Extension of the one-cent local option sales tax (LOST) in Charles City took another step forward at Monday night’s city council meeting.
The council approved a prerequisite resolution to get the tax on the ballot for a vote, with the next step being for the council to officially decide how the ballot will read, reflecting how the LOST proceeds will be spent. City Administrator Steve Diers says the ballot wording will be finalized at the next regular council meeting.
Diers says discussion of how the LOST money will be used will continue during a workshop session next week, but the consensus is to continue utilizing the some $900,000 a year it generates for street and road maintenance and construction. Diers says the recently completed Highway 18 resurfacing project is a great example of the use of the funds.
Floyd County also has a one-cent local option sales tax being used for rural road maintenance. Both the county’s and city’s LOST taxes are slated to end 10-year runs on December 31, 2022, but residents will be asked to extend taxes for another 10 years during a special election currently targeted for March 1, 2022.
The county is expected to approve their prerequisite resolution to get the LOST on the ballot at their meeting October 26 with the resolution to approve the ballot language November 9.