Mayor Says Utility Tax Needed to Keep Services

Voters on Tuesday will be asked to approve Proposition A, a utility tax that most city officials consider crucial to the economic vitality of the community and the municipal budget.

The 5% tax on utility bills is designed to raise as much as $1.2 million annually for the next five years. City officials estimate it would cost the average household about $7 to $9 monthly.

Noting that other San Gabriel Valley cities have instituted utility taxes to help offset reductions in state and federal funds, Mayor Sabino Cici said that if Proposition A is defeated, “We’ll be forced to cut back on services.”

The tax, if approved, by the city’s 13,118 registered voters, would automatically end after a five-year period. During that period, the City Council could lower--but not raise--the percentage of the tax without voter approval. If it receives majority approval, the tax would go into effect by July 1.

“Everybody wants to vote ‘No’ on taxes. But do we want good quality services? That’s exactly what the citizens have to face,” said the mayor, who predicted Police and Fire department cuts if the tax measure fails.

City officials are projecting a deficit of nearly $1 million for the current fiscal year and say they will have to draw from their $7 million reserve fund unless the tax is passed.

James Castaneda is the only council member who opposes the tax.

“Anybody can say: ‘We need more money. Let’s raise taxes,’ ” Castaneda said.

He complained that his fellow council members “have no long-range plan to get out of this budget deficit.”

As an alternative, he said, the council should look at creating “public-private partnerships” to solve the city’s financial difficulties. In addition, he said, the city needs to do more to revitalize its commercial district along Valley Boulevard, in order to generate more sales tax revenues.

Castaneda also objects to an exemption for people who are 70 years or older. “It should be based on ability to pay,” he said.