Iolans to decide whether to extend city sales tax

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Local News

October 19, 2018 - 11:07 PM

It’s not a stretch to say the most important vote for Iolans on Election Day may have nothing to do with who becomes the state’s next governor, our next representative in Congress or who gets a seat on the Allen County Commission.

When Iola voters head to the polls, they’ll be asked to extend the citywide half-cent sales tax that’s been in place since 1989.

Revenue from the tax has been used for major street projects and repairs, other capital projects, such as sidewalk replacement and trail extensions, and since 2012, to help pay for construction of Allen County Regional Hospital.

“It’s important to note that approval of the sales tax extension would not increase the sales tax in Iola,” City Administrator Sid Fleming said. “It’s the same tax they’ve paid for nearly 30 years.”

The existing sales tax rate runs through 2019.

“We’re a little early (in putting the referendum back before voters), but we just thought we’d like to get it out and done, and hopefully we’re successful,” Fleming said.

THERE ARE some big-ticket items hanging in the balance of the Nov. 6 vote, most notably a full rebuild of Madison Avenue, from McDonald’s on the west edge of town to Jump Start Travel Center on the east.

While acknowledging a better look at the project’s cost wouldn’t be available until an engineer’s study is complete, Fleming expects the price tag to land in the $8 million range, or more.

Because of a recent change in how the federal and state governments provide assistance to municipalities for road projects, Fleming doesn’t expect much outside funding.

“There might be other options out there,” such as some sort of financing plan, he continued, “but honestly, if we’re going to get Madison done, the sales tax vote will have to be successful.”

The other interested party in the upcoming ballot initiative is the hospital.

Allen County voters approved a quarter-cent sales tax in 2010 to help pay for ACRH’s construction, a figure made possible after Iola city commissioners agreed to hand over half of its half-cent tax revenue — roughly $300,000 annually — to pay off construction bonds.

Trustee Patti Boyd told the Register this week the hospital plans to reach out to the city once again — if the sales tax is extended beyond 2019.

If Iola voters say yes to the extension, the decision to continue supporting the hospital rests with Iola City Council members.

THE SALES tax has been approved by overwhelming margins in 1989, 1995, 1999 and 2008. The most recent extension in August 2008 was supported by 78 percent of the voters.

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