Norwalk : Council Uses Reserve Funds, May Add Utility Users’ Tax

The City Council voted unanimously at a special meeting Tuesday to use $800,000 in reserve funds and to consider an 8% utility users’ tax to help eliminate a $6.3-million budget deficit.

The action came on top of cost-cutting measures taken last week that included laying off four department managers, canceling management pay increases and reducing work hours.

The council directed the Norwalk city staff to prepare a utility tax ordinance for consideration at the council meeting this Tuesday. The 8% levy on telephone, electric and gas bills would bring in about $3.2 million a year. It would be reviewed in six months and reduced if the city’s financial situation improves.

Last week’s layoffs and elimination of five management positions saved the city $426,300. An additional $167,000 was saved when the remaining 17 managers agreed to forgo a scheduled 5% cost-of-living increase and accept a 5% reduction in work hours.

The city still has to cut $1.7 million more, and a variety of options are being considered, including more layoffs, centralizing recreation programs, deferring maintenance, reducing the level of law enforcement from the Los Angeles County Sheriff’s Department and cutting the frequency of street sweeping, said Assistant City Manager Sanford Groves.