I appreciate that you are taking the time to read my column. I want to be very clear that this column reflects my personal thoughts on the possible sales tax increase being discussed by our community leaders. The following does NOT reflect the views of LIBA or its Board of Directors.
As the city, Mayor, elected officials, and community leaders talk about a plan to increase the local sales tax by ½% or ¼%, I encourage you to consider several points.
First, there were many causes listed as needing funding such as roads, parks, sidewalks, economic development and fixing problem properties. While each of these is certainly worthwhile, I would encourage the community to focus on fixing our local streets. Documents provided by the Mayor’s office show that in the past 9 years, our street conditions have deteriorated horribly. In 2005 we only had 13% of our streets in fair to poor condition. Today we have 37% that are rated fair to poor.
The documents also reveal a startling statistic. A $1 million dollar project can cost as much as $15 million if the street declines from “good” to “poor.” You can see that properly funding street rehabilitation is a smart move and saves money!
I would also urge our community leaders to consider the increased burden to restaurant and bar patrons if a ½ cent sales tax is implemented. If you add the Arena Tax, followed by the standard 7% sales tax, then add in a new ½ or ¼ cent sales tax, it will mean you are paying nearly 10% on your bar and restaurant bill. Part of the tax is compounded because sales tax is charged on the arena tax, or a “tax on a tax.”
Additionally, I think the city needs to prove that it will be good stewards of the tax dollars they already collect. The city has not always had a good track record of keeping promises. You may recall that when wheel taxes were increased from $31 to $39 in 1995 city officials claimed the money would be used to widen Old Cheney Road from 70th to 84th streets, 56th Street from Old Cheney Road to Pine Lake Road and Pine Lake Road from 56th street to Nebraska Highway 2. In the ensuing 18 years the city has increased wheel taxes six more times and the promised projects have yet to be completed.
For some, this ½ cent sales tax has become a debate about road funding vs. parks and sidewalks. It should be noted that in a June 2014 community meeting, the Mayor announced that he was going to provide another $1 million in funding for Lincoln Parks & Recreation in the new city budget. Also this year, the city approved $4 million in new funds for sidewalk repair. The City found funding for parks and sidewalks, now it is time to address Lincoln’s roads problem.
Finally, the Mayor conducted a scientific poll that showed 89% of Lincolnites wanted the roads to their home fixed or repaired. It’s my opinion that now is the time to focus on fixing our streets and I hope we can do it without another tax increase! I welcome your thoughts at (402) 430-5554.
by Coby Mach, President & CEO
Lincoln Independent Business Association
402-466-3419
LIBA studies and promotes these types of issues that are important to businesses and our community. If you have an interest in joining LIBA, please call me at 466-3419. LIBA membership is not restricted to just businesses. We also have “individual” memberships for those who want to help influence our local government decisions.