Council discusses three-quarter sales tax increase over 15 years

After several months of discussions, the Guthrie city council took a leap forward in seeking a 15-year, three-quarter of a cent sales tax increase for capital improvement projects within the city. Now, the city will seek input from citizens on future quality of life items they would like to see.

Article continues following the video. The discussion of the proposed sales tax begins at 19:40 in the video.

In the city council workshop on Tuesday evening, City Manager Bruce Johnson shared the seven highest needs that he collected from council members and citizens and provided another extensive list of quality of life projects.

The top needed projects, include a new waste water treatment plant (not a water treatment plant), a ladder truck for the Guthrie Fire Department, a sports complex, pool and splash pad facility, cemetery upgrades (fence and streets), fleet for the city departments and adding a second fire station at an unknown location.

In a proposed budget by Johnson, the wastewater plant has an estimated cost of $4.68 million financed through 13 years (2018-2030), ladder truck at $1 million (2016-2025), sports complex at $2.4 million (2018-2027), pool and splash pad facility at $3 million (2017-26), cemetery needs at $350k in 2016, fleet at $2.25 million (15 years) and a second fire station at $2.028 million (2027-30).

A secondary list was provided of other projects, which the City will seek public input on to decide what citizens are looking for in quality of life for the estimated remaining balance of $3,296,458.

Currently, Guthrie has a city sales tax of three percent, which has remained the same since 1979, and with a voter approval would increase to 3.75 percent, which would remain below the state’s average in city sales tax.

In a report from the Tax Foundation, the state’s average combined state and local sales tax rate is 8.72 percent. With an approval, Guthrie’s sales tax rate would increase from 8.25 to 9 percent (State 4.5, County .75 and City 3.75).

An election date was not established for the proposal, but will likely come sometime after March 2016.

In August 2014, Guthrie voters denied (628-472) a one percent sales tax proposal, with no sunset clause, for city salaries, quality of life projects and city fleet and equipment. Related story: Voters say yes to county tax and no to city sales tax

Related story: City seeking sales tax election; increase to benefit capital projects
Related story: City council tables half-cent sales tax election date, again

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