Huntington Beach Levies 5% Fee for Cable Television

In a move vehemently protested by the local cable television company and some residents, the City Council on Monday night imposed a 5% fee for cable television.

City Administrator Michael T. Uberuaga said that financial trouble, caused by the recession, necessitated a new revenue source. Other cash-starved Orange County communities have been watching Huntington Beach’s attempt to tap cable TV for a “utility fee,” according to the League of California Cities. League officials said cities are trying to gauge citizen reaction here.

Anaheim tonight will consider a 4% fee on cable TV as one of its options for next year.

The Huntington Beach fee, which would take effect July 17, will add about $1.50 a month to the cost to the average cable television user in the city. The fee would raise about $750,000 a year, and all of the money would go to the police and fire departments.

Uberuaga said the fee on cable TV was needed to keep the 1991-92 budget from being grossly out of balance. The vote was 5 to 1, with Councilman Jim Silva dissenting.

But many residents strenuously protested the proposed fee.

“Rather than imposing an oppressive tax on entertainment and information, often enjoyed by those who can afford little else in the way of discretionary services, I suggest that the city government use its imagination and energy to reduce its expenditures,” James M. Skorich said.

Several other residents also denounced the council action in a debate that stretched late into the night. “I think this is almost like a devious act,” said Dirk Voss, an unsuccessful council candidate in the fall elections. “You’re not giving us enough options.”

Another city resident, Jonathan Grossman asked the council, “How much more do you want? Soon there will be nothing left to tax.”

Paragon Cable has predicted that it would lose 8% to 10% of its 43,000 customers in Huntington Beach if the new fee were enacted. But city analysts predicted that the cable company would lose 6% at most.

Paragon made an extensive effort to defeat the fee.

Councilman Earle Robitaille, a former police chief, denounced Paragon Cable’s campaign against the fee.

“I think this has been the most distorted, self-serving campaign put on the people of this community in a long, long time,” he said. Robitaille also denounced Paragon for its 92% increase in basic service cost to customers since 1984. He called the company “a monopoly that borders almost on the criminal.”

Only two other Orange County cities, Westminster and Placentia, charge utility fees for cable TV use. Westminster’s levy began in 1987, Placentia’s in 1985.

Cable companies, including Paragon, have argued that they are not really “utilities,” like telephone and electric companies.