AGOURA HILLS WANTS TO MAKE AMENDS ON TAX : ACTIVIST AWAITS REFUND DECISION.

Byline: Teresa Jimenez Daily News Staff Writer

City officials want to bring an end to a years-long battle over an unpopular utility tax by approving a refund procedure on Jan. 15.

But the fight may continue if the terms aren't to the liking of community activist Barbara Murphy, who has led the movement against the tax.

``I'm going to wait until the 15th and see what happens,'' Murphy said. ``I don't know how much they're planning on refunding, how they're going to set up the procedure. Will people have to request a refund? I won't sue (over the refund) if they do a reasonable amount and a reasonable effort in informing people.''

The details of the plan, to be considered by the council at the upcoming meeting, have not been released, and Mayor Fran Pavley said she was unsure of what the final outcome would be.

Pavley said a refund plan has been delayed because the city has been looking for a simple way of notifying residents and disbursing thousands of checks.

``We would like to get this issue behind us and find a fair and equitable way of giving money back that was paid to us,'' Pavley said. ``It's coming up with a mechanism that would be workable for the staff, too, that has been difficult.''

City council members approved the utility tax - 4 percent for residents and 3.5 percent for businesses - in June 1994 to cover a $695,000 shortfall, to the outrage of some residents who argued that the city still had the ability to trim the budget.

Anti-tax group members, particularly Murphy, moved to recall several council members as a result of the tax, but the city clerk declared signatures on the recall petitions to be invalid.

Murphy sued the city, saying that the city clerk's decision was not only incorrect but biased. In October, a Los Angeles Superior Court judge found in favor of the city, bringing to an end the recall issue. But Murphy for months has threatened to sue the city once more, this time over a utility tax refund.

City officials agree that residents are due a refund. Since the tax was passed, the state Supreme Court reversed lower court rulings that allowed special taxes to be approved by an elected body without a popular vote.

In December 1995, the Supreme Court refused to hear the case a second time, upholding the earlier decision.

In addition, Agoura Hills voters rejected the city utility tax in June last year. The city eliminated the tax a month later.

City officials have not decided how far back the refunds should reach - whether to refund from the September 1995 Supreme Court decision, the December 1995 Supreme Court decision, or the June 1996 popular vote.

``Many people I've talked to - even people who voted against the tax - didn't want a refund. They just wanted the tax to end,'' Pavley said. ``The Supreme Court never addressed the issue of refunds or prior taxes.''

But Murphy plans to show the city that plenty of residents are interested in getting their money back. In letters to newspapers in the area, Murphy has asked residents to send letters to the city, with a copy mailed to her, demanding a refund. Murphy said she has received about 25 letters so far. Murphy argues that residents did not have an option of paying the city tax, and conversely, the city shouldn't have the option of refunding the money to residents.

Murphy said, however, that she would not take issue with the city in cases where residents do not want the refund. But she also said the city should make a concerted effort to inform everyone of their right to the money.

``The city is hoping to take a path that will allow them to retain as much money as possible,'' Murphy said. ``They mail parks and recreation information to every resident. They should just do one mailing to everyone informing them of the refund. I really think that's the right thing to do.''

Pavley, one of the council members targeted in the recall effort, questioned Murphy's allegations. Pavley said the city was in a financial bind when the tax was passed.

And the funds collected over the two years - about $2.5 million - have helped pay for street lights, street and sidewalk maintenance and a drug prevention program for local schools, Pavley said. Much of the money that was collected, Pavley said, has been spent.

``I hope the vast majority of people who care about the city of Agoura Hills will realize the good the tax money has done and will leave it alone,'' Pavley said. ``Barbara Murphy wants to punish us. But what she is really hurting is the community and herself.''