LAWNDALE : City OKs Utility Tax, Layoffs to Cut Deficit

The City Council levied a 5.5% utility user tax and laid off 17 city employees to help make up a $1.1-million budget shortfall.

Council members unanimously passed the $7.8-million budget, which included the new tax and the layoffs, on June 16.

The tax will be tacked on to electricity, telephone, gas, cable television, water and cellular telephone bills. Residents’ utility bills are expected to rise an average of $88 a year, said Tom Devereux, city director of community resources.

The utility tax is expected to raise $860,000 in the first year and a little more than $1 million in 1995-96, Devereux said. The tax also is expected to allow the city to keep a $200,000 reserve, said Jan Rush, city finance manager.

Low-income, disabled and senior citizens are exempt from the tax.

The tax will take effect July 15 but won’t be reflected on customers’ bills until August.

Council members also cut seven full-time and 10 part-time workers from the payroll to save the city an estimated $200,000, said Julie Carter, assistant to the city manager. Although no cash severance was awarded, full-time employees were allowed to use sick leave to look for work, and health insurance benefits were extended through August, Carter said.

The bulk of the cuts came from the maintenance department, whose work will be done through contracts with private firms.