Public Input Sought on Plan to Hike Utility Tax

The City Council has voted to ask for community input on a proposed utility tax increase, which would help boost Arcadia’s dwindling revenues and offset the city’s $1.9-million deficit.

The current utility tax is 5%. The last increase occurred in 1978 when the tax was raised to 7%. The rate subsequently went back down to 5% because the additional funding was no longer needed.

The council on Tuesday night voted 4 to 1 to hold a public hearing at its Nov. 4 meeting on another possible rate increase. Councilman Sheng Chang opposed the measure, saying he would prefer that the money to close the deficit be taken from the city’s emergency reserves.

Through mail-in ballots last August, property owners overwhelmingly rejected a $2.2-million assessment for fire services. The assessment would have helped the city offset the budget deficit.

Also at the Nov. 4 meeting, the council will discuss other ways to cut expenses and close the funding shortfall.