Stanton approves ballot measure to try to increase city utility tax

The small Orange County city of Stanton has declared a fiscal emergency. The City Council at an emergency meeting Friday afternoon unanimously agreed to ask voters to approve an increase in the city’s utility users tax.

Stanton wants voters to approve the increase to help cover a more than $3 million – and growing – budget deficit.

The City Council approved a ballot measure that would increase the city tax on utilities from 5 to 7.5 percent.

Stanton Mayor Pro-Tem David Shawver says the city faces a “perfect storm” in a bad ecomomy.

"Our property values are down, so we’re losing that. Our sales tax revenues are down," Shawver says. "Our utility tax is generating 30 percent less than it did, so even our own taxes aren’t even helping us right now."

Shawver says that’s because of foreclosed mortgages and more frugal utility use.

But he largely blames the state for taking money away from the cities. He says Stanton has already paid California $4 million from its shrinking general fund.

The city owes the state about $1 million more by May.

Stanton leaders say that at this rate, the city’s general fund, which it’s dipped into to cover the gap, will only last another four years.

They add that if the state takes away redevelopment money, the situation is only going to get worse.

But long-time resident and former City Councilman Charles Rell says that even though the city is in a tough spot, enough is enough.

"I pay a property tax. That goes up. I’ve got this going, all the taxes going up. I’m not going to have any money. I’m on fixed income," Rell says. "Twenty years ago, I retired... I don’t get any more money. I gotta’ pay my insurance and everything. I don’t have that money. I’m not the only one. We got senior citizens here that are worse than me."

Earlier this month, the Stanton City Council cut about $500,000 from its public safety budget, which makes up about three-quarters of city expenses, by eliminating one police motor officer and deciding to close the front reception area. City officials say they're considering other cuts, as well.

The Stanton city tax measure is expected to be on the same June ballot on which Gov. Jerry Brown hopes to place his tax extension measures.

Stanton officials point out that other cities are in the same boat as Stanton and face decreased revenues as they try to cover expenses.