as a result of the power shortages experienced in the State of California in the 2000-2001 fiscal years, the cost of electricity and gas have increased throughout the State, resulting in increased total tax revenues to the City due to the application of the City's flat utility tax rate to the higher charges; and F WHEREAS, to compensate residents and businesses for their increased payments to the City under the applicable electric and gas tax rate in the 2000-2001 fiscal years, the City Council wishes to temporarily reduce the electric and gas tax rate from 7.5% to 0.8%, which represents a 89.33% reduction of the tax rate, for two (2) months, beginning February 1, 2002, or as soon thereafter as the utility companies may implement the reduction through and including April 30, 2002, or such later date as corresponds to the two (2) month period; and WHEREAS, by temporarily reducing the rates for electric and gas rates, the City of Irwindale reserves its right to continue to impose the utilities tax at the full rate of 7.5% at the conclusion of the temporary reduction provided in this ordinance. THE CITY COUNCIL OF THE CITY OF IRWINDALE DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. The City Council of the City of Irwindale finds that the above recitals are true and correct. SECTION 2. The City Council finds that a decrease of the existing electric and gas service tax rate by 89.33% from the existing rate of 7.5% to 0.8% for two (2) months is a reasonable means of reimbursing the residents and businesses of the City for any Ordinance No. 557 Page 1 increased tax collections by the City during the increase of electricity and gas rates experienced in the City in the 2000-2001 fiscal years. SECTION 3. The City Council hereby temporarily reduces the utility users tax set under Irwindale Municipal Code Section 3.16.030 for use of electricity in the City from the current rate of 7.5% to 0.8%, effective beginning February 1, 2002, or as soon thereafter as the utility companies may implement the reduction, through and including April 30, 2002, or such later date as corresponds to the two (2) month period, at which time the applicable electric utility rate will revert to the 7.5% under Section 3.16.030. SECTION 4. The City Council hereby temporarily reduces the utility users tax set under Irwindale Municipal Code Section 3.16.040 for use of gas in the City from the current rate of 7.5% to 0.8%, effective beginning February 1, 2002, or as soon thereafter as the utility companies may implement the reduction, through and including April 30, 2002, or such later date as corresponds to the two (2) month period, at which time the applicable electric utility rate will revert to the 7.5% under Section 3.16.040. SECTION 5. As an ordinance relating to the taxes for the City's usual and current expenses, this ordinance shall take effect immediately pursuant to Government Code Section 36937(d). SECTION 6. The Deputy City Clerk shall certify as to the passage and adoption of this ordinance and shall cause the same to be posted at the designated locations in the City of Irwindale. PASSED, APPROVED, and ADOPTED this 24th da of January 2002. !, A. Breceda, Mayor Ordinance No. 557 Page 2 W a a STATE OF CALIFORNIA } COUNTY OF LOS ANGELES } ss. CITY OF IRWINDALE 1 I, Linda J. Kimbro, Deputy City Clerk of the City of Irwindale, do hereby certify that the foregoing Ordinance No. 557 was introduced and adopted at a regular meeting of the City Council of the City of Irwindale held on the 24th day of January 2002, by the following vote: AYES: COUNCILMEMBERS NOES: COUNCILMEMBERS ABSENT: COUNCILMEMBERS ABSTAIN: COUNCILMEMBERS: Ramirez, Garcia, Tapia, Mayor Breceda None None Miranda AFFIDAVIT OF POSTING I, Linda J. Kimbro, Deputy City Clerk, certify that I caused a copy of Ordinance No. 557, adopted by the City Council of the City of I 'ndale at its regular meeting held January 24, 2002, to be posted at the City Hall, Library, and Post Office on January 26, 2002. Li . Ki b o, CVd Dated: January 26, 2002 puty City CkEv Ordinance No. 557 Page 3