Placentia Council Votes 3-2 to Boost City Utility Taxes to 5%

Beginning in April, Placentia residents will see a slight increase in their telephone, gas, electricity and cable television bills because of a 3-2 City Council decision Tuesday night to increase city utility taxes from 3% to 5%.

The taxes, which can be levied by cities governed by the state charter, are tacked on to utility bills to pay for street maintenance, sidewalk, gutter and curb repairs, street construction and traffic signals, said Betty Wallis, assistant city clerk.

The typical resident's total utility taxes will increase from about $4.50 to $7.50 a month, said Frank Dunnavant, finance director. The increase would generate about $3 million over five years, he said.

Utility taxes have been at 3% since July, 1981, when a newly elected council reduced them from 4% to fulfill a campaign promise, Wallis said. Taxes had been at 4% since July, 1980.

For 10 years previous to that, utility taxes were 5%, Wallis said.

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