South Gate council votes to place 7% utility users tax on November ballot after heated public comment

The South Gate City Council voted April 20 to place a 7% utility users tax (UUT) measure on the November 3, 2026 ballot, sending the proposed ordinance and ballot language to the county for election services and setting an outreach period for the community.

City staff framed the proposal as a response to a structural shortfall of roughly $9–9.4 million driven by growing CalPERS pension liabilities, rising health insurance and liability premiums, and a long‑standing gap for street landscaping costs. Staff presented the proposed 7% tax as the rate that would generate approximately $9 million annually — about the per‑100,000‑resident average the city lacks compared with neighboring jurisdictions — and said the draft measure would exempt low‑income seniors and require independent audits and public disclosure of expenditures.

Public comment: The council heard nearly two hours of public comment from residents, local business owners and union representatives. Comments split between those who opposed the tax on principle or because of perceived spending and transparency problems and those who supported the measure as necessary to prevent deep cuts to police, parks and youth programs. Several residents demanded the city release full consultant survey results and asked for a forensic or independent audit before asking voters to approve a new tax. Others, including city employees and nonprofit leaders, urged the council to place the measure on the ballot as a necessary revenue option.

Representative quotes: "If a household is paying around $300 to $400 a month in utilities, a 7% tax adds about $21 to $28 more every month," said resident Yansancy Lopez during public comment. City staff responded that other cities use similar UUTs and that the measure would be administered by utility providers with city oversight for exemptions.

Council action and oversight: Councilwoman Davila moved and the council seconded a motion to place the measure on the November ballot. Councilmember Avalos publicly stated she could not support the draft measure as written (citing lack of a sunset clause and outstanding transparency questions). The motion passed by the council majority; members instructed staff to bring back details on a proposed citizen ad‑hoc finance committee and other outreach and oversight measures.

What voters will see: Draft ballot language presented in the meeting would establish a general tax of 7% on utilities (electric, gas, water, sewer, cable, cell and certain telecommunications) with an exemption process for low‑income seniors (household income thresholds consistent with CPUC low‑income programs) and a requirement for independent audits and public reporting of expenditures. The council emphasized the measure would only take effect if approved by voters.

Next steps: Staff will finalize ballot materials, confirm county election costs and vendor arrangements (clerk estimated incremental costs under $4,000 because the council placed the item on an existing November general election) and return with recommended outreach, the proposed citizen finance oversight committee structure and any additional clarifications requested by council before printing the ballot.

Attribution: Projected revenue, exemption rules and draft ballot language were presented to the council by city staff on April 20, 2026; public comments and the vote are recorded in the council meeting transcript.