La Verne City Council keeps utility users tax at current voter-approved rates

La Verne — The City Council voted unanimously Monday to retain the city’s utility users tax (UUT) at its current voter-approved levels, following a required annual public hearing.

Finance department accountant Jesus Hymas told the council the municipal code requires an annual hearing to determine the UUT’s necessity. He said the city charges 6% on electric and gas consumption and 5.75% on telecommunications, with a reduced 3% rate available to income-eligible residents, senior housing, mobile home parks, churches, private schools and certain nonprofits. “If there are no changes to the UUT rates for the upcoming budget for fiscal year 2025–26, UUT revenues are estimated to provide roughly $3,800,000 for the general fund,” Hymas said.

Why it matters: The UUT is one of La Verne’s largest and most stable general-fund revenue sources and helps pay for core services such as police, fire, recreation and public works. Because the tax is a general voter-approved tax, city staff said the revenue can be used broadly by the general fund rather than earmarked to the separate water enterprise.

Public comment focused on history and transparency. Local resident Richard Bowen asked when the tax began and criticized it as “a tax that never ends.” Hymas and other staff answered that the UUT was first adopted in 1999 and modified by a 2005 ballot measure that raised some rates; staff emphasized the requirement to report annually and provided links to explanatory resources.

Council action: Following the hearing, Council Member Rick Crosby moved to maintain the UUT at current, voter-approved rates; the measure was seconded and approved 5–0.

What’s next: No rate changes were proposed. Staff will continue to include UUT projections in the FY 2025–26 budget materials and provide public information links to the UUT background and rate history.