Pasadena Considers Tax Increases

Increases in utility taxes and business license fees and a tax on interstate and international telephone calls are among the revenue options that will be considered by the Pasadena Board of Directors as it begins work on a proposed $106.5-million budget for the fiscal year beginning in July.

City Manager Donald F. McIntyre told directors this week that about $3.5 million worth of programs have not been included in the proposed budget because there is not enough money to pay for them without cutting other programs or increasing revenue.

The proposed budget includes a $1-million revenue increase from an extension of the city’s telephone tax to interstate and international calls. Other revenue increases that could be considered, city officials said, include a $1-million increase in business license fees and $750,000 from raising the utility tax for residential customers to the level paid by commercial users. The residential rate is now about 2% below the commercial rate.