Springville eyes one-cent sales tax increase
Published 4:00 am Wednesday, August 10, 2011
In order to offset their investment in the Coosa Valley Water Supply District, sales taxes in the city of Springville may go up by 1 cent next month.
According to Chip Martin, CPA, the city joined the Coosa Valley Water Supply District in 2005. In the midst of drought conditions and other concerns at the time, the city agreed to purchased 750,000 gallons of water per day from the system, which is scheduled to go online in October.
“We’re now 100 percent in excess of our demand [for water],” Martin said.
The contract will cost approximately $640,000 per year, or $53,000 per month. To offset that cost, Martin said there were three options to offset the cost: a 1 cent increase in sales tax, raise water revenues more than 80 percent, or do nothing, and deplete the $1.1 million in cash reserves the city has, which would take one to two years.
Martin said the budget committee agreed that the 1 cent sales tax increase would be the best solution.
The ordinance received its first reading during Monday’s city council meeting, and will be on the agenda for another reading on Aug. 15.
Springville’s current water system, including their pumps and treatment facility, will no longer be used to provide water, which will help save the city money in those arenas. Should there be a drought or water supply shortage, however, the system would serve as an emergency back-up to keep water flowing.
As a result of the Coosa Valley deal, the city will also reduce their water purchase from Trussville Water Works by 50 percent, and eventually, will stop completely. Some areas in the city can’t yet be serviced by Coosa Valley due to elevation issues, but should be able to in the near future as the system is expanded.
Sign ordinance to receive revamp
Councilman John Coyne addressed the council regarding the cleanup of some areas of Springville.
“From the four-way stop to the Interstate is our main drag, and I’d like to see the city force businesses there to clean the areas down there. It looks terrible,” Coyne said. “Everyone who comes off the interstate comes that way, and it’s just junky.”
Coyne mentioned that Sal’s Italian Restaurant recently purchased a new sign, which he said looks good, and felt that other businesses in the area needed to follow suit.
During a recent meeting, the council had concerns over the use of non-permanent signs, which are required to be permitted and are subject to other regulations that have not been enforced until recently.
However, the councilmembers had concerns that not allowing the signs may hamper business in that area.
As a result, the Planning and Zoning board are currently in the process of rewriting their ordinances, which includes the city’s sign ordinance. The new ordinance should be ready for review by November, and will likely be adopted by Jan. 1. The current ordinance will be enforced in the mean time.
In other actions:
— The streetscape project is one step closer to completion. Parishioners of the Methodist Church are expected to meet with ALDOT later this week in regard to the wall scheduled to be built on their property. The council also passed a resolution to take responsibility for maintenance of the wall once it is constructed.
— An expenditure of up to $500 was approved to clean up an abandoned property on McGinnis Street. Richard Harvey said one month ago, a group of properties were issued letters requesting the property owners to clean them up. However, a certified letter to this property owner was returned as non-deliverable, allowing the city to take action after a 30 day waiting period.
— The Springville Splash Pad is schedule for a grand opening Aug. 20.