Melbourne council flags potential $100,000 budget hit if state shifts local sales tax; sets Max Levy hearing for Feb. 15

At a special Jan. 17, 2022 meeting, the Melbourne City Council reviewed personnel recommendations for the coming fiscal year, examined revenue and expense totals, and discussed a state legislative proposal that could move locally approved Local Option Sales and Service Taxes (LOST) into a state-level sales tax.

Councilperson Carrie White summarized recommendations from the personnel committee on wages and the clerk reviewed the city’s budget spreadsheet. The clerk reported a likely scenario being discussed at the state level in which LOST would be removed locally and consolidated into a state sales tax. According to the clerk’s account, that change could divert more than $100,000 from Melbourne’s budget; roughly $51,000 of that amount supports Fire, first responders, the pool and the recreation center, with the remainder supporting general fund services such as public safety and public works.

Mayor Cynthia Mansager asked that the council draft a letter on behalf of the council and herself to the city’s state legislators opposing the proposed change. Separately, Councilman Gary Fricke asked to move the February meeting date; Mayor Mansager set the public hearing for the Max Levy Certification for Feb. 15, 2022 at 7:00 p.m. in the Melbourne Public Library basement and directed the clerk to publish the document in the Mid Iowa Enterprise in accordance with code. The personnel wage recommendations will be drafted into a resolution for consideration at the Feb. 15 meeting.

The council did not take a final vote on levy figures or wages at the Jan. 17 meeting; it set a public hearing and instructed staff to prepare materials for the next meeting.