‘Oversight’ Delays 2% Cut in Utility Users Tax Rate : Government: Mayor promises that city will refund any overpayments.

Taxpayers were supposed to get a break last month when the city’s utility users tax decreased by 2%, but those who live and work here have discovered that the tax rates on most utility bills are as high as they have been all year.

Under a 1992 city ordinance, the tax was to have been cut from 10% to 8% as of Oct. 1, but telephone, electric and water company officials somehow failed to make the change, said Robert A. Rizzo, chief administrative officer. “I guess the utility companies’ computers didn’t pick up on (the change),” Rizzo said.

Pacific Bell will adjust the rate by the end of the year, said Karime Sanchez, public affairs manager, who said the failure to reduce the tax was “just an oversight. Most cities that implement these taxes have a start date and an end date. It’s a little unusual to have steps in between like the city of Bell.”

Southern California Edison Co. was awaiting word from the city that the tax was being reduced, said area manager Ron Garcia. He said the council had considered keeping the tax at 10%.

“We told the city: ‘You have to let us know whether you are going to change it,’ but they didn’t inform us until after,” he said. Edison will credit customers’ upcoming bills.

The ordinance will reduce the utility user tax further next year, to 5%, and eliminate it in 1996.

Residents are urged to monitor their bills and the city will refund any overpayments, Mayor Ray Johnson assured a crowd at a recent City Council meeting.

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Refunds can be collected from 7 a.m. to 6 p.m. Monday through Thursday at City Hall, Rizzo said. Residents and merchants should wait until their rates are adjusted before bringing in all their bills for reimbursement, he said.

Proof of overpayment, such as copies of receipts or canceled checks, is necessary. Refunds of $5 or less will be paid in cash. Larger amounts will be issued by check within two to four weeks.

City officials implemented the utility user tax in 1992 to help stabilize the city’s rocky finances.