Carson City supervisors will consider whether to ask voters in November if they agree that increasing sales tax slightly to pay for a city storm drainage system is a good idea.
The change would require the city to ask the 2005 Legislature for the increase to pay for building, operating and maintaining an upgraded system to guard the city from major flooding.
This month, city water customers will start paying $600,000 per year through a rate increase approved by supervisors in December. Residential customers are expected to pay an additional $1.70 a month, while public properties will pay an extra $10.35, commercial customers another $15.50, and manufacturing businesses another $13.75, the city estimated in December.
But the extra funds won't be enough to pay for the whole system, said Mayor Ray Masayko.
"The rate we implemented does not fully fund what we need to do," Masayko said.
City leaders are hoping to offset further rate increases with the proposed sales tax increase, if voters approve.
"My strategy on this is to minimize to the extent possible the monthly charge impact on business, manufacturing and government facilities, along with the school district in Carson City," Masayko said.
"If we do not get the sales tax, the rate we implemented does not fully fund what we need to do, so the rates would have to go up," he said. "It's just a fact."
The city estimates the new system will cost $1.2 million annually for capital purchases, operation and maintenance at the most basic levels.
The proposal calls for adding 1Ú8 of a percent sales tax. State law doesn't allow Carson to raise sales tax by just 1Ú8 percent. It also requires the city to use the revenue generated only for capital expenditures.
City supervisors are expected to decide Thursday whether to take the matter to voters in November, asking permission from them to approach the next legislative session to amend the rules.
Supervisors meet beginning at 9:15 a.m. in the Sierra Room of the Carson City Community Center, 851 E. William St.
Plans have been forming to improve the city's drainage system since the 1997 New Year's flood. A Storm Drainage Advisory Committee met for four years to develop a plan.
The drainage system would address flooding, maintenance of storm-water facilities built outside the freeway corridor as a result of an agreement with the state transportation department, and a new federal law that requires the city to obtain a national pollutant discharge elimination permit for storm water to address water quality.
Contact Jill Lufrano at jlufrano@nevadaappeal.com or 881-1217.
