- Measure D Ballot Statement
- What is Measure D?
- What is Measure D and who pays it?
- Why do we need to renew Measure D?
- Has the city been managing its finances wisely?
- How much will Measure D cost me?
- If it doesn't expire until 2019, why renew it now?
- How long will Measure D last?
- How much revenue will Measure D generate for Hayward?
- What's in it for me?
- City of Hayward Fact Sheet: UUT Renewal
BALLOT STATEMENT - HAYWARD MEASURE D - ELECTION DAY JUNE 7, 2016
To maintain City of Hayward services including:
- maintaining firefighters, paramedics, fire stations, and neighborhood police patrols;
- protecting emergency response times;
- preserving youth and anti-gang programs, and
- emergency and disaster preparedness;
shall the City of Hayward renew the existing Utility Users Tax ordinance at 5.5% on gas, electricity, video and telecommunications services, providing $16 million annually, for 20 years, with exemptions available for low-income lifeline users; and all money dedicated to preserving Hayward city services?
Hayward's Measure D:
- Renews 5.5% utility user tax
- Requires voter approval (50%+1)
- Protects critical services
- All revenue locally controlled
- Sunsets at 20 years
Measure D renews Hayward's current utility users tax (UUT). It was established by Hayward voters in 2009 as a means of protecting critical city services in the wake of devastating budget cuts on the heels of the Great Recession.
Measure D is a 5.5% tax on natural gas, electricity, telecommunications (including traditional telephone service, long distance service and cellular phone service), and video/ cable television utility charges. This generates about $16 million per year for services to City of Hayward residents.
About 75% of the revenue (roughly $12 million per year) is directly allocated to public safety operations (police & fire). The remaining $4 million is used to provide other City programs such as streets and roads maintenance, library services and economic development programs.
Vote YES on D so it will stay unchanged at the current 5.5% level, resulting in no additional financial impact to residents and businesses in Hayward.
Measure D proposes to simply renew and extend Hayward's current Utility Users Tax (UUT) which was put into place by Hayward voters in 2009. UUTs are in place in virtually every Bay Area city. The UUT is paid by residents and businesses that are utility users. Utilities are defined as natural gas, electricity, telecommunications (including traditional telephone service, long distance service & cellular phone service), and video/cable television utility charges. The current UUT rate is 5.5%. Measure D keeps the UUT at the same rate, with no increases.
Hayward voters passed the utility users tax (UUT) in 2009, in the wake of the Great Recession, to preserve public services for Hayward residents, with particular emphasis on protecting vital police and fire services. Without the UUT, then or now, the City of Hayward would have no choice but to enact severe service cuts in order to maintain fiscal stability.
Although the economy is improving, revenues are lagging behind the demand for (and cost of) services. In recent years, the City of Hayward significantly reduced its budget and the number of positions while maintaining high levels of service. At the same time, employees of all bargaining groups have shouldered more of the cost of their benefits as the City has adjusted its compensation structure.
Today, Measure D is the Hayward's third-largest revenue source, generating approximately $16 million per year for Hayward's general fund. About 75% (roughly $12 million per year) is directly allocated to police and fire services. The remaining $4 million supports other important city services, such as streets and roads maintenance, neighborhood cleanliness, library services, and economic development activities.
The City of Hayward has made significant changes to its personnel structure, compensation guidelines and operating strategies in an effort to keep Hayward financially stable.
City employees, executives, and elected officials have all made substantial sacrifices to aid in this effort by contributing more towards the costs of benefits, all while maintaining a high level of service to the community. At the same time, the City has aggressively sought new businesses and development activity to grow our tax base.
Ratings agencies such as Fitch and Standard & Poors have provided the City of Hayward with “AA+ Stable Outlook” ratings on its debt issuances, reaffirming the sound fiscal management by the Mayor, City Council, and City Staff.
Measure D will not create any additional impact to Hayward residents or businesses beyond current levels. The percentage will remain fixed at 5.5%, WITHOUT raising your taxes.
Measure D renews a primary source of revenue for Hayward. In order to plan service delivery for the future, the City of Hayward must know well in advance whether it can count on its third-largest revenue stream.
Waiting until 2018 to renew makes accurate budgeting nearly impossible and could have disastrous consequences if it is not renewed. Even if approved by voters now, the renewed Measure D would not begin until 2019.
Measure D will extend the existing UUT at the same rate for an additional 20 years, after which it can only be extended by Hayward voters.
Because Measure D is tied to the consumption of energy, telecommunications, and cable television, revenues may fluctuate based upon the number of users and the amount of services consumed. It is estimated that Measure D will continue to generate approximately $16 million annually for police and firefighting, streets and road repairs, libraries and after school tutoring for kids, and jobs programs.
Measure D will be used to provide public safety services with roughly what it costs to employ either 53 police officers or approximately 53 fire fighters. Measure D key source of locally-controlled revenue that enables Hayward to continue to provide high-quality services despite increasing demand, and these funds CAN'T be taken away by the state. Measure D also funds important services like street maintenance, community cleanliness, and library service hours.
This impartial fact sheet about the UUT was produced by the City of Hayward in January, 2016.