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Published on 07/07/1999 All articles from this issue

Utility tax hike eyed to fund city 'wish list'

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By Joanne Griffith Domingue / Town Crier Staff Writer

Los Altos City Council members are looking to a possible utility tax increase to fund 10 recommended priorities that are beyond the current city budget.

Council members estimate it will take an additional $1.25 million to fund the items, which would mean a hike in the current utility tax from 3.5 percent to 6.5 percent.

"It's a fairly painless way" to raise the money, said Mayor pro tem John Moss. "That would be about an average of $100 per year per household," he said.

For this residents would get four traffic patrol officers ($359,000 per year); a recreational facility that could be a gym ($400,000 per year); additional communication center (911) staffing ($131,000 per year); additional maintenance for the city's 107 miles of streets ($190,000 per year); and an after-school youth program ($78,000 per year).

"We're very behind the times for a sports facility," said Los Altos Mayor Lou Becker. "We don't have much of a facility for kids."

"Those were the 'big bucket' items," Moss said, "public safety, maintaining city facilities, capital improvements and youth."

In addition, the list includes a city contribution of $100,000 to a new community pool, which may be located at McKenzie Park, Moss said.

In about a year the Covington Pool, which is used for city swimming classes and the Masters' Swim program, will close.

"Some people look at it like a sales tax on utilities," said Phil Rose, Los Altos City Manager. In 1995, utility taxes ranged from .5 to 12.5 percent in California. The tax is between 5 and 7 percent in most cities with the tax, Rose said.

The council held a special meeting June 28 and reviewed the final report of a 29-member citizen committee that had been examining city funding options and a city wish list.

"Since a utility tax is paid for by everyone in the city, the committee feels this is one of the best ways to fund services that apply to the whole community," said Bob Grimm, chairman of the budget advisory committee.

Mayor Becker agreed. "It's one of the more practical options" for raising city funds, he said.

An increase in the utility tax requires a simple majority vote of the citizens.

At its meeting next Tuesday, the city council will be voting on whether or not to put an increase in the utility tax on the November ballot. The meeting is at 7 p.m. in the City Council Chambers, 1 N. San Antonio Road.