Council talks one-cent sales tax increasePublished 3:51pm Tuesday, March 5, 2013
By CHRISTINE BOATWRIGHT / Staff Writer
CALERA – The Calera City Council discussed a proposed one-cent sales tax increase during the March 4 meeting.
The council originally discussed voting in March and possibly implementing the tax increase in May.
“We should have a public hearing to start the discussion, then have another one on a Saturday. We should offer the public a very good space of time,” Councilman Alan Watts said during the March 4 work session.
During the council meeting, the council decided to have a public hearing before its regularly scheduled March 18 council meeting at 6:30 p.m. The council will have a second public hearing March 25 at 6:30 p.m.
The council will vote on the proposed tax increase April 1 during its regular meeting.
If the increase is improved, tax collections would take effect on June 1, according to Finance Director Roy Hadaway.
Calera currently collect a 3 percent sales tax. The proposed increase would allow the city to fill its “minimum personnel staffing requirements and to complete essential capital projects that will enhance the health and wellbeing of its citizens,” according to Hadaway.
According to Hadaway, the sales tax increase would fund a park complex on Shelby County 20 and would widen the bridge and ramps on Interstate 65 exit 231, among other projects. The city could also hire 10 additional firemen, four police officers and two park employees.
Hadaway estimated the sales tax increase would bring in an additional $155,700 per month, while sales tax revenues would need to rise 25 percent per month to cover the capital improvement projects and additional staffings.