November 2, 2021
Impartial Analysis Measure C - City Attorney
8/18/2021 4:47:24 PM
8/18/2021 4:47:21 PM
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RECEIVED <br />AUG 16 2021 <br />City of Riverside <br />CITY ATTORNEY IMPARTIAL ANALYSIS OF MEASURE C City Clerk's Office <br />Measure C was placed on the ballot by the Riverside City Council and is a Charter Amendment q; sV om <br />to add section 1204.2 to the City's Charter ("Charter"). The Charter Amendment would continue <br />the transfer of revenue from the City's electric utility fund to the City's general fund for the <br />purpose of maintaining general city services such as 9-1-1 response, fire, paramedic, police, <br />street repairs, parks, senior services, addressing homelessness and other general services. <br />Existing Law <br />Charter section 1204 currently authorizes a transfer of revenue from the City's electric utility <br />revenue fund into the general fund ("Transfer"). The Transfer is made after the electric utility <br />pays for operating and maintenance expenses, bond and debt service, establishment and <br />maintenance of any reserves for bond/debt service, and capital expenditures. <br />Under this authority, the Transfer has and continues to be made annually in twelve equal <br />installments. The current Transfer is approximately $40 million and pays for general city <br />services. City of Riverside voters approved the Transfer in 1968 and 1977. The City sets its <br />retail electric rates so that the electric utility will have enough revenue each year to pay these <br />costs and make the Transfer. <br />In 2018, a lawsuit was filed against the City alleging the Transfer is a "general tax" requiring <br />voter approval under Proposition 26. In 2020, the court ruled that voters must expressly approve <br />funding the Transfer with electric rates. In 2021, the City settled this lawsuit and agreed to place <br />this measure on the November 2021 ballot. <br />Effect of the Measure on Existing Law <br />If approved, Measure C would add section 1204.2 to the Charter, continuing the transfer of <br />revenue from the electric utility fund to the general fund. The Transfer would continue to be <br />made after the electric utility pays for operating and maintenance expenses, bond and debt <br />service, establishment and maintenance of any reserves for bond/debt service, and capital <br />expenditures. The Transfer would be made in twelve equal installments during each fiscal year, <br />in an amount not to exceed 11.5 percent of the electric utility's gross operating revenues, <br />exclusive of surcharges. <br />The Charter Amendment also provides that the proceeds transferred to the general fund shall be <br />used to maintain local general purposes such as 9-1-1 response, fire, paramedic, police, street <br />repairs, parks, senior services, addressing homelessness and other general services. <br />Measure C requires simple majority approval of the City of Riverside voters to pass. <br />A "yes" vote will approve Measure C. Under the settlement agreement, electric customers will <br />receive bill credits, over a five yew period, in a collective amount not to exceed $24 million. <br />A "no" vote will not approve Measure C. The lawsuit will resume and the customers will not <br />receive a bill credit. If the City does not prevail in the lawsuit, the Transfer and electric rates <br />
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