Published on Wednesday, November 04, 2009
By Daily Breeze Staff Writer
As the AES power plant opened its deep pockets to campaign against a Redondo Beach tax measure, city leaders say they struggled to get their message out while countering claims of overspending and budget mismanagement.
And in the end, the city's position that the waterfront plant should have to pay a tax on its natural gas usage didn't resonate with voters. They gave a thumbs down to Measure UU, which collected only 46.6 percent of Tuesday's vote, according to the unofficial tally.
The measure would have eliminated language in Redondo's tax ordinance that has exempted AES from paying a 4.75 percent tax on the gas it uses to make electricity. Had it been approved, city officials estimated Measure UU could have generated an extra $1 million to $2 million each year.
The issue has simmered for some time at City Hall and recently was the subject of a costly legal battle
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