Debate Continues on Repealed Utility Tax

As the Agoura Hills City Council voted to rescind its utility users tax in response to the levy’s defeat in a special election last week, some residents applauded the move, while others stood up to support the tax, urging the council to reintroduce it for the November election.

At the council’s meeting Tuesday night, opponents of the tax called the defeat a “vote of no confidence” against council members and asked for a reimbursement of taxes paid during the two years the tax was on the books.

But several residents said they would not mind continuing to pay the tax, which was repealed by a vote of 53.1% to 46.9%, and said they would support a similar tax on the ballot this year.

“I urge you not to give up on this tax,” longtime resident Vance Moran told the council. “Think of a legal way to get this back on the ballot. The city of Agoura Hills needs this utility tax.”

One lawmaker said she would wait to see what would be cut from the budget--of which the tax accounted for approximately 25%--before making any decision about putting another tax to a vote.

“This tax was being presented as something the city needed long-term,” Councilwoman Louise Rishoff said after the meeting. “We’ll see if we can somehow limp by with what we have or if it’s something that vital.”

And Councilman Denis Weber said Wednesday that he “wouldn’t hesitate a bit to have another one on the ballot,” but, he added, he would like to see council discussions conducted in public next time.

Also at the meeting, anti-tax groups berated the council for not putting the utility tax to a public vote initially and asked for a refund, threatening a third recall attempt or a lawsuit if the council doesn’t comply.

Barbara Murphy, a member of Citizens Against New Local Taxes, pointed to wording in the city’s election materials stating that a “yes” vote would signify support retroactively for the tax.

“From that you can logically conclude that a ‘no’ vote would signify an opposition to the tax in the past,” she said.

The tax is expected to be removed from local gas, phone and electric bills within 60 to 90 days. It had generated $2.4 million since 1994, $900,000 of which was collected but not spent pending the election results.