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Ethanol Water Deal Possible
By Mr Ethanol | April 2, 2008
Centralia Morning Sentinel:
City Council met Monday to discuss a proposed sales tax referendum and a proposed water supply agreement for ethanol production.
The sales tax referendum, according to City Manager Grant Kleinhenz, said that a sales tax increase, like the one recently approved by the residents of Salem, would generate revenue for the city that would help pay for capital projects. One such project, he said, would be a new water treatment plant that the city needs.
Kleinhenz said, “I’m surprised they approved the sales tax referendum. I think it was a good project, and it will certainly help that community. They did an excellent job for public relations, and getting the word out.”
In Salem, the sale tax increase will be used, at least partially, to pay for a new public swimming pool, and Councilwoman Katie Stanford explained that the project may have been the reason for the overwhelming support of voters on the matter.
In Centralia, part of the increase would be used to pay for the water treatment plant, as well as, other infrastructure upgrades, that would be beneficial to the entire community. By increasing sales tax, up to 1 percent, the burden of paying for a water treatment plant would not be placed solely on residents. The city could seek anywhere from around one-quarter to 1 percent.
A new plant could cost the city anywhere from $16 to $20 million, and in order for water rates to pay for the project alone, the city would be required to quadruple rates for residents. Generating more sales tax revenue, Kleinhenz said, would spread out the burden to everyone who shops in Centralia.
Groceries and prescription drugs would not be subjected to the increase. Automobile dealers would also not see an increase in sales tax, Kleinhenz told the council members present at the work session.
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