GUSTINE — The Gustine City Council reaffirmed the city’s Utility Users Tax for the upcoming fiscal year, approving a resolution at its June 10 meeting that continues the 2.5% tax on water, electricity, gas, telephone, and cable TV services.

The tax, originally established in 1995 under Ordinance 405, is a key funding source for enhanced city services, expected to generate an estimated $345,000 in revenue for fiscal year 2025-26.

As part of the approval, the Council reaffirmed the Utility Users Tax Expenditure Policy, which was initially adopted on Dec. 3, 2024, under Resolution No. 2024-2795. The policy outlines restrictions on how the tax revenue can be used, including requirements for annual expenditure plans and Council approval for interfund transfers. The funds cannot be used for ongoing salary or operational expenses but can support one-time capital improvement projects with Council approval.

For the 2025-26 fiscal year, the Council earmarked $5,000 from the Utility Users Tax to establish a grant program benefiting organizations that host cultural, educational, and community-building events. This initiative follows the Council’s previous direction under Resolution No. 2024-2761, passed on Aug. 20, 2024.

With projected revenue and limited expenditures, the Utility Users Tax fund balance is expected to reach $799,300 by the end of 2025-26. The Council’s resolution formally acknowledges the ongoing need for the tax and ensures continued funding for city services.