Sierra Madre : 6% Utility Tax Approved

The City Council has tentatively approved a 6% utility users tax that will cost the average homeowner $9.35 a month.

More than 100 residents were in attendance as the five-member council voted unanimously Tuesday for the $7.3-million 1993-94 budget, which included the tax on water, gas, electric and phone bills.

The tax will expire in five years. The rate will be reviewed annually.

Officials say the tax will generate $400,000 in 1993-94 and $600,000 annually in subsequent years. It will help close a $400,000 to $600,000 budget shortfall, officials said.

The council will take a final vote on the tax at its July 27 meeting.

The budget trims more than $110,000 from city spending, reduces the municipal swimming pool budget and the number of conferences for officials, and trims three city jobs.

At Tuesday’s meeting, residents whose children belong to a local swim team suggested ways to save money on pool maintenance. The city is considering closing the pool for three months.