Huntington Park : Council Backs Utilities Tax to Offset $600,000 Deficit

The City Council gave preliminary approval Monday to a 3% tax on all telephone, gas, electricity and water bills.

The city is facing a $600,000 deficit, and utility company officials estimate that the tax could raise about $1.2 million annually, City Manager Donald L. Jeffers said.

However, many residents and business representatives protested the proposed tax.

“Huntington Park is not a positive business climate,” said Jeff Wahba , vice president of Henry Company, one of the city’s top 10 employers. “This is a big step in the wrong direction.”

Henry Company officials estimate that the tax would cost the construction equipment manufacturing company at least $20,000 annually and hinted that they may take their business elsewhere.

The council, with mounting concerns that too many industries are leaving the city, agreed to consider placing a $300 to $400 limit on the amount of tax that individuals or businesses would have to pay.

“We don’t have the kind of community that can absorb this kind of tax,” said Councilman Luis M. Hernandez. He and Councilman Thomas E. Jackson voted against the tax.

The ordinance will be considered for a final vote Oct. 19 and would go into effect 30 days after it is passed. It could be repealed by the council at any time.