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Council discusses Senate Bill 1 and potential local revenue impacts, including CCMG eligibility and a possible wheel tax
Summary
Council members discussed uncertainty around Senate Bill 1, potential property-tax reductions that could cut local revenue (the chair said it "could be up to 1000000 dollar cut"), effects on CCMG local-road funds, and the option of adopting a wheel tax to preserve funding for roads.
Council members spent a significant portion of the meeting discussing state-level legislation and what it could mean for local revenues and road funding.
The chair warned that Senate Bill 1, which is intended to reduce property taxes, could materially affect the city's general fund and road funding streams. "It could be up to 1000000 dollar cut," the chair said while urging council members to contact state legislators Sen. Basler and Rep. Lindar to explain local impacts.
Members discussed CCMG (city-county motor-vehicle highway) funding and wheel tax options. The chair said the city received $260,000 in CCMG this year and that the city planned about $500,000 in road work: "This year, we got 260,000. And we put 260 with us, so we're gonna do about $500,000 worth of roads this year." Council members reviewed the wheel-tax range discussed in materials (minimum $7.50 and maximum $25 per vehicle) and noted that adopting a wheel tax could be suggested by municipal associations as a remedy to preserve CCMG eligibility and local road funding.
No formal direction or vote on adopting a wheel tax took place at this meeting; the discussion centered on information sharing and encouraging outreach to state legislators.
