Impartial Analysis
Initiative Measure to Be Submitted Directly to the Voters
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 of2.40% 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 infonned 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 ofrevenue.
Ifthis 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 ofthe costs ofthese 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.