Anaheim Council Rejects Extension of Utility Tax

Because of a surprise vote by Councilman Fred Hunter, the City Council voted 3 to 2 Tuesday not to extend a utility tax beyond Sept. 30.

Hunter, a supporter of the 2% tax on water, electric, gas and telephone bills since its adoption two years ago, said he now believes that the city has enough money for its current programs. A one-year extension of the tax had been requested by the city manager.

He said he could change his mind if the council agrees to earmark most of the $6 million an extension would raise during the next fiscal year for expanding the Police and Fire departments. But, he said, the other council members only pay lip service to supporting public safety.

“I would not have voted for the tax two years ago if I knew what I know now,” Hunter said, after voting with Mayor Tom Daly and Councilman Frank Feldhaus to kill the tax. Councilmen Bob D. Simpson and Irv Pickler voted for the extension.

Hunter said city staff told him two years ago that services such as police and fire protection, libraries and nature trails would have to be eliminated or trimmed if the tax was not passed, but he now believes such scenarios are “scare tactics.”

“The city has almost $16 million sitting in the bank,” Hunter said. “We can use that to balance the budget and pay for programs.”

Mayor Tom Daly, a longtime opponent of the tax who engaged in an angry shouting match with Hunter two years ago as the levy was adopted, said he was pleased Hunter voted to abolish it.

“However, I’m concerned that he doesn’t really mean it,” Daly said. He said he would not support the utility tax even if it was earmarked for expanding the Police and Fire departments because there may be other ways to pay for more officers and firefighters.

“Just last year, this council unanimously voted to increase the number of sworn police officers in this city (by five) by increasing the hotel bed tax,” Daly said. “But I guess Councilman Hunter forgot about that.”

City Manager James D. Ruth said the city does have a $15.8-million reserve, but to deplete it to the extent Hunter suggests would be a “substantial risk.”

“This is a big city and a lot of things could happen,” Ruth said. He said if a catastrophe was to occur, the city would be hard pressed to meet its demands if its reserves are depleted.

Because of the uncertainty caused by the failure of the utility tax extension, the council voted to delay its scheduled vote on the entire budget until next week.

It did, however, order that $2.8 million in proposed budget cuts primarily in the Police and Fire departments be restored.