Utility Tax Extension Back on Ballot?

Only a year after Pinole voters refused to extend a utility users tax, they could be asked to pass a similar ballot measure in November. The city council is scheduled to discuss the idea at its Tuesday meeting.

Last year, 55 percent of voters opposed a proposal to lengthen the life of the tax on electric, phone and gas bills from the current 2012 expiration date to 2020. Known as Measure S, it also would have subjected water bills to the 8 percent levy.

It's possible that the new measure would not include water bills, and the agenda item for the tax extension dos not include a specific propsed new date for the measure to expire. No written report is included with the agenda. The council is expected to receive a verbal report from city staff and then be asked to "provide direction" to staff.

Even some supporters of the extension have said the inclusion of water bills created too large a burden for a majority of voters. An extension would require a simple majority of 50 percent plus one from the number of ballots cast.

Since voters rejected Measure S, fiscal maneuverability has been constricted further. On top of state funding cuts, it appears that the legislature will restrict or eliminate redevelopment, which Pinole has been using for not only development projects, but for considerable portions of some employee salaries.

The utility tax generates about $2 million in annual revenue for the city. The most recent estimated general fund budget for 2011-12 is $10.7 million, but that remains a moving target until the state adopts its budget and takes action on redevelopment agencies.

The discussion on Tuesday is scheduled to follow a public hearing on the 2011-12 budget. The meeting will be broadcast live on both Pinole TV Channel 26 and on the city's website. It will be held at 7 p.m. in the city council chamber, 2131 Pear St.