Election law changes? Our legislation tracker’s got you. Check it out!

Burbank, California, Measure T, Utility Funds Transfer Charter Amendment (June 2018)

From Ballotpedia
Jump to: navigation, search
Local ballot measure elections in 2018
Measure T: Burbank Utility Funds Transfer Charter Amendment
LocalBallotMeasures Final.png
The basics
Election date:
June 5, 2018
Status:
Approveda Approved
Topic:
Local utility tax and fees
Amount: Up to 7% of BWP's gross annual sales
Expires in: Never
Related articles
Local utility tax and fees on the ballot
June 5, 2018 ballot measures in California
Los Angeles County, California ballot measures
See also
Burbank, California

A utility funds transfer charter amendment was on the ballot for Burbank voters in Los Angeles County, California, on June 5, 2018. It was approved.

A yes vote was a vote in favor of continuing the practice of including a fee in retail electric rates to fund the transfer of up to 7% of Burbank Water and Power’s (BWP) gross annual sales of electricity to the city’s general fund.
A no vote was a vote against continuing the practice of including a fee in retail electric rates to fund the transfer of up to 7% of Burbank Water and Power’s (BWP) gross annual sales of electricity to the city’s general fund.

Election results

Burbank Measure T

Result Votes Percentage

Approved Yes

15,969 81.10%
No 3,721 18.90%
Results are officially certified.
Source


Text of measure

Ballot question

The ballot question was as follows:[1]

To maintain essential City services/infrastructure like police, fire, parks, libraries, streets and street lighting, shall the measure be adopted amending the City of Burbank Charter to continue the past practice of transferring not more than 7% of Burbank Water and Power’s gross annual sales of electricity, paid by retail electric rate payers, providing approximately $12.5 million annually to the City’s General Fund until ended by voters, with all money spent to benefit Burbank residents?[2]

Impartial analysis

The following impartial analysis of the measure was prepared by the office of the Burbank City Attorney:

If a majority of Burbank voters approve this measure, new Charter Section 610A (“§610A”) will continue the existing practice of including a fee in retail electric rates to fund the transfer of no more than 7% of Burbank Water and Power’s (BWP) gross annual sales of electricity to the City’s General Fund in order to pay for essential City services.

In 1958, Burbank voters amended the Charter to allow this transfer (§610). For decades, retail electric rate payers funded these transfers through a fee in rates with a percentage embedded in rates, a percentage as a line item to the rates or a combination.

In 2016, Charter §610 was challenged in court. The court determined the fee is a tax, subject to Burbank voter approval; and ordered the City to stop collecting the fee. City has appealed, which suspends the court’s order. Since the ruling, BWP continues to collect the fee and make transfers to the General Fund. Council is placing transferred amounts into a holding account, pending final resolution.

Although voters approved a Charter amendment to §610 in 2007, the court found voter-approval requirements for a tax were not met because §610 did not explicitly authorize funding the transfers from retail electric rate payers.

City Council placed this Measure on the ballot to add Charter §610A -Utility Department Transfers- to resolve the court’s ruling. §610A explicitly approves the existing practice of including a fee in retail electric rates to fund the transfers to the General Fund as follows:

  • City Council is authorized to set retail electric rates annually that include the cost of transfers.
  • Burbank Water and Power is authorized to include the cost of transfers within retail electric rates or as a separate line item fee.
  • Amount of the fee will not exceed 7%.City Council may transfer up to 7% of BWP’s gross sales of electricity from retail electric rate payers to the City’s General Fund.
  • Applies retroactively to the 2016/2017 fiscal year.
  • Authority to impose the fee will remain in effect until changed by the voters.

The estimated, annual revenue generated from the fee and transferred to the General Fund is approximately $12.5 million. Transferred amounts pay for fire, police, street repairs, street lighting, libraries, park/recreation programs/facilities.

A "no" vote means §610A is not approved and will not go into effect. Without passage of §610A and if City loses the court appeal, the fee to fund the transfers must stop, resulting in no money to fund future transfers to the General Fund. A “no” vote will likely result in a $12.5 million reduction in the General Fund, reflecting the annual revenue loss.

A “yes” vote adds §610A to the Charter continuing the long-standing funding mechanism for the approximately $12.5 million annual transfer to the General Fund. Passage of this Measure will not increase retail rate payers’ bills because current rates already include the cost of the transfers. A “yes” vote results in continued funding of the General Fund transfers, paying for essential City services.[2]

—Burbank City Attorney[3]

Path to the ballot

See also: Laws governing local ballot measures in California

This measure was put on the ballot through a vote of the Burbank City Council.

See also

External links

Footnotes