Santa Monica : Utility User Tax to Increase

The City Council passed an ordinance Tuesday night that will increase the utility user’s tax from 8% to 9.5% to raise revenue for additions in the 1990-91 budget. The ordinance, passed by a 5-1 vote, will increase the telephone, electricity, gas and cable television taxes.

The increase will provide a $1-million increase in the school district allocation and will fund an additional seven police officers. The tax will generate $2.4 million annually, but only $1.5 million in the next fiscal year because the fee will not take effect until Nov. 1.

Councilman Herb Katz voted against the hike, saying the increase is “too much on the community.”