Council Considers Sales Tax Increases

DAYTON - The Dayton City Council discussed an increase in sales tax as an option to bring in more revenue for the 2013 city of Dayton budget.

Several increases have been proposed to help pad revenue in the 2013 budget, which were presented at the city council meeting Tues- day, Nov. 13.

Those ideas proposed includea2percentincrease in utilities fees, a 1 percent increase in regular property tax and increases in garbage, sewer and water rates. The city will also consider increasing dog licensing fees, pool fees and certain cemetery service fees, Mayor Craig George said.

These increases will all help boost revenue, but the city is also looking in a few other places to help soften the blow of a struggling economy, according to city officials.

City Clerk/Treasurer Tri- na Cole said the possible sales tax percentage increase has not been determined, but the rate could be as much as 0.2 percent to benefit street maintenance and improve- ment and 0.1 percent for criminal justice and public safety purposes. The items are separate and if approved could raise sales tax by 0.3 percent.

The current sales tax rate in the city of Dayton is 7.90 percent.

"The city may be looking at asking the community to consider authorizing an increase in sales tax to assist the street maintenance and improvement hellip; or law en- forcement services," George said.

The city is considering establishing a transportation benefit district. If the voters approve the increase in sales tax to fund the new taxing district. The additional rev- enue brought in could help pay for matching grants the city would apply for to fix up the city streets. The 0.2 percent increase in sales tax could bring in about $69,000 annually to transportation projects.

"The transportation improvement board is a huge supporter of small cities," Cole said. "The board does programs such as what completed our South Second and South Third street projects."

Cole said the city will rank higher and receive better grants with a higher matched percentage of funding. With- out funding, the city cannot take advantage of these grants, Cole said.

The potential additional increase of up to 0.1 percent could bring in $29,000 annually, which would pay for the city's law enforcement contract with the Columbia County Sheriff's Office, if approved by the voters. This would free up revenue to be used in other areas because the law enforcement contract for 2013 is $389,700.

"It's just a balancing act," Cole said.