Sales Tax Increase To Appear On Ballot

WAITSBURG - The Waitsburg City Council last week passed an ordinance that created a transportation benefit district and also passed a resolution to put a sales tax increase to benefit this new district on the April Special Election ballot. Because of a loss of state funding for streets over the past decade, City Administrator Randy Hinchliffe recommended to the council last year that the city create a transportation benefit district to raise money for street repairs and improvements within city limits. The city looked at raising the sales tax one-tenth of 1 percent and at raising car tab fees by $10. Through a public hearing in January, the council heard from the community members that they would rather raise sales tax. Council members agreed with the sales tax route because it would tax all who purchase retail items in the city and not just residents.

The ordinance that created the district, passed last Wednesday, established the district for 10 years unless it is renewed.

While the council could have voted to increase the cost of car tabs to benefit the district, the sales tax increase has to go to a vote of residents. The council next voted to put the issue to raise sales tax by one-tenth of 1 percent on the Special Election ballot in April.

Councilman Marty Dunn asked if the small increase was enough money to generate the income needed to offset financial needs for streets in the coming years. If the city needs more money for a street project, Hinchliffe said the city can ask the taxpayers to raise the amount. With the one-tenth of 1 percent sales tax increase, if voters approve it, it will provide enough funding to chip seal onhalf a mile of city road every year, Hinchliffe said.

The creation of the district and the ballot issue were both approved unanimously Wednesday, though council members Kevin House and Orville Branson were absent.