City of Aurora - File #: 17-01114

• File #: 17-01114
• Version: 1
• Type: Ordinance
• Status: Passed
• File created: 12/1/2017
• In control: City Council
• On agenda: 12/12/2017
• Final action: 12/12/2017
• Title: An Ordinance Amending Chapter 44, Article III, Section 44-32, of the Code of Ordinances of the City of Aurora Entitled "Taxation" (Municipal Electricity Tax).

Date	Ver.	Action By	Action	Result
12/12/2017	1	City Council	approved on the Consent Agenda	Pass
12/5/2017	1	Committee of the Whole	(PLACED ON CONSENT AGENDA)
12/5/2017	1	Finance Committee	recommended for approval	Pass

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TO: Mayor Richard C. Irvin

FROM: Stacey Hamling, Interim Chief Financial Officer
Alex Alexandrou, Chief Management Officer

DATE: December 1, 2017

SUBJECT:
An ordinance amending Chapter 44 of the City of Aurora Code of Ordinances entitled "Taxation" (Municipal Electricity Tax).

PURPOSE:
Attached for your consideration is an ordinance proposing an increase of the city's Municipal Electricity Tax.

BACKGROUND:
The City of Aurora implemented a municipal electricity tax in 1997 (O97-107). The tax is imposed on a per usage basis, illustrated in the chart below. The rates have not changed in the ten (10) year period since the initial implementation.

For the first 2,000 kilowatt-hours used or consumed in a month;
0.331 cents per kilowatt-hour;
For the next 48,000 kilowatt-hours used or consumed in a month;
0.217 cents per kilowatt-hour;
For the next 50,000 kilowatt-hours used or consumed in a month;
0.196 cents per kilowatt-hour;
For the next 400,000 kilowatt-hours used or consumed in a month;
0.190 cents per kilowatt-hour;
For the next 500,000 kilowatt-hours used or consumed in a month;
0.185 cents per kilowatt-hour;
For the next 2,000,000 kilowatt-hours used or consumed in a month;
0.174 cents per kilowatt-hour;
For the next 2,000,000 kilowatt-hours used or consumed in a month;
0.171 cents per kilowatt-hour;
For the next 5,000,000 kilowatt-hours used or consumed in a month;
0.168 cents per kilowatt-hour;
For the next 10,000,000 kilowatt-hours used or consumed in a month;
0.166 cents per kilowatt-hour;
For all electricity used or consumed in excess of 20,000,000 kilowatt-hours;
0.163 cents per kilowatt-hour;

DISCUSSION:
The preparation of the 2018 budget was accompanied by new challenges, driven largely by the loss of approximately $3 million dollars due to state mandates. The Local Government Distributive Fund (LGDF) and the Personal Property Replacement Tax (PPRT) saw significant reductions in addition to a new two (2) percent administrative fee ...