OFFICE OF THE CITY MANAGER

CITY HALL
10300 TORRE AVENUE • CUPERTINO, CA 95014-3255
(408) 777-3212 • FAX (408) 777-3366

FOR IMMEDIATE RELEASE July 31, 2009

CUPERTINO CITY COUNCIL VOTES TO UPDATE THE CITY’S

EXISTING UUT

Council wants to guarantee local funds for important city services

CUPERTINO, CA – On Tuesday, July 21, 2009, the Cupertino City Council voted
unanimously to place the Cupertino Vital Services Utility Users Tax (UUT) Update
Measure on the November 2009 ballot. Communication advances over the past two
decades mean that the City must update its existing UUT ordinance to match today’s
technology, including adding definitions for new communications technology. The
measure will appear on residents’ November 2009 ballot and will address these technical
issues and update the ordinance – with NO change to the existing rate.

“Due to recent court rulings and new federal regulations, the City of Cupertino, like many
other cities throughout the state, must update and modernize its utility users tax to fully
comply with current federal law,” stated Finance Director David Woo. “Updating our
outdated UUT will ensure that taxpayers are treated the same regardless of the type of
technology they use.”

Cupertino’s utility users tax was originally adopted in 1990 and currently applies to
electricity, gas, and telecommunication services. Cupertino’s UUT pays for many critical
city services. The loss of this existing revenue would force the City to cut funding that
supports neighborhood police patrols, library services, school crossing guards, city streets,
and open space and parks improvement projects.

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“At a time when the state has taken billions from local governments, it is especially
important that we secure these protected existing local funds. The measure will safeguard
local funds currently being used for local needs – and they cannot be taken away by the
state,” said Dave Knapp, City Manager.

The measure updates the old UUT ordinance and definitions with NO change to the
existing tax rate. Residential customers should not see any changes to their bill. The
measure will clarify what can and cannot be taxed, continue the exemption for seniors, and
ensure that users of similar services or equipment are treated the same.

For more information, please call City Administrative Services at (408) 777-3280 or email
uut@cupertino.org.

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