The City Council has voted to repeal the city utility tax for residents, but not businesses, effective in January. The tax amounts to 2.75% of telephone, gas and electricity bills. The council overrode a recommendation from City Manager Lloyd de Llamas, who urged that the city maintain the tax, imposed in 1983, because "Monterey Park's economic base has not grown to the point where it can replace the revenue that would be lost."
Repeal of the tax on residents will cost the city $530,000 a year. De Llamas recommended that the city make up the revenue loss by more than doubling the utility tax for businesses, but the council rejected that proposal after opposition from the Chamber of Commerce and a number of businesses.