Sick Hospital and Other Ills Bring Fee Hike : Alhambra: Some taxes also raised to avert $1.4-million deficit. City may be close to selling the hospital to Taiwanese investor.

Battered by the recession and a financially troubled city-owned hospital, the City Council on Monday raised taxes and imposed new fees to stave off a projected $1.4-million deficit.

The new measures, which are expected to bring the city $560,000 a year, came one week after the council slashed staff positions, pared some programs and closed a swimming pool and a library.

This is the third time in two years that Alhambra has cut services and increased fees, largely because of problems with Alhambra Community Hospital.

But there was good news Monday as well: City officials announced they are close to selling the faltering hospital on 100 S. Raymond Ave. to a Taiwanese investor, which will help them recoup millions of tax dollars spent to build the structure.

The financial measures approved Monday are:

* A $35-a-year increase in business license fees, expected to raise $225,000 each year.

* A 4% increase in the bed taxes charged by hotels, from 8% to 12%. The hike is expected to bring the city $65,000 a year.

* A 5% utility tax on interstate telephone calls. The city already imposes the tax on gas, electricity, water, cable television and intrastate calls.

* Fee increases for the use of parks, gymnasiums, swimming pools and other public facilities, including higher fees for non-residents.

* Additional fees for animal owners whose pets have been impounded, an action intended to offset costs billed to the city for animal care services provided by Los Angeles County. The city will charge dog- and cat-owners $7.22 a day, plus veterinarian costs, or $10.82 for special circumstances.

The council must give final approval to the animal-control fees, but the other increases take effect immediately.

Not all council members supported the measures. Councilman Talmage V. Burke opposed the business license fee increase, and Burke and Councilman Michael A. Blanco voted against the telephone utility tax.

Alhambra, like nearly every other city in the San Gabriel Valley, is in financial straits. Its problems are exacerbated because Alhambra Community Hospital, owned by the city’s redevelopment agency, has not made its $103,498 monthly rent payments since January, City Manager Kevin Murphy said. Altogether, the hospital owes the city $4.2 million in back rent.

Without the payments, Alhambra has had to borrow money from its general fund to service the debt on bonds it issued in 1972 to build the 157-bed hospital.

The city also owes Los Angeles County $130,000 in newly imposed fees for property tax collection and the booking of criminals. In addition, Alhambra must refund Pacific Bell customers $118,000 in overcharged utility taxes because of an error in the telephone company’s billing system.