Council Deadlock Delays Anaheim Utility Tax Extension : Government: Abstention by Councilman Fred Hunter postpones action for one week.

The City Council deadlocked late Tuesday on whether to grant a one-year extension to the city’s controversial utility tax, delaying a decision until a second public hearing next week.

Councilman Fred Hunter abstained when Mayor Tom Daly forced the council to vote on his motion to let the 2% tax on gas, water, electric and telephone bills die when it expires Sept. 30.

Daly and Councilman Frank Feldhaus voted to kill the tax, which was adopted two years ago and raises about $8.9 million annually for the city. Councilmen Bob D. Simpson and Irv Pickler voted for the extension.

Hunter, who last month vowed support of the extension, said he abstained because he wants to give more residents the chance to speak out on the tax, which costs the average resident $3 a month.

Daly wanted the vote taken Tuesday because the city is in the process of adopting its new budget, which takes effect July 1, he said, and those drafting the spending package must know whether the tax revenue will be available. He said the city could make do by “tightening its belt” if it rescinds the tax, saying that cutbacks could be made at the Anaheim Convention Center and in other city departments without cutting essential services.

“Particularly since businesses are having to tighten their belts and other people are having to tighten their belts,” Daly said.

Pickler and Simpson challenged Daly to show them how the budget could be cut, saying they too would support letting the tax expire if it could be shown that services such as police and fire protection would not suffer.

“I support the tax, not because I want to, but because I don’t see any way around it,” Simpson said. “The city cannot stand to lose more than $8.5 million and . . . protect the public safety.”

During a public hearing Tuesday, five residents spoke against the extending the tax, while Sharon Ericson, president of the city’s largest employee union, spoke in favor of it.

Resident Jeff Kirsch, a member of Anaheim HOME, a group opposing the proposed expansion of Disneyland, said the utility tax should be replaced with an admission tax at the amusement park.

Others reminded the council that its members had “promised” that the tax would end this year and the board should not go back on its word.

Ericson, leader of the Anaheim Municipal Employees Assn., said that hundreds of city employees could face layoffs if the tax is rescinded and municipal services “will fall apart.”

“But I think there are certain members of the council who will not be happy unless (employees) are kicked out the door and that just makes me sick,” she said.