SCOTT CITY VOTERS TO DECIDE ON SALES TAX HIKE FOR STREET WORK

SCOTT CITY -- The Scott City Council Monday approved putting a half-cent increase in the city's retail sales tax before voters on April 2.

The ordinance approved by the council states that funds generated from the tax increase will be used only for the repairs and improvements in city streets.

The current sales-tax rate is 5.725 percent, including 1.5 cents in local tax, and the rest made up of state and county taxes, said City Clerk Nona Walls. The increase would put the city's overall sales tax rate at 6.225.

According to the ordinance, the tax hike would be in effect for five years if approved by voters. It would generate about $100,000 a year.

After considerable revision of the ordinance, all six council members in attendance approved putting the tax hike on the ballot.

During a study session preceding the council's regular meeting Monday, several council members said they would not vote in favor of the proposed tax hike unless the ordinance stated it would be used strictly for street improvements and repairs.

The original ordinance stated that the funds could be used for "capital improvements," which includes any long-term improvements of city property.

"The only way I'll vote for this is if the money goes directly for city streets," said Councilman Jerry Cummins.

Councilman Alvie Modglin said he didn't like the way the ordinance was originally written.

He said he was afraid funds generated from the tax hike would be "shuffled around and used for other things," like purchasing equipment and vehicles for the city's Public Works Department. He also stressed he didn't want the money to be used for capital improvements in the city.

"It's written too loose for me to vote for it," he said.

Councilman Jim Cauble said he felt there was a "dire need" for road repair in the city, but was skeptical that voters would approve the tax hike.

"We'll have to let the people make the decision," Cauble said.

Public Works Director Harold Uelsmann urged council members to approve the proposed tax hike.

"If we don't earmark some money for street repair, our streets are going to be in one heck of a shape," he said, adding that a sales tax hike would be the best way to fund such repairs.

After much debate on the issue, the ordinance was rewritten so that funds from the tax would be allowed to be used only for repairing and improving city streets. It was then unanimously approved by council members.

Mayor Shirley Young said a separate account would be established for funds generated from the tax hike, and all bills for street improvements would be paid from that account.

According to the ordinance, the funds also cannot be used for the construction of new streets.

If approved April 2, the tax hike will become effective in July.

An ordinance that would have put a similar tax increase proposal before voters was approved by the council in early June. It was vetoed 2 weeks later by Young, who said she considered it too restrictive.

Funds from that proposed tax hike would have funded an alternate access road from the city to Interstate 55.

In other business, the council voted to move its next scheduled meeting from Feb. 18, a legal holiday, to Feb. 19.