Anaheim Utility Tax Will Go to Voters in June

The city’s lukewarm approval of a utility tax became more tentative Tuesday when council members said they would place the issue before voters this spring.

The ballot issue was proposed as an “advisory measure” and would carry no authority to rescind last week’s council vote to enact a 2% utility tax.

However, city councilman Tom Daly said his colleagues should abide by the voters’ decision on the tax in June.

“The people of Anaheim will determine whether the utility tax stays or goes,” said Daly, who proposed the ballot measure. It was approved unanimously.

“I feel strongly that the people of Anaheim will oppose the utility tax,” the councilman said.

After much consternation among council members and city employee groups, the city approved the tax to help close a $9-million budget deficit. Mayor Fred Hunter said the issue would be placed on the state primary election ballot in June and would not cause a costly special election.

Prior to the council’s action, the newly enacted tax continued to draw the ire of local residents.

“We stand in awe at the way programs have been manipulated, causing people to plead for services they deserved from you,” said Amin David, president of Los Amigos and the spokesman for a local anti-tax group. “Rescind the 2% tax.”

Meanwhile, the city staff produced what promised to be the last round of budget cuts to make up the city’s remaining $966,000 deficit not covered by projected utility tax revenues.

Under the staff’s new proposal, five full-time employees and one part-time worker would lose their jobs, and an additional $774,597 in operating reductions would be made.