Pomona : Council Cuts Utility Taxes

The City Council by a 4-1 vote has approved an ordinance that will cut the city’s utility tax by 1% a year until the rate is lowered to 5%.

The first 1% reduction will occur in January, lowering the tax on telephone service to 10% and cutting the tax on bills for gas, water and electricity to 9% for residents and 11% for commercial and industrial users. It affects all utility billings in the city; a customer whose monthly bills total $100, for example, would save $1 with each reduction.

Mayor Donna Smith voted against the decrease, saying that although the tax cut will be popular, the council should consider the financial impact on the city budget first. Councilman C. L. (Clay) Bryant said he is confident other increases in revenue will offset the tax cut. Councilman Tomas Ursua said the city should look more closely at spending. “What we’re talking about is a no-growth policy for city government,” he said.