REVENUE & EXPENDITURE ASSUMPTIONS
UTILITY USERS TAX
Description Utility users tax (UUT) is a 1.5 percent charge on all commercial utility activity in Irvine. The tax is assessed on electricity, natural gas and telephone charges, with the option of prepaying a $5,000 maximum payment. Residential utility use is not taxed. Trend Over the long-term, UUT revenues have been stable and consistent, increasing with the City’s commercial growth, business activity, and residential population. Revenues are also impacted by changes in gas and electric pricing, which increased in FY 2022-23. Outlook For FY 2023-24 and 2024-25, UUT revenue is estimated at $6.3 and $6.4 million. Going forward, UUT revenues remain relatively stable with limited net growth. Companies looking to modify office space needed to accommodate remote and hybrid working schedules may lead to a decrease in utility usage. Gas and electricity rates are anticipated to rise in future years, but trends indicate that reduced consumption offsets these cost increases.
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FY 2023-25 Adopted Budget
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