City sales tax ballot on Monday agenda

Friday, September 14, 2007

The McCook City Council will vote on approving ballot language concerning the city sales tax, along with approving increased user fees for the city and water under suspension of the three-reading rule, at its regular meeting, 7:30 Monday night in the City Council Chambers at Memorial Auditorium.

A citizen's ballot committee has developed the three questions that will ask city voters Nov. 13 to renew the current 1-cent city sales tax and add a half-cent tax for economic development and city projects.

If the council approves the questions Monday night, the ballot will be filed with Red Willow County and state agencies.

The city's current 1-cent sales tax expires next year.

All three proposed questions come with a 10-year sunset.

The first asks if the current one-cent tax should be continued, with the proceeds split between property tax relief and repairing city infrastructure, such as streets, parks or water and sewer improvements.

The second question asks for an additional half-cent tax, with half of the proceeds, at $325,000, to go toward the city to be used for water/sewer improvements, buy-down of water and sewer improvements and an economic development program.

The third question asks to establish an economic development program, that would be administered under the McCook Economic Develop-ment Corp. and the city. The question includes seven sections that outline conditions and goals of how the $325,000 will be used.

According to the third question, the City Council would still have to approve each years' budget amount to the MEDC along with approving major spending allowances.

How the money will be spent includes loans and grants for businesses, purchasing real estate, business recruitment, infrastructure for qualifying businesses, such as water and sewer, operations and salaries of MEDC and housing programs.

The ballot question also provides for the city to issue bonds, for such things as purchasing large pieces of property for business or to construct a building.

Projects listed on the ballot that will benefit from the tax include the Keystone Hotel renovation, assisting retail businesses to fill vacant properties, business facade improvements, housing development and demolition of blighted buildings.

In addition, the ballot states that a committee will be appointed by the City Council consisting of seven city residents, who will review spending plans every six months and to advise the Council.

If voters approve only question two, and not question three, the city still will be able to give revenue received from the half-cent tax to the MEDC. But how those funds will be distributed from the MEDC will be more restrictive, said City Manager Kurt Fritsch.

The approximately-$6,000 it will cost the city for the special election is included in the 2007-08 budget.

The council also will be also asked to approve, under suspension of the three-reading rule, resolutions that will reflect the higher ready-to-use fees for the water and sewer that the council approved at its Sept. 4 meeting. The increased rates will total about $2.67 per month for each residential user.

City staff have asked the council to approve the increases without the usual three readings required for ordinances, so the billing system can be re-programmed prior to the start of the budget year Oct 1.

Three readings would also delay the effective date of the increases and result in 11 months of the new rate instead of the budgeted 12 months.

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