Council to move forward with permanent parks tax in August

Thursday, May 19, 2011

"We'd like to see the tax permanent ... Whatever decision you make the parks board is behind you and JD," Shirley Ann Bastow, park board member, told the Nevada City Council before they voted 5-0 to give final approval to setting an Aug. 2 date for an election to renew the 1/2-cent parks sales tax. The proposed measure would not have a sunset and would not be restricted to capital improvement projects. The ballot also would permanently roll the parks property tax back to zero.The parks property tax generates about $175,000 annually, which does not come close to covering the parks department operating expenses.

"Salaries and benefits are just over $700,000," Kehrman said.

The 1/2-cent sales tax generates in excess of $700,000 per year and the plan is for that money to replace the $620,000 that is transferred from the city's general fund for park maintenance and operating expenses.

The money from the current parks sales tax, which expires in 2014, will continue to be used for the projects promised when it was renewed in 2005. That money cannot be used for any other purpose.

Nevada City Manager JD Kehrman told the council that he recommended that the sales tax be made permanent because he thought it was the best thing for the city, since the parks will always need maintenance and the current parks sales tax cannot be used to pay for maintenance and operating costs.

By using a sales tax instead of other tax money everyone who purchases something in town will share in the cost of maintaining the parks facilities.

This will also free up money to cover the cost of replacing the city's public safety building, which lacks adequate space and has a mold problem in the basement.

Kehrman told the council that if the voters approve renewing the sales tax in August, the city will immediately issue RFQ's for architectural services and have a design for the new building well under way by the end of the year.

He told the council that while he preferred to make the tax permanent, a 20- or 25-year sunset would be enough time to pay for a new public safety building, Kehrman told the council.

He said that a new facility would allow them to move the entrance away from Austin Boulevard.

In other business the council:

* Voted 5-0 to approve the reappointment of Frankie Davis, Gina Cripps and Warren Schooley to three-year terms on the parks board.

* Voted 5-0 to approve a right-of-way solicitors license for the American Cancer Society-Relay for Life on May 27 and 28 at the Osage and Austin intersection.

* Voted 5-0 to pass on first reading a special ordinance approving the vacation of 86 feet of Alma Street between Walnut and Locust so the city can remove an unsafe bridge. The ordinance retains the city's utility right-of-way.

* Voted 5-0 to pass on second reading a special ordinance approving the city's three-year employment contract with JD Kehrman as city manager.

* Voted 5-0 to pass on second reading a special ordinance approving the city 's contract with APAC-Missouri, Springfield, for the city's 2011 transportation sale tax projects. The overall total cost for the projects is $199,100.

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