Council Drops Utility Tax Measure

The Lawndale City Council this week dropped plans to place a proposed utility tax on the November ballot but postponed a decision on budget cuts to offset the unexpected loss of $91,000 in state funds.

The council last week ordered city staff to draw up the text of the measure, which would have imposed a 2% tax on residents and businesses and generated $240,000 a year for the city’s general fund. But during a budget hearing Monday, after questions were raised about whether seniors and low-income residents should be exempt from the tax, the measure’s two strongest advocates withdrew their support.

Mayor Harold Hofmann said he withdrew his support for the tax because the council had run out of time to revise the measure before the election. But he added: “I’d almost say for sure we’re going to see it on the June ballot.”

The council delayed voting on its $7.8-million budget last week after learning that the state is cutting back on a year-old program designed to give additional funds to cities that get little or no revenue from property taxes collected within their borders. City officials expected to receive $163,000 from the program this year, but they were notified last week that they can count on only about $72,000.

Although no decision on the budget was reached Monday night, the council discussed cutting some programs, travel expenses and as many as four City Hall positions to make up for the shortfall. The council’s next budget workshop is set for Monday.