Tuesday, October 23, 2012
On Nov. 6 Holts Summit voters will decide whether to renew a one-half of 1 percent sales tax earmarked for capital improvements. The money could be used only to provide new construction, street or sewer improvements, or for vehicle or property purchases.
In 1993 the voters of Holts Summit voted to impose a one-half of 1 percent sales tax for new construction related to building a new sewerage system for the city.
Holts Summit City Administrator Brian Crane said the vote on Nov. 6 would extend the capital improvements sales tax for another 20 years “so the City of Holts Summit can continue to make the necessary improvements to infrastructure from which all citizens will benefit.”
“While the original sales tax was used primarily for building and extending the sewer system, the renewal will help all aspects of the city’s infrastructure to be maintained properly,” Crane said.
If voters approve the ballot measure on Nov. 6, the current sales tax authorized in 1993 will continue until March 31, 2013, and the tax extension if approved on Nov. 6 will expire on March 31, 2033.
The one-half of 1 percent tax now generates about $140,000 in revenue each year. It is paying off a sewer bond in the Sewer Fund. If renewed, Crane said the city does not anticipate issuing any bonds with the money raised by the tax extension. The extension would make additional funds available for improvements.
“Because of the needs of all city departments,” Cane said, “it is important for this sales tax to help all areas.”
Crane said the city plans to use the money generated by the sales tax for the Sewer Department, Street Department, Police Department, and the Parks and Administration Department.
If passed by voters, each of the four Holts Summit city departments will receive yearly allocations of one-fourth of the total amount of money raised by the one-half of one percent sales tax, Crane said.