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San Gabriel Valley Digest

Pomona : City to Review Tax Cut OK

December 14, 1989

The City Council, which approved a plan in October to reduce Pomona's utility tax to 5% by cutting it 1% a year over five years, will consider altering that plan at a meeting at 7 p.m. on Dec. 21.

Acting City Administrator Tom Fee told the City Council this week that bond consultants preparing a multimillion-dollar bond issue for street repairs and other improvements have said that the revenue loss from the utility tax cut could jeopardize the city's ability to repay the bonds. Each 1% cut would reduce city revenue by $800,000 to $1 million a year.

Fee suggested the city cut the utility tax in proportion to increased revenue from sales taxes. The utility tax could still be reduced as planned, he said, if the city pursued an aggressive and effective redevelopment program, raising sales tax revenues.

The council delayed action on the recommendation until Dec. 21 to give Julio Fuentes, who will become city administrator next week, an opportunity to review it.

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