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South Gate faces $9.4 million deficit; council orders more outreach on proposed 7% utility users tax
Summary
City staff outlined a roughly $9.4 million structural shortfall and recommended considering a 7% utility‑users tax with low‑income senior exemptions; residents packed the meeting to both oppose and support a ballot measure. Council voted to return the ballot decision to Feb. 24 so staff can produce additional outreach and alternative scenarios.
City Manager Rob Houston told the City Council on Jan. 27 that South Gate faces a structural deficit of roughly $9.4 million that would require either deep service reductions or new local revenue.
"We have a 9 over $9,000,000 deficit," Houston said as staff described two paths: across‑the‑board cuts that would eliminate programs and dozens of positions, or asking voters to approve new revenue in June. Among revenue options, staff proposed a utility users tax (UUT) like those other cities use and suggested a 7 percent rate with an exemption for low‑income seniors as the model that would most closely close the gap without eliminating core services.
Staff presented examples showing…
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