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Alexander City weighs lodging/campsite levy to help close $2 million sewer shortfall
Summary
At a work session, Alexander City Council members and staff discussed proposals for a lodging/campsite tax or an infrastructure levy earmarked for sewer repairs. Staff presented revenue estimates and hoteliers objected to the proposed charges; council members requested more analysis before any ordinance is advanced.
Alexander City Council members discussed a proposal to raise dedicated revenue for the city sewer system by adding a lodging (hotel) and campsite fee or an infrastructure tax, during a work session.
City finance staff said the city did not increase resident sewer fees this year and next, which created an estimated revenue gap staff said would require roughly $267,000 to $279,000 to offset the rescinded 7% sewer fee increase. Staff member Romy recommended a phased approach if the council adopted a lodging-style tax: a 10% charge in year one (to begin March if approved) yielding about $271,000, then a reduction to 6% thereafter to approximate the needed revenue. Romy also suggested that including campsites would allow an…
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