Public encouraged to attend proposed tax sessions

Hill City will vote on an additional one percent sales tax levy Nov. 3. To help voters understand more about the proposal, there will be two informational meetings Sept. 23 at the Hill City Center. An afternoon meeting will be held at 3:30 p.m. while an evening meeting will take place at 7 p.m.

People are encouraged to attend either session to ask questions, provide feedback or to understand how the additional tax, if approved, will impact them.

The proposed tax is a direct result of a new South Dakota state ordinance which is allowing municipalities to put to vote an additional tax to fund infrastructure projects. In the case of Hill City, the tax would help pay for either the water or sewer projects the town is currently pursuing.

There are very strict rules for municipalities to follow to even get the proposed tax question on the ballot.

Hill City officials worked to form a Capital Improvement Board (CIB), made up of community members appointed by the mayor and approved by common council. 

The CIB will be in charge of the money that is collected. The CIB held two public meetings so far and got overwhelming support for pursuing the ballot initiative, but only if the additional tax was tied to the water and sewer projects. Thus, the Nov. 3 ballot question clearly explains that, if approved, the measure which will add an additional one percent municipal sales tax for water and sewer infrastructure projects.    The tax can only be imposed if at least 60 percent of voters approve.

The tax would be implemented year-round for five years, although it could end sooner if the required funding amount for the project is reached. 

If the additional one percent tax is approved, all revenue must  be deposited into a special capital outlay fund and can only be used for the eligible capital purposes approved by the voters. 

The tax exists solely to fund the specific project, and once that  stated dollar amount is hit, the tax is then shut off. The money cannot be used for staff salaries or routine programming. 

Dennis Siebert, who sits on the CIB board and is also a Hill City Common Council alderman, said data collected shows 80 to 85 percent of the additional tax would be paid for by people who don’t live within city limits. Residents and businesses would receive 100 percent of the benefits. 

Another item to consider is the additional tax can save taxpayer money by avoiding paying interest that would otherwise come with debt financing.  

The public is encouraged to attend either information session Sept. 23 at the Hill City Center.