ANAHEIM : Alternative to Utility Tax Will Be Sought

The City Council Tuesday unanimously voted to form a task force to study the city’s budget for 30 days and report back with possible alternatives to a controversial 4% utility tax passed last month.

The council’s action came after 50 angry taxpayers urged it to either rescind the utility tax or put the issue before the voters.

Members of Anaheim Coalition Against Tax, a citizens’ organization formed in response to the new utility tax, called the tax plan an unfair attempt to balance the city’s $545-million budget during tight financial times.

“We can’t just go arbitrarily and slap a levy on somebody to increase our income,” said Amin David, a spokesman for the newly formed group. “The will of the people, those who pay the taxes, must speak.”

Under the plan adopted Tuesday, each council member will name three appointees to the task force. The council invited 10 members of the anti-tax group to participate.

Last month, after heated debate, the council voted 3 to 2 to approve the tax, with Councilmen Tom Daly and Irv Pickler opposed. The tax, which goes into effect Sept. 1, will add slightly more than $5 a month to the average household’s tax bill.

Mayor Fred Hunter reiterated Tuesday that the tax was the only way the city could meet a $10-million budget shortfall projected for the fiscal year that began July 1 without sacrificing more city jobs and services.

“The next fat cuts in this city are policemen and firemen,” Hunter said. “We have two choices--cut services or raise taxes.”

But Daly and members of the anti-tax group countered that Hunter’s threats were “scare tactics” and that safety services do not need to be cut to balance the budget.

“The action this council took a few weeks ago was flat-out wrong,” Daly said. “This city has to learn to live within its means.”

The new tax on water, electricity, gas and telephone rates is expected to raise about $12 million. Hunter has suggested using additional revenue not needed to close the budget shortfall to hire more police officers.