07-14-1975 - Laserfiche WebLink

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Councilman Bricken stated that in considering the arguments for and against the utility users tax, he feels it to be attractive because it would give the City an escalating revenue which would increase as utility costs increase; that he has a philosophical problem with this type of tax; and that he cannot at this time support it, but that he has no alternative to suggest. Mayor Garthe said that he favors the utility users tax; that he would rather not add such a large amount to the property tax; that he feels that the utility users' tax would be more equitable for the lower income families; that it has been necessary to cut City service; and that the additional re- venue is needed to maintain a desirable level of service. Councilman Evans indicated his opposition to the utility users' tax; and that an increased property tax would have to go along with it. On the motion of Councilman Yamamoto, seconded by Councilman Ward, the following Ordinance NS-1263 was approved for second reading (4-2) with Councilmen Evans and Ortiz dissenting: ORDINANCE N0-1263 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA ADDING ARTICLE VI TO CHAPTER 35 OF THE SANTA ANA MUNICIPAL CODE TO BE KNOWN AS THE UTILITY USERS TAX CODE (S%) CA 65B ORDINANCE NS-1264 UTILITY USERS TAX MAXIMUM the utility users tax. Mayor Garthe asked for discussion of the pro- posed Ordinance providing for a $5,000 maximum for Councilman Evans stated that establishment of a maximum was more unfair and inequitable than the original ordinance; and that he could not understand the reason the tax should be not paid according to usage. Mr. Rhodes Martin, 1434 East Borchard, said that the four largest users of utilities in Santa Ana would pay in excess of one quarter million dollars annually without the maximum. Councilman Bricken stated that he would not support an ordinance to establish a limit on the tax. Councilman Ward stated he would be in favor of removing the upper limit. Mayor Garthe favored the $5,000 upper limit; he did not think the larger users should be penalized. A motion by Councilman Ward, seconded by Councilman Yamamoto, to place the following Ordinance on first reading failed to carry on a tie vote, with Councilmen Ward, Yamamoto and Mayor Garthe voting aye and Councilmen Evans, Ortiz and Bricken voting no: ORDINANCE NS-1264 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING ARTICLE VI OF CHAPTER 35 OF THE SANTA ANA MUNICIPAL CODE BY ADDING SECTION 35-167 PRO- VIDING FOR A MAXIMUM AMOUNT PAYABLE UNDER THE UTILITY USERS TAX. CITY COUNCIL MINUTES 307 JULY 14, 1975