FULLERTON : Council to Consider 3% Utility Tax

The City Council tonight will consider imposing a 3% tax on water, electricity, telephone, gas and cable television service that could raise an estimated $4.8 million annually.

The utility tax is considered as one way to close the $4.2-million gap that is projected for the 1993-94 budget year, which begins July 1. The city’s projected general fund budget is about $48 million.

In addition to the utility tax, the council will consider eliminating 38 positions, including 10 library jobs and 11 maintenance service jobs.

The staffing reductions would save about $2 million a year, according to staff figures.

The utility tax would have an exemption for low-income residents and a cap of $25,000 a year for large businesses.

The council will also consider a review of the city’s business license tax, which City Manager James L. Armstrong said has not been reviewed in 30 years.

Also for consideration is a study of city fees, to make sure the city is being paid for the costs of planning reviews and many other services.