Arcata’s City Council is sending its voter-approved Excessive Residential Electricity Users Tax back to the Energy Committee after staff reported that the measure now applies to about 17 meters and brings in roughly $40,000 a year.
At the council’s June 3 meeting, Deputy Director of Environmental Services Emily Benvie presented the update, according to the meeting agenda and summary materials. Staff said the tax once applied to about 633 meters and generated roughly $450,000 a year when it was launched, before revenue and participation steadily declined. The staff presentation also said the tax was originally intended to discourage cannabis cultivation.
Council members discussed whether the city should reduce the tax or eliminate it altogether, and the issue was referred to the Energy Committee for review. The summary materials say the committee will take up the question on June 15.
The tax, also referred to as the EUT or EEUT in the meeting materials, remains a budget issue for Arcata as the city looks at other fiscal pressure points. The council’s June 3 agenda also included a temporary hiring freeze, a voluntary retirement health incentive program and other utility and budget items.
