LA PALMA : 5% Utility Tax Passes Despite Campaign

Despite an aggressive anti-tax campaign by a local cable company, the La Palma City Council has voted 5-0 to impose a 5% utility tax.

City officials estimate the new fees, which apply to electricity, gas, telephones and cable television, will cost the average household an extra $6.85 a month. They will start Jan. 1.

Council members said they reluctantly passed the new tax, but argued that it is necessary. It will generate about $800,000 and will enable the city to maintain its current service levels, said officials. The city has a budget this year of $5.1 million.

Without the additional revenues, city officials projected a severe drop in their reserve fund--from $330,000 as of June, 1993, to about $24,500 by June, 1994.