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Anaheim Stalls Layoffs, Acts to Kill Utility Tax

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SPECIAL TO THE TIMES

The City Council on Tuesday moved toward rescinding a recently approved 4% utility tax, but delayed plans to lay off up to 200 city employees whose jobs would be threatened if the tax revenue was lost.

About 400 residents and city employees packed the council chambers and outside lobby, cheering those who spoke in favor of keeping city jobs and services either through the tax or rearranging the city budget.

“You need to do something, but you need to get out of the reactionary mode of cutting employees to solve the problem,” said Marilyn Hauk, vice president of the Anaheim Municipal Employees Assn.

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Representatives of the unions representing firefighters, police officers and electrical workers also spoke out against the layoffs.

A few dozen members of Anaheim Coalition Against the Tax voiced their opposition to the levy, which would add about $5 a month to residential utility bills.

“Somehow, some way, we’ve got to cut the fat” in the city budget, said Lloyd Lowery, a member of the group.

The council on Tuesday introduced an ordinance to rescind the utility tax and will take a final vote on the measure next week. Council members also introduced an ordinance to cut their monthly salary from $1,000 to $700. In March, voters approved a pay raise that more than doubled council salaries from $400 to $1,000.

The council plans to hold a closed-door meeting Friday to discuss budget options before next Tuesday’s council meeting. The city anticipates that the $544-million budget that went into effect July 1 will be about $14 million short. City departments already have made 5% across-the-board budget cuts and frozen unfilled positions to cut costs.

The utility tax, which was to take effect Sept. 1, would generate about $12 million annually.

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City Manager James Ruth said the council needs more time to discuss its options for dealing with the budget crisis. He declined to comment on which services and jobs may be lost but said the council may consider some combination of a utility tax and spending cuts to balance the budget.

“We’re considering all the available options,” said Ken Stone, the city’s budget manager.

Two weeks ago, Councilman William D. Ehrle announced he had changed his mind about the tax and wanted it rescinded. Ehrle sided with Councilmen Tom Daly and Irv Pickler in a 3-2 vote to shelve the tax. Mayor Fred Hunter and Councilman Bob D. Simpson voted to keep the tax.

After the tax was approved in June, several groups formed a coalition to oppose the tax and urged the council to find another way to balance the budget.

Also on Tuesday, the council established a budget advisory committee of 10 council-appointed members who will give financial counsel to city officials in an attempt to help avoid future budget crises. The council approved two appointments to the committee Tuesday night and plans to make the rest next week.

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