LA HABRA : Utility Tax to Help Balance City Budget
With the help of $3.7 million from a controversial utility tax that residents have been trying to repeal, city officials say they will be able to draw up a balanced budget for fiscal 1995-96.
Without the utility tax, services including police and fire protection would have to be severely cut, City Manager Lee Risner said.
If that happens, Risner said at Thursday’s City Council meeting, “the community will change, and not for the better.” The consequences, he said, could include lower property values and higher fire insurance premiums.
For several months, tax foes have urged City Council members to repeal the 6% utility levy, which they say is unfair because residents did not vote on it.
The utility tax revenue accounts for about 25% of the proposed $14.8-million budget. Property tax revenue makes up about 30%, sales tax revenue brings 29%, and the remaining 15% comes from other local taxes, state funds and other sources.
No new taxes and no job cuts are proposed for the coming fiscal year, officials said.
The new budget will be the topic at a public study session Thursday at 6:30 p.m. in City Hall. Council members say they plan to adopt a budget by June 30.
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.
