3 Fullerton Council Recall Targets Dropped From Suit : Tax: They are no longer defendants in lawsuit challenging a new tax but face a decision by voters.

Three City Council members, who are targeted for recall today because they voted for a 2% utility tax, have been dropped as defendants in a lawsuit challenging that action, city officials announced.

The suit, brought by former Chamber of Commerce President Thomas O’Neill, had named the city, Mayor A.B. (Buck) Catlin and council members Molly McClanahan and Don Bankhead, who voted for the tax in July. It argued that voters should have been allowed to decide on the tax.

Catlin and city attorney R.K. Fox said Monday that both sides agreed not to talk about the reasons for the council members being dropped from the suit until after the election. But Catlin said, “Essentially, the three of us are home free on this.”

O’Neill could not be reached for comment.

The case still is being pursued in Orange County Superior Court against the city on the grounds that it failed to properly advertise the pending utility tax hike, city officials said.

The recall effort began after the City Council voted 3 to 2 in favor of the 2% tax on water, telephone, electricity, natural gas and cable television bills.

City Clerk Anne M. York later became a recall target because she allegedly delayed the recall process when she rejected petitions against the three council members for exceeding the legal word limit, officials said.

Catlin, McClanahan and Bankhead maintain that they voted for the tax to save police and fire services, which would have been cut due to budget shortfalls.