August 11, 2004     Saratoga, California Since 1955
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City adopts plan to place utility tax on ballot—but at 4 percent
By Kaustuv Basu
The Saratoga City Council has voted to adopt a utility-user tax ordinance so that city residents can vote on a proposed tax measure in the November election.

The council also voted to adopt an advisory ballot measure regarding the use of the revenues generated by the utility tax.

After much discussion at an Aug. 4 meeting, the city council decided to pursue a 4 percent utility tax instead of the 5 percent that had been discussed earlier.

"We really need 5 percent, but after hearing from people, we decided to scale it down a little bit," said Mayor Ann Waltonsmith. "I think we can get the measure passed if we reduce it. Something is better than nothing."

If the utility-tax measure passes, the city will make about $600,000 less a year because of the 1 percent reduction. The city would make about $2.4 million a year from the tax measure.

"We got a lot of feedback on what we should be spending our money on. We had a whole laundry list to begin with," said Waltonsmith.

"The advisory lists the general areas where we will be spending the money."

The advisory measure adopted by the city council suggests that the utility-tax money be used for repair, maintenance and improvement of city infrastructure. It also says that the money can be used for paying law-enforcement agencies.

"The sheriff's contract is a major expense, and we need to be able to pay for that," said Waltonsmith. "They have projected a 7 percent raise every year."

Each member of the council had a different idea on how the city should go about the utility-tax measure.

Councilman Norman Kline pushed for a 3.5 percent utility tax with no advisory on how to spend the money during the meeting. Councilman Nick Streit said that the advisory measure would help build confidence with voters. "We need to tell our voters what we are going to use the money for," said Streit.

Councilwoman Kathleen King said that she had looked into the finances of different California cities and had found that almost 130 cities in the state had a utility tax.

Mayor Waltonsmith stressed that the city could go to the voters only once. "We need to have an advisory to give a sense of what we are about to do with the money," she said. Waltonsmith also said that it would give a sense of direction to future city councils.

Stan Bogosian was the only city council member who refused to endorse the utility-tax ordinance. "The city should have looked at other alternatives before they decided to go ahead with a utility-tax measure. We should have let the people decide on how they want to be taxed," said Bogosian.

In previous meetings, the council had indicated that the city was going in for a utility-tax measure because the state would not be able to take away the money raised from local residents.

In the end, four council members decided that a 4 percent utility tax with an advisory measure would be the best way to get a vote of confidence from city residents.

The ordinance is divided into three sections and goes into detail about what services will be taxed. The proposed utility tax is expected to add $16 to $20 on an average to utility bills for city residents. Telephone, wireless, cable, water and electricity bills will be taxed.

"It has been a long time coming. This has been three years in the making. We have been gathering the data and all the information," said Waltonsmith.

"I urge the residents of Saratoga to visit our city website and get all the information they need on the proposed utility tax," she said.

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