Current Sales Tax RatesNew Sales Tax Rates 4 percent state sales tax 4 percent state sales tax
2 percent county sales tax 2 percent county sales tax
3 percent municipal sales tax 4 percent municipal sales tax
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How much do you currently spend in Gardendale every month?
Here is what you are paying under the Current Sales Tax Rates (of which 3% is municipal tax)
Here is what you would pay under the New Sales Tax Rates (of which 4% is municipal tax)
Difference
The Finance Committee recommends to the Mayor and Council a temporary general sales and use tax increase of one percent (1%); an increase from the current rate of three percent (3%) to four percent (4%); to be automatically repealed by a sunset clause that is written into the Ordinance. The revenue generated by the temporary one percent (1%) increase is to be utilized by the City exclusively for the following purposes stated below.It should be noted that none of the temporary new revenues derived from this 1% sales and use tax increase are intended to or will be used to supplement and/or fund any general operational expenses of the City. The spirit of this proposal and its intent is centered upon utilizing this temporary new revenue to:
Ensure the needed expansion of The Gardendale Martha Moore Library
Eliminate current debt in order to stabilize the general operating fund
Provide needed increased revenues through economic development and expansion of our tax base
1. Recommendation:Allocate an estimated $1,000,000 for the completion of the library expansion which would include the required matching amount and any additional funds required to complete the project. Rational: The City is required to match the $300,000 grant for this project by February 2011 or relinquish this grant in its entirety. This commitment ensures the completion of the library expansion without jepordizing the benefit of the grant.
2. Recommendation:Allocate an estimated $3,754,031 to satisfy the long term debt obligations of the City, specifically to retire the Odum Road bond; Post Office bond; the Post Office property note; and to fully fund the remaining Civic Center bond through its maturity. This action will reduce future debt service obligations of the City to $40,453.75 annually and stabilize the general operating fund. Rational: As of September 2010, the average debt service over the next nine (9) years (2011 – 2019) will be $469,533.41 annually. Taking no action will reduce the general operating funds of the City to dangerously low levels. By utilizing a portion of the funds derived from the temporary 1% general sales and use tax increase, we will retire the Odum Road bond, Post Office bond and property loans and fully fund the remaining Civic Center bond until its maturity therefore reducing the average debt service over that same period of time to $40,453.75 annually.
3. Recommendation:Allocate an estimated $4,645,969 for the purpose of exploring and funding economic development initiatives and activities such as, but not limited to, engineering, feasibility studies, master planning, land acquisition, new infrastructure, existing infrastructure improvements and incentive packages that will directly or indirectly result in an overall expansion of Gardendale’s tax base and ultimately result in the needed increase in revenues. Rational: Mindful that Gardendale remains one of the few local municipalities where one can live, work and play without an annual local property tax assessment, we must not only sustain but increase revenue streams in order to continue providing essential services to our citizens and to maintain, enhance and supplant the quality of life for which Gardendale is known and to which its citizens are accustomed.
