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City Defines Revenue Plan if Use Tax Issue Passes
Published: Tuesday, July 15, 2008 by Lisa Houtchens, C-T

July 14, 2008 - Chillicothe City Council members have formally endorsed the local use tax ballot issue to be voted on in the Tuesday, Aug. 5, municipal election. Council members discussed the proposal during their regular semimonthly meeting Monday evening at City Hall and stated that its passage could benefit Chillicothe. A resolution, unanimously supported by the council, states that 50 percent of the money collected through the tax, if passed, would be used for retaining trained employees, while 25 percent would be used for acquiring and maintaining city equipment and the remaining 25 percent for economic development efforts to attract new jobs and businesses and assist local business to keep jobs in the Chillicothe area. The resolution stated that general revenues of the city are not adequate to absorb the large cost of employee retention, equipment needs and economic development.

Mayor Chuck Haney said that passage of the local use tax would “level the playing field, for everybody the area” since many other communities have implemented a local use tax. He said that 592 cities and 72 counties in Missouri currently have local use taxes. The local use tax if passed, would tax out-of-state purchases over $2,000 in a calendar year. If passed, a tax of 2.25 percent would be placed on goods purchased from out-of-state, shipped into Missouri and used by consumers. Livingston County voters passed a similar use tax proposal two years ago at the county level. The county’s use tax rate is 0.75 percent, which is the same rate as the county’s sales tax rate. The city, likewise, would set its use tax rate at the local city sales tax rate. If the ballot measure passes, the city could see somewhere around an additional $400,000 in revenues, city officials say.

Also a topic on last night's agenda was a cost share project with the Chadwick Plaza to curb runoff issues affecting development on Thompson and Brennan drives. The project will also benefit improvements in or along the Fairway Drive project. The project involves installing storm drain systems, in accordance with city ordinances, to reduce runoff by 99 percent, according to Street Superintendent Hugh Musselman. The council approved the cost share agreement with the city reimbursing the developer an amount equal to 50 percent of the cost of materials and/or equipment up to $28,380. The city's portion will come from the permanent street fund. Discussions regarding this project has been in the works for about two years, according to City Administrator Dean Brookshier.

The council visited the topic of a previous special meeting regarding Hedrick Medical Center's renovation or the building of a new facility. Two companies have been working on proposals: Murray Company and Health Care Resources. A council member mentioned having a representative in the planning process up until the final decision but the council decided to wait until both companies had submitted plans before deciding what action to take. It has yet to be determined whether action would involve a specially-appointed committee with a council representative or if the City Council would be the leader in the decision, according to Brookshier.

Newly-hired Athletic Fields Manager Josh Norris was introduced to council members Monday night. Norris has been part of the parks and recreation crew for the last six summers. "I could always see myself doing this job, and enjoying this job," he said.

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