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South Bay Digest

Redondo Beach : Utility Users' Tax Reduced

August 06, 1987

The City Council reduced the utility users' tax from 5% to 4 3/4% this week.

City Manager Tim Casey said the average resident will save only about $2.75 a year but the city will lose about $188,100 a year.

"Staff does not recommend any further lowering of the utility users' tax rate," Casey said in a report. "The tax has been an integral part of the city's revenues since 1969. Over the years, the utility users' tax has grown in importance; it now trails property tax and sales tax as the third most important . . . tax source. It is a well-balanced tax; 59% of the burden falls on business and 41% falls on residents."

Councilwoman Kay Horrell, who proposed lowering the tax, said she would have preferred a reduction to 4% but could not get enough council support.

Councilman Ronald A. Cawdrey voted against the reduction.

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