Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Local Option Sales Tax topic
No spam. Unsubscribe anytime.
Council reviews LOST model that would fund $18M firehouse while easing property‑tax impact
Summary
City staff presented a local option sales tax (LOST) model projecting roughly $2.8 million in year one and proposed directing 90% to a new Cherry Street firehouse fund and 10% to a flexible neighborhood/LOST project fund; staff said the approach could reduce property‑tax pressure versus bonding.
City staff presented the city’s local option sales tax model and a recommended allocation that would prioritize construction of a new Cherry Street firehouse. Ryan, the staff presenter, said the model is intentionally conservative and projects about $2,800,000 in the first year beginning July 1.
"We will receive about $2,800,000 in this first year starting July 1," Ryan said, explaining that staff proposed dedicating roughly 90% of projected LOST revenue to the firehouse fund and 10% to a neighborhood (or LOST project) fund. Staff emphasized the 10% figure is adjustable and that surplus above conservative projections would be usable for other projects within the ballot’s limits.
Council members asked whether the city could avoid external interest payments by borrowing internally from city funds and repaying with LOST proceeds. Ryan said an internal loan would mean borrowing from other city funds and repaying with LOST, but that the city must consult bond counsel to confirm the legality for a project this size.
On property‑tax impacts, staff ran a comparison showing that funding the firehouse primarily with LOST could blunt property‑tax increases that would otherwise come from issuing debt repaid through a debt‑service levy. In the staff model, a $300,000 home would pay about $81–$82 less in FY27 because of the state residential rollback; staff pledged clearer public materials before the March public hearing.
Next steps: staff will meet with bond counsel, refine the LOST model, transfer data to required state forms and hold a public hearing on March 24 with a final hearing set for April 14.
