Artesia : City OKs 2% Utility Tax to Offset Budget Deficit

Before a standing-room-only crowd, the City Council on Monday unanimously approved a controversial 2% utility tax that the city said is needed to offset a budget deficit estimated at $400,000 to $500,000. The levy, which will bring in an estimated $600,000 to $800,000 a year, will first appear on electric, gas and telephone bills in April.

Public opposition to the tax prompted the city to hold two public meetings to explain the need for the tax and solicit opinions and alternative suggestions. Opponents said that instead of imposing a tax, the city should cut spending and evaluate budgets for parks and recreation, public works and maintenance services.