Nevada County Picayune and Gurdon Times Newspaper Archive

Tax sought for city street repair; ordinances contain sunset clause

Prescott's City Council was unable to take action on a trio of ordinances for a sales tax to repair the city's streets.

The council met in special session following a public hearing Thursday, Sept. 25. However, James Cox, Howard Austin and Susie Meeks were not present. This meant no action could be taken on the ordinances because a 2/3 majority was needed to pass them.

However, the council met again Monday, Sept. 29, and approved all three ordinances.

Under the ordinances, 100 percent of the money raised from the 1 3/8 cent sales tax, should it be approved, will be used to pay off the bond issue. The tax will sunset when the bonds are paid off as well.

Vince Grimes, with the Nevada County Branch Bank of Delight, was the lone member of the public at the hearing. He said the sales tax was a good idea and there was no reason not to approve it.

At the meeting Thursday, councilman Billy House said a lot of people are confused about the tax and think the money will be used for things other than street repair. He suggested having a block party in the different wards to get people straightened out on the issue.

City Attorney Glenn Vasser said there will be plenty of time to educate the public after the ordinances are passed.

There was discussion about reading the first ordinance, which dealt with levying the 1 3/8 cent sales tax, but Vasser pointed out the council could only have one reading and couldn't approve it. The council decided to wait and deal with all three at one time. This was done in another special meeting held Monday morning, Sept. 29.

However, the council did make one decision concerning the ordinances  the amount of money to be generated by the tax for the bonds. Vasser asked if the panel wanted to leave the figure at $3,495,000, or if it wanted to raise the figure to $3.5 million. He also gave the members the option of setting the ceiling at $3.75 million.

The $3,495,000 figure, he said, would provide about $10,000 more than the estimated cost of the proposed two-inch overlay.

"I thought it looked weird having the odd amount," he said.

Vasser suggested deferring action on the ordinances other than setting the amount, saying there would be time to get the word out if the election were held Nov. 11.

Election day was another decision the council made, changing the date from Nov. 11, the second Tuesday in November, to Nov. 18. This was done because Nov. 11 is Veteran's Day.

House questioned Vasser about the wording of the first ordinance, as it includes curb and gutter, widening, resurfacing, drainage and any utility work needed. He wondered why this was put in the ordinance.

These items were included, Vasser said, in case the need arises. The ordinance, he added, is straightforward. "I put anything that might need to be done in the ordinance. If we run into problems we can't go back and make changes if we need to widen a street or do curb and gutter work. We won't have the money to do it otherwise if we just passed an ordinance for a two-inch overlay."

This isn't saying, Vasser said, the city will be doing any of the other work, it was included in case the construction crews run into problems.

Cary Smith, with Stephen's, Inc., said the monetary amount needs to be in the ordinance. At this time, he added, the interest rates are good and have come down a bit. "I hope they stay there."