City responds to Chamber questions on sales tax

The Aurora Chamber of Commerce released a statement to its members Friday afternoon reporting that city officials responded to questions from members gathered during a survey on the local sales tax issue.
The Chamber thanked members for feedback on the proposed city sales tax, which will be decided by a simple majority vote in Tuesday’s election.
While the number of responses was reportedly not sufficient for a formal stance, the Chamber noted that the business community should have a voice in matters affecting the city, and specifically, local businesses.
Recognizing the importance of this issue to the community, the Chamber compiled and forwarded these questions to the City of Aurora April 25th to ensure those voices were heard. City officials provided responses to those questions on Friday, which were the topic of former mayor Dave Long’s presentation at the Aurora Senior Center Friday at noon.
With the Chamber’s permission, the questions submitted by members and answers provided by the city are republished here, verbatim:

“We appreciate you, as Aurora Chamber of Commerce Executive Director, reaching out on behalf of the Chamber of Commerce Membership requesting information related specifically to the Sales Tax Ballot Question for the Primary Election on May 14th, 2024,” the city's statement began. “The Mayor and City Council hope that by providing answers to your questions and the questions of the Chamber of Commerce Membership, this will help clarify any questions the voters may have related to the use of sales tax.”

Questions:
1. Transparency and Use of Funds:
a. Subdivision Development Infrastructure Water/Sewer/Storm Sewer/Paving
b. State Hwy’s 34/14, Major Arterial, Subdivision Approach’s
c. Engineering Design and Construction Services
d. Utility Rehabilitation and Infrastructure Costs
e. Grant assistance for Subdivision Development “case by case”
f. Economic Development Director, Support by contract
The Mayor and City Council would like to continue funding economic development by providing an incentive to attract development of residential and commercial subdivisions to help increase the valuation within the City of Aurora and to help lower the mil levy which, in turn, reduces property taxes.

For Example:
a.b. Mission Critical Subdivision, Northridge Subdivision, Matson Industrial West Subdivision, Streeter 3 & 4 Subdivision, Streeter Fifth Subdivision to name a few of the latest projects. The city has participated in one or a portion of each of the infrastructure costs of W/S/SS/Paving or
Approaches to provide incentives to move forward with the projects as we’ve been told wouldn’t happen unless we could provide the economic incentive. That financial incentive would come from sales tax if the voters determine by their vote May 14th, 2024 there is a need for economic growth and reduction in property taxes.
c.d. We’re in the beginning phase of the 1st Street Rehabilitation Project where engineering design, construction services and the bidding processes are currently underway. This project would also be eligible for the use of sales tax if approved and provide further property tax relief.
Instead of funding the project at the expense of the property owners and increasing property tax.
e. The City as a governmental entity has the ability to receive grant funding from various grant programs including State and Federal Grant Sources in which for-profit organizations may not always be eligible to receive. This has been a great incentive for economic development with consideration of the past couple of years. These grant funds have added up to nearly 3 million dollars to off-set the cost of development providing a great opportunity for economic growth within the community and a positive effect on property tax reduction.
g. The City of Aurora has provided support for Economic Development in the past and hope to continue that support, provided funding is available. The Economic Development Director and the City of Aurora, working as a partnership, have been effective in our efforts with the growth of the community and we hope to maintain the same level of growth in the future.
2. Economic Impact:
• Will adding the sales tax encourage people to shop in Aurora or travel elsewhere?
* With other second-class cities and villages in our geographical area already having a sales tax (some as high as 2%), there may be little if any economic impact.
• What specific economic development is planned with the tax revenue?
* As mentioned earlier with sales tax voter approval, it would allow for the funds from sales tax collection to continue to fund a portion of infrastructure costs for subdivision development. This would be an incentive for the developer to take on residential, commercial and industrial development projects. With sales tax revenue we would continue to support a portion of the Economic Development Director costs by way of an agreement. Without sales tax it would be difficult to fund economic development.
• Will there be new attractions for adults and lodging options to attract visitors?
* As for the recreational activities citizens have brought to the City Council for consideration, the same consideration would be given to reasonable adult attractions. For example, fitness equipment in Streeter Park as once discussed would be considered provided funds are available.
Regarding lodging options, which are more of an economic development activity, the City would consider any “sales tax eligible request” for financial participation provided the sales tax ballot question is approved.
3. Community Concerns:
• Why is a property tax reduction not explicitly linked to the sales tax proposal?
* Using sales tax revenue for “property tax reduction” is different than providing “sales tax revenue” for a specific project. With “property tax reduction” we want to continue to provide an incentive for economic growth. In addition, with the “sales tax revenue” the mil levy would be lowered which also reduces property taxes. Specific projects that are fully funded by sales tax “and sunset” is a good option for capital improvement project but expenses for maintenance, insurance etc. is ongoing for those capital improvements with no chance in providing property tax reduction without sales tax revenue.
* Property Tax Reduction is directly linked to sales tax. For example, each year the City has different kinds of activities/projects to provide funding for within our budget like subdivision development, infrastructure extensions, recreation and maintenance of activities (tennis courts, soccer fields, disc golf, Mitchell Field improvements, dog park, skate park, public safety necessities like ambulances, police vehicles and equipment, infrastructure rehabilitation, replacement of water mains/sewer mains/storm sewer mains/streets) all of which are eligible for the use of sales tax and in turn reduce property tax. It’s difficult to put a specific percentage on each eligible use because as you can see it changes every budget year but depending on sales tax revenue, property tax reduction would be significant!
• Are there alternative solutions for funding public services without a tax hike?
* No, there are no other available revenue sources other than sales tax for the foreseeable future.
4. General Questions:
• How will the sales tax impact our daily lives (eating out, etc.)?
* For purchases in Aurora, sales tax will have a minimal effect on your daily lives at 1.5% for the purchase of sales tax eligible items (Dinner for two: $50.00 x 1.5% = .75,) but will have a positively profound effect on our lives on an annual basis with the reduction in property tax.
Was there sufficient public input and discussion about the proposed tax?
* Yes, the local option sales tax has been discussed by the Mayor, City Council and their constituents since 2012. Therefore, the Mayor and City Council felt with their respect for the citizens of Aurora, it would be best to approve “by Public Hearing” Resolution No. 24 – 05. This resolution provides for a vote of the citizens of Aurora to determine whether a “local option sales tax” is what they prefer to provide public services and reduce property taxes or “increase property taxes” to continue current and future city services.
If there are any further questions, feel free to call City Hall at 402-694-6992 for additional facts.”