AGOURA HILLS : Officials Seek Utilities Tax to Meet Shortfall

Agoura Hills officials have for the first time formally proposed a tax on the use of utilities, in an attempt to alleviate the worst budget crunch in the city’s 12-year history.

The proposed 5% tax on the use of water, electricity, gas and telephone service would raise $1 million needed to wipe out the city’s projected shortfall next fiscal year, said City Manager Terry Matz.

The City Council has scheduled hearings on the proposed tax at its regular meetings May 11 and 25. Five less-formal public meetings on the budget have been scheduled in April.

Because of state cuts and tax losses, revenues are expected to fall $662,500 short of the $5.9 million needed to run the city, and another $343,800 short of required insurance and reserve funds, in the fiscal year beginning July 1, Matz said.

“This is the most challenging budget year we’ve had to deal with,” Matz said. “And some of the solutions we need to consider are difficult.

The idea for a utility tax has been brought up in Agoura Hills in the past, but never before reached the public hearing stage. After two hearings, the council may vote on it.

The nearby cities of Los Angeles and Calabasas raise money for services by taxing residents for the use of utilities. Westlake Village does not.

If Agoura Hills fails to find a source of new funds, it will be forced to cut back city services, although no cuts have been discussed in detail, Matz said.

The preliminary budget is not due for another month at the earliest, after public meetings throughout Agoura Hills on April 6, 12, 14, 19 and 20.