Residents will pay slightly less for utilities beginning in August under an ordinance adopted by the City Council this week.
The council voted unanimously to reduce the utility user tax to 5% from 5.25%, despite strong objections from City Manager Tim Casey. Casey said the reduction will cost the city about $162,000 in annual revenue and could hurt its ability to get loans for capital projects.
New Councilwoman Kay Horrell, who promised during her campaign to reduce the tax, and Mayor Barbara Doerr favored even greater reductions in the tax, which applies to gas, water, electric, telephone and cable television bills. Horrell said she agreed to limit the rollback to .25% because of Casey’s concerns.