CITY HALL : HAWTHORNE : Official Proposes 1.5% Utility Tax Hike
Interim City Manager James A. Algie has proposed increasing the utility user tax by 1.5% to help fight a growing budget deficit.
Algie has asked the City Council to consider the measure to help keep a lid on the budget crisis.
Under the proposal, the tax would increase from 3.5% to 5%, raising consumers’ bills $3 to $4 per utility each month, Algie said. Utilities affected are water, electricity, gas, phone, cable television and cellular telephone service.
The city takes in $3.6 million a year under the existing tax rate, including $600,000 earmarked to match a federal grant to pay for six additional police officers over the next three years, Algie said.
The tax increase is part of a budget that estimates the city’s deficit at $1.4 million, said Algie, who took over as city manager several weeks ago.
The council is scheduled to vote on the budget Wednesday.
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