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Utilities director outlines council proposal to reallocate income-tax money; water and sewer rates could rise
Summary
City staff told the Board of Public Utilities about a City Council proposal to reallocate a portion of the 1.5% income tax away from the Water & Sewer Capital Improvement Fund to other government capital funds; the presentation included modeled revenue impacts and projected water and sewer rate increases if the change proceeds.
The Board of Public Utilities heard a staff briefing on a City Council proposal to change how part of the city's 1.5% income tax is distributed, and on the potential consequences for the Water & Sewer Capital Improvement Fund and utility customer rates.
Brian (last name not recorded), the utilities director, explained that current ordinances allocate 33.3% of the first 1.5% income tax to the Water & Sewer Capital Improvement Fund (equivalent to 0.5% of the city's income tax). The council proposal discussed June 12 would reduce that allocation by 0.05 percentage points (from 0.50% to…
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