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Baxter council backs resolution to pursue local-option sales-tax extension to finance utilities, transportation and public safety projects

Baxter City Council · January 7, 2026
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Summary

The Baxter City Council adopted Resolution 2026-004 directing staff to submit supporting documentation to state tax committees to pursue a local-option sales-tax extension; staff projected the measure could support about $77 million of capital projects, with proposed allocations for water/wastewater, transportation and public-safety facilities.

The Baxter City Council voted to adopt Resolution 2026‑004 authorizing staff to submit documentation to the state tax committees in pursuit of a local‑option sales‑tax extension that would appear to voters only if the legislature authorizes it.

Nick, the finance director, told the council that under a 20‑year projection the extension could support roughly $77 million in capital projects through 2046. Staff proposed allocating about $51 million toward water and wastewater utility projects (including up to $32 million for the city share of a regional wastewater project), $19 million toward water treatment and related facilities, $16 million for regional transportation improvements, and up to $10 million for a new public‑safety facility and associated equipment.

Why it matters: Baxter’s existing local option has financed water, wastewater and transportation projects since 2006; changes in state law now require the city to submit up to five individual project descriptions and a supporting regional‑benefit narrative to House and Senate tax committee chairs by the end of January to begin the process.

Council discussion touched on regional benefits, potential training and shared facilities for public safety, and the timeline for state approval and county ballot placement. Staff noted the legislative window runs from mid‑February through mid‑May; if the legislature authorizes Baxter’s request, the county must receive ballot language 84 days before the election (a potential Nov. 3 date was cited).

The council adopted the resolution by voice vote. Staff will forward the approved resolution and supporting studies (wastewater study, corridor study, project cost estimates) to the tax committee chairs and continue pursuing grant and state‑aid options for projects not covered by the sales tax.