June 2, 2004     Saratoga, California Since 1955
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Committee proposing a new utility tax for city residents
By Kaustuv Basu
A special committee appointed by the Saratoga City Council last year to look into the city's financial problems has recommended a new utility tax for residents.

The new tax is expected to cost Saratogans an average of $20 per month, said city officials. The city expects to raise between $2.5 million and $3.2 million a year from the proposed tax increase that will be levied on utilities like gas, power, water, telephone and cable television.

The city is in the process of mailing out fliers that invite members of the public to a special meeting where these issues will be thrashed out.

"This is a proposal to achieve financial stability," said Mayor Ann Waltonsmith. "This is one of our options for increasing city revenue."

The flier that is being mailed out talks about the factors contributing to the need for the city to propose the tax. City officials say that only $3 million of the $70 million paid in property taxes paid by local citizens came back to the city. Other factors include a 14 percent increase this year in the cost of the sheriff's service and the city's $260 million infrastructure's maintenance backlog of $18 million.

"Fifteen percent of the city's budget went in paying the state," said City Manager Dave Anderson. "If we do not fix this problem now, property prices in the city might actually go down."

The vision committee that looked into resolving the city's financial needs is now called the Revenue Review Committee. Evan Baker, the committee chairman, said that he was absolutely convinced that the utility tax was the only way to fix the city's problems.

"We have been trying to balance the budget with great difficulty for years," said Baker. "We have to be able to keep our infrastructure maintained. Saratoga is in serious financial difficulty."

Baker said he was expecting positive feedback from the June 7 meeting. "If there is a need for more discussion, we can have a few more public forums."

He said that the committee plans to go to the city council in the latter part of July so that the measure could make the November ballot.

"The proposed utility tax will have a sunset measure and will exist for 10 years from the start date," said Baker.

Officials point out that Saratoga is the wealthiest of all the cities in the county but has the second lowest budget.

"We cannot keep cutting costs. We cannot go for years without fixing our streets and gutters," said Baker.

The last such special utility tax measure in the city ended in 1996.

The community meeting to discuss the proposed utility tax will be held on June 7 at 7 p.m. at the Civic Theater, 13777 Fruitvale Ave.

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