LAGUNA BEACH : City Studies Taxes on Utilities, Admissions

The City Council will hold a public hearing tonight to consider possible tax increases to help balance the city’s 1993-94 budget.

Among options being considered are a 5% utility tax and a 50-cent admissions tax on movies, plays and festivals.

The public hearing is a necessary first step that would allow the City Council to approve various tax increases at a later date.

Cutbacks in state funding are expected to reduce the city’s discretionary income by about $2.5 million per year, City Manager Kenneth C. Frank said. To cover the loss, Laguna Beach must either raise taxes or lay off employees and reduce city services, including police and fire services and the maintenance of parks and beaches, Frank said.

The only other option, Frank said, would be for the city to help pay for those services with money now set aside to buy open space and to build a new parking structure near City Hall.

In addition to possible utilities and admissions taxes, the city is considering a special assessment of $100 per home to maintain parks, beaches and medians. That assessment would not require voter approval, Frank said.

But the council will also consider a second $100-per-home levy, this one for police and fire services, which would require approval of two-thirds of the city’s voters, according to state law.