Warrenton voters will decide in April whether or not to approve a new half-cent sales tax for constructing and operating an indoor recreation center. Unlike a similar measure that was narrowly …
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Warrenton voters will decide in April whether or not to approve a new half-cent sales tax for constructing and operating an indoor recreation center. Unlike a similar measure that was narrowly defeated by voters in 2008, the latest proposal calls for construction on the proposed facility to be delayed so that the city can build up funds for the project and lower the annual debt service payment. City officials are considering constructing an indoor facility that would include an aquatic area, gymnasium, walking track, fitness equipment and multipurpose rooms. It would be built on 7 acres the city owns along Market Street behind the Warrenton 8 Cinema complex. Aldermen indicated at a work session last Tuesday, Dec. 20, that they were in support of placing a half-cent sales tax measure on the April 3 ballot. The board is expected to officially vote to proceed with the proposed sales tax measure at its next meeting on Tuesday, Jan. 3. The city has until Jan. 24 to place the sales tax measure on the April ballot. Voters defeated a half-cent sales tax increase by 76 votes to fund the project in November 2008. If the new tax is approved, the city's sales tax would increase from 7.975 to 8.475 cents. A simple majority is needed for passage. Officials renewed their interest in the indoor facility earlier this year and contracted with Ballard King and Consultants, a firm specializing in recreation facility planning and operations, to update a feasibility study that was first completed in 2008. The study included updated construction and operating expenses, as well as a survey seeking input from residents. During last week's meeting, aldermen agreed a decision should be made by the public on how the city should proceed with the proposed indoor facility. It will then be up to a future board to decide when construction should begin and whether the city can afford to include an aquatic portion as part of the proposed indoor facility. "I think you have to step out there and see what they're willing to do to support it," Mayor Greg Costello said about voters. "It would be wonderful to say with a half-cent sales tax we're absolutely certain we will have this. With the economy and not knowing what your sales tax will be in the future, I don't think we've got that luxury right now. I don't think you can establish right now what you will be able to offer." A lot of the proposed project's future uncertainty relates to sales tax revenue received and what the city can afford. The estimated annual revenue from a new half-cent sales tax is $650,919. The city also anticipates paying off the existing athletic complex loan in June 2014 - which amounts to $665,000 - which will free up more funds for the indoor facility. Once the loan is paid off, the city would have an estimated $626,379 available for debt service, of which the city could afford an estimated $8.3 million in certificates of participation or $8.6 million in general obligation bonds though the actual loan amount cannot be determined until the city decides to begin construction. Without the aquatic portion, the project cost to construct a 43,550-square-foot facility is estimated to be $10.3 million with an annual operating cost of $220,861. With the aquatic portion included, the estimated operating cost rises to $353,587 and the size of the facility increases to 56,000 square feet, a move that bumps the project cost to between $13 and $15 million. To help make the project more affordable, the city could save and not spend any money generated from both the new half-cent and existing quarter-cent sales taxes and allow the balances for both to grow. In 2015, the combined fund balance for both sales taxes is estimated to be $2,382,757 and could increase to $4,144,595 in 2017. By applying the saved sales tax funds toward the proposed project, the city may be able to afford the indoor facility without the aquatic portion as early as 2015 when the loan amount is projected to be $7.9 million, according to the funding analysis of the facility. If the swimming area was included during the initial construction phase, the city might be able to afford the estimated loan amount of $8.8 million in 2017. However, an increase in construction costs would cause the loan amount to increase for both options and push back a proposed starting date by at least another year. Aldermen emphasized the need to educate the public to make them understand that construction would not begin immediately. "We will find out if the public really supports the tax or not," Ward 2 Alderman Fred Flake said. An online survey conducted between mid-September and Oct. 21 showed strong public support remains for an indoor recreation center, as 75.1 percent said they would vote in favor of a sales tax measure. Another 9.9 percent said they might vote for the facility, with 11.7 percent and 3.3 percent stating they would vote against it or were unsure, respectively. A similar survey conducted in 2008 revealed that 53 percent of the respondents said they would vote in favor, while 17 percent stated they opposed a sales tax increase for the project. In another survey question this year, 33 percent of respondents expressed support for a quarter-cent sales tax increase, 29.7 percent for a half-cent sales tax and 18.3 percent for a one-tenth sales tax. Nineteen percent said they were opposed to a sales tax increase, a figure that decreased by half compared to 2008 results. The city received 313 responses from this year's survey that was open to everyone. In 2008, 413 responses were received from a survey that was open only to city residents. Based on the survey's results, Ward 1 Alderman Phil Tallo feels residents want an indoor facility. "I think it was even more positive this time," he said. "It's one of those things I hoped we could build while I was an alderman. I agree with the response, we should put it on the ballot."