Gordonville proposes half-cent tax

Editor's note: The following story has been edited to reflect the correct date for the election.

As the town slips near bankruptcy, Gordonville leaders have proposed raising the sales tax to provide revenue for their three-year-old wastewater system.

The proposal to impose a half-cent sales tax will be put to a vote April 2.

Gordonville Mayor J.D. King said he is hopeful approving the tax will be a first step in addressing the system's maintenance needs and reducing users' rates.

"The people in city office at the time this system was put in told people they would pay about $30 a month," King said. "But then the system had all these breakdowns and the city couldn't make their payments, so now people are paying as much as $100 a month."

King said since the sewer system's construction in 2008, user fees primarily have been the source of revenue to pay back a $1.5 million loan from the Department of Natural Resources, which the town agreed to retire in 20 years. Imposing the new sales tax would change that.

Because of the small number of businesses in Gordonville, King is unsure how much money would be generated by the new tax. Rebecca Wright, Gordonville city clerk, said the town has nine business, all of which were supportive of the sales tax.

"We've all been trying to think of ways to generate more revenue to pay back the loans," Wright said. "The businesses were all more than happy to find a way to help without hurting the community."

The town's main business, Wright said, is the Gordonville Grill. She said owner Andy Hancock not only supported the sales tax, but he introduced the idea to city officials.

"Right now we just have early projections," she said, "but the Grill alone will probably bring in about $6,000 a year. The other businesses would probably bring $14,000 to $16,000."

Hancock did not immediately respond to a message left late Tuesday afternoon.

Wright said business owners originally proposed a one-cent sales tax, but after discussions with the city attorney, a half-percent tax was settled upon.

"We could have chosen a one percent tax over the half percent," Wright said, "but if new city council members were elected they could choose to take that money to fund other projects instead. This was the highest tax we could impose that guaranteed all the money went to paying for the [wastewater] system."

King said the proposition seems to be popular among the rest of the community. King said city officials still are making an effort to speak with as many members of the community as possible to address any questions or concerns before the election.

Wright said the city also wanted to make clear how the proposed sales tax would affect citizens.

"This isn't an additional tax that would apply to the people like a property tax or something would," Wright said. "This tax would only apply to the businesses. The people are paying enough already."

Inasmuch as Gordonville does not have a sales tax, if passed, the new tax would be added to a 1 percent county tax and the state's 4.225 percent tax.

srinehart@semissourian.com

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