Dixie - In Memoriam
New member
http://www.njeffersonnews.com/local/x1305238515/Sales-tax-passes
GARDENDALE — Starting in January, sales tax in Gardendale will be 10 cents on the dollar.
On Monday, the Gardendale City Council approved a controversial ordinance that will hike sales tax in the city from 9 percent.
The council passed the tax in a 4-2 vote before a packed council chambers that mostly opposed the tax increase.....
....Currington said the tax is expected to generate $9.5 million in four years and is earmarked for specific projects:
• $1 million to expand the Gardendale-Martha Moore Public Library
• almost $4 million to pay off the city’s long-term debt caused by three major projects: The Gardendale Post Office, Gardendale Civic Center and the Odum Road expansion project
• the remainder, $4.6 million (if the $9.5 million prediction is correct) for economic development, including but not limited to, “recruitment of new and expanding business, the construction of municipal infrastructure in support of trade, the granting of incentives as allowed by law, the acquisition of property, and such related uses as may be approved by the City Council from time to time,” the ordinances states.
None of the proceeds of the tax will be used in the city’s operating budget.
The financial committee’s argument for needing the tax is that the city’s reserve fund is shrinking. Currington said there is $6 million in the fund, $1.5 million of which is earmarked for certain projects like road construction and police and court expenses.
He said the remaining $4.5 million would decrease to about $1 million by 2014 because the city spends more than it brings in.
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What is really truly amazing is, a few years back, they raised sales tax from 7% to 9%, projecting all this new windfall which has not happened. Mainly because of a considerably smaller rival town about 3 miles to the south, Fultondale. Growing up in the area, I had friends who lived in Fultondale, and they used to tell the joke; What's the difference between Gardendale and Fultondale? ....The moon is just a little bigger in Gardendale!
Now, since Gardendale raised it's sales tax from 7 to 9 percent, Fultondale has attracted a multitude of new businesses. There are now shopping centers lining the road from the interstate into town, full of 'top-drawer' retailers... Home Depot.. Books-A-Million... Starbucks... Costco... Target... Outback Steak House...a movie theater and bowling alley... you get the picture. It has become quite the booming metropolis in the last few years, while Gardendale continues to lose retailers. "Building For Lease" signs dot the same length of road from the interstate. Oh by the way, Fultondale chose to LOWER it's sales tax from 7% to 6% when Gardendale voted to raise theirs.
GARDENDALE — Starting in January, sales tax in Gardendale will be 10 cents on the dollar.
On Monday, the Gardendale City Council approved a controversial ordinance that will hike sales tax in the city from 9 percent.
The council passed the tax in a 4-2 vote before a packed council chambers that mostly opposed the tax increase.....
....Currington said the tax is expected to generate $9.5 million in four years and is earmarked for specific projects:
• $1 million to expand the Gardendale-Martha Moore Public Library
• almost $4 million to pay off the city’s long-term debt caused by three major projects: The Gardendale Post Office, Gardendale Civic Center and the Odum Road expansion project
• the remainder, $4.6 million (if the $9.5 million prediction is correct) for economic development, including but not limited to, “recruitment of new and expanding business, the construction of municipal infrastructure in support of trade, the granting of incentives as allowed by law, the acquisition of property, and such related uses as may be approved by the City Council from time to time,” the ordinances states.
None of the proceeds of the tax will be used in the city’s operating budget.
The financial committee’s argument for needing the tax is that the city’s reserve fund is shrinking. Currington said there is $6 million in the fund, $1.5 million of which is earmarked for certain projects like road construction and police and court expenses.
He said the remaining $4.5 million would decrease to about $1 million by 2014 because the city spends more than it brings in.
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What is really truly amazing is, a few years back, they raised sales tax from 7% to 9%, projecting all this new windfall which has not happened. Mainly because of a considerably smaller rival town about 3 miles to the south, Fultondale. Growing up in the area, I had friends who lived in Fultondale, and they used to tell the joke; What's the difference between Gardendale and Fultondale? ....The moon is just a little bigger in Gardendale!
Now, since Gardendale raised it's sales tax from 7 to 9 percent, Fultondale has attracted a multitude of new businesses. There are now shopping centers lining the road from the interstate into town, full of 'top-drawer' retailers... Home Depot.. Books-A-Million... Starbucks... Costco... Target... Outback Steak House...a movie theater and bowling alley... you get the picture. It has become quite the booming metropolis in the last few years, while Gardendale continues to lose retailers. "Building For Lease" signs dot the same length of road from the interstate. Oh by the way, Fultondale chose to LOWER it's sales tax from 7% to 6% when Gardendale voted to raise theirs.
