PLACENTIA : City Budget Relies on Utility Tax Hike
The City Council has approved a tentative 1993-94 budget that relies on an as-yet-to-be-approved 2% increase in the utility users tax.
The increase is needed to help balance the $22.6-million budget, city officials said. The city expects the state to withhold $715,000 in property taxes and another $300,000 in redevelopment agency revenue. However, the increase in the utility tax will not be voted on until after two public hearings later this summer.
Spending under the proposed budget would increase by $2.8 million, or 14%, compared to the current budget. To fund part of that increase, the city is proposing to raise the tax that residents pay on natural gas, electricity, telephone service and cable television to 5%.
The increase, which would cost homeowners about $2 to $3.50 per month, would raise about $866,000, for a total of $2.1 million in utility tax revenue.
The spending plan offers no increases in salaries or benefits. It also calls for the elimination of one police officer position, assistant city administrator, buyer, planner, building inspector, maintenance technician and typist clerk.
The council set two public hearing dates for the proposed tax increase. Hearings will be at 7:30 p.m. in the council chambers on July 6 and Aug. 3.
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