$7 Monthly Fee for Each Household : South Gate Amends Proposed Phone Tax

The City Council amended a police tax initiative this week in a way that officials say will make it less confusing and more equitable, increasing the chance that voters will pass it in November.

Voters will be asked to approve a tax on their monthly telephone bills to pay for more police protection.

Instead of charging a 15% surcharge on the in-state phone bill, the council voted Tuesday to impose a flat fee of $7 for all households, $14 for business accounts and $2 for the elderly, the handicapped and those with low incomes.

The fees will be imposed only on local calls within the areas served by Southern California Pacific Bell and General Telephone, which are the major phone companies serving the city.

“I believe this will make it more acceptable (to voters),” said Mayor Del Snavely. The council voted 4 to 1 for the amendments.

“It seems our original proposal would confuse citizens,” said Councilman William DeWitt, who voted in favor of the amendments. “We don’t need that. We need a proposal that will be easier to explain to voters.”

On July 26, the council approved a ballot measure that would impose a tax on all calls placed from South Gate to anywhere within the state. The charge was to be 15% of the customer’s in-state phone bill or a maximum of $7 per residence. The tax would apply to only one phone in each household. But businesses would pay a tax on each phone line.

During Tuesday’s debate, the council was informed by City Atty. Bruce Boogaard that if the fees were not restricted to the areas served by the two telephone companies, the billing could become confusing.

Could Be Taxed Twice

As an example, a caller could be taxed twice if phone calls were made to other areas served by a phone company other than Pacific Bell or General Telephone, Boogaard said.

Then the city would have to deal with the arduous task of of reimbursing the caller for the overcharge, Boogaard said.

After debating the issue and listening to Boogaard’s explanation, Councilman Robert Philipp switched his vote. Philipp, who initially opposed the flat fee, agreed that the system could become “a administrative nightmare” if not simplified.

Councilwoman Dorothea Lombardo was the only member to vote against the measure. She said she favored more money for the police but supported another method of acquiring it.

Lombardo said she continued to support a proposal she put forward during budget hearings earlier this year to cut 5% from all city departments and give it to the 87-officer police force.

Boogaard said it is estimated that the phone tax would raise $1.8 million in the first year.

The money would be used to hire 10 new police officers and five civilian workers, and to buy two squad cars and other equipment, officials said.

A majority of the voters must approve the proposal.

Police Chief Norman Phillips has told the council that the department is severely understaffed and if more money is not received police service must be reduced.

Five positions in the department were eliminated last year because of budget cuts. The police budget is now $8.5 million, 51% of the total city budget of $16 million.