CITY HALL : HAWTHORNE : Official Proposes 1.5% Utility Tax Hike
Interim City Manager James A. Algie has proposed increasing the utility user tax by 1.5% to help fight a growing budget deficit.
Algie has asked the City Council to consider the measure to help keep a lid on the budget crisis.
Under the proposal, the tax would increase from 3.5% to 5%, raising consumers’ bills $3 to $4 per utility each month, Algie said. Utilities affected are water, electricity, gas, phone, cable television and cellular telephone service.
The city takes in $3.6 million a year under the existing tax rate, including $600,000 earmarked to match a federal grant to pay for six additional police officers over the next three years, Algie said.
The tax increase is part of a budget that estimates the city’s deficit at $1.4 million, said Algie, who took over as city manager several weeks ago.
The council is scheduled to vote on the budget Wednesday.
More to Read
Start your day right
Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week.
You may occasionally receive promotional content from the Los Angeles Times.
