10 Year Extension Of Local Option Sales Tax To Appear On November’s Ballot

On Nov. 5, 2013, Marion residents and the metro area will vote on whether or not to extend the local option sales tax (LOST) for 10 years. In this vote, the cities in the Cedar Rapids metro area will vote as one.

The ballot language states that 70 percent of the funds will go toward street, sanitary, and storm sewer improvements and the other 30 percent will be used for general and essential corporate purpose projects.

Marion as a community will be a net beneficiary of the tax, if passed. The city would receive an estimated $4 million in the first year. Over the life of the tax, an estimated $46.6 million would be returned to the community.

Pass or fail?

State law requires cities in a metro area with touching borders to vote as a block on sales-tax measures. The total vote in the bock of cities determines the vote outcome. Because of that, there are four potential outcomes.

A.      If it passes in Marion and passes metro-wide, the tax is collected in Marion and Marion gets a share. Current and future councils are bound by the ballot language requiring 70 percent of the funds to be use on roads and 30 percent to be used on community projects.

B.      If it passes in Marion and fails metro-wide; the tax would end at the current sunset date in 2014.

C.      If it fails in Marion but passes metro-wide; the tax is collected metro-wide (including Marion), and Marion gets its normal share. 

D.      If it fails in Marion and fails metro-wide, the tax would end at the current sunset date in 2014.

Citizen oversight

A seven member citizen committee has been appointed to review the use of LOST funds and ensure they have been and continue to be used in accordance with the ballot language.

At their meeting on August 28, the LOST Oversight Committee confirmed that the City has used the current tax collections according to the ballot language.

Such projects include:

-       Central Corridor Project (6th Avenue, 8th – 13th Streets)

-       Trunk sewer improvements

-       Clark Avenue & 26th Street repairs

-       South 11th Street reconstruction

-       Blairs Ferry Road reconstruction

-       Play equipment at Thomas & Lininger Parks

-       Functions & Fitness (community rec center) planning documents

-       Lowe Park Amphitheater concept

-       Thomas Park Splash Pad construction

-       Lindale & Krumholtz Trail construction

-       And more

In addition, the committee has helped draft the spending plan for this election. On Sept. 5, the LOST Oversight Committee submitted a spending plan to the Marion City Council to prioritize and outline how the community and infrastructure improvements would be scheduled. The spending plan, which also included staff input, was unanimously approved.

If the tax is extended over the next 10 years, the City will dedicate 70 percent of the funds to street, sanitary and storm sewer improvements. The remaining 30 percent will go toward municipal facilities and community improvements. Major projects on that list include expansion of the library, a Functions & Fitness community recreation center, a third fire station, other Fire Department equipment replacements, and various improvements to parks and trails.