Nov. 5--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. But some city leaders said Wednesday they still faced challenges explaining their position to voters who were overwhelmed with anti-UU literature.

Some mailers took aim at the city's spending, while others argued residents would end up paying more if the natural gas tax was assessed.

One of the company's chief arguments was that the tax would filter down to residents in the form of higher electricity rates. An anti-UU mailer making that claim played off the measure's name: "Who Pays?" it states, "You, You."

"I think the city's position is a strong one,"

Councilman Steve Diels said. "I think it's very good that these things have to go to a vote. But there's definitely a mismatch in the city's ability to get information out versus AES."

He continued: "The biggest disappointment to me is not so much that it lost, but it lost without everyone getting equal information."

An anti-Measure UU group funded largely by AES spent more than $186,000 on the campaign, according to finance reports.

And while city officials early on indicated they would tap a public relations firm to help disseminate information, City Manager Bill Workman said Redondo Beach was relying upon its usual communication channels in light of a court ruling that raised questions about the role cities can play in elections.

The City Clerk's Office on Wednesday had not received any statements from a pro-UU group, although one mailer cites the police and fire unions as supporters.

Councilman Steve Aspel has characterized the campaign as a "David vs. Goliath" battle in which AES poured thousands of dollars into winning votes.