The Warrenton Board of Aldermen voted to sunset one of the city’s two half-cent sales taxes for capital improvements at their March 18 meeting.
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The Warrenton Board of Aldermen voted to sunset one of the city’s two half-cent sales taxes for capital improvements at their March 18 meeting. The sales tax was enacted by voters in 2016 to pay off a $15.4 million loan the city took out to pay for the exit 191 overpass.
That loan was originally scheduled to be paid off over a period of 20 years, but the city had been making steady progress on those payments and will clear the debt entirely with the final payment scheduled for March 31.
Originally, the final payment on the loan was scheduled for March 31, 2037.
City Administrator Brandie Walters noted that the city was following through on a promise, as when the loan was taken out, and the sales tax passed, it was always planned to be repealed once the debt was paid off.
“I’m happy to say we’re paying this off 12 years early and with those extra payments that we have made and paying off early it is saving $2.4 million in interest over the lifetime of the loan,” said Walters.
Mayor Eric Schlueter was extremely proud of city staff and the board of aldermen for their efforts in paying off the loan early and saving the city money.
“You guys on this board and you guys as staff have no idea how good it is to finally say something that we’re repealing on a tax level,” said Schlueter.
He was also pleased that the city was able to fulfill its promise to repeal the tax to voters, instead of finding some other use for the revenue.
“It feels even better to be able to say we said it from the get-go and we stuck with it the whole time and now it’s coming to be,” said Schlueter. “I’m not knocking anybody else but I don’t know many cities that can really say that, they usually spend that money somewhere else instead of sticking it where it belongs.”
Alderman Larry Corder went a step further and expressed his excitement for the improvements coming to the Highway 47 overpass through the Improve I-70 project as well.
“At least we won’t have to get off at Wright City or Truxton, andwe can actually get off at a Warrenton exit,” said Corder.
Walters had previously stated the significance of the interest savings, with total making up roughly 12% of the city’s annual operating budget.
The half-cent sales tax that was repealed at the meeting was one of two that was enacted to pay for the overpass. The second sales tax remains in place although, according to Meghan Waelder, those funds have not yet been allocated by the board.
