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Southgate leaders lay out utility users tax as option to close multi‑million dollar gap, public pushes for more transparency
Summary
City Manager Rob Houston presented a detailed briefing on a possible local Utility Users Tax (UUT) — a new local levy on bills such as electricity, gas and streaming — to generate city revenue for police, parks and residential street repairs. Residents demanded full ARPA accounting and alternatives before any ballot measure.
City Manager Rob Houston told the City Council on Nov. 25 that Southgate faces a structural budget gap that could require cuts of roughly $8 million to $9.4 million if no new revenue is found. He outlined a possible local Utility Users Tax, which would add a percentage charge to utility bills (electricity, water, sewer, gas, cable and streaming services) and return 100% of revenue to the city’s general fund.
Houston said UUT rates in nearby cities vary from about 2% to 10%, and that a midrange example of 8% could add roughly $29–$60 per month to a household depending on usage. He said the city could use the revenue for public safety, pothole and sidewalk repairs, and park maintenance, and that the council could place a general‑tax UUT…
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