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Sales tax helping city debt recovery

Junction City Commission in session this past Tuesday night along with City Manager Allen Dinkel.

The continuation of a one-cent sales tax will be crucial for Junction City’s debt recovery program.

The tax is scheduled to expire December 31,2020 and with city commission approval could possibly go on the ballot this November for possible extension. This week the City Manage, Allen Dinkel, asked the City’s financial advisor, Jeff White of Columbia Capital, how important is it to go to the voters to ask for a renewal of that sales tax. “Never easy to ask the voters to approve a new tax or extend an existing one but it’s absolutely critical for this community.”

During the debt recovery cash inventory has increased substantially for the city and while there is still a substantial amount of general obligation bond debt, that debt is starting to come down.

Mayor Pat Landes told the city commission this week that if the city didn’t have the sales tax everyone’s property tax would have gone up at least 20 or 30 mills. “We’re still looking at that if we don’t renew it. ” Landes added, ” If we lose that ( sales tax ) we’re all in big trouble, especially property owners.”

 

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