7/2/2002 - Laserfiche WebLink

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Brian Heady cited some figures to illustrate his belief that the 40% of the sales tax supposedly paid by out-of--towners is really only 1% of the tax burden, leaving the local residents to pay 99%. Ken Hoffman, President of the Taxpayers Association, noted that his Board has voted to support the continuation of the optional sales tax program and is looking forward to working with the Commission on the implementation of the projects, with the proviso that public hearings are held every 5 years. Mayor Walter Barnes, City of Sebastian, stated that Sebastian is probably growing faster than any other area. Growth is not going to go away and services must be provided to residents. As for the disagreements about what projects the monies should be allocated to, that is a part of the democratic process. He asked that the referendum be placed on the ballot as written. The School Board can take advantage of their discretionary sales tax. To include the School Board would require that all the interlocal agreements be rewritten and that would require months of negotiation and discussion. According to the Press Journal article, the School Board wants to be an equal partner which would mean that they would receive one-half of the 10 optional sales tax, leaving the County and the municipalities to split the other one-half. In that case, the City of Sebastian would receive less than one- eighth of the total. It would make more sense for the School Board to ask for a .5¢ sales tax in 2007 than to try to intervene now. If the City lost its optional sales tax income, it would have to forego projects or increase property taxes to make up the difference. The County could not make this decision alone; the municipalities would all have to agree to include the School Board. He recommended that the School Board explore the other funding options available to them. JULY 2, 2002 -46- f •