Nevada County Picayune and Gurdon Times Newspaper Archive

City voters to decide street issue Tuesday

The City of Gurdon is asking voters to approve a 3/4 cent sales tax, with the revenues to pay for street improvements. The polls will be open from 7:30 a.m. to 7:30 p.m. Tuesday, June 29. The Gurdon Municipal Building will be the only polling place in the city.

Gurdon Mayor Clayton Franklin took the proposal to the city council members earlier this year, citing the need for street improvements, the city's limited budget to undertake a project of this magnitude, and the fact that voters had approved a similar tax a few years ago. That tax - a = cent - was approved with a sunset clause and is no longer being collected.

The council unanimously passed an ordinance calling for a bond issue on the condition that voters of the city pass the sales tax. While there is no sunset clause worded into the issue on the ballot, the city ordinance states, in part, "If the bonds are approved, there will be levied within the city a new 0.75 percent sales and use tax, the net collections of which ... shall be used solely to retire the bonds and obligations ..."

Franklin has addressed groups in town in preparation of asking for the tax to be passed, including the Gurdon Rotary Club. At that meeting, Franklin said the city cannot campaign for the measure and said he is only presenting the facts of the issue.

Signs have gone up around town, calling for voters to "support streets." Gurdon City Recorder Tambra Childres said the signs are a result of efforts by a group of people who call themselves "Citizens for Better Streets." The group has collected donations, set up a checking account at a local bank, and put up the signs.

If the tax is approved, the bonds will be issued and Franklin said he expects work to begin by early fall  probably September. By issuing bonds, the total cost of the project will be raised at one time. The entire paving project should be finished in a matter of weeks.

Then the revenues from the tax will be used to make repay the amount of the bonds. The ordinance allows the city to issue bonds up to $950,000 but a representative of the financial company handling the transaction said that figure is the highest amount that could be issued. He said the actual bond issue will likely be closer to $700,000. The difference allows some leeway if the interest rates of the moment were more favorable. For example, if interest rates suddenly fell, the city could issue more bonds and still pay them off in the same amount of time with expected revenues from the sales tax.

The expected payoff date of the bonds is 2012

Franklin has outlined a series of streets that he said will be his top priorities. Those include the streets leading into town  Kansas Road, Red Springs Road, Go Devil Road and Smithton Road. Franklin said his list also includes those high-traffic streets and those that are major thoroughfares through the city. He suggested that a committee consisting of citizens around the city be formed to decide on the other streets to be included in the project.