Despite early returns that pointed in the opposite direction, Coachella voters on Tuesday defeated a new tax that city officials said would help maintain city services such as public safety, street maintenance and parks.

A simple majority was needed for the tax to pass.

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“Hopefully the trend continues to move in that direction,” Mayor Eduardo Garcia said last night.

But it didn't.

Once 100% of the precincts reported, the measure failed with 431 votes against it and 384 voting in favor.

The 5 percent utility users tax, had it been approved, would have been added to all utility bills, including telecommunications, video and cable, electricity, gas, water, sewer and garbage.

City officials said it would have increased monthly bills by about $15 a month and would have generated about $1.6 million a year in revenue for the city.

The measure also would have created a five-member independent Citizens Oversight Committee that would have annually reviewed the revenue and expenditures of the tax.

Garcia said the tax would “allow the city to have good fiscal policies in place to assist in (maintaining) the level of service not only today but in the future.”

Without its approval, city officials had feared “serious” financial shortfalls that would require the further reduction of city services.

This fiscal year, the city had to lay off employees, institute furloughs and offer early retirement incentives to address a more than $3 million deficit and create a balanced budget.

“We'd have to go back to the drawing board and look at how we reduce expenditures and really the only place is our police and fire services,” Garcia said.

Xochitl Peña covers Indio and Coachella for The Desert Sun. She can be reached at Xochitl.Pena@thedesertsun.com or at (760) 778-4647.