At Monday’s city council meeting, City Financial Director Michael Akins presented on behalf of the water committee – a committee formed by the mayor earlier this year to explore alternative ways to raise revenue for the water department without further increasing water rates.
After deliberating, the water committee determined that the best and only way to raise water revenue is to implement a one percent sales tax. The idea is to spread infrastructure costs out amongst visitors, rather than residents having to shoulder the bill entirely through incrementally increased water rates.
Akins said the sales tax would support a bond of about $16.5 million, of which the water department would receive approximately $16.3 million. The annual debt service is estimated at around $1.6 million, while the income tax is expected to generate around $1.6/7 million annually. The tax would be dedicated exclusively for the purpose of funding water and sewer restoration and repairs and would likely retire once debt services associated with those repairs were paid off.
Alderman Steve Holifield asked whether the tax would take the place of raising water rates in the future. Akins explained that if the tax were to be implemented, another rate study would be conducted, and the additional revenue from the tax would likely alleviate the need to raise water rates as currently projected– deferring or cancelling rate increases going forward. Mayor Butch Berry added that if the tax were passed, they planned to eliminate the I&I (Infrastructure and Improvement) fund, which was created after a previous sales tax vote failed.
The sales tax would need voter approval and would likely land on the ballot during the November election of 2026. This would allow enough time for the committee and city council to put together an indicated budget to show voters how the sales tax would be spent, demonstrating the entirety of the plan with transparency.
Alderman Terry McClung, member of the water committee, said a special election before that time would be impractical.
“It’s not feasible because we won’t have the plan fleshed out yet – we want to be able to tell the community everything we can prior to the vote– so the November election is really going to work out best. It gives us time to sell the sales tax– most truly, that’s what we’re going to have to do. Because we believe in it that much. This is the avenue for a revenue stream to take care of our needs down the road. It’s spread out not only amongst the residents but also the tourists that come to town. It’s an across-the-board sales tax.”
Akins emphasized that a comprehensive budget would be key. Alderman Rachael Moyer pointed out that McClelland Engineering had already put together plans that included estimated costs of repairs, some with the consideration of inflation, so they wouldn’t be starting at square one– already possessing data to be utilized as a foundation. And given that water rates have already increased, with another increase soon to come, it was a good time to give the public another option.
Queen Anne Purchase
Berry reintroduced discussion of a possible sale of 1.9 acres of city-owned land near the Queen Anne mansion. The city has been offered $50,000 for the parcel, with three acres dedicated back for city trail systems.
Berry said he had been in touch with a real estate agent but was waiting on more information. Meanwhile, the buyers had been unavailable due to a family emergency.
Moyer expressed concerns about easements, adjacent land owned by the community center, and how these factors could affect the decision and the broader community.
She said that after viewing the map as well as the city’s trail master plan created in 2014, it appeared there had been a trail planned for the same area in the past but that it would have connected from the transit side, not the side of the Queen Anne parking lot. “The importance to me is not how much do we sell the land for–it’s what do we use that land for? If a trail was what the community wanted, how do we make sure, in this process of possibly selling city land, that we get the trail that the community wants?” Moyer asked.
She added that there are likely individuals familiar with the land from prior after surveying or development work.
Berry asked Moyer what she would like to see from Parks and the community. Moyer responded that she would like to review the proposed plan for the trail to make sure the necessary easements were in place– or to identify what easements they might need to secure. Moyer said her expectation was that Parks might ask for proceeds of the sale in order to support the trail, so she would also like to see a budget for that.
Holifield said it was a great discussion and looked forward to getting the input they need from Parks and others involved. The discussion was deferred. Berry said he would aim to have Parks Director Sam Dudley and the potential buyer present at a future meeting.
Other Business:
- Fence Ordinance No. 2378 passed its second and third reading.
- Ordinance No. 2379 amending regulations regarding metal buildings passed its third and final reading.
- Resolution No. 893 was passed, authorizing a temporary entertainment district and establishing standards and its operation for New Year’s Eve.
- Resolution No. 894 was passed, for disbursement of surplus vehicles belonging to Parks, allowing them to sell them at auction.
- Public Works continues to replace water meters and parts at the wastewater plant. They painted the hospital parking lot, began Christmas light installation, and announced sidewalk work beginning on S. Main for better drainage.
- In closing comments, Moyer thanked the police department for handling an incident at her lodging establishment, saying they helped people feel safe and stable.
- Holifield said he had attended the Purple Flower’s Gala Fundraiser– the resource center for domestic violence and sexual assault. Holifield emphasized the importance of such an organization and commended the community for stepping up.
- City Clerk Ida Meyer was absent due to illness. Aldermen David Avanzino and Susanne Gruning were also absent.