LYNNWOOD —- In its first action to plug a multi-million dollar budget gap, the City Council Monday approved new taxes aimed at providers of gas, electricity, water and sewer. The city already has utility taxes on cable television, garbage and cellphone bills.
Council members Jim Smith and Kerri Lonergan voted against collecting a 4 percent tax on the companies that provide gas, electricity, water and sewer. The tax would, presumably, be passed along to consumers.
The taxes, which take effect July 1, are expected to bring $1.4 million to the city by the end of the year, said acting finance director Vickie Heilman.
Council members have spent weeks looking at ways to make up for a projected $4.8 million budget deficit.
Smith on Monday asked fellow council members to postpone the vote until next April 26, when an auditor hired by the city’s largest police union will present his findings on four years of city finances.
The council is expected to come up with a plan for additional cuts to city programs and staff at next week’s meeting.
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