Outcry Prompts Lynwood to Scale Back Utility Tax

The Lynwood City Council has decided to scale back a new utility tax after being deluged with complaints from angry residents.

The council voted 4 to 1 Monday to enact a 3% tax on gas, telephone and electric bills, effective Jan. 1. The council initially had approved a 10% tax, but opted for the lower rate after angry residents packed the council chambers last week to protest the tax. The 3% tax is expected to increase residents’ total utility bills an average of $35 a year.

The new tax is expected to generate more than $1 million next year to help pay for such services as street and sewer repairs, officials said.

The council approved the 10% tax on Oct. 30 to avoid restrictions of Proposition 136, which would have required cities to obtain voter approval before raising taxes. The proposition, however, was defeated last week.