SEAL BEACH : Keep 11% Utility Tax, Outgoing Official Says

The City Council, which has been weighing the possibility of trimming the 11% utility tax, should reconsider for now, departing City Manager Jerry L. Bankston said Monday.

Bankston, who leaves Friday to become city manager of La Habra, said he understands the pressures on council members to reduce the unpopular levy on telephone, electricity and natural gas bills, but the city should build up its emergency reserve fund first.

The council approved the tax two years ago to help close a $1.7-million budget gap. “I know it was a very difficult decision for this council,” Bankston said. “I know it continues to be.”

Bankston advised council members to wait until December or January before lowering the tax.

The city has $1.5 million in reserve funds, about $1.3 million less than Bankston recommends for the $23-million fiscal 1995-96 budget that the council approved Monday.

Councilman William J. Doane cast the only vote against the budget, explaining that he promised his Leisure World constituents he would not approve any fiscal plan unless it contained at least a 1% utility tax reduction. Doane was also the only council member to vote against the utility tax in May, 1993.

“I do represent people in Leisure World, and the only complaint is the utility tax,” Doane said.

Councilman George Brown, who also represents Leisure World, said he wants the council to review the tax sooner than Bankston recommended, in August or September.

“We really need to look at that utility tax very, very hard,” Brown said. “I hate to see us put it off.”