STANTON : Council to Consider Tax, Card Club Vote

Faced with a growing deficit, the City Council tonight will discuss approving a 6% utility tax and a special election to permit card club gambling as alternatives to cutting services.

The city’s $8.25-million budget has a $700,000 shortfall this year, which could reach $1.4 million next year, according to City Manager Terry Matz, who blames much of the city’s financial trouble on the state taking about $1 million in tax money that used to go to Stanton.

To offset the deficit, Matz and council members have said the city must either decrease fire and police services or raise more revenue.

Tonight the council will hold a public hearing at 6:30 to consider the 6% tax on water, gas, electric and telephone bills. The tax could bring in $1 million yearly, and would not be imposed on households with very low income.

The council will also discuss card-club gambling in the city, which could bring in $2 million to $3 million yearly, according to Ard Keuilian, an owner of the Indoor Swap Meet of Stanton, who last week suggested to the council that he turn his building into a card club.

The council heard Keuilian discuss his plan at a special meeting March 4, which was called on short notice because of the March 12 deadline to request a June 8 special election. Residents would have to vote to approve card clubs.

Four councilmen voted last week to ask the county to hold the election. Today they will approve the formal request and consider who will write the explanatory arguments for and against the card clubs.

The cities of Cypress and Garden Grove are also considering approval of card clubs.

Mayor Don Martinez, who voted against authorizing the election, said he thinks the residents need more time to study the impact of a card club. A 1987 study by the city and the Police Department found that card clubs can cost the city as much in added police services as they bring in revenue.

Councilman Harry M. Dotson said that he is also opposed to a club but that residents should vote on the issue. Councilman Sal Sapien called a card club an alternative to a utility tax or service cuts.

The June election would cost the city from $20,000 to $30,000, according to Matz. If card clubs are legalized, the city could require the club to pay the cost of the election, according to City Atty. Thomas W. Allen.