• 28Feb

    City Administration is suggesting that we use a 0.25% sales tax increase to fund the bulk of the $128 million city obligation to DMC.

    https://drive.google.com/file/d/0BxMKqsc4J7x0eE9aOHBFQVRoNWowTmJ1WjhtODZWV0cwTV9N/view?usp=sharing

    Here are the options we have to come up with $128 million (really $100 million)

    1. expanded tax abatement authority
    2. expanded TIF authority
    3. credit for 2012 DMC sales tax funding
    4. authority to extend the current 0.5% sales tax for local matching costs or authority to impose a 0.25% sales tax rate increase
    5. lodging tax increase
    6. food and beverage tax
    7. admissions and entertainment tax

    To get to $128 million we first count the $20 million for Destination Medical Community (#3 in the list) in the 2012 Sales Tax. We also plan on using the $8 million for Downtown Masterplan Infrastructure. This leaves $100 million over the next 19 years.

    #1 and #2 will be used some. It is important to realize that these funds are replaced by local property tax funds and thus costs the city property owners 100%.

    #5 is not really practical we just raised it 3% for Mayo Civic Center and it is now at or near the highest in the state.

    #6 is a new tax and would not generate nearly the funds we need.

    #7  is a new tax and would not generate nearly the funds we need.

    Many communities do have #6 and #7, but my preference would to be not to use these since they do not generate any where near $100 million. Perhaps someday these will be employed for something the community values in the future.

    #4 has 2 options, but extending the 0.5% does not work. The current $139.5 million uses all these funds for most of the length of DMC. Both the timing and quantity do not do much for us. That leaves the 0.25%. Mathematically it is the only option that can raise the dollars. Not sure what other options there really are.

     

    Posted by mwojcik @ 10:07 pm

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