Sierra Madre : Council to Discuss New Tax

The City Council will consider imposing a utility tax on gas, electric and cable services to recover money lost as a result of the state budget crisis.

A 5% tax would generate about $175,000 for the city’s general fund, which is expected to lose about $220,141 in property tax revenues to the state in fiscal 1992-93, according to a city report.

In addition, the council discussed the elimination of four staff positions, a freeze on some merit increases and deferral of capital projects to cope with the shortfall.

City Treasurer Douglas Berkshire will present the council with a list of other sources for revenue at upcoming meetings, and they will be considered before final cuts are made.