L.A., DON'T COUNT ON TAX REBATE.

Byline: Rick Orlov Staff Writer

Pushed by the state energy crisis and a strong local economy, a tax windfall of at least $120 million will hit Los Angeles city coffers, officials said Monday.

But don't expect a rebate.

City officials are debating how to spend the money - including a proposal to fix streets and sidewalks, but what hasn't been proposed is any kind of rebate, Deputy Mayor Jennifer Roth said.

With energy prices up and the economy headed south, taxpayer advocates said a rebate is exactly what's needed.

``With taxpayers paying so much more for power, we are calling on cities across the state to try to give some kind of relief through the utility users tax - at least, until this energy crisis is sorted out and prices return to a lower level,'' said Jon Coupal of the Howard Jarvis Taxpayers Association. ``Los Angeles, in particular, should look at this because it has the highest rates in the state.''

At least $20 million of the revenue is due to the higher energy prices - particularly from the utility users tax on natural gas - as well as an economy showing strength in all other sectors from business and sales taxes to tourism.

The city has a 10 percent utility users tax on natural gas and telephones. For electricity, it has a split rate with residents paying 10 percent and businesses assessed at a 10.5 percent rate.

Rex Oliff, an analyst in the city's Office of Administrative Research, said the natural gas tax normally brings in $53 million a year. This year, he said, it is estimated to be $73 million.

``We know it's not people using that much more gas, it's the higher prices,'' Oliff said.

Electricity taxes have remained stable because the Department of Water and Power has been able to maintain its rates since it was exempted from energy deregulation and has been able to sell its surplus electricity to the state.

The city also showed strength in a number of other areas of its economy.

Business taxes were $17.9 million more than expected, and revenue from licenses and permits was up by $17 million.

Property taxes were $8.9 million more than expected while sales tax revenue was up by $3.67 million.

Mayor Richard Riordan is holding off on calls to increase spending for any specific program now, but will include the new revenue in his proposed 2001-02 budget scheduled to be released April 18, Roth said.

``We have heard from a number of council members on things they would like to see funded, but the mayor wants to lay it all out in a thoughtful package,'' Roth said.

``The mayor feels the city is on a good path and his position is we use this money for all the unexpected needs the city has this year, including the strengthening of the reserve fund, financing the consent decree, the city's infrastructure, parks, the Fire Department and paramedic needs.''

The higher revenue estimates are for the current fiscal year, which ends June 30. Riordan is expected to provide some details of the budget for the new fiscal year over the next several weeks in a series of events, such as one scheduled today dealing with the Los Angeles Fire Department and the paramedic program.

Councilman Mike Feuer, chairman of the City Council's Budget and Finance Committee and also a candidate for city attorney, said he believes $70 million of the money should be used for either street or sidewalk repairs.

``We aren't sure if we will have this revenue on an ongoing basis and I am proposing we use it for one-time expenses on the things I get the most calls about,'' Feuer said.

He estimated that the city could double the number of miles of streets being paved - to more than 500 miles this year - or could repair sidewalks in front of 40,000 homes.

``This is the thing we, as council members, get the most calls about,'' Feuer said. ``I think we should look at a combination to deal with some of our outstanding needs.''