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Voters to make choice on local option sales tax

Levy would yield $3.2 million yearly for streets

By BILL SHEA, Messenger staff writer
POSTED: October 12, 2008

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Frequently asked questions
How tax money would be spent
Proposed sales tax

The work of Fort Dodge voters will be just starting when they color in the oval next to the name of their preferred presidential candidate.

After making their picks in all kinds of races, they'll have to flip the ballot over. On the back, near the bottom of the page, they'll make their choice on a proposed 1-cent local option sales tax.

That levy would generate about $3.2 million a year to be invested in city streets, plus water, sanitary sewer and storm sewer work done in conjunction with street projects.

An estimated 47 percent of that money would be generated by out-of-town residents who shop in Fort Dodge, according to city officials.

The tax would replace a half-cent levy that's been in place since 2001.

A simple majority is needed to approve the tax. If it's approved, the tax will be implemented July 1, 2009.

If it's not approved, the city will have no local option sales tax. That's because the half-cent tax expires June 30, 2009, regardless of what happens with the referendum vote on the new levy.

The new sales tax would not have an expiration date.

Without a sales tax, the local government will have three options to address road needs, according to City Manager David Fierke. He said those options would be:

  • Don't do any street work
  • Issue general obligation bonds to pay for street work, which would eventually increase property taxes
  • Charge assessments to residents and businesses who own property along streets that are to be repaired

Last spring, heated criticism prompted the City Council to walk away from a plan to charge assessments to pay one-third of the cost of some street reconstruction jobs.

Fierke said local option sales tax revenue is projected to be a ''major component'' of future improvement plans.

City Council members have concluded that they can't make any decisions about additional road work until the election is over. They plan to have a special meeting on street projects after the vote.

Since 2001, money from the half-cent local option sales tax has paid for most of the repaving in the city.

Fierke said the city will have spent about $10.5 million in local option sales tax money by the end of 2009.

This year, about 90 blocks have been repaved, according to City Engineer Chad Schaeffer. He said that work would not have been possible without money from the local option sales tax.

Contact Bill Shea at (515) 573-2141 or bshea@messengernews.net

Member Comments
View Comments: | 1-7 | Post a comment
SettheRecordStraight
10-14-08 12:11 AM
Tonight at the city council meeting the city manager stated the city can use the local option sales tax for the beautification projects. Vote No.

mastergardener
10-13-08 10:01 PM
I vote no with a capital N. The city needs to learn to budget within its means. They always look for the easy way out-raiaing fees and taxes rather than searching for alternative answers. It is so easy to spend someones else money.

Frankiethesax
10-12-08 11:36 PM
They should also shut down this aquatic center project until this economy gets better. People just love to pay for this stuff while having a hard time putting food on the table.

Oh and I will be voting no due to the fact that it goes to other places beyond streets.

kaleidoscope
10-12-08 11:32 PM
If not, they have something to hide, something that adversely affects the citizens of Fort Dodge.

Brotherbag
10-12-08 11:13 PM
They will never allow that.

kaleidoscope
10-12-08 5:47 PM
City leaders had better come forth with a public statement assuring voters not one dime of this money goes toward beautification. In addition, that statement needs to include that not one dime will be diverted to other projects!

This nation is in dire financial straits and I, for one, demand truth, accountability and responsible spending from those spending my tax dollars.

SettheRecordStraight
10-12-08 1:11 AM
Now wait a second.. Check out the city council agenda items 10bb, 10cc, and 10dd for Monday where is says Budget Impact, for items that include payment from the local option sales tax. Looks like our "street" repair money is being used for beautification projects on 5th ave south and highway 169..and more???.. we should not be scared into voting for this tax increase by raising the special assessment issue. If the money goes only for city streets, plus water, sanitary sewer and storm sewer work done in conjunction with street projects, I am for this tax increase, BUT ONLY if it is actually used for STREETS. But when it gets mixed in with beautification projects by calling it a "STREET PROJECT", and other unnecessary spending, I will not vote for it.

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