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Council sends up-to-1% school construction sales-tax question to November ballot
Summary
The council voted to ask the circuit court to place a referendum on the Nov. 3 ballot to allow up to a 1% local option sales tax dedicated to school construction. City staff estimated the net revenue after exemptions could be roughly $5.1M'$5.4M annually, depending on grocery/hygiene share of taxable sales.
Chief Finance Officer Miss Moyers presented a resolution authorizing the city to ask voters whether to impose up to a 1% local-option sales tax dedicated to school construction and renovation. "It's estimated to be about $6,400,000 in '26 and '27," Moyers said when describing the historical sales-tax base; after estimating that 15'to 20% of current collections are for groceries and essential hygiene (which the additional tax would exclude), she said the additional 1% would likely yield roughly $5.1 million to $5.4 million annually.
Councilors discussed timing and mechanics: if voters approve the measure, council would adopt an ordinance and collections would begin on the first appropriate monthly collection date at least 120 days after ordinance adoption. Vice Mayor Arrowood moved to adopt the resolution and authorize the city attorney to take necessary steps to place the question on the Nov. 3 ballot; the motion passed by roll call.
Councilors noted the tax is renewable (statute allows renewal up to 20 years), excludes groceries and essential hygiene items, and cannot be used for existing debt service but could fund future debt for projects. Several councilors said the measure would allow visitors and nonresidents who purchase in the city to help fund school construction.
