Council Set to Rescind Rejected Utility Tax

The City Council is expected to approve an urgent ordinance that would rescind the controversial utility users tax at its meeting tonight, a week after voters repealed the tax in a special election.

“This is the first time the council could take any action, and we made it an urgency ordinance to get this tax off the books as soon as possible,” said City Manager Dave Adams. “We don’t want to keep that going on.”

Although the action is sure to be approved, it will take at least 30 to 60 days for the tax to be removed from residents’ gas, electric and phone bills, Adams said.

The action comes none too soon for some homeowners, who were pleased that the tax will be rescinded but are still upset that they had no say in its implementation two years ago.

“I think acting within a week of the election is an entirely appropriate time frame for this,” said Barbara Murphy, a member of Citizens Against New Local Taxes, which spearheaded the effort to defeat the utility tax. “But they probably should have given us a vote when they put it in.”

Also expected to be discussed, in closed session, is what the city will do with the $900,000 in utility taxes it collected, but did not spend, during the battle over the tax.

Mayor Ed Corridori said the issue will be discussed in closed session for now due to suggestions that residents may sue to be reimbursed for the taxes paid out.

Next Tuesday, the council is scheduled to conduct budget hearings to discuss possible cuts in the wake of losing about 25% of city revenue, Adams said.

“We’ll be able to do the basics and keep operations maintained as we always have, but we’re not going to be able to do some of the items that the community has been looking at for a while.”

But Murphy said the council should start looking for cuts in “government fat.”

The council meeting will begin at 7 p.m. in the council chambers, 30101 Agoura Court, Suite 102.