FULLERTON : Council Votes 3-1 to Levy Utility Tax

After three hours of public testimony, the City Council voted 3 to 1 this week to impose a 3% utility-users tax.

More than 700 residents and local business people attended a public hearing Tuesday night at Fullerton College.

Opponents of the tax argued that it will stunt business growth and overburden residents. Supporters said the millions that could be raised by the tax are critical to support police, firefighters and other community services.

The utility tax would cover telephone, cable television, natural gas, electricity and water bills and cost the average household about $6.60 a month.

City Manager James L. Armstrong and department heads said the city has lost millions in property taxes to the state. Sales tax revenue has also fallen during the recession, Armstrong said.

The proposed $44.9-million budget for 1993-94 is 5% smaller than this fiscal year’s budget, even with a utility tax factored in, Armstrong said.

Thomas J. O’Neill, president of the Chamber of Commerce, warned the council that “increasing taxes . . . could prove catastrophic in the long run.” The chamber organized a strong lobby against the tax, and many members of the audience wore stickers expressing opposition.

Resident Virginia Neal sang a song she recently wrote in support of taxes. “Remember, what may be ‘optional’ to you may be a necessity, like the library,” she sang.

The council’s approval of the utility tax ends five months of public meetings at which the tax was discussed as a way to raise revenue.

As an alternative to the tax, a proposal was made to eliminate 20 public safety positions.

“I don’t want taxes,” said Councilman Don Bankhead, who voted for the tax. “I hate taxes. But I believe that we have a right to good public safety.”

Councilman Chris Norby, who voted against the tax, suggested contracting out more city functions, like the city attorney’s office.

Mayor Molly McClanahan and Councilman A.B. (Buck) Catlin joined Bankhead in supporting the tax. All three called for the tax to be reconsidered in two years. Councilwoman Julie Sa was absent.

The tax will not apply to low-income families.