STANTON : 6% Utility Tax Gets Council’s Approval

As expected, the City Council this week approved a 6% utility tax, which will begin appearing on gas, water, electricity and telephone bills starting in July.

City officials said the utility tax is necessary because of a decrease in property taxes and other money that the state shares with cities.

“The state continues to spend and spend and spend, so we are in the situation of raising money for them,” Mayor Don Martinez told a packed council chamber at Tuesday’s meeting.

In a presentation of the city’s financial situation, City Manager Terry Matz explained that the city has frozen salaries for three years and left staff vacancies unfilled.

Further cuts around City Hall would be tough. The city must spend about 70% of its budget on police and fire services, which it contracts from the county, according to John Hartman, the city’s finance manager.

“These are troubling times,” Martinez told residents before the council voted 4 to 1 to approve the utility tax. Councilman Harry Dotson cast the dissenting vote.

Many residents opposed the tax, which will raise an estimated $1 million yearly.

“I don’t think your 6% is going to do anything for very long,” said resident John W. Gibbard.

But Paul St. Clair, a 28-year resident, told the council he would rather pay the tax than have the city disincorporate and be dependent upon the county for services.

“It’s a good city,” he said. “I don’t care what people say.”

St. Clair, 57, pointed out that if residents in June approve a ballot measure allowing a card club in the city, the council could revoke the utility tax. Gambling promoters have said a card club could raise $2 million to $3 million yearly for the city.

Low-income residents may seek exemption from the utility tax. Any single person making less than $18,450 will not have to pay, and should contact the city to apply for an exemption. A family of four making $26,350 or less will also qualify for an exemption.