AGOURA HILLS : Council Approves Tax on Utility Bills

In an effort to avoid massive cuts in next year’s budget, the Agoura Hills City Council this week adopted a controversial tax on the use of electricity, gas and telephone service.

At its regular meeting Wednesday night, the council unanimously gave final approval to a 4% tax on utility use for residents and a 3.5% tax on commercial utility use.

“This is critical to the city’s financial needs in terms of balancing the budget and providing for the needs of the community,” said City Manager Terry Matz.

During the last several months, the measure was vigorously opposed by a local anti-tax group, which threatened to mount a recall drive against all five council members if they adopted the levy.

Only one person spoke against the tax at Wednesday night’s meeting, however, Matz said. The anti-tax group has not filed recall papers with the city.

The council also granted exemptions from the tax to senior citizens receiving supplemental Social Security benefits and households with very low income.

The utility tax is expected to bring in $726,500 next fiscal year to help fund the city’s proposed $4.9-million spending plan.

That plan--scheduled for consideration July 13--includes the layoffs of two full-time employees and five part-time workers and $270,000 in spending cuts.