After seven previous discussions at Sedona City Council meetings, the half-cent sales tax is here to stay with a 6-1 vote.
Since the unanimous vote on May 11, City Council staff have moved forward with the plan to extend the tax from its original 2028 end date indefinitely. Councilman Tom Lamkin was the opposing vote on the final approval at the Nov. 9 meeting.
“Originally, the tax was passed to fund projects to address the traffic issues. It included transportation and other projects as well as transit,” Lamkin said. “My concern was that setting it aside for transit would result in a reduction or possible elimination of funding for traffic-specific issues other than transit in the future as transit costs could become so high that there would be no funding available for other traffic projects.”
Lamkin said his other concern was the council moving too quickly through the 10-year sunset tax, motioned through in 2018. He also stated that if the council wishes to go through with the motion, they should consider a separate transit tax instead of dismissing the sunset portion of the half-cent sales tax.
The ordinance will continue the City Transaction Privilege Tax from its former 3% to 3.5% with the dedicated 0.5% put toward “transportation projects and related administration costs.”
According to Sedona City Manager Karen Osburn, this half-cent tax is designed for the upcoming transit system and gives approximately $4 million annually to the project.
Osburn, who led the presentation at the council meeting, said that although the transit system will not be fully operational for another five years, the tax will be in place to sustain the operations and growth. And while the transit system still has a few years until it is in operation, Osburn said that since public support was so high at the start of this process, it would be a mistake to lose momentum now.
Back in May, Osburn presented the numbers for public support. These showed that 81% of the community supported more transit services from the National Citizen Survey. And 61% of the community reflected positively when asked during the Fiscal Year 2021 budget survey.
“This gives us the assurance and [gives] the community the assurance that there will be a source once this is all built out to run the program on an ongoing basis,” Osburn said.
Councilwoman Jessica Williamson stated her disagreement with Lamkin’s disapproval of the ordinance in favor of the indefinite tax’s claimed ability to assist with future grants for the city’s capital costs.
“It seems prudent to plan funding for something we know will be a very big expenditure,” Williamson said.
In the end, the six other council members agreed with Williamson and carried out the vote to approve. The city posted the tax increase and modification based on the model city tax code to its website at the end of August. A public hearing was also held on Oct. 22.
The dismissal of the sunset portion of the half-cent sales tax will begin immediately.
