Artesia : Council Votes Preliminary Approval of 2% Utility Tax

Amid groans of disapproval from a standing-room-only crowd, the City Council has given preliminary approval to a 2% utility tax that is estimated to raise $600,000 to $800,000 a year.

City officials say the tax is needed to close an expected $400,000 to $500,000 budget deficit and stave off cuts in services, but critics accuse the council of poor leadership and ignoring earlier warnings to control spending.

Jackie Cardoza, a spokesman for the Artesia Citizens Committee formed to combat the tax, accused officials of trying to cover up spending abuses and pay raises. “They threaten us with new taxes, with closing down the senior citizens center, with shutting down the parks . . . but they’re not taking anything from their own pockets,” she said.

Council members said more than 200 residents signed a petition backing the council. “On an individual basis, people support this tax, but they’re obviously too intimidated to speak up at these meetings,” Mayor Mary Alyce Soares said.

Councilman Robert J. Jamison drew jeers when he called the 2% levy “just peanuts.”

The council cut $300,000 in spending before adopting this year’s budget and it trimmed an additional $107,000 at its last meeting. Additional cuts totaling $80,000 to $100,000 are anticipated.

The utility tax, which is expected to receive final approval Dec. 14, would apply to natural gas, electricity and telephone bills. Nonprofit and public agencies and senior citizens receiving Social Security would be exempt.