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Isla Vista board workshops utility‑users tax options; legal counsel warns a new tax requires two‑thirds vote
Summary
At its retreat the Isla Vista board heard a legal briefing on authority to impose an additional utility‑users tax (Government Code §61250) and Proposition 218 constraints, reviewed illustrative revenue scenarios, and directed staff to return with two draft measure structures near a $1.25M topline.
The Isla Vista Community Services District spent a major portion of its retreat on options for a new utility‑users tax (UUT) to fund public safety, sidewalks, lighting and community programs.
Legal counsel (Jamie) told the board that Government Code section 61250 authorizes a special district to impose a utility‑users tax on utilities such as water, gas, electricity and sewage, but that any new tax must comply with Proposition 218. "Proposition 218 requires that all new taxes be approved by a two‑thirds vote of the electorate," Jamie said, noting the district must also adopt an appropriations (Gann) limit (Article XIII B) and that the limit should be placed before voters as a separate ballot measure if needed.
Staff presented illustrative revenue scenarios (flat rates of 2%, 4%, 6% and 8% as examples) and modeled rough annual revenue increases ranging from about $400,000 up to roughly $1.6 million depending on rate design and growth assumptions. Staff stressed the examples were illustrative and that more granular modeling—by utility and customer class—would be required before finalizing ballot language.
Board members debated policy trade‑offs in the 'build‑a‑measure' workshop. Options discussed included a single flat additional rate, a residential/commercial split, and a differentiated structure with higher rates on specific utilities (some members proposed a relatively higher rate on fossil gas to align incentives with environmental goals). Several directors expressed concerns about electability and about indicating a very large spike for any single utility on the ballot.
After extended deliberation the board asked staff to return with two concrete drafts for board review: (1) a straight flat‑rate measure and (2) a differentiated/variable‑rate measure, both designed to target a topline near $1.25 million in additional annual revenue. The board signaled a red line against placing extremely high percentages on any single utility in the proposal.
Next steps: legal counsel and staff will draft a resolution of intention, prepare fiscal modeling and ballot materials, and present packet options at a forthcoming meeting. Jamie advised the board that the county elections office will prepare impartial analyses once materials are submitted.
