FULLERTON : Utility-Users Tax Hearing to Be Held

Facing strong criticism from the Chamber of Commerce, city officials will hold a public hearing Tuesday on a controversial proposed utility-users tax to help balance the city’s 1993-94 budget.

The business community opposes a 3% utility-users tax, which a City Council majority supports to help reduce a $4.2-million projected deficit for next year.

Chamber members demanded last week that the city instead “cut out the fat” and learn “good management.”

The council seeks to close the deficit through $2 million in cuts and the city’s first utility-users tax. It is estimated that the tax would cost the average household about $6 more each month.

The council will meet Tuesday in a 500-seat theater at Fullerton College and hold the first public hearing on the utility-users tax, which would begin appearing on bills in October, if approved.

Chamber leaders argued that the city could save money by contracting out for maintenance and other services.

“I’m not sure the chamber fully understands how much we contract out,” said City Manager James L. Armstrong. Since 1980, he said, the city has contracted for all its computer services, which control police records, computer-aided dispatch, paramedic billing, business licenses and the city’s financial management. The city plans to pay about $640,000 next year for those services, he said.

The computer contract saves the city money because the number of contract employees can be quickly increased or reduced as the city’s computer needs fluctuate, Armstrong said.

The proposed general fund budget is $44.9 million, almost 5% lower than last year’s, according to Armstrong.

Thomas J. O’Neill, the chamber president, demanded that the city cut widely to avoid a tax. He called the city library “optional.”

Library Director Al Milo disputed the description, noting that high school students study there and business people work there. The library’s reference desk was asked for help more than 100,000 times last year.

Without the tax, some departments fear they will have to sharply decrease their level of service.

“We would probably have to stop all proactive police work,” said Police Chief Patrick McKinley, referring to efforts to prevent crime.

The Fire Department might have to replace nine veteran firefighters with younger apprentices if the utility-users tax is not passed, said Fire Chief Marc Martin. The apprentices need a lot of training and would probably not stay in the job for long, he said.

Copies of the proposed budget are available for review at the Finance Department at City Hall. A pamphlet explaining the utility-users tax is available from the city manager’s office.

Councilman Chris Norby, who opposes the tax, said the city staff should consider alternatives, like consolidating fire services with neighboring communities, trimming hours at City Hall, and asking homeowners to care for all their own trees.

Norby presented suggestions for alternative cuts in the budget at a council meeting last week but could not get support. Mayor Molly McClanahan and council members Don Bankhead and A.B. (Buck) Catlin support the utility-users tax. Councilwoman Julie Sa joins Norby in opposition.

“Without the tax, we’d really be forced to look at some new ways of doing things,” Norby said.