FULLERTON : Big Crowd Expected at Tax Levy Hearing

Because of an expected crowd, the City Council has decided again to use a 500-seat theater for the second hearing Tuesday on the utility tax.

The 3% tax, to be levied on water, electricity, telephone, gas and cable television bills, would raise an estimated $2.6 million for the city in fiscal year 1993-94. It would affect residential and commercial users. Low-income residents would be exempt.

More than 700 people attended a June 15 hearing, the first of two required hearings. About two-thirds of the speakers opposed the tax, which was condemned by the Chamber of Commerce.

City Manager James L. Armstrong has said that the tax could offset millions lost in property taxes shifted to state coffers. However, chamber members and other opponents said the city needs to cut spending before taxing businesses and residents.

The council approved the tax, 3-1, at the first hearing, with Councilman Chris Norby casting the dissenting vote. Councilwoman Julie Sa was absent.

The council will take a final vote on the tax after the second hearing, which will start at 7:30 p.m. at the Fullerton College theater, 321 E. Chapman Ave. Free parking will be available across the street at the Plummer Parking Structure.