City of Anaheim Utility Services Language Charter Amendment, Measure N (November 2014)

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A City of Anaheim Utility Services Language Charter Amendment ballot question was on the November 4, 2014 election ballot for voters in the city of Anaheim in Orange County, California. It was defeated.

If approved, Measure N would have amended the city charter to allow the city to continue to levy a 4 percent tax on utilities and continue to transfer this tax to the general fund. It would have also lifted certain restrictions on how reserve money in the city's utility system could be used and changed the wording so that the tax revenue transfer applies to "operational revenue" or regular revenue of the utility system instead of "gross revenue."

Election results

Orange County, Measure N
Result		Votes	Percentage
d No		21,535	50.1%
Yes		21,413	49.9%

Election results via: Orange County Registrar of Voters

Text of measure

Ballot question

The question on the ballot appeared as:

“

Shall Section 1221 of the Anaheim City Charter regarding water and electric rates be amended to: update language regarding financial reserves, reaffirm and authorize the transfer of money to the City's general fund to support general City services, remove unnecessary language that duplicates a requirement of the California Constitution, and authorize programs to assist non-residential and residential cutomers?

”

Impartial analysis

The following impartial analysis was provided for Measure N:

“	This proposed Charter Amendment measure was placed on the ballot by a vote of the Anaheim City Council. Background/Existing Law: Section 1221 of the Anaheim City Charter currently authorizes a gross revenue transfer from each of the water and electric utilities to the City's general fund. The current Charter authorization was first approved by Anaheim voters in 1976, to allow transfers of up to 8% the first year after approval, 6% the second year, and 4% in the third year and thereafter. The 4% gross revenue transfer authorized by Section 1221 was again approved by the voters in 1990, when the three-year phase-in language from 1976 was deleted because those provisions were no longer necessary due to passage of time. This Charter Amendment Measure: If approved by a majority of voters, this proposed Charter Amendment measure states that it would ratify and amend subdivision (e) of Charter Section 1221 to clarify the City's authority to transfer up to 4% of the "operating revenue" earned by each of the water and electric utilities to the City's general fund. Money in the general fund is used to support general City services. Section 1221 currently authorizes the transfer of up to 4% of the "gross revenue" of each utility to the City's general fund. As a result, the proposed measure would retain the 4% maximum transfer amount, but apply it to utility operating revenue rather than gross revenue. If approved, this proposed Charter Amendment measure would also update Charter Section 1221's language regarding the utilities' financial reserves to clarify that the use of reserves is not restricted to debt service on bonds outstanding. Therefore, reserves could be used to pay for operational contingencies of the utilities, not just debt service. The proposed measure would also eliminate language that duplicates a requirement of the California Constitution that rates be based upon the cost of service. The proposed Charter Amendment measure would permit the City Council to establish ratepayer discounts and other programs that assist all utility customers, not just residential customers, as Section 1221 currently states. Effect of this Charter Amendment Measure: A "Yes" vote is in favor of adopting this proposed Charter Amendment measure. A "No" vote is against adopting this measure. If a majority of voters vote "Yes" then this measure will take effect when it is filed with the Secretary of State.	”
—Michael R. W. Houston, Anaheim City Attorney

Support

Supporters

Anaheim Councilmember Lucille Kring signed the official arguments in support of Measure N.

Arguments in favor

The following was submitted as the official arguments in favor of Measure N:

“	An important function of local government is providing critical services for residents and businesses. Police, fire, roadways, parks, libraries are essential to Anaheim’s thriving community. Measure N ensures that services keeping us safe and providing quality of life issues for residents will continue to be funded without an increase in taxes or utility rates. To pay for these essential services, Anaheim voters have previously approved a General Fund Transfer from electric and water utility rates. In 1976, voters approved a General Fund Transfer reduced from 8% to 4% over three years. In 1990, voters again approved continuing the 4% General Fund Transfer in our Charter, but with the phase-in language removed. Now, it’s your turn to reaffirm Anaheim’s commitment to public safety and neighborhood services. Even with this Transfer, Anaheim’s utility rates are among the lowest in Orange County. At 4%, the General Fund Transfer is very modest compared with other Southern California municipal utilities. Your vote for Measure N will help keep Anaheim a wonderful and safe community by maintaining core services. Since the General Fund Transfer is already included in utility rates, there will be no increase for services we depend on. Measure N includes necessary administrative changes: Clarifying the General Fund Transfer is limited to ‘operating’ revenue and does not include other sources of funding, such as grants or bonds. Ensuring financial reserves may be used during emergencies (earthquakes, wind storms, or loss of major resources). Providing rate options such as a 10% senior and disabled discount for income qualified residents and net-metering rates for customer solar panels. Clarifying customer rebate programs that help save water and energy apply to all customers. I urge you to vote YES on Measure N to maintain essential Anaheim public safety and neighborhood services without increasing taxes or utility rates.	”
—Anaheim Councilmember Lucille Kring

Opposition

Opponents

Denis Fitzgerald, member of the board of directors for Anaheim Home Owners Maintaining our Environment (H.O.M.E.), signed the official arguments in opposition to Measure N.

Arguments against

The following was submitted as the official arguments in opposition to Measure N:

“	For years, the Anaheim Public Utilities have been charging the residents of Anaheim an extra 4% on their Electric and Water bills without listing the charges on their Anaheim utilities statements. This 4% surcharge on public utilities is often referred to as a UTILITIES TRANSFER TAX. The funds collected from the UTILITIES TRANSFER TAX for years were transferred to the General Fund. Because of a legal challenge, the present amounts of utilities transfer taxes collected are placed in a type of escrow account pending the outcome of the November election. The Anaheim General Fund is used for such purposes as to pay for police, fire services, and economical assistance to businesses in Anaheim. California Proposition # 218 requires that certain taxes must be voted on and approved by those being taxed (Anaheim residents/voters). Currently, the Anaheim UTILITIES TRANSFER TAX, which has been included in Anaheim residents’ utilities bills for years, needs the November 4, 2014 election Ballot Measure N to be approved by the Anaheim voters for the tax be considered legal and permanent. Should the Anaheim UTILITIES TRANSFIR TAX Measure N not pass, the Anaheim Electric and Water charges (Rates) could be reduced by 4%. And the millions of dollars in previously collected utilities transfer taxes will be returned to the Anaheim Public Utilities Department from the escrow account for a possible future rebate to Anaheim utilities users. FOR LOWER ELECTRIC AND WATER RATES: ANAHEIM VOTERS ARE ENCOURAGED TO STOP THE TAX ON OUR UTILITY BILLS AND VOTE NO ON MEASURE N.	”
—Denis Fitzgerald, member of the board of directors for Anaheim (H.O.M.E.)

See also

• Local utility tax and fees on the ballot
• Orange County, California ballot measures
• November 4, 2014 ballot measures in California

External links

Suggest a link

• Orange County Elections Office website
• Anaheim City Elections Office website