SEAL BEACH

City officials are starting to consider how to divide $1.5 million in annual tax revenue expected once the Bixby Ranch shopping center is fully operational in three years. While the City Council had in the past considered reducing the 11% utility tax, which many residents deem too high, City Manager Keith Till told the council this week that there is a heavy backlog of capital projects that need funding. He also is hoping to build the city’s cash reserve for emergencies up to 25% of the city’s annual budget. Till recommended that the council not decide on a tax reduction until December 2001, when the Bixby project is closer to completion.