A controversial proposal by Glendale to levy a 7% utility tax for long-distance telephone calls died Tuesday for lack of a sponsor on the five-member City Council.
City administrative officials had proposed the tax to raise $300,000 to help plug a $6.4-million shortfall in the $317-million budget, which went into effect July 1. The rest of the shortfall was made up through cuts in services, a reduction in city staff workers and a freeze on salary increases for administrators.
Officials Tuesday said a telephone utility tax is charged by many cities Glendale’s size, including Burbank and Pasadena. But council members, led by Mayor Larry Zarian, said they are reluctant to levy any new tax that could discourage businesses from locating in the city.
Representatives of the chamber of commerce and business leaders testified at a public hearing before the council Tuesday that a new tax could adversely affect their business and discourage new businesses from locating in the city.
Future study sessions are expected to be scheduled to determine how the city will raise additional revenues or pare expenses from its budget.