Council passes new ordinance for sales tax
Posted on Thursday, June 26, 2008
URL: http://www.nwanews.com/wrvn/News/4042/
ELKINS -- The City Council at a special called meeting voted to repeal an orginal sales tax ordinance and passed a new one leaving Aug. 12 as the day for voters to accept or reject a 1-cent sales tax for new water lines.
The sales tax, if passed, would go toward paying for bonds to replace a water line from Harris Lane to Harris Community Road.
Though the ordinance passed with a unanimous vote, a discussion was held on what to do with the tax once the bond’s are paid off, which could be 16 years at the earliest and 25 years at the latest.
The new ordinance states the tax revenue would go toward the general fund once the $ 6 million maximum for bonds is paid off.
City consultant Steve Davis told the aldermen a bond would be issued in increments beginning with $ 2. 8 million for the first section. “ We’re asking for $ 6 million to make sure there’s enough cushion to allow for inflation later. ”
Water and Sewer chairman Mike Lemaster said the committee had hoped to have the funds still directed toward water and sewer improvements but could accept, once the bond is paid off, the tax revenues going to general fund.
“ I would rather a future council make the decision after the $ 6 million is retired, ” alderman Jeremy Stevens said.
Alderman Bruce Ledford said he didn’t think voters would pass the tax if it wasn’t going for water and sewer improvements. “ I would like to have it earmarked all the way, ” he said.
Water and Sewer committee member Fred Tober addressed the council with his concerns. “ I wold hate to get halfway through the project and not be able to finish
The 40 year-old water line being replaced has been described by Lemaster as “ being like swiss cheese. ”
City superintendent David Turner said the line continues to have breaks that take four to six hours to fix. “ They are becoming more common, ” he said.
“ I think it’s important to let the people know what they are voting for, ” committee member Joyce Bunch said.
It was decided to leave the ordinance as written. It passed with a 6-0 vote on the first, second and third reading. An emergency clause was enacted and also passed with a 6-0 vote.
The council also passed a resolution to reimburse preliminary costs pertaining to the construction of the new water line.
The only other business on the agenda was a change in the fireworks ordinance changing the dates to coincide with the state’s dates for selling fireworks. The dates fireworks can be on display and sold for July 4 would be June 20-July 10.