The Town Council has directed staff to move forward with proposed revenue-generating measures aimed at keeping town finances out of the red.
At an April 18 special session the council voted 5-2 to move a sales tax increase, and also voted 6-1 to implement a public safety fee.
The sales tax proposal would increase the local tax rate .3 percent from 2.6 percent to 2.9. It would increase the overall rate from 8.9 percent to 9.2. Staff projects that increase would generate an additional $1 million per year.
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Council acts on revenue proposals
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The Town Council has directed staff to move forward with proposed revenue-generating measures aimed at keeping town finances out of the red.
At an April 18 special session the council voted 5-2 to move a sales tax increase, and also voted 6-1 to implement a public safety fee.
The sales tax proposal would increase the local tax rate .3 percent from 2.6 percent to 2.9. It would increase the overall rate from 8.9 percent to 9.2. Staff projects that increase would generate an additional $1 million per year.
The council vote to implement a public safety fee would ask parcel owners to pay $185 per year for law enforcement and fire and emergency medical services.
Based on 15,600 parcels the $185 fee would generate approximately $2.9 million annually for those services. The town has no means to enforce delinquent payment on this fee so the amount would depend on collection rate. The town’s current $36 annual environmental fee has a 90 percent collection rate.
The vote to move forward on the public safety fee also suspends the environmental fee. It also asks for a hardship clause.
Read more about the council action on new revenue in the April 24 edition of The Times.
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