March Vote on Utility Tax Measure Postponed

Wagering that time will help their cause, City Council members have postponed a March ballot measure that would increase the utility tax.

On Dec. 16, the council will set a new date for the vote, probably in June.

“We just don’t have time to get ready and inform the voters about the issue,” Councilwoman Patsy Marshall said.

New council members Jack W. Mauller and Steve Berry, both of whom campaigned against the ballot measure, are studying the city budget and “will be coming out with a new line of attack” next month, Berry said. “As of right now, my opinion is we need to find a way to reduce the cost of providing services to the community.”

The ballot measure for the tax is “an option to consider,” he added.

The measure would increase gas and electricity taxes from 3% to 5% and impose a new 3% tax on telephone service.

City officials began their campaign for the tax in July, when the council first voted to put it on the March ballot.

Municipal revenue has fallen by $4.2 million over a period of about five years for a number of reasons, including a drop in sales tax revenue and a bigger share of local taxes going to state coffers, city finance officials said.

Until this year, officials had staved off any impact on the city’s $38-million budget because they had extra funds from the closing of the city’s Fire Department and a large credit from the state retirement system.

But those funds have been exhausted, and the city is looking at a budget deficit that could go as high as $3 million in the 1997-98 fiscal year.