1. City of Glendale Utility Users Taxes (UUT)

2. Historical Perspective of the Glendale UUT  Established in 1969  City Councils made several times over the years Prop 218 removes discretion from local government to establish without voter approval (1996)Prop 218 removes discretion from local government to establish without voter approval (1996)  Reaffirmed on ballot in 2009 Sought voter approval to reduce tax rates on certain utilities and add a Communications Users Tax to the UUT tax baseSought voter approval to reduce tax rates on certain utilities and add a Communications Users Tax to the UUT tax base 66.6% of voters approved the proposed changes66.6% of voters approved the proposed changes Slide 2

3. Slide 3 General Fund Revenues   Approximately 73.7% of the City’s major revenues consist of four revenue sources for FY 2015-16 budget : %$ Property Taxes26.849,740,000 Sales Taxes20.337,700,000 UUT15.228,250,000 Transfer from Utilities11.421,257,000

4. Slide 4 FY 2015-16 General Fund Resources vs Appropriations

5. Slide 5 UUT Rate Breakdown FY 2015-16 UUT Rate Breakdown UUTFY 2015-16 BudgetRates Electricity (GMC 4.36.030) $12,000,0007.0% Water (GMC 4.36.050) 2,950,0007.0% Gas (GMC 4.36.040) 2,550,0007.0% Communication (GMC 4.38.020) 10,750,0006.5% TOTAL$28,250,000

6. Slide 6 General Fund Revenues General Fund Revenues Utility Users Tax

7. Slide 7 UUT Rate Comparison In 2009 Glendale voters approved a rate reduction for Telecommunications and Video (reduced from 7% to 6.5%) GlendaleBurbankPasadenaLos Angeles Electricity7.00% 7.67%10.00% Water7.00%-7.67%- Gas7.00% 7.90%10.00% Communication6.50%7.00%8.28% - 9.40%9.00%

8. Slide 8 UUT Cost per Capita Comparison FY 2015-16 Budget * Population is based on Department of Finance estimates UUT CategoryBudgetPopulation* Annual Per Capita Monthly Per Capita Weekly Per Capita Electricity$12,000,000199,182$60.25$5.02$1.16 Water2,950,000199,182$14.81$1.23$0.28 Gas2,550,000199,182$12.80$1.07$0.25 Communication10,750,000199,182$53.97$4.49$1.04 TOTAL$28,250,000$141.83$11.81$2.73

9. City of Glendale Organizational Profile Post-Great Recession  Structural Balance 1,568 Full-time positions in FY 2016; down from a high of 1,996 positions in FY2006 and 1,842 in FY20121,568 Full-time positions in FY 2016; down from a high of 1,996 positions in FY2006 and 1,842 in FY2012 Pioneer in pension and compensation reform saving hundreds of millions of dollars  two-tier, cost-sharing, OPEBPioneer in pension and compensation reform saving hundreds of millions of dollars  two-tier, cost-sharing, OPEB Adherence to “soft caps” on salaries < 35% and < 25% management ratiosAdherence to “soft caps” on salaries < 35% and < 25% management ratios  Excellence in Service* 89% rate Glendale as a “excellent” or “good” place to live89% rate Glendale as a “excellent” or “good” place to live 93% are either “satisfied” or “very satisfied” with city services93% are either “satisfied” or “very satisfied” with city services Resident satisfaction ratings with City DepartmentsResident satisfaction ratings with City Departments  Fire 94%  Police 90%  Community Service and Parks 87%  Library, Arts, and Culture 85% 2016 Resident Satisfaction Survey* Slide 9

10. City of Glendale Organizational Profile UUT Elimination Impacts  Total elimination of the Library, Arts & Culture and Community Services & Parks Department; or  Contract out Police and Fire services to LA County Sheriffs and LA County Fire; and  Reduction in level of service in both Police and Fire departments Slide 10

11. Glendale UUT Education www.GlendaleUUTEducation.com Slide 11

12. Slide 12 Questions & Comments