City Council Votes to Increase Utility Tax, Cut 50 Positions in Budget Plan : Budget: Council members scale down projected expenditures about 12% from last year. A proposal to cut 38 police officers’ jobs is rejected.

The Long Beach City Council has approved a $1.6-billion budget that includes a 43% increase in utility taxes and a variety of higher fees.

To balance the budget for the fiscal year beginning July 1, the council also approved $8 million in cuts, including the elimination of 50 positions. “The choices weren’t pleasant, but they had to be made,” Mayor Ernie Kell said Tuesday after a rancorous eight-hour meeting at which the council adopted the budget and decided to raise the utility tax from 7% to 10%. “I’m very pleased.”

Councilman Warren Harwood, who had led the charge against the increase, said he was dismayed at the decision. “This was the most disappointing session I’ve ever attended,” he said. “It’s really a mess. I’m not happy, and I don’t think the public will be happy.”

The higher utility tax will cost the average resident about $11 a month, an increase of $3.51, on electric, gas, telephone and water bills, officials said. The higher tax is expected to generate more than $16 million in additional revenues.

The council also decided to expand the city’s license tax to include apartment and home rentals, increase fees for the review of construction plans and for the city’s cable television franchise, and raise the cost of renting a slip in the city’s two boat marinas by 6.3%. The average monthly slip fee will go up from $8.46 to $8.97 per foot.

The council also decided to eliminate the positions of deputy city manager, deputy fire chief, fire captain, public health nurse, deputy police chief and five police lieutenants to save money. While other departments have had their budgets slashed in recent years, this is the first time in memory that the police department has experienced reductions, city officials said.

The council also decided to save $1 million by postponing salary increases for department managers.

Overall, city officials said, the new budget is about 12% lower than last year’s $1.8-billion spending plan. They cited a number of factors, including decreases in federal and state funds, a recession that has reduced sales-tax revenues, and shrinking oil revenues.

In implementing the controversial utility tax increase, the council rejected an alternative proposal by City Manager James C. Hankla that would have, among other things, drastically reduced City Council and staff budgets, cut 38 officers from the police force, shut down two police facilities and a firehouse, eliminated the city homeless coordinator and historic preservation officer positions, and done away with the Long Beach Municipal Band.

Hankla said he was not recommending the cuts, but simply presenting them as what he considered the only viable alternative to the utility tax increase.

But Kell, who has no vote, urged council members to approve the utility tax increase rather than the deep cuts. “I don’t think people want to see (these kinds of) reductions,” the mayor said.

Police Chief Lawrence L. Binkley, appearing before the Council to answer questions about his department’s proposed budget, echoed the mayor’s sentiments. While the elimination of 38 officers would seriously impair police services, he said, the department could probably bear the loss of five lieutenants and one of its four deputy chiefs. All of the individuals involved, Binkley said, would either be shifted to other positions or offered early retirements.

But Harwood--backed by Councilmen Les Robbins and Jeffrey A. Kellogg--argued that almost anything would be better than imposing the utility tax. “The money will come out of the pocket of the little guy,” Harwood said. “I think we have other choices.”

Despite his objections, the tax increase was approved by a 6-3 vote.

As one alternative, Harwood had suggested that the city trim $1.2 million by eliminating curb and gutter-repair services, forcing homeowners to pay for maintaining their own sidewalks. The council voted to refer that proposal to a committee for future consideration.

Harwood also endorsed across-the-board 5% reductions in City Council and staff budgets, an idea the council majority opposed on the grounds that they had already cut their budgets by 5% at Hankla’s request.

Some audience members said they agreed with Harwood’s general budget stance. “I’m against the utility tax,” declared resident Wanda Brooks. “I see waste everywhere.”

In the end, the new budget was approved unanimously. Sitting dejectedly in the council chambers following the all-day meeting, Harwood expressed frustration. “This was outrageous, like talking into the wind,” he said.